OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-07-31-accounts

VTCT Skills / ANNUAL REPORT 2023 - 2024

Foreword

VTCT Skills has been empowering individuals and transforming industries for over 60 years. Our commitment to providing quality vocational training has enabled thousands of learners to achieve their career goals and make a positive impact on the world.

Today, we are proud to present VTCT Skills, our new brand that signifies our unwavering commitment to excellence in vocational education. By uniting our expertise under one name, we aim to deliver innovative, industry-relevant qualifications, training and End-point Assessments (EPA) that equip individuals with the skills they need to succeed in today’s competitive job market.

Jenny Sworder, Chair of the Board of Trustees

Alan Woods OBE, Chief Executive

2

VTCT Skills Annual Report 2023 - 2024

At VTCT Skills, our purpose is clear: to transform lives through skills. This principle has guided us for the last six decades and remains central to everything we do.

We’re more determined than ever to set a new standard in vocational training, driving positive change for our learners, training providers and employers.

As an Awarding Organisation (AO) and End-point Assessment Organisation (EPAO), we are proud to have supported over 90,000 learners across nearly 3,000 training locations worldwide this year.

Our international expansion, particularly in key markets like Botswana, Vietnam, and Malaysia, has allowed us to reach even more individuals, providing them with the skills and knowledge they need to succeed. This growth is a testament to our dedication to making a positive impact on learners’ lives.

We’ve also seen important progress in sectors like Early Years, which grew by 2%, reinforcing our commitment to nurturing the next generation. Since adding Logistics to the sectors we cover last year, we’ve focused on understanding its unique demands by consulting with colleges, training providers, and employers to lay the groundwork for solutions that will address industry needs in the coming year.

We’ve taken crucial steps to refine our qualifications, ensuring they’re not just relevant and inclusive, but that they directly meet industry needs. Through initiatives like our Hairdressing and Barbering Collective, we’ve brought together learners, training centres, educators, brands, and employers, sparking meaningful collaborations and driving positive change.

Our Skills Advisory Boards (SABs) have also expanded, ensuring that our products align with the latest employment trends in sectors like Early Years and Logistics.

To enhance the management and growth of customer relationships, we’ve implemented HubSpot across the business. This new customer relationship management system is transforming our customer support function, empowering us to make smarter, data-driven decisions and elevate the overall customer experience.

Our partnerships with industries have grown stronger through more effective consultations with employers, ensuring our qualifications remain relevant and deliver real value. Innovation, growth, and quality will continue to guide us as we move forward.

The coming year promises further expansion of our products, geographical scope, industry collaborations and commitment to our learners. We are energised to do even more to tackle key skills gaps head-on and continue investing in qualification and assessment development.

Our achievements would not be possible without the exceptional team of individuals who make up VTCT Skills. From our dedicated colleagues to our valued stakeholders and partners, your unwavering support and commitment have been the driving force behind our success. Together, we have demonstrated the power of teamwork and the importance of working towards a common goal.

Together, we will keep transforming lives through skills.

Jenny Sworder

Chair of the Board of Trustees

Alan Woods OBE

Chief Executive

3

VTCT Skills Annual Report 2023 - 2024

Contents

Foreword

Foreword
02
We craft
qualifcations,
End-point
Assessments
and services
20
What we
stand for
06
We help Training
Providers think bigger 12
We power progress
through meaningful
connections
16
We ignite passion
in our learners
08		 Performance
against strategy
32
The New
Force Behind
Our Culture
49
Redefning our
Brand and Culture
46
2024 Excellence
Awards
24
Our new
strategy
40
Introducing
VTCT Skills
47
Meet our Trustee
Apprentice
52		 Governance
and Audit
54
Administrative
information
58
Financial
Overview
60
Financial
Review
61
Risk
Management
64
Audit
Report
66
Financial
Statements
68

5

VTCT Skills Annual Report 2023 - 2024

What we stand for

Our Purpose Transforming lives through skills. Our Mission Setting a new standard for technical and vocational skills worldwide.

6

VTCT Skills Annual Report 2023 - 2024

Our Values

Collaboration

Work together for greater impact; don’t do it alone.

Expertise

Lead with confidence, using our heritage and experience.

Energy

Inspire others with passion and warmth.

Ease

Simplify complexity to identify the best route forward.

Partnership

Be on the side of our customers and learners.

7

VTCT Skills Annual Report 2023 - 2024

/ We ignite passion in our learners

...by equipping them with the practical skills and the confidence to realise their full potential in the world of work. Our focus goes beyond just training, we provide real-world learning experiences that prepare people for meaningful and fulfilling careers.

117,633 registrations

93,815 certifications

5,761 EPAs completed

9

VTCT Skills Annual Report 2023 - 2024

“ Starting my VTCT Skills apprenticeship with Hairforce1 has been instrumental in shaping my career as a barber. The hands-on experience, industry insights, and expert guidance I’ve received have given me the skills and confidence I need to excel.

This VTCT Skills-certified training has laid a strong foundation for my success, and I highly recommend Hairforce1 to anyone serious about pursuing a career in Barbering.”

Nevado McKenzie Hairforce1 Barbering apprentice

VTCT Skills Annual Report 2023 - 2024

“ My apprenticeship has given me my licence which is invaluable to my career. Not only that, but it also provided me with broader knowledge about the Logistics industry, which, I wouldn’t have been able to pick up just from my job.

There’s no reason why women can’t do this job. If you’re a female who likes driving and spending time alone, then I would say go for it!”

Jessica Holden TRS LGV apprentice

11

VTCT Skills Annual Report 2023 - 2024

We help Training Providers to think bigger and achieve more

12

VTCT Skills Annual Report 2023 - 2024

...by partnering with them to deliver exceptional learning experiences. By supporting curriculum development and staff empowerment, we collectively grow the next generation of industry professionals.

53 Countries

164 new training centres

2,683 training locations

13

VTCT Skills Annual Report 2023 - 2024

“Our journey with VTCT Skills as an End-point Assessment Organisation has been invaluable. Their responsiveness and expertise have supported us in navigating the complexities of apprenticeship standards and assessments. Together, we’ve worked towards amplifying the sector’s voice and fostering collaboration within the Early Years Collective.”

Gill Mason, Training Academy Director, Kids Planet

VTCT Skills Annual Report 2023 - 2024

“We chose ITEC for its global recognition and high standards, which align seamlessly with our mission to provide quality education. Their support has not only enhanced our credibility but also empowered our graduates to succeed with confidence and global mobility.

The comprehensive ITEC curriculum ensures our students remain competitive in a fast-changing industry. Witnessing our students grow, thrive, and achieve success in their careers is incredibly fulfilling and a true reflection of the impact we strive for at Sicta Beauty School.”

Sam Lee, Principal, Sicta Beauty School Singapore

15

VTCT Skills Annual Report 2023 - 2024

We power Powering progress progress through meaningful connections

...with our stakeholders, driving success across the board. From employers to influential leaders, we work together to bridge the gap between education and employment whilst consistently championing skills.

----- Start of picture text -----
We work with
150+
employers
----- End of picture text -----

923 attendees at Hairdressing and Barbering Collective live events

Skills Advisory Boards in Early Years, Logistics, Hairdressing & Barbering and Beauty

17

VTCT Skills Annual Report 2023 - 2024

“ The VTCT Skills Collective is vital for bringing students, tutors and industry together to see the wider picture of what VTCT Skills offer in terms of industry education development with leading industry professionals. This vital space ensures a positive impact for colleges, tutors and learners by listening to feedback and taking action. From CLOUD NINE’s perspective, our collaboration with VTCT Skills has reignited our commitment to supporting future hairdressers and tutors, inspiring us to launch our own initiative. It’s more important than ever to stand together for the advancement of our industry.”

Marie Nieuwoudt, Group Education Manager, CLOUD NINE

VTCT Skills Annual Report 2023 - 2024

“ As a member of the VTCT Skills Advisory Board, I’m excited to be working with an organisation that is actively seeking to understand and address the challenges facing the Logistics industry. While this sector offers incredible opportunities, we’re also facing significant skills gaps that threaten the industry’s potential for growth. By collaborating on these issues, we can develop the right skills, aligned with the evolving demands of the sector. I’m proud to be part of this important work, helping ensure we’re not just filling roles but equipping the workforce with the skills needed to thrive in the future.”

Joanne Polhill, Group Emerging Talent Manager, CULINA

“ I’ve witnessed the remarkable impact of industry-wide collaboration firsthand. Supporting VTCT Skills to honour those advancing vocational education has truly highlighted the significance of these careers. By uniting to support future leaders, we’re not only building stronger futures but also making a tangible difference in people’s lives. This experience has been incredibly inspiring, and I’m proud to have been a part of it.”

Sharon Blyfield OBE, Head of Early Careers, Coca Cola Europacific Partners

19

VTCT Skills Annual Report 2023 - 2024

We craft qualifications, End-point Assessments and services

20

VTCT Skills Annual Report 2023 - 2024

...that lead the way in skills development. By combining awarding and assessment expertise with industry insights, we deliver solutions that empower learners and drive business growth.

----- Start of picture text -----
Top
10
EPAO
----- End of picture text -----

18 Sectors

19

New EPAs and qualifications released during 2023-2024

----- Start of picture text -----
33
Standards
----- End of picture text -----

514 Qualifications

21

VTCT Skills Annual Report 2023 - 2024

Inside product development: Building leaders through real-world application

After over 35 years in Supply Chain and Logistics, I’ve seen firsthand the gaps in training—especially when it comes to delivering targeted development for emerging leaders. Traditional programmes often lacked the flexibility businesses needed, and we were determined to change that.

