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← Southampton Engineering Training Association Ltd

2025-08-31-accounts

REGISTERED COMPANY NUMBER: 00971293 (England and Wales) REGISTERED CHARITY NUMBER: 307299

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

FOR

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 25

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2025. The trustees have adopted the provisions of 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) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Our aim is to be the training provider of choice for employers requiring training services for the development of their engineering staff in the South of England by offering a combination of workshop training and technical qualifications to meet the requirements of the engineering and manufacturing industries in the local area and beyond. The training offered coupled with excellent customer service means we have established a loyal customer base and a high level of repeat business with businesses choosing SETA as their preferred supplier. Referrals by satisfied customers frequently introduces new customers so consequently, income is not dependant on large expenditure sales and marketing campaigns.

SETA is positioned to provide specialist training services to the engineering, manufacturing and construction industry sectors and strives to offer a comprehensive technical training service. New courses are continually introduced and bespoke courses offered in response to employer requests and market trends.

SETA is committed to delivering high quality, value for money apprenticeships and supporting young people to enter the engineering and manufacturing sector. SETA offers an apprenticeship recruitment service to employers and has seen an increase in applications in the past year due to the careers work undertaken to ensure young people are aware of engineering apprenticeships. Career information, advice and guidance is provided to candidates who have applied for vacancies and this continues throughout their apprenticeship. SETA work closely with Professional Engineering Institutions (PEI's) and local Universities enabling seamless and continual professional development for apprentices who complete and progress through their career pathways.

The legal requirement to maintain safeguarding, safety and wellbeing arrangements for all learners and our staff is paramount and particularly important and is under constant review through rigorous internal self-assessment. We aim to provide a supportive working environment where the contribution of our employees is valued, creativity encouraged, equity, diversity and inclusion respected and the equality of opportunity promoted.

Public benefit

The objectives and activities undertaken by the charity are confirmed to be for public benefit and the Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

During the academic year 2024/25: 301 (2023/24: 269) apprentices were in learning and, of these, 34 (2023/24: 30) completed with a pass rate of 89.5% (2023/24: 93.3%). Overall we have an achievement rate of 54.8% (2023/24: 56%) and a retention rate of 61.3% (2023/24: 60%). Our achievement rates for 2025 are lower than in 2024 and below the national average. The national data is recorded earlier in the year than previously and with our programmes being mainly 42 months some completions will not be recorded in the data set. There were also continuous delays with end point assessment. These will be reviewed in the Autumn.

Of the 58 (2023/24: 92) new enrolments in the year 28 (2023/24: 55) were aged between 16 and 18, 30 (2023/24: 37) were aged 19+.

STRATEGIC REPORT

Achievements and performance

Fundraising activities

The charity has not participated in any direct or funded fundraising to date. No donations of plant and equipment from employers and suppliers have been received this year.

Page 1

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

STRATEGIC REPORT

Financial review

Principal funding sources

The principal source of funding arises from apprenticeships funded by the Department for Education (DfE) representing 54% (2024: 49%) of income. The remaining 46% (2024: 51%) of income arises from commercial course delivery and consultancy.

Reserves policy

The current level of unrestricted reserves (excluding the fair value reserve) is valued at £364,455 (2024: £220,119) which represents 7% (2024: 7%) of annual costs; the objective set by the board is for this to be increased to £1,000,000 representing 33% of annual costs.

The Board of Trustees has considered the adequacy of total reserves held by the company and is of the opinion that they are adequate for the furtherance of the charity's objectives.

The reserves policy is to:

Performance

The results for the year and the financial position of the association are shown in the annexed accounts. These show a surplus for the financial year which the Trustees recommend be added to the reserve.

In accordance with the requirements of the Charity Commission a revaluation was carried out on the leasehold premises used as an apprentice training centre in 2016. The building was erected in 1969 and has a floor area of 1950 sq m. It is occupied under an 83 year lease which expires 28/03/2054 leaving an unexpired term of 30 years. The estimated fair value of the lease is still included at a valuation of £335,000, less depreciation. The fair value reserve of £81,784 (2024: £84,646) can only be released by disposal of the apprentice training centre.

Overall sales revenues increased by £77,237 (3%) compared with the previous year. This is due to increased commercial sales, more apprentices on programme and the introduction of Skills Boot Camp training programmes.

