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2024-07-31-accounts

Stockport Engineering Training Association Limited (A company limited by guarantee)

Report of the Trustees and Consolidated Financial Statements

For the year ended 30 July 2024

Company Number 1512311

Registered Charity in England no 510493

Stockport Engineering Training Association Limited Report and Consolidated Accounts Contents

Page
Report of the trustees 1 - 5
Report of the independent examiners 6
Consolidated statement of financial activities 7
Consolidated balance sheet 8 - 9
Charity balance sheet 10 - 11
Statement of Cash Flows and Consolidated Statement of Cash Flows 12
Notes forming part of the financial statements 13 - 25

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2024

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 30th July 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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).

Chairs Report

It has been a year of change and consolidation for the business, following the results of the OFSTED inspection in 2022.

The board is pleased to announce that the agreement reached with the privately owned business, Elevated Knowledge Ltd (EKL) to take over our contract and transfer virtually all the apprentices under their tuition has been a success in cooperation between the two companies. With almost all the SETA staff transferred to EKL who continue to lease the training centre facilities for its intended purpose in the provision of Engineering Apprentice Training under the EKL contract and contributing rental income to the business.

The subsidiary organisation SETA Training and Advisory Services Ltd has continued in business, delivering its portfolio of Safety related courses across national standards in the UK business sector, and continues to support the Charitable aims. The staff members dedicated to this part of the business continue to be employed by the company, and along with Associate members deliver this portfolio.

In summary the trading for the year has continued to change from previous years, however the organisation has achieved its immediate short-term objective and a resultant overall surplus of £31K. Thus, underpinning the decisions which were made during the previous year to reorganise the business and give optimism in terms of financial performance going forward with current operations and organisation structure.

I thank our stakeholders, Board Members, Senior Management Team and all the hardworking staff who have been committed to ensure continuation of the charity and who make it a privilege to chair SETA.

We also look forward to the continued cooperation and support to EKL to provide the education training and support to clients and employees which we commenced last year.

Our purpose and activities

The principal objective of the Charity is to maintain, improve and advance education by promoting the training and education for employed people and those intending to be employed in industry and commerce as shown in the Memorandum and Articles of the Association.

The Charity does not carry out significant fundraising activities, the main income for the Charity was via Government funded Apprenticeship training (until March 2023) and then subsequently by the provision of specialised training centre facilities which is supported by commercial training activities.

1

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2024

Public Benefit

The Trustees confirm that they have, when and where necessary to do so, paid regard to the Charity Commissioner’s Guidance on Public Benefit when considering and making its decisions.

SETA is ideally placed to offer its services to the whole of the Greater Manchester and surrounding catchment area.

Membership

We currently have 19 member companies.

Enginering Training Centre

The Charity continues to supprt its Charitable aims by providing specialised training centre facilities.

Non-Charitable Activities

These are done to support charitable activities and to provide members with services required.

Safety and Short Courses

Health, safety and environment related courses for industry and commerce are in constant demand

Achievements and Performance

2023/24 continued to be a difficult year after the impact of OFSTED in the previous year. With some costs associated with discontinued operations were still contracted to be paid after the year and so these operations still had negative impact on the accounts this year.

Safety and Short Course delivery continued to perform well and, although it dropped in turnover, this was expected and planned for.

Financial Review

The agreement eneterd into last year with Elevated Knowledge Limited to take over the training of engineering apprentices and commercial learners continued this year. Allowing SETA to continue to support its Charitable aims of assisting the advancement of education whilst it concentrated on the delivery of Health and Safety training.

The principal funding sources for Stockport Engineering Training Association Ltd for 2023/24 was therefor received from the rental of the training centre, this was supplemented via other training income being generated through the charity's subsidiary trading company, this allowed us to operate in other markets that would not normally be accessible to the charity.

The commercial Health & Safety courses brought in a reduced income of £440,933 (2023 £511,682) - This had been expected and was above the planned budget by £76,000. The main driver for this decrease was the decision to move away from international delivery, although this brought in £98,000 of income in 2023 it was actually a loss making area.

All profits from the commercial training were gift-aided back to the Charity to aid it in fulfilling its charitable aims, £104,490 has been gift aided in 2024 (£150,063 in 2023).

The financial result for the period was a net surplus in funds of £31,360 (2023: deficit £62,774).