Gary Mackay, Lead Tutor, Logistics and Supply Chain, VTCT Skills

VTCT Skills Annual Report 2023 - 2024

Working closely with local companies in the West of England Combined Authority (WECA) area, we identified a real need for a qualification that wasn’t just about theory but about practical, applicable skills. It was clear that businesses wanted an alternative to a typical classroom-based course. When we created the First Line Managers qualification, we focused on a projectbased approach, allowing learners to apply what they were learning directly within their workplace.

The first cohort was with Nisbets, a global leader in warehousing and distribution. What really stood out to me was the enthusiasm from both the learners and the company itself. Employees who showed potential to become team leaders were handpicked to join the course, and for them, this was more than just a learning opportunity—it was a reward and a clear pathway to career progression.

I saw real growth in the participants. Not just in their knowledge, but in their confidence. Many had never delivered a formal presentation before, but by the end, they were standing in front of senior management, presenting their business improvement projects.

One of the key focuses was to ensure that each project added real, measurable value to the business. By the end of each course, the projects completed have generated £800,000 in savings for Nisbets—demonstrating the powerful, real-world impact of this training programme.

What makes this qualification unique is its flexibility. We work with companies to adapt the delivery model around their business needs and seasonality, ensuring that training doesn’t interrupt day-to-day operations. We also offer around-the-clock tutor support, which has been particularly valuable for those working night shifts.

Nisbets was so impressed with the outcomes that they made completion of this qualification a prerequisite for any team leader promotion. For me, this is the biggest measure of success. We’re not just delivering training— we’re shaping the future leaders of the industry. It’s incredibly rewarding to know that this course is making a tangible difference—not just for the businesses, but for the individuals who want to progress and lead in the Logistics industry.

23

VTCT Skills Annual Report 2023 - 2024

/ ExceLLence Awards 2024

Our Excellence Awards returned in 2024, bigger and more meaningful than ever, showcasing the powerful impact of vocational education. As a key moment in the VTCT Skills calendar, these awards recognise the outstanding achievements of learners, educators, and organisations that embody the very best of vocational training.

This year, the awards expanded to celebrate excellence not just across the UK and Ireland, but also in Africa for the first time.

What makes the Excellence Awards stand out is how they truly reflect our mission— transforming lives through skills.

These awards shine a light on the dedication and stories behind vocational education, giving industry leaders a real glimpse into the impact that this sector has. By recognising every kind of success, we ensure that every journey, no matter how unique, is celebrated. These awards go beyond recognition— they’re our opportunity to showcase the transformative power of skills. Through their inspiring stories, our learners, educators, and organisations demonstrate how vocational training acts as a catalyst for growth, driving positive change across industries and communities.

25

VTCT Skills Annual Report 2023 - 2024

VTCT Skills Excellence Awards 2024 UK Winners

Apprentice of the Year Lucy Harris, SP Training

College of the Year Highlands College

“ The award was a testament to our commitment to excellence, innovation, and inclusivity, and it inspired us to continue striving for even greater heights in the future.”

26

VTCT Skills Annual Report 2023 - 2024

VTCT Skills Excellence Awards 2024 UK Winners

Educator of the Year Lisa Breakey, The Manchester College

“ This is a fabulous accolade, and I was amazed that past students and staff had written such wonderful comments and highlighted the effect I may have had on their career or development. I was overwhelmed and grateful to have had the opportunity to influence the lives of others in a positive way with the power of education.”

Large Training Provider of the Year Parenta Training

“ This recognition motivates us to continue striving for excellence and making a difference for the next 25 years and beyond.”

27

VTCT Skills Annual Report 2023 - 2024

VTCT Skills Excellence Awards 2024 UK Winners

Small Training Provider of the Year Mike Taylor Education

Student of the Year Hayley Channon, TrichoCare Education

“I was delighted that I had been recognised. Winning this award showed me how much I am capable of, what value I have, and to keep pushing myself.”

28

VTCT Skills Annual Report 2023 - 2024

VTCT Skills Excellence Awards 2024 UK Winners

Contribution to the Sector Gill Mason, Kids Planet Day Nurseries

“ The moment when all your years of effort and dedication to the sector is recognised feels quite cathartic. I am inspired to continue on this quest for parity of status and esteem in the early years sector – and to ensure everyone is aware of the transformative impact of education across all stages of life.”

Special Recognition Winner Oliver Rees, PMA

“ I was ecstatic to win. It’s been a long journey to get to where I am right now and I am over the moon to have won this recognition from industry leaders VTCT Skills. I really do believe I have a lot to offer as an educator and that I often take a unique and personalised approach, reflecting my own unique journey and experiences.”

29

VTCT Skills Annual Report 2023 - 2024

VTCT Skills Excellence Awards 2024 Africa Winners

College of the Year Elite School of Beauty

Large Training Provider of the Year Sandy Roy, Beauty Therapy Institute

Educator of the Year Jedine Viljoen, Kohl Makeup Academy

30

VTCT Skills Annual Report 2023 - 2024

VTCT Skills Excellence Awards 2024 Africa Winners

Small Training Provider of the Year Helderberg School of Beauty

“It is an encouragement to keep striving for excellence and making an impact in the world.”

Student of the Year Eulali Mouton, Beauty Therapy Institute Brooklyn

“ When my name came up on the screen, I could not believe it. My jaw literally dropped to the floor, and I couldn’t move - excitement, shock, and amazement settled in the pit of my stomach. I was overcome with joy!”

31

VTCT Skills Annual Report 2023 - 2024

/ Performance against strategy

Our strategy, titled ‘Leading, Growing, Supporting,’ was developed during the Covid-19 pandemic and approved by the Board of Trustees in August 2021. It aimed to advance education, create clear pathways to employment, and enhance career prospects during a period of significant uncertainty.

As we progressed through 2023-2024, we remained committed to this strategy, making necessary adjustments to address the evolving needs of our learners, apprentices, and training centres. Our focus has been on supporting our stakeholders while staying true to our mission. ‘Leading, Growing, Supporting’ is built around three key pillars:

1. Supporting Recovery: Embracing digital tools, big data, and relationship marketing to gain credible insights into customer needs, fostering loyalty, and supporting centre growth and learner achievement.

2. Driving Growth: Co-creating new products and services with customers and key stakeholders, while strengthening our leadership in hairdressing and barbering.

3. Leading Technical Education: Innovating and advancing technical education in the hair, beauty, and aesthetics sector, engaging more centres and learners through high-stakes qualifications.

The progress we’ve made over the past year is reflected in several key initiatives, detailed in the following pages. These demonstrate how we’ve brought our goals to life, particularly in areas such as digital innovation, product development, and industry engagement.

33

VTCT Skills Annual Report 2023 - 2024

Pillar 1

Supporting recovery

Journey to unrivalled customer support

Last year, our organisation began an ambitious overhaul of our digital capabilities, enhancing how we connect with our customers. To gain a deeper understanding in real time, we brought all our customer touchpoints together into a single system, HubSpot. This ongoing process is improving our ability to use real-time data, further strengthening customer loyalty, supporting centre growth, and driving learner achievement.

While we have always focused on personalised support, the progress we’ve made in the first phase of fully integrating HubSpot is helping us refine and tailor our services even more effectively to meet the unique needs of our learners, apprentices, and centres.

Our early adopters, the customer support team, have used this new capability to revolutionise their operations. With real-time data at their fingertips, the team can now identify trends and act quickly to address customer concerns.

For example, in response to the rising number of learner certification enquiries, we launched a chatbot in February 2024. This tool provides instant, self-serve support and has led to a 55% reduction in inbound enquiries compared to the previous year. Through automation, we’ve increased the speed of reporting and analysis by 90%, allowing us to anticipate customer needs more efficiently.

However, unrivalled customer support is not limited to a single team. This transformation has brought us closer to our goal of becoming a fully customer-centric organisation. By centralising all interactions in one system, we now have an organisation-wide view of key touchpoints, allowing us to unify and personalise every customer interaction.

As we move into the next phase of the rollout, we will continue turning data into action to support our learners, training providers and stakeholders.

34

VTCT Skills Annual Report 2023 - 2024

Prioritising clarity and impact for our customers

At VTCT Skills, our priority is ensuring that our qualifications align with the real-world skills required by the industries we serve. Over the years, this dedication has led us to develop a broad portfolio of over 650 qualifications, offering a wealth of options to support various career paths and ambitions. We’ve long valued the importance of choice, ensuring that our learners and training centres have the flexibility to find qualifications that meet their specific needs.

However, as our portfolio expanded, it became clear that choice alone wasn’t enough - we needed to balance offering a wide range of options with reducing complexity. Through careful reflection and consultation, we identified an opportunity to streamline our qualifications and to enhance their relevance and accessibility. In the first phase of this portfolio rationalisation, we reduced our offer by 125 products, with a focus on those that provide the most impact and value. As a result, it’s now easier for learners and training centres to navigate and select the right qualifications.

Simultaneously, we recognised that streamlining does not mean reducing our ability to meet diverse needs. In some cases, it highlighted the importance of adaptability— ensuring that our qualifications remain aligned with local requirements and industry standards. For instance, in South Africa, our conversations with centres revealed a need for more modular, unit-based qualifications that could be customised to better serve their specific context. Responding to this, we introduced new qualifications tailored to these needs, ensuring that our refined portfolio remains both relevant and flexible.

The initial phase of our portfolio rationalisation marks the beginning of an ongoing effort. We will continue prioritising continuous evaluation and refinement of our products, ensuring they remain aligned with both global industry standards and local market needs.

35

VTCT Skills Annual Report 2023 - 2024

Pillar 2

Driving Growth

Growth through collaboration

Our sector thrives at the intersection of education, policy, and employment. This is why we’ve strengthened our dedication to co-creating qualifications with industry leaders, ensuring we stay ahead of changing needs.