Safeguarding and mental health support continues to rise year on year. In 2022 we introduced Student Welfare & Development as part of our pastoral services team which enables learners to receive dedicated learning support as those with complex learning needs continues to increase.

In September 2024 our 'first year off the job' training programme was revamped. We introduced a SETA Foundation Certificate rather than the traditional PEO award meaning we could ensure the training offered met the skills, knowledge & behaviours (SKBs) of each Apprenticeship Standard.

We ensured that learners whose academic qualifications did not meet the required standard to start their technical qualification in Year 1 were not penalised and introduced a full functional skills programme to allow them to get up to speed. They will start their technical qualification in Year 2 enabling them to achieve without compromise.

This year, a new policy has been implemented whereby termination fees are charged when employers withdraw apprentices before completion of their program. Previously, early withdrawal did not incur any additional cost; however, under the revised structure, employers are now liable for these fees. As a result of this change, the total termination fees charged during the year amount to £14,500, reflecting the financial impact of early apprentice withdrawals under the new policy.

Fixed assets

The principal fixed asset is the long lease for the premises at 1st Avenue and the market value was re-assessed in 2016.

Page 2

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

STRATEGIC REPORT

Principal risks and uncertainties

As an Independent Training Provider (ITP), principal risks and uncertainties are heavily influenced by the reliance on government and commercial funding, evolving regulations and the need to deliver high-quality, compliant training in a competitive market. Much of the income comes from fixed rate government funding for apprenticeships and although there has been increased investment in apprenticeships and bootcamps there has still not been an increase in apprenticeship funding bands. This causes a significant financial squeeze when operational costs, particularly staff salaries need to rise in line with inflation. SETA does not solely rely on a government contract from the DfE for its income but any sudden decrease in funding or contract termination due to a breach would lead to severe financial instability or provider failure.

Any change in a funding stream, fluctuations in learner enrolment or funding that 'follows the learner' rather than being paid upfront can create challenges for consistent cash flow.

Regulatory bodies like the DfE and Ofsted can reclaim funds if compliance standards are not met or we do not adhere to the funding rules set out in the new financial handbook.

The proposed Growth & Skills Levy represents a significant overhaul of the current Apprenticeship Levy and will allow employers greater freedom in how they spend their funds so causes uncertainty for providers in the future.

The overdraft facility has been retained with the bank as a contingency.

Procedures and systems have been put in place to ensure that critical IT data is backed-up and stored to facilitate reinstatement, including Cyber Essentials Plus certification. These procedures are compliant with the General Data Protection Requirements (GDPR) legislation and the system for recording student details is audited by the Provider Financial Assurance Team operating on behalf of the Department for Education (DfE).

Further risks include:

Page 3

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

STRATEGIC REPORT

Future plans

SETA has a well-established reputation for delivering high quality, value for money engineering apprenticeships and commercial training courses. The creation of apprenticeship service teams encompassing recruitment, technical, funding, pastoral and end assessment are fundamental to help employers understand the changes to funding rules annually and extract maximum value from their Levy investment. SETA has established a package providing a competitive edge against competitors and will continue to help secure apprenticeship contracts with employers far and wide.

SETA is one of the largest providers of engineering training services in the South; we must continue to review funding viability on schemes and ensure apprenticeship training is sustainable to deliver whilst ensuring employers see a return on their levy investment. Nearly all new apprenticeships are provided at Level 3 or 4 and attract the highest funding band available; very few apprenticeships are provided at Level 2 which are not sustainable or popular with employers and offer candidates limited progression opportunities. We must continue engagement services with local Schools, FE Colleges and Partners, Award Organisations, Stakeholders and the local community to promote career opportunities within our Sector as this will ensure a sustainable feeder system of potential new apprenticeship applicants. Forging links with Universities and Professional Engineering Institutions will be crucial to facilitate progression pathways and higher retention levels of the skilled employee workforce.

We run a schedule of Taster days, Jobs Fairs and other open events to encourage young people into the Centre to see what encompasses an engineering apprenticeship.

SETA has a commercial facility which provides end point assessment services for electro-technical qualifications and a wide range of electrical, mechanical, health & safety and hazardous area training courses. The income earned from these services represents 46% (2024: 52%) of our income and is crucial to funding the apprenticeship training services we provide. We must continue to add to our portfolio to enable this provision to grow to meet any future apprenticeship reforms.