The effect is that our consolidated balance sheet still shows a positive picture with net current assets of £49,562 compared to £24,699 (2023) and total funds of £1,036,135 compared to £1,004,775 (2023).

Budgets had been set for the next year as: Year 2025 Turnover £521,850

2

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2024

Reserves Policy

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The trustees consider that the ideal level of reserves as at July 2024 would equate to between 3 and 6 months of non-course related expenditure. Three months being £89,000 based on 2024 levels. The trustees consider that this level of reserves would ensure that, given a significant drop in funding, they would be able to continue the Charity's current activities whilst alternate plans were implemented.

The Charities total reserves were £1,036,135 as at 31 July 2024. The free reserves, being those unrestricted funds not represented by fixed assets and their associated finance, were 35,577 at 31 July 2024 ((£11,980) in 2023), an incresae of £47,557.

We aim to bring these up to an ideal level over the next two years.

We consistently plan and monitor the financial performance of the charity in order to maintain reserve levels by:

Investments Held

The investments held by the charity are share capital held in its two subsidiary companies:

Plans for future periods

Our future plans are detailed in our business development plan. A concerted effort is being made to promote all SETA courses to existing clients and member companies.

Plans now include concentrating on commercial income along with rental of the training centre to further our charitable aims.

Reference and administrative details

Company Number: 1512311

Charity Number: 510493

Registered Office:

18 Hammond Avenue Whitehill Industrial Estate South Reddish Stockport SK4 1PQ

Bankers

The Royal Bank of Scotland Plc 1 Great Underbank Stockport SK1 1LN

Independent Examiners

DJH Manchester Limited Chartered Accountants and Statutory Auditors St George’s House 56 Peter Street Manchester M2 3NQ

3

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2024

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of Charity Law. The trustees and officers serving during the year and since the year end were as follows:

Mr R G Howarth (Chairman) Mr J R Moss (Treasurer)

Company Secretary: Mr M C Field

Key management personnel:

Financial Director Mr M C Field

Structure, Governance and Management

Governing Document

The charity is controlled by its memorandum and articles of association and constitutes a limited company, limited by guarantee as deemed by the Companies Act 2006.

Recruitment and Appointment of New Directors and Trustees

The Directors of the Company are elected annually at the Company's Annual General Meeting. At each Annual General Meeting one third of the Elected Board Members for the time being, or if their number is not a multiple of three then the nearest one third, retires from office. If there is only one Elected Board Member who is subject to retirement by rotation, he/she retires. The Elected Board Members who are to retire in every year are those who have been longest in office since their last election or appointment, but as between persons who became Elected Board Members on the same day those to retire (unless they otherwise agree among themselves) are deemed by lot. A retiring Board Member is eligible for re-election, but does not serve more than three consecutive three year terms or, in the case of an Officer, two consecutive three year terms. Each Trustee is elected and voted into office by the members and office of Chairman, Deputy and Treasurer similarly elected. The Association is a member led organisation and the Trustees are mindful of meeting their needs. Currently there are five Trustees, all holding non-executive office and meet formally every four

Induction and Training of Directors and Trustees

New Directors and Trustees are given training upon election, subject to their existing skills and knowledge. A tailored programme of training takes place for each new Director and Trustee. It provides trustees with suitable and sufficient help and guidance on how the Charity works.

Organisational Structure

Overall responsibility for the Charity's strategy and direction rests with the Board of Management, which comprises all Directors. The carrying out of day to day activities is delegated to the staff under the management of the Financial Director. There are no specific significant restrictions regarding the way the Charity can operate.

The Charity's decisions are ultimately made by the Board of Directors, there are quarterly meetings when discussions take place and decisions are then filtered down to the staff concerned by their line managers.

Subsidiaries

The Charity has two trading subsidiaries, SETA Training & Advisory Services Ltd and SETA Training (Cyprus) Ltd whose accounts are reported separately, and are consolidated into these accounts.

Both these companies were set up to perform trading activities to provide funds for the charity. As stated in the notes SETA TrainingSETA Training and Advisory Services Ltd made a profit of £104,490 before distributions.and Advisory Services made a profit of £75 and SETA Training (Cyprus) Limited a

Pay policy for senior staff

Decisions on management remuneration levels are made by the Board.

4

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2024

Risk Management

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Board has carried out a review of the major risks to which the Charity is exposed and has put in place controls and activities to mitigate those risks which are within their control to influence.