We’ve built on our existing employer consultation by going even further this year, hosting employer panels across the UK for our key sectors.

Through more face-to-face meetings during the product development stage, we’ve gained even sharper insights into the evolving skills businesses need.

This greater focus on real-time feedback has allowed us to directly shape our qualifications, making sure they stay up-to-date and fit for the future.

Additionally, we collaborated with the Berkshire Chamber of Commerce to tackle skills gaps in their Local Skills Improvement Plan (LSIP). Focusing on “screen industries,” we worked with employers to understand the specific skills needed in make-up artistry.

By attending their Workforce Development Partnership meetings, we made sure that these insights were incorporated into our qualification development process, ensuring our qualifications align with industry needs both locally and nationally.

Beyond these panels, we broadened our engagement through online consultations with over 30 employers. Combined with the 50+ attendees at our face-to-face panels, the feedback we’ve received will be key to keeping our qualifications at the forefront of the industry.

36

VTCT Skills Annual Report 2023 - 2024

Igniting Collective Momentum

We’ve been making a difference in the Hairdressing and Barbering sector for decades. While we are growing our footprint across different industries, our roots in this field remain strong, and we continue to raise the bar for skills and standards.

Creativity, aspiration, and passion fuel this sector. Recognising this, we aimed to create a community where these values could thrive and the best skills and knowledge could be shared. This vision led to the creation of our Collective Live events. Powered by the energy of our Business Development Team, these events bring together a vibrant network of learners, educators, and industry leaders, keeping our sector moving forward.

This year’s Collective Live events, held at a number of colleges across the UK, saw incredible growth. With over 900 attendees across 10 events, the turnout has more than doubled from the previous year. The events have evolved since their inception, growing from a 4-event soft launch to a full-scale rollout. Each event is designed to provide realworld inspiration, offering live demonstrations and knowledge from guest artists and leading brands such as Wella and CLOUD NINE.

This initiative has been key to strengthening VTCT Skills’ position within the sector. When colleges and providers experience our commitment to shaping the industry firsthand, they are motivated partner with us, contributing to a 4.9% increase in our market share.

But, for us, the biggest success has been showing learners how developing their skills can ignite their careers. We design each event to feel personal, featuring guest artists and content that connects with the local audience. These aren’t generic, one-size-fits-all events —they’re tailored to each community, helping learners see themselves in the professionals on stage. When guest artists share their journeys, learners clearly see how skills open doors to real opportunities.

Looking ahead, we’re excited to push ourselves even further to create a bigger impact. Next year, we plan to expand Collective events into new areas, bringing the same passion and commitment to more industries. We’ll also be partnering with more inspiring brands, making sure our events continue to offer meaningful experiences for everyone involved.

37

VTCT Skills Annual Report 2023 - 2024

Pillar 3

Leading Technical Education

Simplifying Access to Aesthetics Skills

As demand for skilled professionals in the Aesthetic industry rises, and with increasing government scrutiny and focus on safety, we saw an opportunity to raise the bar and improve the landscape.

Employers have been enthusiastic about the new qualification, recognising its ability to develop practitioners who are equipped to meet today’s demands and future regulatory requirements.

Initially, we launched a suite of successful Aesthetics qualifications. However, we know creating qualifications is a dynamic process, constantly adapting to real-time needs. Our customers were clear – they needed a streamlined solution that provides learners with all the core skills to enter the industry.

In response, we have now introduced the Level 4 Diploma in Advanced Aesthetic Treatments, combining all our Level 4 qualifications into one comprehensive diploma.

The diploma’s approach gives training providers the flexibility to tailor their programmes to the needs of the industry, providing learners with a competitive advantage in a fast-evolving marketplace.

“This qualification is highly important at a time when licensing requirements and regulations in the industry will be changing soon. The skills within this qualification are vital to employment in industry as an aesthetic practitioner and clients will feel safer knowing that learners have the skills and knowledge to make the right decisions.” Lynton Lasers

The entire Aesthetics industry is bracing for the introduction of new licensing standards for non-surgical cosmetic procedures. While we anticipate these changes, VTCT Skills learners are already being trained to meet these standards, leading the way toward a safer and more responsible industry.

38

VTCT Skills Annual Report 2023 - 2024

Portfolio Refresh

As part of our commitment to leading technical education, we’ve undertaken an overhaul of our top 57 Vocationally Related Qualifications (VRQs). The refreshed qualifications were updated to reflect the most current National Occupational Standards (NOS), employer expectations, and emerging industry trends, all while promoting inclusivity and accessibility.

In this first phase of our portfolio refresh, we focused on delivering the greatest value by targeting the most subscribed qualifications. We chose a phased approach to ensure every update is thoughtfully aligned with the changing needs of learners and industry, allowing us to respond quickly and effectively.

Focusing on high-demand areas first meant that we could drive the greatest impact where it mattered most, ensuring our learners and centres benefitted immediately. This deliberate, phased strategy has kept us agile, giving us the flexibility to continuously refine each qualification based on the latest industry feedback and trends, keeping them relevant and future-focused.

Working closely with a diverse group of industry experts ensured that our qualifications not only meet current National Occupational Standards but also adapt to society’s changing needs. This includes representing a broader spectrum of beauty and identity, making sure our qualifications are inclusive for learners from all backgrounds and experiences.

Building on this foundation, Equity, Diversity, and Inclusion (EDI) was at the heart of our efforts. We’ve taken care to ensure that our qualifications use modern, inclusive language and imagery that reflects today’s diverse learners. Terminology updates and content adjustments have been made to remove barriers for all learners, making our qualifications more reflective of real-world environments and promoting a culture of respect and representation.

As we move into future phases of our portfolio refresh, we’re excited to keep evolving and improving our qualifications. Each phase will build on feedback from training providers and industry experts, ensuring our qualifications remain industry-leading and help our centres stay ahead.

39

VTCT Skills Annual Report 2023 - 2024

/ Our new strategy

We are entering a dynamic period of change in the skills landscape, facing shifting governments, shifting education and skills policies, the rising cost of living, and a growing reliance on AI. In short, this environment presents significant challenges.

But within this complex landscape, we see an opportunity for VTCT Skills to not just participate, but actively shape the future of skills training. To lead the way through these changes, we must be both agile and forwardthinking, evolving our strategic approach to meet the current context head-on.

Our bold new vision is to establish ourselves as a large, specialist skills organisation, extending our sector footprint and transforming the lives of even more learners. We’re committed to ambitious growth, but equally focused on forging deep industry connections, long-lasting relationships, and strategic partnerships to ensure lasting impact. We are working hand-in-hand with our industries to power progress and deliver tangible value, ensuring we grow together and not in isolation.

New Strategic Priorities

1. Become the undisputed market leader in Hair and Beauty

2. Wholeheartedly support a broader sector footprint, prioritising early years

3. Expand our market reach through commercial strategic partnerships

41

VTCT Skills Annual Report 2023 - 202441

New strategic priorities

Become the undisputed market leader in Hair and Beauty

How we will deliver:

Streamline our portfolio: Create a concise and user-friendly portfolio, making it easier for customers to navigate and select qualifications.

Create innovative qualifications for

emerging skills: Innovate the sector, working in partnership with forward-thinking organisations to create qualifications for current and future skills needs.

Grow home nations’ footprint: Focus on Wales, Scotland and Northern Ireland as significant opportunities for growth, developing long-standing partnerships with new and existing customers.

Implement an international shouldering

strategy: Strategically target neighbouring countries with aligned skill sets and infrastructure, fostering international growth.

Launch professional qualification registers:

Design and introduce a professional register for learners and practitioners holding regulated qualifications.

Showcase our commitment and leadership:

Deliver a comprehensive programme of industry events for all stakeholders.

42

VTCT Skills Annual Report 2023 - 2024

Broader sector footprint

Wholeheartedly support a broader sector footprint, prioritising early years

How we will deliver:

Prioritise early years: Make expansion into these sectors a core organisational priority, allocating resources and fostering a culture of growth.

Evolve our early years proposition and reputation: Build credibility and expertise by partnering with industry-leading organisations, actively engaging with employers and providers, and demonstrating the relevance and our understanding of the sector and value proposition.

Implement a market expansion strategy: Utilise existing networks and relationships to expand our reach and impact in early years, being focused and targeted in our approach.

Develop qualifications and broader support offer: Co-create qualifications with employers, developing our broader service offer, supporting Gen Z learners, new entrants, teaching and learning and professional development.

Showcase our commitment and leadership: Deliver a comprehensive programme of industry events for all stakeholders.

Review and prioritise opportunities across our sector footprint: Appraise skills markets across our broader sector footprint, prioritising Logistics and identifying opportunities for investment and expansion.

43

VTCT Skills Annual Report 2023 - 2024

Expanding market reach

Expand our market reach through commercial strategic partnerships

How we will deliver:

Strengthen our partnerships with colleges:

We aim to establish long-term, collaborative relationships with colleges and facilitate consortia to develop and deliver bespoke qualifications that address regional and national skill requirements.

Drive international growth: Through partnerships with international organisations and targeted industry sectors, we will explore opportunities for overseas expansion, growing our global footprint.

Elevate our employer offer: We will develop a comprehensive employer offer that empowers businesses to create a culture of learning and development using bespoke qualifications, external accreditation, and access to a valuable network of learners and professionals.

Deliver innovative skills solutions: Partnering with innovative technology companies, we will enhance our support offerings for customers and learners by investing in new teaching and learning methods, digital credentialing platforms, facilitating relationships between learners, colleges and employers, and providing professional development solutions.

Introduce a training portfolio: Partner with employers and training providers to introduce a range of training solutions, addressing the evolving needs of learners and practitioners.