SETA has been delivering apprenticeships at the centre in First Avenue since 1969, and the building is becoming increasingly difficult to maintain and meet the requirements of new, sustainability aspirations. The commercial delivery and assessment is delivered from a smaller building in Second Avenue which can cause operational challenges. The long-term objective is to move to a larger, modern facility to encompass operations in one place.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The governing document is the Memorandum and Articles of Association, updated in January 1970. This document was reviewed and updated in 2021 in line with changes to the charity operating procedures.

Recruitment and appointment to the Council of Trustees

Invitations are extended to the user members of the charity to nominate one person as a member and Director of the charity. The charity, having no share capital, is run by the Council of Trustees and no individual is able to exercise control of the charity.

Page 4

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

Day to day management of the charity is under control of the CEO, Julie Gough, who acts in accordance with the instructions of the Council of Trustees / Board of Directors.

There are three principal areas of operation:

All activities including support services, finance, personnel, IT, marketing, compliance, health & safety and membership are managed through the key management team. Consultants are retained on annual contracts to provide specialist support in the areas of IT and Personnel Management.

Remuneration for key management personnel is governed by limits set by the Trustees. Performance is assessed by the Trustees.

The charity operates a defined contribution pension scheme open to all staff. The charity contributes 10% of gross salary to the scheme for each staff member employed prior to August 2021, and a minimum of 3% for staff recruited after this date. Staff will contribute a minimum of 5% to reach the 8% Government requirement.

Induction and training of new trustees

Potential trustees are invited to apply to become involved with the charity and learn more about the contribution they can make. A formal application must be made to the Directors for their approval. A formal explanation of responsibilities is provided before an appointment is confirmed.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

00971293 (England and Wales)

Registered Charity number

307299

Registered office

First Avenue Millbrook Southampton Hampshire SO15 0LJ

Trustees

G E Mason T J Millard C J Savage K Brett Mrs A Lancashire (resigned 4.11.2025)

Company Secretary

R W Heighington

Page 5

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

REFERENCE AND ADMINISTRATIVE DETAILS
Auditors
Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR
Key Management:
Mrs J D Gough CEO
Bankers
National Westminster Bank plc
12 High Street
Southampton
Hampshire
SO14 2NX

GOING CONCERN

The association operates on a daily basis using a combination of bank facilities, credit card borrowing and credit from suppliers.

The trustees have a reasonable expectation that the charity has adequate reserves to continue in operation for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the annual financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Southampton Engineering Training Association Limited (The) for the purposes of company law) are responsible for preparing the Report of the Trustees 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. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

Page 6

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2025

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of 06 the Feb trustees, 2026 incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by:

........................................................................

T J Millard - Trustee

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

Opinion

We have audited the financial statements of Southampton Engineering Training Association Limited (The) (the 'charitable company') for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 trustees' 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. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

In connection with our audit of the financial statements, 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 the audit:

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Our responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 Report of the Independent Auditors.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

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. 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 auditors' 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.

Michaela Johns FCCA (Senior Statutory Auditor) for and on behalf of Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR 08 Feb 2026

Date: .............................................

Page 10

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025

2025
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
-
Charitable activities
4
Courses and training
3,107,819
Investment income
3
2,218
Total
3,110,037
EXPENDITURE ON
Raising funds
5
1,017
Charitable activities
6
Courses and training
534,438
Staff costs
1,889,051
Establishment
202,470
Plant material and equipment
79,021
General expenses
248,256
Total
2,954,253
NET INCOME
155,784
RECONCILIATION OF FUNDS
Total funds brought forward
304,765
TOTAL FUNDS CARRIED FORWARD
460,549		 2024
Total funds
£
22,429
3,030,581
1,333
3,054,343
648
488,115
2,086,486
199,173
55,353
222,009
3,051,784
2,559
302,206
304,765

The notes form part of these financial statements

Page 11

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293) TRADING AS SETA

BALANCE SHEET 31 AUGUST 2025

2025 2024
Unrestricted
funds Total funds
Notes £ £
FIXED ASSETS
Tangible assets 12 370,179 355,974
CURRENT ASSETS
Debtors 13 283,679 281,415
Cash at bank and in hand 193,109 37,203
476,788 318,618
CREDITORS
Amounts falling due within one year 14 (369,525) (362,637)
NET CURRENT ASSETS 107,263 (44,019)
TOTAL ASSETS LESS CURRENT
LIABILITIES 477,442 311,955
CREDITORS
Amounts falling due after more than one year 15 (16,893) (7,190)
NET ASSETS 460,549 304,765
FUNDS 18
Unrestricted funds 460,549 304,765
TOTAL FUNDS 460,549 304,765