Statement as to disclosure to our independent examiners

In so far as the trustees are aware at the time of approving our trustees’ annual report:

●there is no relevant information, being information needed by the independent examiners in connection with preparing their report, of which the group’s independent examiner is unaware, and

●the trustees, having made enquiries of fellow directors and the group’s independent examiner that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant information and to establish that the independant examiner is aware of that information.

By order of the Board of Trustees

Mr. R G Howarth Chairman

Date: 14th April 2025

5

Stockport Engineering Training Association Limited Report of the Independent Examiners to the Trustees of Stockport Engineering Training Association Limited

Independent examiner’s report to the trustees of Stockport Engineering Training Association

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 July 2024.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Name: Chris Abbott FCA

Other relevant professional qualification(s) or membership of professional bodies (if any): ICAEW Address:

St Georges House 56 Peter Street Manchester M2 3NQ

Date: 15 April 2025

6

Stockport Engineering Training Association Limited Consolidated Statement of Financial Activities (Incorporating a Consolidated Income and Expenditure Account) for the year ended 30 July 2024

Notes
INCOME
Income from trading activities
3
Investment income
3
Income from charitable activities:
4
Total income
EXPENDITURE
Expenditure on raising funds
5
Expenditure on charitable activities
6
Total Expenditure
NET EXPENDITURE
Gains/(Losses) on revaluation of Fixed Assets
Net movement of funds for the year
RECONCILIATION OF FUNDS
Total funds brought forward
Funds balances carried forward		 Unrestricted Unrestricted Unrestricted
Total
2024
£		 Continuing
Discontinued
operations
operations
£
£		 Total
2023
£
476,356
687
163,801		 511,682
596
85,563
597,841
415,703
199,201
614,904
(17,063)
-
(17,063)
(17,063)		 246,664
-
699,818
946,482
198,436
793,757
992,193
(45,711)
(45,711)
(45,711)		 758,346
596
785,381
640,844 1,544,323
387,462
222,022		 614,139
992,958
609,484 1,607,097
31,360
-		 (62,774)
-
31,360 (62,774)
1,004,775 1,067,549
1,036,135 1,004,775

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities

7

Stockport Engineering Training Association Limited Consolidated Balance Sheet as at 30 July 2024

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Stocks
13
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one
year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
CREDITORS
Amounts falling due after more
than one year
16
NET ASSETS
FUNDS
General funds
19
TOTAL FUNDS		 2024
£
1,404,439
2,994
236,813
42,959
282,766
(233,204)
49,562
1,454,001
(417,866)
1,036,135
1,036,135
1,036,135		 2023
£
1,444,286
2,950
224,642
80,692
308,284
(283,585)
24,699
1,468,985
(464,210)
1,004,775
1,004,775
1,004,775		 2023
£
1,444,286
2,950
224,642
80,692
308,284
(283,585)
24,699
1,468,985
(464,210)
1,004,775
1,004,775
1,004,775
1,468,985
(464,210)
1,004,775
1,004,775
1,004,775

8

Stockport Engineering Training Association Limited Consolidated Balance Sheet as at 30 July 2024

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 July 2024.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 The directors acknowledge their responsibilities for: requiring an audit of these financial statements.

The trustees acknowledge their responsibility for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006; and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Section 394 and 395 and which otherwise comply with the requirements of any Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the Companies Act 2006 and with the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements were approved by the board of Trustees on 14th April 2025 and were signed on its behalf by:

Mr. R G Howarth Chairman

9

Stockport Engineering Training Association Limited Charity Balance Sheet as at 30 July 2024

Charity Balance Sheet
as at 30 July 2024
Notes 2024 2023
£ £
FIXED ASSETS
Tangible assets 11 1,404,439 1,444,286
Investments 12 1,000 1,857
1,405,439 1,446,143
CURRENT ASSETS
Debtors 14 167,226 213,073
Cash at bank and in hand 29,331 12,002
196,557 225,075
CREDITORS
Amounts falling due within one
year 15 (218,771) (276,485)
NET CURRENT LIABILITIES (22,214) (51,410)
TOTAL ASSETS LESS
CURRENT LIABILITIES 1,383,225 1,394,733
CREDITORS
Amounts falling due after more
than one year 16 (417,866) (464,210)
NET ASSETS 965,359 930,523
FUNDS
Restricted funds - -
General funds 965,359 930,523
TOTAL FUNDS 965,359 930,523