Build our network of influencers and

stakeholders: Build relationships to support our broader skills profile, including combined authorities, trade specialist organisations, government agencies and ministries, social media influencers, and other organisations.

44

VTCT Skills Annual Report 2023 - 2024

----- Start of picture text -----
Beneficiary Providers Primary: Learners Employers
Purpose: Mission Object:
Purpose Transforming lives Setting a new standard For public benefit, through the
through skills for skills: advancement of education
Strategic Partnership Ease Expertise Collaboration Energy
priorities
Become the undisputed Wholeheartedly support a Expand our market
market leader broader sector footprint, reach through commercial
in hair and beauty prioritising early years strategic partnerships
Streamline Prioritise Strenghten partnerships
our portfolio early years with colleges
Create innovative qualifications Evolve our early years Drive international
for emerging skills proposition and reputation growth
Tactical
areas
Grow our home Implement a market Elevate our
nations’ footprint expansion strategy employer offer
Implement an international Develop qualifications Elevate our
shouldering strategy and broader support offer employer offer
Launch professional Review and prioritise Introduce a
opportunities across
qualification registers training portfolio
our sector footprint
Build our network of
Showcase our commitment and leadership influencers and
stakeholders
Supporting themes organisation, One achieve morePartnering to Embracing digital Simplicity andagility in Outstanding customer
one brand together innovation everything we do support
Underpining Awarding Finance
strategies and People and data Digital Commercial
assessment
----- End of picture text -----

45

VTCT Skills Annual Report 2023 - 2024

/ Redefining our Brand and Culture

Introducing VTCT Skills

This year, we took a bold step forward by introducing VTCT Skills—a name that brings all our organisations together under one powerful identity. With over 60 years of success in vocational education, our new brand reflects both our experience and our vision for the future. It embodies who we are today and where we’re going.

The launch of VTCT Skills is about more than just a new name or logo—it’s about building on what has always made us strong, whilst evolving to meet the needs of today and tomorrow. Our mission— Setting a new standard for skills worldwide —remains at the core of our work. Guided by our core values, we are dedicated to helping our customers to think bigger and achieve more.

47

VTCT Skills Annual Report 2023 - 2024

Our Guiding Values

Partnership is central to how we work. We’re dedicated to being there for our customers and learners, understanding what they need, and supporting them every step of the way. This commitment helps us build strong, trusting relationships, which have always been a key part of our success.

We continue to rely on our years of Expertise in vocational education to set high standards and deliver quality learning that meets the changing needs of both learners and the industries they aim to work in.

We also believe in Ease . In an educational landscape that can be complex, we focus on making things simple and clear, whilst maintaining rigorous quality assurance practices. By keeping our processes straightforward, we keep high quality education accessible for all, just as we’ve always done.

Collaboration helps us bring together different perspectives and skills to create the best outcomes, building on our tradition of working hand in hand with others for maximum impact. We know that working together brings better results, whether it’s with our VTCT Skills colleagues, our partners or the industry at large.

Finally, Energy is what drives us. We’re passionate about our work and aim to inspire others with our enthusiasm. This passion for skills training fuels our commitment to keep improving and innovating, ensuring we remain leaders in vocational education.

----- Start of picture text -----
Collette Lux,
Chief Commercial Officer
----- End of picture text -----

As part of our rebrand, we’ve introduced a new colour palette and design that reflect our energetic approach. The vibrant style is intended to inspire and bring the forward momentum of VTCT Skills to life. You can explore our new look and learn more about our updated brand by visiting our website vtctskills.org.uk.

We’re building on the strengths that have always defined us, while renewing our dedication to making a positive impact together. As we move forward, we invite you to be part of our journey with VTCT Skills — a brand built on a strong foundation, ready to shape the future of vocational skills.

The introduction of VTCT Skills positions us to embrace the future with these values firmly in place. We are excited to offer more globally recognised training, assessments, and services that support learners to achieve great things.

48

VTCT Skills Annual Report 2023 - 2024

The New Force Behind Our Culture

I’m delighted to join VTCT Skills at such a dynamic time. What drew me to this organisation is its commitment to helping people discover their potential and pursue fulfilling careers. Having worked in various sectors—from Retail to Finance, Travel and Logistics—I’ve seen firsthand how vocational learning can transform lives.

Since joining, I’ve dived straight into bringing our values to life within our internal culture. These are at the core of our external identity, and my role is to make sure they are fully lived within our teams. I’ve been listening, observing, and working closely with people across the organisation to understand where we can make meaningful changes.

I believe small, thoughtful changes can have a significant impact on how we work together and how we support each other. It’s about making sure that we remain agile and open to innovation, so that our internal culture continues to align with VTCT Skills’ long-term goals.

Kate Cornhill, HR Director

Looking ahead, I’m excited to keep building on the changes we’ve made to create an engaged, empowered, and connected team. By continuing to simplify how we work, embracing fresh ideas, and giving everyone the opportunity to contribute meaningfully, I believe we can achieve something really special together.

Peter Drucker famously said, “Culture eats strategy for breakfast,” and I couldn’t agree more. No matter how strong your strategy is, it will only succeed if your culture supports it. That’s why I’m so focused on embedding our values deeply into our daily actions—ensuring they aren’t just words on paper, but principles that guide how we work together every day.

49

VTCT Skills Annual Report 2023 - 2024

Highlights From Our First Staff Conference

In January, we kicked off the year with our 2024 Staff Conference. It was the perfect opportunity to unite the organisation, celebrate our successes, and strengthen connections. Held at the Harbour Hotel in Southampton, the event brought together colleagues from Birmingham, Ireland, and Eastleigh for a day of collaboration and learning.

The day began with an opening address from our Chief Executive, Alan Woods OBE, who shared his vision for the future in a fastchanging world. This was followed by Ashley Barnes, Deputy Chief Executive Officer, presenting our 2024 strategy and highlighting key areas for growth. Together, these presentations set the scene for a day focused on progress.

This year, we introduced the Staff Awards in response to feedback calling for enhanced recognition across the organisation. The awards were well-received, with winners proudly wearing their lanyards and being recognised by their peers. It was a meaningful way to celebrate the talent and dedication that drive our organisation forward.

With over 200 staff attending, the event was filled with enthusiasm and a strong sense of connection. Employees valued the opportunity to engage with colleagues from different teams, and the positive feedback has inspired us to make this an annual event, with plans to build on its success.

A highlight of the conference was our “World Café” sessions, where staff from different teams and locations came together to share ideas and discuss how we can improve the way we work. This was a valuable chance for everyone to get a better understanding of different areas of the business and explore fresh ideas.

50

VTCT Skills Annual Report 2023 - 2024

51 VTCT Skills Annual Report 2023 - 2024

From Hospital Ward to Trustee Board: Meet our Trustee Apprentice

As part of our commitment to fostering diverse talent in leadership, VTCT Skills welcomed Francheska Klaud into our Trustee Board this year. Francheska joined through the Boardroom Apprentice programme, a unique twelve-month scheme that offers aspiring Board members hands-on experience in a supportive environment. Her role allowed her to observe and engage in the complexities of Board governance, strategy, and resource management. Here, Francheska shares her reflections on the experiences, challenges, and insights she’s gained throughout this transformative year with VTCT Skills.

Being a boardroom apprentice with VTCT Skills during such a transformative time has been a unique and eye-opening experience. I joined as VTCT Skills merged with two new organisations and expanded its focus areas, giving me firsthand insight into how strategic decisions and thoughtful planning drive meaningful change.

Throughout my apprenticeship, I’ve been immersed in observing Board dynamics, and I’m inspired by the genuine collaboration and openness within the team. The Board’s welcoming, family-like atmosphere made the experience engaging, with approachable members who foster open dialogue and create a supportive space to learn.

Seeing the charity expand and rebrand has been especially insightful, showing the complexities of aligning mission and communication while staying true to core values.

I’ve also gained a deeper appreciation for the importance of financial oversight and resource management in sustaining charitable programmes. Observing the Board balance short-term needs with long-term goals has shown me how impactful change is built thoughtfully, step by step.

The apprenticeship wasn’t without its challenges; navigating regulatory requirements, understanding the intricacies of merging, and contributing meaningfully to discussions took time. But these experiences have been incredibly rewarding, pushing me to be more analytical and prepared in my approach to decision-making.

Inspired by this journey, I am now observing board meetings in my hospital to strengthen my familiarity with governance and further develop these skills. My goal is to secure a board role where I can apply the empathy and openness in leadership I’ve gained, and I’m excited to see where these insights will lead me next.

52

VTCT Skills Annual Report 2023 - 2024

53 VTCT Skills Annual Report 2023 - 2024

/ Governance and Audit

Structure, governance and management

The Charity is committed to a continuous programme of governance review and improvement.

The Board of Trustees formally adopts the Charity Governance Code for Large Charities and, for each of the seven principles, apply the Code and ensure that the Vocational Training Charitable Trust policies are updated to reflect current practice.

VTCT Skills is a company limited by guarantee, incorporated in 1986 under the Companies Act 1985, and registered under the Charities Act 2011 on 30 September 1986. VTCT Skills registered with the Office of the Scottish Charity Regulator on 25 July 2019.

The company’s Articles of Association were last updated on 13 July 2020.

All trustees give their time voluntarily and, save as disclosed below, receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in note 6 to the accounts.

Appointment of trustees

The Charity’s Articles of Association limit the number of trustees to a maximum of 15. Due to ongoing reforms in the educational sector and the increasing complexity of VTCT Skills as an organisation, the trustees believe that maintaining an ideal number of 12 trustees allows the Board to reflect the diverse skill sets required. These skills are assessed annually to ensure the Board is well-equipped to meet the organisation’s needs.