The financial statements were approved by the Board of Trustees and authorised for issue on Feb 2026 ............................................. and were signed on its behalf by:

............................................. T J Millard - Trustee

The notes form part of these financial statements

Page 12

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2025
£
202,618
(1,017)
201,601
(39,663)
1,750
2,218
(35,695)
(10,000)
(10,000)
155,906
37,203
193,109		 2024
£
34,560
(648)
33,912
(28,973)
-
1,333
(27,640)
(10,000)
(10,000)
(3,728)
40,931
37,203

The notes form part of these financial statements

Page 13

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2025

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES OPERATING ACTIVITIES
2025 2024
£ £
Net income for the reporting period (as per the Statement of Financial
Activities) 155,784 2,559
Adjustments for:
Depreciation charges 38,823 33,911
Loss on disposal of fixed assets 11,625 -
Interest received (2,218) (1,333)
Interest paid 1,017 648
(Increase)/decrease in debtors (2,264) 2,756
Decrease in creditors (149) (3,981)
Net cash provided by operations 202,618 34,560
2. ANALYSIS OF CHANGES IN NET FUNDS
Other
non-cash
At 1.9.24 Cash flow changes At 31.8.25
£ £ £ £
Net cash
Cash at bank
and in hand 37,203 155,906 193,109
37,203 155,906 193,109
Debt
Finance leases - - (26,740) (26,740)
Debts falling due
within 1 year (10,310) 2,810 - (7,500)
Debts falling due
after 1 year (7,190) 7,190 - -
(17,500) 10,000 (26,740) (34,240)
Total 19,703 165,906 (26,740) 158,869

The notes form part of these financial statements

Page 14

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold premises (1st Avenue - building) Over the remaining period of the 83 year lease
Short leasehold premises (2nd Avenue - land) Over 10 years straight line
Plant and equipment 20% - 33.33% reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The association continues to contribute to three defined contribution schemes. Contributions are charged to the income and expenditure account as they become payable.

Government grants

The following government grants were received in the prior year:

Business Interruption Payment (BIP) under the Bounce Back Loan scheme: The BIP is payable in respect of the loan interest for the first 12 months, together with any related fees. The accrual model has been used to recognise the income on a systematic basis over the periods in which the related finance costs are incurred. The company has also benefited from the UK government's provision of security for 100% of the loan.

Page 15

continued...

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

1. ACCOUNTING POLICIES - continued

Government grants

Leased assets

Amounts paid under operating leases are charged to the income and expenditure account as incurred.

Grants

Grants receivable in respect of fixed assets are treated as deferred income which are credited to the income and expenditure account over the estimated economic lives of the related assets.

2. DONATIONS AND LEGACIES

2.
DONATIONS AND LEGACIES
2025
£
Donations
-
3.
INVESTMENT INCOME
2025
£
Deposit account interest
2,218
4.
INCOME FROM CHARITABLE ACTIVITIES
2025
Courses and
training
£
Employer contributions
37,503
Training
156,180
Welding courses
37,875
DfE funding
1,690,038
Miscellaneous income
375
Canteen sales and sundry
1,846
Commercial courses
975,004
AM2 testing
188,851
Travel recovered
20,147
3,107,819		 2024
£
22,429
2024
£
1,333
2024
Total
activities
£
54,175
132,798
57,780
1,488,878
12,481
993
959,179
300,914
23,383		 2024
£
22,429
2024
£
1,333
3,030,581

Page 16

continued...

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

5.
RAISING FUNDS
Other trading activities
Interest payable and similar charges
6.
CHARITABLE ACTIVITIES COSTS
Courses and training
Staff costs
Establishment
Plant material and equipment
General expenses
7.
SUPPORT COSTS
General expenses
8.
NET INCOME/(EXPENDITURE)		 Direct
Costs
£
534,438
1,889,051
202,470
79,021
236,865
2,941,845		 2025
2024
£
£
1,017
648
Support
costs (see
note 7)
Totals
£
£
-
534,438
-
1,889,051
-
202,470
-
79,021
11,391
248,256
11,391
2,953,236
Governance
costs
£
11,391		 2024
£
648
Totals
£
534,438
1,889,051
202,470
79,021
248,256		 2024
£
648
Totals
£
534,438
1,889,051
202,470
79,021
248,256		 2024
£
648
2,953,236

Net income/(expenditure) is stated after charging/(crediting):

2025 2024
£ £
Auditors' remuneration 7,391 6,835
Auditors' remuneration for non audit work 4,000 3,840
Depreciation - owned assets 35,461 33,911
Depreciation - assets on hire purchase contracts and finance leases 3,362 -
Other operating leases 100,074 92,941
Deficit on disposal of fixed assets 11,625 -

continued...