10

Stockport Engineering Training Association Limited Charity Balance Sheet as at 30 July 2024

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 July 2024.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibility for:

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006; and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the Companies Act 2006 and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements were approved by the board of Trustees on 14th April 2025 and were signed on its behalf by:

Mr. R G Howarth Chairman

11

Stockport Engineering Training Association Limited Statement of Cash Flows and Consolidated Statement of Cash Flows for the year ended 30 July 2024

for the year ended 30 July 2024
Cash used in operating activities
23
Cash flows from investing activities
Interest Income
Purchase of tangible fixed assets
Cash used in investing activites
Cash flows from financing activites
Increase (repayment) of borrowing
Cash used in financing activites
Increase/(decrease) in cash and cash equivalents
in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end
of the year		 Group
2024
£		 Group
2023
£		 Charity
2024
£		 Charity
2023
£
13,092 (11,408) 68,841 69,248
687
(5,168)		 596
(18,021)		 -
(5,168)		 -
(18,021)
(4,481) (17,425) (5,168) (18,021)
(46,344) (46,001) (46,344) (46,001)
(46,344) (46,001) (46,344) (46,001)
(37,733) (74,834) 17,329 5,226
80,692 155,526 12,002 6,776
42,959 80,692 29,331 12,002

12

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

1 ACCOUNTING POLICIES

Basis of preparation of accounts

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) (effective January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Stockport Engineering Training Association Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and with the exception of investments which are included at market value.

Preparation of the accounts on a going concern basis

The trustees have prepared on the financial statements on the basis that the charity is a going concern. The charity fulfils all of it charitable objectives by leasing it's premises to a third party education providers. Since the financial year end this education provider has been experiencing financial challenges and is struggling to meet the contractual lease payments. If the education provider were to fail the trustees could have to consider closing the charity.

Group financial statements

The consolidated accounts incorporate the results of Stockport Engineering Training Association Limited (‘the Charity’) and its subsidiary undertakings; SETA Training & Advisory Services Limited and SETA Training (Cyprus) Limited which was wound up during the year; on a line-by-line basis.

The consolidated entity is referred to as ‘the Group’. No separate company Statement of Financial Activities (SOFA) has been prepared for the Charity as permitted by section 408 of the Companies Act

Income

Income is included in the SOFA when the charity is entitled to the income and when it is probable that income will be received and the amount can be measured reliably. Donations in kind are recognised at their value to the charity when they are received. No amounts are included for services donated by volunteers.

Income comprise:
Donations and legacies
Legacies Pecuniary legacies are recognised as receivable once probate has
been granted and notification has been received.
Residuary legacies are recognised as receivable once probate has
been granted, provided that sufficient information has been
received to enable valuation of the Charity’s entitlement.
Donations Donations are accounted for as they are received.
Gift Aid Gift Aid is included based on amounts recovered or recoverable at
the accounting date.
Activities for raising funds
Membership subscription Membership subscription income (which is not considered to be
donations) is accounted for on an accrual basis.
Engineering training Income from providing training and courses are accounted for on
an accrual basis.
Safety training Income from providing training and courses are accounted for on
an accrual basis.
Schools training Income from providing training and courses are accounted for on
an accrual basis.

13

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

Investment income

Investment income is accounted for on an accrual basis.

Income from charitable activities

Apprentice training – Government funded Apprentice training – Other funded members services

rental income

Government funding is recognised when the Charity is entitled to receipt on an accrual basis.

Income is recognised when the Charity is entitled to receipt on an accrual basis.

Income from providing training and courses are accounted for on an accrual basis.

Income from providing a specialised training centre facility.

Expenditure and basis of allocation

Expenditure is accounted for on an accruals basis. Overheads and other costs not directly attributable to a particular charitable activity category are apportioned over the relevant on the basis of management estimates attributable to that activity in the year, which is calculated as follows:

Administrative expenses (Staff Time)
Administrative expenses (Staff Time) 2024 2023
% %
Engineering training income - 6.7
Safety and short courses 50.0 18.7
Apprentice training - 43.7
Non-Government funded apprentices - 11.7
Rental Income - 2.2
Services to members - -
Governance 50.0 17.0
Training Centre expenses (Staff Time) 2024 2023
% %
Engineering training income - 26.5
Apprentice training - 61.1
Non-Government funded apprentices - 12.4
Rental Income - -
Services to members - -
Governance 100.0 -
Short Course expenses (Staff Time) 2024 2023
% %
Safety and short courses 100.0 100.0
Apprentice training - -
Non-Government funded apprentices - -
Rental Income - -
Services to members - -