Equity, diversity and inclusion

The Charity is committed to equality of opportunity, values diversity and seeks individuals from a wide range of backgrounds who will bring a fresh perspective to the Board of Trustees.

The Charity actively reviews existing trustees’ diversity, skills, and experience to ensure the Board of Trustees reflects the diversity of the learners they work with and welcomes applications from all community sections.

Trustee induction and training

New trustees undergo an induction period to brief them on their obligations under charity and company law, the content of the Articles of Association, the committee structure and decision-making process, the operational strategy, current issues and the recent financial performance of the Charity.

During the induction, they meet key employees and other trustees. Trustees attend board workshops and appropriate external training events where these activities will facilitate the undertaking of their role. Examples of these training events include investment management and governance. New trustees also have a trustee ‘buddy’ from whom they can seek support, usually the Chair of the Committee they are also assigned to.

In line with good practice, the Charity will continue to seek and appoint trustees with appropriate skills to enable strong governance. New trustees are recruited by open advertisement and search; promising candidates are interviewed by the Chair, Vice-Chair and Chief Executive with recommendations to the Board of Trustees.

55

VTCT Skills Annual Report 2023 - 2024

Trustees and governance

Under the terms of the articles, trustees may be appointed for a maximum of three, three-year terms. The period of service as a trustee may be extended upon the appointment of a trustee as Chair of the Board of Trustees.

We recently welcomed the appointment of Hellen Ward, Richard Atkinson and Andy Salter to the Trustee board. During the period under review, Lesley Shepperson and Lee Mandley retired as trustees, and we thank Lesley and Lee for their valuable contributions their period of service.

Related parties and relationships with other organisations

VTCT Skills has three wholly-owned subsidiaries:

The share capital of Education & Media Services Ltd was acquired on 8 November 2016. Any transactions and management charges between VTCT Skills and Education & Media Services Ltd are supported by a Shared Services Agreement and are on an arm’s length basis.

The share capital of The Skills Group Ltd and Skills for Logistics Ltd was acquired on 2 June 2023. Any transactions and management charges between The Skills Group Ltd and Skills for Logistics Ltd are supported by a Shared Services Agreement and are on an arm’s length basis.

Remuneration policy for key management personnel

Key management personnel are remunerated based on an assessment of market rates applicable to the role. Salary benchmarking is undertaken using the Korn Ferry Hay salary data sets.

All key staff have had their roles independently reviewed by Korn Ferry Hay and are remunerated within the banded scales.

Statement of trustees’ responsibilities

The trustees (who are also directors of Vocational Training Charitable Trust for the purposes of company law) are responsible for preparing the trustees’ annual report, including the strategic report and the financial statements, in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to:

56

VTCT Skills Annual Report 2023 - 2024

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Members of the charity guarantee to contribute an amount not exceeding £10 to the Charity’s assets in the event of winding up. The total number of such guarantees on 31 July 2024 was 12 (2023: 11). The trustees are members of the Charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the Charity.

57

VTCT Skills Annual Report 2023 - 2024

/ Administrative information

----- Start of picture text -----
Trustees, who are also directors under company law, who served during the year
Trustees
and up to the date of this report were as follows:
----- End of picture text -----
Jenny Sworder Chair of Trustees
Katherine Quinn Vice Chair of Trustees & Chair of Strategy
Sub-Committee
Andrew Mondon Chair of Finance & Audit Committee
Jayne Lewis-Orr Chair of HR & Remuneration Committee
John Winkley Chair of Regulatory &
Quality Committee
Stephanie Richardson Designated Safeguarding Trustee
Daniel Carlin
Lysa Schwartz
Debbie Houghton
Lesley Shepperson Retired 28/09/2023
Lee Mandley Retired 18/12/2023
Hellen Ward Appointed 28/05/2024
Richard Atkinson Appointed 01/06/2024
Ian Salter Appointed 17/06/2024
Strategy Sub-Committee
Finance & Audit Committee
Regulatory & Quality Committee
HR & Rem. Committee
Joint FAC and HR & Rem. Co
Committee attendance

Ke Mana ement Personnel y g

Alan Woods OBE Chief Executive Offcer
Ashley Barnes Deputy Chief Executive Offcer & Responsible/Accountable Offcer
Carina Fagan Chief Academic Offcer (Resigned 31/05/2024)
Collette Lux Chief Commercial Offcer
Fraser Ingham UK & International Business Development Director
Martin Della Chief Financial Offcer & Data Protection Offcer (Appointed 19/02/2024)
Kate Cornhill HR Director (Appointed 07/05/2024)

Company number: 02050044 Country of incorporation: United Kingdom Charity number: 295192 Country of registration: England & Wales Charity number: SC049476 Country of registration: Scotland

Registered office and operational address: Aspire House, Annealing Close, Eastleigh, Hampshire, SO50 9PX Investment managers: Evelyn Partners Lawyers: Blake Morgan, Warner Goodman and Carlton Associates Banks: NatWest, Lloyds, Nedbank and Citizen Bank

59

VTCT Skills Annual Report 2023 - 2024

Financial Overview

The Finance and Audit Committee (FAC) comprises five trustees and five senior staff members. The purpose of the FAC is to review and provide independent oversight to the Board of Trustees of VTCT Skills on the adequacy and effectiveness of the company’s financial reporting, asset management and risk management procedures, ensuring that the Charity’s systems of internal controls and processes are appropriate and proportionate.

Andrew Mondon, Chair of Finance and Audit Committee

The FAC met four times in the Reporting Period of this report. The FAC reviewed financial performance against the approved budget and reforecast, reviewed and approved the annual budget for 2024/25, reviewed the risk register, and considered other areas of assurance, particularly relating to the use of technology in light of the ever-present threat in relation to cyber security.

As Chair of the FAC, I recognise that the Charity has faced a number of challenges in the year, including the ongoing uncertainty around qualification funding reform and the financial pressures many of our customers face, but has still been able to deliver a strong financial performance.

The acquisitions made in the previous financial years have delivered the intended aim to develop our presence in apprenticeship assessment thereby broadening the delivery of our charitable purpose. We have continued to invest in our IT systems and are further reviewing our technological infrastructure to ensure this will continue to support us into the future. I would like to thank everyone that has contributed to the FAC.

60

VTCT Skills Annual Report 2023 - 2024

Financial Review

The trustees recognise that the outturn for the financial year represents a strong performance in a challenging marketplace. Ongoing financial pressures for many of our customers and the need to migrate to several new IT systems mean that income and expenditure have been under pressure. Despite this, VTCT Skills has achieved growth in several core markets and has significantly reduced the deficit compared with last year.

The deficit for 23/24 of £0.6m is an improvement on the deficit of £1.8m reported in 22/23. It is stated after accounting for £1.2m of amortisation (2023: £0.8m) relating to our acquisitions of Skillsfirst Holdings Ltd and The Skills Group and capitalised software. The addition of The Skills Group significantly contributed to the £1.2m growth in income from charitable activities to £12.7m (11% up on 22/23) and enabled VTCT Skills to establish a strong presence in apprenticeship assessment across a wider range of professional and industrial sectors.

Total expenditure on charitable activities was £14.1m, 7% up on 22/23 (£13.2m) largely through increased staff costs as we continued to develop our resource pool to meet customer and learner needs and the full year impact of amortisation for The Skills Group acquisition. Income from our externally managed investments was in line with last year at £0.2m (2023: £0.2m); however, VTCT Skills changed its approach in year whereby rather than distribute income earned by the portfolio, this is retained within the portfolio for reinvestment. The closing cash balance was £1.4m, showing a modest improvement on the previous year (2023: £1.2m) despite significant investment in new systems and infrastructure to support our continued operations.

This year has been another year of consolidation and growth for VTCT Skills. We have undertaken important projects to prepare our operational infrastructure for the future and successfully integrated The Skills Group into VTCT Skills.

61

VTCT Skills Annual Report 2023 - 2024

Investment Policy and Objectives

VTCT Skills operates a total return approach to its investment portfolios. Under the Articles of Association, VTCT Skills has the power to invest monies not immediately required to further its objects in or upon such investments as may be thought fit.

The trustees delegate the investment management to external investment managers Evelyn Partners, whose performance is monitored by the Board of Trustees and the Finance and Audit Committee.

The mandate from the trustees for the Evelyn Partners investment portfolio is a Conservative Approach with the objective to reduce the volatility within the portfolio by limiting investment in equities.

Fundraising Compliance

Under the fundraising reporting requirements for The Charities (Protection and Social Investment) Act 2016, VTCT Skills confirms that it does not engage in public fundraising and does not use professional fundraisers or commercial participators.

VTCT Skills has not received any complaints relating to the Act during the year.

62

VTCT Skills Annual Report 2023 - 2024

Reserves Policy and Going Concern

The Charity and the Group had reserves totalling £12.3m (2023: £13.7m) and £14.2m (2023: £14.9) respectively on 31 July 2024. Free Reserves for the Charity and the Group totalled £9.0m (2023: £9.1m) and £10.1m (2023: £9.5m), respectively.

There were no Reserves held in restricted funds (2023: nil). The trustees consider the level of reserves to be appropriate to support the ongoing activities of the Charity and the Group.

The VTCT Skills Reserves Policy targets a free reserves range of £8.6m to £14.6m. The reserves range is calculated to enable the Charity to mitigate the monetary impact of a significant disruption to charitable activities and to allow the trustees to ensure funds are available for current and future commitments and obligations. The trustees are pleased to report that the reserves level continues to sit within the range set out in the policy.

Furthermore, the trustees acknowledge that VTCT Skills, for some of its income, indirectly relies on public funding as Further Education Colleges and private training providers are funded by governments and associated bodies. VTCT Skills’s income is thus partially reliant on this funding, which exposes VTCT Skills to government policy changes and any government spending changes. Ensuring reserves are kept in line with the reserves policy supports VTCT Skills to pursue its charitable object of the advancement of education both now and into the future.