Page 17

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2025 nor for the year ended 31 August 2024.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2025 nor for the year ended 31 August 2024.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2025
£
1,585,068
177,171
122,600
1,884,839		 2024
£
1,753,850
181,377
140,313
2,075,540

The average monthly number of employees during the year was as follows:

2025 2024
Employees 44 48

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000		 2025
-
2
2		 2024
1
2
3

Contributions were made into the Pension Schemes for the higher paid employees of £12,698 (2024: £19,298)

The total key management remuneration including pension and benefits as noted above is £91,069 (2024: £166,279)

During the year, there were no payments as a result of redundancy (2024: £18,459).

continued...

Page 18

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 22,429
Charitable activities
Courses and training 3,030,581
Investment income 1,333
Total 3,054,343
EXPENDITURE ON
Raising funds 648
Charitable activities
Courses and training 488,115
Staff costs 2,086,486
Establishment 199,173
Plant material and equipment 55,353
General expenses 222,009
Total 3,051,784
NET INCOME 2,559
RECONCILIATION OF FUNDS
Total funds brought forward 302,206
TOTAL FUNDS CARRIED FORWARD 304,765

continued...

Page 19

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

12. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Short Long Plant and
leasehold leasehold machinery Totals
£ £ £ £
COST
At 1 September 2024 74,370 335,000 921,172 1,330,542
Additions - - 66,403 66,403
Disposals - - (723,923) (723,923)
At 31 August 2025 74,370 335,000 263,652 673,022
DEPRECIATION
At 1 September 2024 74,370 71,330 828,868 974,568
Charge for year - 8,917 29,906 38,823
Eliminated on disposal - - (710,548) (710,548)
At 31 August 2025 74,370 80,247 148,226 302,843
NET BOOK VALUE
At 31 August 2025 - 254,753 115,426 370,179
At 31 August 2024 - 263,670 92,304 355,974

The long term leasehold premises were re-valued to £335,000 on 9 November 2016 by Hughes Ellard Limited.

If the buildings had not been included at valuation, they would have been included under the historical cost convention as follows:

2025 2024
£ £
Cost 383,307 383,307
Accumulated depreciation (210,577) (204,179)
172,730 179,128

The net book value of tangible assets within the above includes £26,899 (2024: £nil) in respect of assets held under hire purchase contracts.

continued...

Page 20

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

12. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

COST
Additions
DEPRECIATION
Charge for year
NET BOOK VALUE
At 31 August 2025
At 31 August 2024
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 16)
Hire purchase (see note 17)
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income
Income in advance		 Plant and
machinery
£
30,261
3,362
26,899
-
2025
2024
£
£
155,969
115,614
127,710
165,801
283,679
281,415
2025
2024
£
£
7,500
10,310
9,847
-
30,632
39,844
40,284
154,741
62,491
43,192
2,222
1,713
110,339
84,386
106,210
28,451
369,525
362,637		 Plant and
machinery
£
30,261
3,362
26,899
-
2025
2024
£
£
155,969
115,614
127,710
165,801
283,679
281,415
2025
2024
£
£
7,500
10,310
9,847
-
30,632
39,844
40,284
154,741
62,491
43,192
2,222
1,713
110,339
84,386
106,210
28,451
369,525
362,637
3,362
26,899
-
2024
£
115,614
165,801
281,415
2024
£
10,310
-
39,844
154,741
43,192
1,713
84,386
28,451
362,637

The bank overdraft is secured on all the assets of the company.

Deferred income relates to course deposits and fees, which have been invoiced, but not performed by the year end. Deferred income is included in other creditors above.

continued...