Effective management and utilisation of these reserves enables VTCT Skills to protect the future by continuing to diversify its income sources through increasing private training provision, higher-level qualification development, apprenticeship assessment and international activity, both through organic growth and through partnership / joint venturing and acquisition.

The trustees confirm that they conclude VTCT Skills is a going concern as appropriate for the 2023/24 statutory accounts.

63

VTCT Skills Annual Report 2023 - 2024

Risk Management

We must understand the risks we face to ensure we can effectively mitigate and manage such matters accordingly so that we can continue to deliver our strategy and have a more significant impact on our customers and beneficiaries.

VTCT Skills has a clear risk management framework that supports risk monitoring and management throughout the organisation, with departmental, functional and corporate risks monitored in real time. Our corporate risk register is monitored explicitly by the Finance and Audit Committee, with risk management also a critical feature of the Regulatory and Quality Committee, HR and Remuneration Committee and Board. trustees formally review the Corporate Risk Register bi-annually. Various thematic audits are conducted each year, focusing on financial management, general systems and processes and our compliance with qualification and assessment regulator Conditions and Principles. The following principal risks and uncertainties facing VTCT Skills and mitigations are summarised as follows:

64

VTCT Skills Annual Report 2023 - 2024

VTCT Skills continues to operate globally with a large breadth of qualifications on offer, and these factors present an exceptionally low probability risk that VTCT Skills will fail to comply with its obligations to qualification and assessment regulators worldwide. VTCT Skills prides itself on its commitment to compliance and quality assurance, underpinned by a rigorous quality management system and an effective departmental and corporate governance system.

Approved by the trustees on 09/01/2025 and signed on their behalf by

Jenny Sworder Chair of the Board of Trustees

65

VTCT Skills Annual Report 2023 - 2024

Audit report

Independent Auditor’s Report to the Members of Vocational Training Charitable Trust

Opinion

We have audited the financial statements of Vocational Training Charitable Trust (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 July 2024 which comprise consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

66

VTCT Skills Annual Report 2023 - 2024

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement [set out on page 56], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We obtained an understanding of the legal and regulatory frameworks within which the group and parent charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group and parent charity for fraud. The laws and regulations we considered in this context for the UK operations were Health and Safety, General Data Protection Regulations, Safeguarding and Food Standards. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to the risk of management override included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Janette Joyce (Statutory Auditor) for and on behalf of Crowe U.K. LLP Statutory Auditor R+ Building 2 Blagrave Street Reading Berkshire RG1 1AZ

67

VTCT Skills Annual Report 2023 - 2024

/ FinanciaL Statements

Vocational Training Charitable Trust

Consolidated statement of financial activities

(incorporating an income and expenditure account)

For the year ended 31 July 2024
2024 2023
Total Total
Note £ £
Income from:
Charitable activities
Qualifcation and assessment income and other educational income 2 12,678,774 11,468,208
Investments 3 184,721 193,470
Total income 12,863,495 11,661,678
Expenditure on:
Charitable activities
Qualifcation and assessment costs 4 14,087,032 13,178,631
Investment managers’ fees 47,414 49,171
Total expenditure 14,134,446 13,227,802
Net expenditure before net gains on investments 5 (1,270,951) (1,566,126)
Net gains/(losses) on investments 622,315 (264,382)
Net income for the year and net movement in funds (648,636) (1,830,508)
Reconciliation of funds:
Total funds brought forward 14,862,434 16,692,942
Total funds carried forward 14,213,798 14,862,434

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 20 to the financial statements. All income and expenditure is unrestricted.

69

VTCT Skills Annual Report 2023 - 2024

Balance Sheet

As at 31 July 2024

The Group The Charity
2024 2023 2024
2023
Fixed assets: Note £ £ £
£
Tangible assets 10 2,222,662 2,332,998 2,222,662
2,328,758
Intangible assets including goodwill 11 1,890,242 3,008,256 70,877
180,912
Investments 12 8,157,029 7,551,284 8,157,029
7,551,284
Investment in subsidiaries 13 - - 1,019,509
2,094,812
12,269,933 12,892,538 11,470,076
12,155,766
Current assets:
Inventories - - -
-
Debtors 15 1,631,633 1,814,665 1,622,885
1,788,984
Cash at bank and in hand 1,380,580 1,249,143 209,023
774,478
3,012,213 3,063,808 1,831,908
2,563,462
Liabilities:
Creditors: amounts falling due within one year 16 (1,068,348) (1,093,912) (1,034,158)
(982,074)
Net current assets 1,943,865 1,969,896 797,750
1,581,388
Total net assets 14,213,798 14,862,434 12,267,826
13,737,154
Funds: 18
Unrestricted income funds:
General funds 14,213,798 14,862,434 12,267,826
13,737,154
Total unrestricted funds 14,213,798 14,862,434 12,267,826
13,737,154
Total funds 14,213,798 14,862,434 12,267,826
13,737,154

Approved by the trustees on 09/01/2025 and signed on their behalf by

Jenny Sworder

Chair of the Board of Trustees

70

VTCT Skills Annual Report 2023 - 2024

Consolidated statement of cashflow for the year ended 31 July 2024

Reconciliation of net expenditure to net cash flow from operating activities

2024 2023
£ £
Net expenditure for the reporting period (648,636) (1,830,508)
(as per the statement of fnancial activities)
Depreciation charges 146,335 165,769
Amortisation charges 1,152,226 751,834
(Gain)/Loss on investments (622,315) 264,382
Dividends and interest from investments (184,721) (193,470)
Loss on the disposal of fxed assets 8,320 1,552
Decrease in inventories - 6,773
Decrease in debtors 183,032 113,103
(Decrease) in creditors (25,407) (486,183)
Net cash provided by operating activities 8,834 (1,206,748)
2024 2023
Cash fows from operating activities £
£		 £ £
Net cash used by used by
operating activities		 8,834 (1,206,748)
Cash fows from investing activities:
Dividends and interest from investments 184,721 193,470
Purchase of fxed assets (38,845) (25,542)
Purchase of intangible assets (6,064) (5,794)
Proceeds from sale of Investments 1,117,269 1,532,703
Purchase of Investments (864,931) (1,440,002)
Acquisition of subsidiary net of cash acquired (33,779) (1,038,770)
Change in cash in investment portfolio (235,768) 453,827
Net cash generated/(used) in investing activities 122,603 (330,108)
Change in cash and cash equivalents in the year 131,437 (1,536,856)
Cash and cash equivalents at the beginning of the year 1,249,143 2,785,999
Cash and cash equivalents at the end of the year 1,380,580 1,249,143
Analysis of cash and cash equivalents: 2024 2023
Cash at Bank 1,380,580 1,249,143
Analysis of Net Funds Start of year Cashfow End of year
Cash 1,249,143 131,437 1,380,580

71

VTCT Skills Annual Report 2023 - 2024

Notes to the financial statements

for the year ended 31 July 2024

1. Accounting policies

a) Statutory information

Vocational Training Charitable Trust is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office and operational address is Aspire House, Annealing Close, Eastleigh, Hampshire, SO50 9PX.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)- (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiaries, Education & Media Services Ltd, The Skills Group Ltd and Skills for Logistics Ltd on a line by line basis. The hive up of The Skills Group Ltd and Skills for Logistics Ltd took place on the 1 January 2024. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the companies are disclosed in the notes of the charitable company’s balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the group has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

f) Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividend income receivable from the charity’s investment portfolio is reinvested within the portfolio.

g) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

72

VTCT Skills Annual Report 2023 - 2024

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. Support costs are re-allocated to each of the activities on the following basis:

Governance costs are re-allocated to each of the activities on the following basis which is the ratio of expenditure between activities:

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Intangible assets

Intangible assets include trademarks acquired, goodwill arising from the acquisition of business and trade assets, and cost incurred in developing software to be used by the company.

Software development is amortised over four years on a straight-line basis.

Trademarks acquired are initially recognised at cost and are subsequently carried at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised to the statement of financial activities using the straight line method over 10 years. This is the shorter of their estimated useful lives and periods of contractual rights.

Goodwill represents the difference between the cost of acquisition of business trade and the fair value of the net assets. Goodwill is recognised separately as intangible assets and carried at cost less accumulated amortisation. As agreed in 2022 Goodwill is amortised over five years on a straight-line basis for Skillfirst Awards Ltd and Skillsfirst Holdings Ltd. As agreed in 2023 Goodwill for The Skills Group Ltd and Skills for Logistics Ltd is amortised over two years on a straight-line basis.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

l) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be included within general funds in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

73

VTCT Skills Annual Report 2023 - 2024

m) Investments in subsidiaries.

Investments in subsidiaries are at cost.

n) Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. In general, cost is determined on a first in first out basis and includes transport and handling costs. Provision is made where necessary for obsolete, slow moving and defective inventories. Donated items of inventories, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open.

o) Debtors

p) Cash at bank and in hand

q) Creditors and provisions

r) Financial instruments

s) Pensions

2. Income from charitable activities

2. Income from charitable activities
2024 2023
Total Total
£ £
Qualifcation and assessment income and other educational income 12,678,774 11,468,208
12,678,774 11,468,208
3. Income from investments 2024 2023
Total Total
£ £
Evelyn Partners Investment Management 184,721 193,470
184,721 193,470

74

VTCT Skills Annual Report 2023 - 2024

4a. Analysis of expenditure

Charitable activities Qualifcation
and assessment
costs		 Support
Costs		 Governance
Costs
2024
Total		 2023
Total
£ £ £
£		 £
Staff costs (Note 6) 4,575,636 2,542,020 145,258
7,262,914		 6,517,351
Verifer, examination fees & expenses 1,663,824 924,347 52,820
2,640,991		 2,094,906
Premises costs 189,609 105,338 6,019
300,966		 241,920
Telephone & fax 32,311 17,951 1,026
51,288		 54,197
Postage, stationery & assessment materials 180,686 100,381 5,736
286,803		 750,133
Other offce costs 59,332 32,962 1,884
94,178		 114,080
Travelling, meeting & committee expenses 230,559 128,088 7,319
365,966		 386,459
Marketing & publicity 152,982 84,990 4,857
242,829		 329,573
Legal & professional 44,491 24,717 1,412
70,620		 36,909
Audit & accountancy 32,708 18,171 1,038
51,917		 27,930
Depreciation 92,191 51,217 2,927
146,335		 165,769
Amortisation 725,902 403,279 23,045
1,152,226		 751,834
Proft on disposal of fxed assets 5,242 2,912 166
8,320		 1,552
Bank charges & foreign exchange 12,759 7,088 405
20,252		 26,150
Sundry expenses (9,072) (5,040) (288)
(14,400)		 196,574
ICT Hosting & support 825,331 458,517 26,201
1,310,049		 1,404,933
Consultancy support 60,340 33,522 1,916
95,778		 78,361
Qualifcation and assessment costs 8,874,831 4,930,460 281,741
14,087,032		 13,178,631
Support costs 4,930,460 (4,930,460) -
-		 -
Governance costs 281,741 - (281,741)
-		 -
Total expenditure 2024 14,087,032 - -
14,087,032		 -
Total expenditure 2023 13,178,631 - - 13,178,631

75

VTCT Skills Annual Report 2023 - 2024

4b. Analysis of expenditure

Charitable activities

4b. Analysis of expenditure
Charitable activities
Qualifcation and
assessment costs		 Support Costs Governance Costs 2023
Total
£ £ £ £
Staff costs (Note 6) 4,171,105 2,215,899 130,347 6,517,351
Verifer, examination fees & expenses 1,340,740 712,268 41,898 2,094,906
Premises costs 154,829 82,253 4,838 241,920
Telephone & fax 34,686 18,427 1,084 54,197
Postage, stationery & assessment materials 480,085 255,045 15,003 750,133
Other offce costs 73,011 38,787 2,282 114,080
Travelling, meeting & committee expenses 247,334 131,396 7,729 386,459
Marketing & publicity 210,927 112,055 6,591 329,573
Legal & professional 23,622 12,549 738 36,909
Audit & accountancy 17,875 9,496 559 27,930
Depreciation 161,145 85,608 5,036 165,769
Amortisation 426,121 226,377 13,316 751,834
Proft on disposal of fxed assets 993 528 31 1,552
Bank charges & foreign exchange 16,736 8,891 523 26,150
Sundry expenses 125,808 66,835 3,931 196,574
ICT Hosting & support 899,157 477,677 28,099 1,404,933
Consultancy support 50,151 26,643 1,567 78,361
Qualifcation and assessment costs 8,434,325 4,480,734 263,572 13,178,631
Support costs 4,480,734 (4,480,734) - -
Governance costs 263,572 - (263,572) -
Total expenditure 2023 13,178,631 - - 13,178,631
Tere were no related party trans-
actions
5. Net (expenditure)/ income for the year		 2024
£		 2023
£
Depreciation 146,335 165,769
Amortisation 1,152,226 751,834
Loss or (proft) on disposal of fxed assets 8,320 1,552
Operating lease rentals:
Property 77,839 102,707
Other 105,443 112,126
Auditor’s remuneration (excluding VAT):
Audit 29,750 27,500
Other services - 11,290
Foreign exchange (gains) or losses 17,009 12,010

76

VTCT Skills Annual Report 2023 - 2024

6. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows: 2024 2023
£ £
Salaries and wages 5,670,731 5,261,183
Redundancy and termination costs paid in the year 295,537 63,676
Social security costs 599,704 535,184
Employer’s contribution to defned contribution pension schemes 417,718 380,082
Other forms of employee benefts 279,225 277,226
7,262,915 6,517,351

The following number of employees received employee benefits (excluding employer pension costs and national insurance) during the year between:

£60,000 - £69,999 2024
2023
£
£
6
5
£70,000 - £79,999 4
3
£80,000 - £89,999 1
1
£90,000 - £99,999 2
-
£100,000 - £109,999 -
1
£110,000 - £119,999 -
1
£120,000 - £129,999 1
2
£130,000 - £139,999 -
-
£140,000 - £149,999 -
-
£150,000 - £159,999 -
1
£170,000 - £179,999 1
1
£180,000 - £189,999 -
-
£190,000 - £199,999 -
1
£200,000 - £209,999 1
-

The total employee benefits including pension contributions and employer’s national insurance of the key management personnel were £704,105 (2023: £1,053,502).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2023: £nil). No charity trustee received payment for professional or other services supplied to the charity (2023: £nil) save as disclosed in note 8 below.

Trustees’ expenses represents the payment or reimbursement of travel and subsistence totalling £10,716 (2023: £13,566) incurred by 12 (2023: 11) trustees relating to attendance at Board meetings.

Trustee indemnity insurance has been included within the charitable company’s indemnity insurance.

77

VTCT Skills Annual Report 2023 - 2024

7. Staff numbers

The average number of employees (head count based on number of staff employed)

during the year was as follows:

during the year was as follows:
Qualifcations and Assessment 2024
2023
No.
No.
216
169
Support 39
41
Governance 2
2
257
212

8. Related party transactions

During the year the Charity engaged with:

There are nil donations from related parties.

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity’s trading subsidiary Education & Media Services Limited will gift aid profits earned in year to the parent charity.

78

VTCT Skills Annual Report 2023 - 2024

10. Tangible fixed assets

The Group

10. Tangible fxed assets
The Group
Freehold
property		 Property
Improvements		 Fixtures and
fttings		 Computer
equipment &
Software		 Total
Cost £ £ £ £ £
At the start of the year 1,289,458 1,889,769 147,611 1,285,163 4,612,001
Additions in year - 16,436 4,326 23,072 43,834
Transfers in year - - - - -
Disposals in year - (964) (7,498) (1,079,634) (1,088,096)
At the end of the year 1,289,458 1,905,241 144,439 228,601 3,567,739
Depreciation
At the start of the year 167,140 768,975 143,370 1,203,758 2,283,243
Charge for the year 17,628 87,340 2,445 39,828 147,241
Eliminated on disposal - (410) (6,644) (1,078,353) (1,085,407)
At the end of the year 184,768 855,905 139,171 165,233 1,345,077
Net book value
At the end of the year 1,104,690 1,049,336 5,268 63,368 2,222,662
At the start of the year 1,122,318 1,120,794 4,241 84,960 2,332,313

Land with a value of £407,232 (2023: £407,232) is included within freehold property and not depreciated.

This year, the fixed asset gross book value has been significantly reduced. This has been driven by two activities:

All of the above assets are used for charitable purposes.

10. Tangible fixed assets (continued)

The Charity

10. Tangible fxed assets (continued)
The Charity
Freehold
property		 Property
Improvements		 Fixtures and
fttings		 Computer
equipment &
Software		 Total
Cost £ £ £ £ £
At the start of the year 1,289,458 1,889,769 147,611 1,285,163 4,612,001
Additions in year - 16,436 4,326 23,072 43,834
Disposals in year - (964) (7,498) (1,079,634) (1,088,096)
At the end of the year 1,289,458 1,905,241 144,439 228,601 3,567,739
Depreciation
At the start of the year 167,140 768,975 143,370 1,203,758 2,283,243
Charge for the year 17,628 87,340 2,445 39,828 147,241
Eliminated on disposal - (410) (6,644) (1,078,353) (1,085,407)
At the end of the year 184,768 855,905 139,171 165,233 1,345,077
Net book value
At the end of the year 1,104,690 1,049,336 5,268 63,368 2,222,662
At the start of the year 1,122,318 1,120,794 4,241 81,405 2,328,758

79

VTCT Skills Annual Report 2023 - 2024

11. Intangible fixed assets The Group

11. Intangible fxed assets
The Group
Software
& Resources		 Goodwill Trademarks Total
Cost £ £ £ £
At the start of the year 2,019,849 8,376,833 4,800 10,401,482
Additions in year 6,064 33,779 - 39,843
Disposals in year (109,651) - - (109,651)
At the end of the year 2,019,849 8,410,612 4,800 10,435,261
Amortisation -
At the start of the year 1,839,617 5,549,489 4,120 7,393,226
Charge for the year 109,987 1,041,759 480 1,152,226
Eliminated on disposal (104,019) - - (104,019)
At the end of the year 1,839,617 6,591,248 4,600 8,441,432
Net book value
At the end of the year 70,677 1,819,364 200 1,890,242
At the start of the year 180,232 2,827,344 680 3,008,256

11. Intangible fixed assets (continued) The Charity

Software
& Resources		 Trademarks Total
Cost £ £ £
At the start of the year 2,019,849 4,800 2,024,649
Additions in year 6,064 - 6,064
Disposals in year (109,651) - (109,651)
At the end of the year 1,916,262 4,800 1,921,062
Amortisation
At the start of the year 1,839,617 4,120 1,843,737
Charge for the year 109,987 480 110,467
Eliminated on disposal (104,019) - (104,019)
At the end of the year 1,845,585 4,600 1,850,185
Net book value
At the end of the year 70,677 200 70,877
At the start of the year 180,232 680 180,912