Page 21

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

The amount of this income is as follows:
2025
2024
£
£
Deferred at 31 August 2024
28,451
46,035
Release during the year
(28,451)
(46,035)
Deferred during the year
106,210
28,451
Deferred at 31 August 2025
106,210
28,451
15.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2025
2024
£
£
Bank loans (see note 16)
-
7,190
Hire purchase (see note 17)
16,893
-
16,893
7,190
16.
LOANS
An analysis of the maturity of loans is given below:
2025
2024
£
£
Amounts falling due within one year on demand:
Bank loans
7,500
10,310
Amounts falling between one and two years:
Bank loans - 1-2 years
-
7,190
17.
LEASING AGREEMENTS
Minimum lease payments fall due as follows:
Hire purchase contracts
2025
2024
£
£
Net obligations repayable:
Within one year
9,847
-
Between one and five years
16,893
-
26,740
-
2025 2024
£ £
28,451 46,035
(28,451) (46,035)
106,210 28,451
106,210 28,451

continued...

Page 22

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

17. LEASING AGREEMENTS - continued

Within one year
Between one and five years
In more than five years
MOVEMENT IN FUNDS
At 1.9.24
£
Unrestricted funds
General fund
220,119
Fair value reserve
84,646
304,765
TOTAL FUNDS
304,765
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
At 1.9.23
£
Unrestricted funds
General fund
214,692
Fair value reserve
87,514
302,206
TOTAL FUNDS
302,206		 Net
movement
in funds
£
155,784
-
155,784
155,784
Incoming
resources
£
3,110,037
3,110,037
Net
movement
in funds
£
2,559
-
2,559
2,559		 Non-cancellable
operating leases
2025
2024
£
£
64,000
58,828
206,260
202,450
943,600
983,600
1,213,860
1,244,878
Transfers
between
funds
At 31.8.25
£
£
2,862
378,765
(2,862)
81,784
-
460,549
-
460,549
Resources
Movement
expended
in funds
£
£
(2,954,253 )
155,784
(2,954,253 )
155,784
Transfers
between
funds
At 31.8.24
£
£
2,868
220,119
(2,868)
84,646
-
304,765
-
304,765		 Non-cancellable
operating leases
2025
2024
£
£
64,000
58,828
206,260
202,450
943,600
983,600
1,213,860
1,244,878
Transfers
between
funds
At 31.8.25
£
£
2,862
378,765
(2,862)
81,784
-
460,549
-
460,549
Resources
Movement
expended
in funds
£
£
(2,954,253 )
155,784
(2,954,253 )
155,784
Transfers
between
funds
At 31.8.24
£
£
2,868
220,119
(2,868)
84,646
-
304,765
-
304,765		 Non-cancellable
operating leases
2025
2024
£
£
64,000
58,828
206,260
202,450
943,600
983,600
1,213,860
1,244,878
Transfers
between
funds
At 31.8.25
£
£
2,862
378,765
(2,862)
81,784
-
460,549
-
460,549
Resources
Movement
expended
in funds
£
£
(2,954,253 )
155,784
(2,954,253 )
155,784
Transfers
between
funds
At 31.8.24
£
£
2,868
220,119
(2,868)
84,646
-
304,765
-
304,765
1,244,878
At 31.8.25
£
378,765
81,784
460,549
460,549
Movement
in funds
£
155,784
155,784
At 31.8.24
£
220,119
84,646
304,765
304,765
304,765
304,765

18. MOVEMENT IN FUNDS

continued...

Page 23

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
3,054,343
3,054,343		 Resources
expended
£
(3,051,784 )
(3,051,784 )		 Movement
in funds
£
2,559
2,559

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfers
movement between
At 1.9.23 in funds funds At 31.8.25
£ £ £ £
Unrestricted funds
General fund 214,692 158,343 5,730 378,765
Fair value reserve 87,514 - (5,730) 81,784
302,206 158,343 - 460,549
TOTAL FUNDS 302,206 158,343 - 460,549

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
6,164,380
6,164,380		 Resources
expended
£
(6,006,037 )
(6,006,037 )		 Movement
in funds
£
158,343
158,343

continued...

Page 24

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2025

19. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2025 nor for the year ended 31 August 2024.

20. COMPANY STATUS

The Association is limited by guarantee of the members, each of whom is due to contribute a maximum of £10 whilst a member or, within one year of ceasing to be member. The number of members, who are the trustees, in 2025 was 5 (2024: 5).

21. TAXATION

The association has charitable status and exemption from taxation has been granted under the Corporation Taxes Act 2010.

Page 25

Issuer

HWB Chartered Accountants

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