80

VTCT Skills Annual Report 2023 - 2024

12. Listed investments

12. Listed investments
The Group The Charity
Fair value at the start of the year 2024
2023
£
£
7,551,284
8,362,194		 2024
2023
£
£
7,551,284
8,362,194
Additions at cost 864,931
1,440,002		 864,931
1,440,002
Disposal proceeds (1,117,269)
(1,532,703)		 (1,117,269)
(1,532,703)
Change in cash in the portfolio 235,768
(453,827)		 235,768
(453,827)
Net gain in fair value 622,315
(264,382)		 622,315
(264,382)
Fair value at the end of the year 8,157,029
7,551,284		 8,157,029
7,551,284
Listed investments comprise:
UK Common investment funds The Group
2024
2023
£
£
2,717,210
2,414,412		 The Charity
2024
2023
£
£
2,717,210
2,414,412
Shares listed on the London Stock Exchange 1,064,040
1,291,351		 1,064,040
1,291,351
Cash and short term deposits held by fund
manager		 422,965
156,941		 422,965
156,941
Other Investments Including Overseas Equities,
Alternatives and Multi-Asset		 3,952,814
3,688,580		 3,952,814
3,688,580
Fair value at the end of the year 8,157,029
7,551,284		 8,157,029
7,551,284

81

VTCT Skills Annual Report 2023 - 2024

13 Subsidiary undertakings

13 Subsidiary undertakings
The Charity
2024 2023
Investments held in subsidiary undertakings £ £
At the start of the year 2,094,812 4,172,158
Additions during the year 33,779 1,161,553
Impairments recognised (1,109,082) (3,238,899)
At the end of the year 1,019,509 2,094,812

Education & Media Services Ltd

VTCT Skills acquired the share capital of Education & Media Services Ltd (EMS) on 8 November 2016. The cost of acquisition along with associated professional support and advice totalled £5,600,049. The cost of the share capital was settled through a cash payment, with a retention amount paid in March 2017 based on EMS’s performance. The goodwill has been fully amortised.

A summary of the results of the subsidiary shown below.

2024 2023
£ £
Turnover 2,454,254 2,212,401
Cost of sales (502,390) (466,649)
Gross proft 1,951,863 1,745,753
Administrative expenses (1,079,905) (1,365,896)
Operating proft / (loss) 871,959 379,856
Interest receivable 6,879 4,824
Proft on ordinary activities 878,838 384,680
Gift aid to parent undertaking - (1,427,274)
Proft/(Loss) for the period 878,838 (1,042,594)
The aggregate of the assets, liabilities and reserves was: 2024 2023
£ £
Assets 1,353,179 592,681
Liabilities (207,068) (325,408)
Reserves 1,146,111 267,273

During the year, intercompany charges were made from VTCT Skills to EMS totalling £973,522 (2023: £1,255,702) for management time and support.

82

VTCT Skills Annual Report 2023 - 2024

The Skills Group Limited & Skills for Logistics Limited

VTCT Skills acquired the share capital of The Skills Group Ltd who own Skills for Logistics Ltd on 01 June 2023. The cost of the acquisition along with associated professional support and advice totalled £1,161,553. The trustees consider the useful economic life of The Skills Group Ltd to be 2 years and the goodwill has will be amortised over this period.

Skills for Logistics Ltd and The Skills Group Ltd have both taken advantage of the provisions available under Section 479C of the Companies Act 2006 which allow for audit exemption of a subsidiary company. Vocational Training Charitable Trust guaranteed the liabilities of the subsidiaries The Skills Group Limited and Skills for Logistics Ltd at 31 December 2023.

During the year there were no intercompany charges made from VTCT Skills to The Skills Group Ltd or Skills for Logistics Ltd.

The Skills Group Limited

A summary of the results of the subsidiary shown below. The accounting date for The Skills Group Ltd is 31st December.

Year to 31 December Pre acquisition 12 month
period to 31st December
2023 2022
£ £
Turnover 51,945 84,670
Cost of sales - -
Gross proft 51,945 84,670
Administrative expenses (134,821) (177,032)
Operating loss (82,876) (92,362)
Exceptional item 273,427 117,684
Operating proft / (loss) afer exceptional items 190,551 25,322
Interest receivable and similar income 609 -
Interest payable and similar charges (1,000) -
Proft for the period 190,160 25,322
The aggregate of the assets, liabilities and reserves was:
2023 2022
£ £
Assets 70,757 103,352
Liabilities (121,960) (344,715)
Reserves (51,203) (241,363)

83

VTCT Skills Annual Report 2023 - 2024

Skills for Logistics Limited

A summary of the results of the subsidiary shown below. The accounting date for Skills for Logistics Limited is 31 December.

Pre acquisition 12
Year to 31 December month period to 31
December
2023 2022
£ £
Turnover 703,517 797,714
Cost of sales (225,067) (141,596)
Gross proft 478,450 656,118
Administrative expenses (480,738) (419,744)
Operating proft / (loss) (2,288) 236,374
Exceptional item 30,058 (152,086)
Operating proft / (loss) afer exceptional items 27,770 84,288
Interest payable and similar charges (401) (989)
Proft on ordinary activities 27,369 83,299
Corporation Tax - (24,728)
Proft for the period 27,369 58,571
The aggregate of the assets, liabilities and reserves was:
2023 2022
£ £
Assets 203,097 250,513
Liabilities (78,326) (153,111)
Reserves 124,771 97,402

The trade and assets of The Skills Group Ltd and Skills for Holdings Ltd were transferred to VTCT Skills on 1st January 2024.

14. Parent charity

The parent charity’s gross income and the results for the year are disclosed as follows:

2024 2023
£ £
Gross income 11,324,135 12,810,332
Net result for the year (1,469,327) (2,620,401)

84

VTCT Skills Annual Report 2023 - 2024

15. Debtors

The Group The Charity
2024
2023
2024		 2023
£
£
£		 £
Trade debtors 1,100,383
1,174,390
1,033,449		 1,002,632
Amounts due from other group entities -
-
73,212		 175,759
Other debtors and prepayments 531,250
640,275
156,224		 610,593
1,631,633
1,814,665
1,622,885		 1,788,984

Other Debtors includes a non current debtor of £138k (2023: £138k) comprising of a loan made in 2014 to Truro & Penwith College contributing to the provision of specialist teaching facilities.

16 . Creditors: amounts falling due within one year

The Group The Charity
2024
2023
2024		 2023
£
£
£		 £
Trade debtors 158,395
282,114
152,101		 229,902
Taxation and social security 173,174
138,227
272,839		 250,300
Other creditors 494,527
384,681
455,024		 315,794
Deferred income (note 17) 242,252
288,890
154,194		 186,078
1,068,348
1,093,912
1,034,158		 982,074

17. Deferred income

The Group The Charity
2024
2023
2024		 2023
£
£
£		 £
Balance at the beginning of the year 288,890
218,451
186,078		 56,791
Amount released to income in the year (288,890)
(218,451)
(186,078)		 (56,791)
Amount deferred in the year 242,252
288,890
154,194		 186,078
242,252
288,890
154,194		 186,078

85

VTCT Skills Annual Report 2023 - 2024

18a. Analysis of group net assets between funds (current year)

General unrestricted Total funds
£ £
Tangible fxed assets 2,222,662 2,222,662
Intangible assets including goodwill 1,890,242 1,890,242
Investments 8,157,029 8,157,029
Net current assets 1,943,865 1,943,865
Net assets at 31 July 2024 14,213,797 14,213,797

18b. Analysis of group net assets between funds (prior year)

Tangible fxed assets General unrestricted
Total funds
£
£
2,332,998
2,332,998
Intangible assets including goodwill 3,008,256
3,008,256
Investments 7,551,284
7,551,284
Net current assets 1,969,896
1,969,896
Net assets at 31 July 2023 14,862,434
14,862,434

19a. Movements in funds (current year)

At 1 August
2023		 Income & net
gains		 Expenditure &
losses		 Transfers At 31 July 2024
£ £ £ £ £
Unrestricted funds:
General funds 14,862,434 12,863,495 (13,512,131) - 14,213,798
Total funds 14,862,434 12,863,495 (13,512,131) - 14,213,798

86

VTCT Skills Annual Report 2023 - 2024

19b. Movements in funds (prior year)

At 1 August
2022		 Income & net
gains		 Expenditure &
losses		 Transfers at 31 July 2023
£ £ £ £ £
Unrestricted funds:
General funds 16,692,942 11,661,678 (13,492,186) - 14,862,434
Total funds 16,692,942 11,661,678 (13,492,186) - 14,862,434

20. Operating lease commitments

The group’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

periods:
Property Equipment/Other
2024
2023
2024		 2023
£
£
£		 £
Less than one year 67,627
67,498
74,232		 74,777
One to fve years 129,516
175,475
99,594		 180,998
More than 5 years -
-
-		 -
197,143
242,973
173,826		 255,775

The charity’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

following periods:
Property Equipment/Other
2024
2023
2024		 2023
£
£
£		 £
Less than one year 55,413
55,413
74,232		 74,777
One to fve years 120,062
175,475
99,594		 180,998
175,475
230,888
173,826		 255,775

21. Lessor commitments

The charity's total future minimum lessor payments under non-cancellable operating leases is as follows for each of the following periods:

following periods:
2024 2023
£ £
Amounts falling due on Tenant leases in less than one year 28,405 -
Amounts falling due on Tenant leases in one to fve years 115,962 -
Amounts falling due on Tenant leases in more than fve years - -
144,367 -

22. Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

87

VTCT Skills Annual Report 2023 - 2024

vtctskills.org.uk

Aspire House, Annealing Close, Eastleigh, Hampshire, SO50 9PX, United Kingdom

T +44 (0) 23 8068 4500 E customersupport@vtctskills.org.uk

88

VTCT Skills Annual Report 2023 - 2024