14

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

port Engineering Training Association Limited
to the Consolidated Accounts
eyear ended 30 July 2024
Group Services expenses (Staff Time) 2024 2023
% %
Engineering training income - 3.0
Safety and short courses - 5.5
Apprentice training - 78.9
Non-Government funded apprentices - 10.7
Rental Income - -
Services to members - -
Governance - 1.9
Canteen expenses (Delegate Numbers) 2024 2023
% %
Engineering training income - 38.5
Safety and short courses 100.0 61.5
Apprentice training - -
Premises expenses (Floor Area) 2024 2023
% %
Engineering training income - 26.8
Safety and short courses 13.0 14.3
Apprentice training-Government funded - 5.5
Apprentice training-Other funded - 12.2
Rental Income 85.9 32.7
Services to members - -
Governance 1.1 8.5

Governance costs

Governance costs comprises the expenditure on governance of the charity including audit fees, legal advice for trustees, costs of trustee meetings and an apportionment of relevant staff costs based on time spent on governance-related matters.

Leasing and hire purchase commitments

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet. The assets are depreciated over their expected useful lives.

Rentals under operating leases are charged to the statement of financial activities as they fall due.

Pension costs

The company operates a defined contribution pension scheme for the present employees. Contributions are charged to the SOFA as they become payable in accordance with the rules of the scheme

15

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

Tangible fixed assets and depreciation

All fixed assets are held for charitable use and are stated at cost less depreciation with all repairs written off as occurred.

Land and buildings are held at market value. Land and buildings are revalued regularly to ensure the carrying value is not materially different from a fair value at the end of the reporting period.

Depreciation is provided at rates calculated to write off the cost of tangible fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold Property 2% straight line Motor Vehicles 25% reducing balance Plant and Machinery 15% reducing balance Computer Equipment 20% straight line Office Equipment 25% reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using the first-in first-out basis of valuation.

Investments

Subsidiary companies are valued at cost, with any resulting gains or losses on exchange included in the SOFA.

Taxation

The activities of the Charity are exempt from corporation taxation under section 505 of the Income and Corporation Taxes Act 1988 to the extent that they are applied to the organisation’s charitable objectives.

The trading subsidiaries do not generally pay UK corporation tax because their policy is to pay taxable profits as Gift Aid to the Charity. Foreign tax incurred by overseas subsidiaries is charged as it is incurred.

Funds

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income and gains are allocated to the appropriate fund.

Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange prevailing at the date of the transaction. Foreign currency balances are translated into sterling at the exchange rates prevailing at the balance sheet date. Any resulting gains or losses on exchange are included in the SOFA.

Profits and losses of foreign subsidiaries are translated to sterling at average rates of exchange. The opening net assets and profit and loss accounts of those subsidiaries are retranslated to year end rates; exchange differences arising on the retranslation are taken to reserves.

16

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

Debtors

Debtors are normally recognised at their transaction price, provision for Bad Debts has been included for the year.

Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

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 £1. The Consolidated Statement of Financial Activities is for the Group as a whole. The figures below are the equivalent figures for the Charity only, excluding other Group companies.

Income
Gift aid from the subsidiary company
Expenditure on charitable activities
Governance costs
Gains/(Losses) on revaluation of Fixed Assets
Net movement in funds
Total funds brought forward
Total funds carried forward
Funds
Unrestricted funds		 2024
£
159,505
104,490
263,995
(191,893)
(37,266)
(229,159)
34,836
930,523
965,359
965,359
965,359		 2023
£
651,971
150,063
802,034
(745,283)
(119,282)
(864,565)
(62,531)
993,054
930,523
930,523
930,523

17

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

3
INCOME FROM OTHER TRADING ACTIVITIES
Continuing
operations
£
Other trading activities
Membership subscriptions
-
Engineering training income
-
Safety and short courses
440,933
440,933
Investment income
Interest on cash deposits
687
4
INCOME FROM CHARITABLE ACTIVITIES
Continuing
operations
£
Apprentice training-Government
funded
-
Apprentice training-Other funded
-
Members services
-
Rental Income
166,708
166,708
5
EXPENDITURE ON RAISING FUNDS
Continuing
operations
£
Engineering training
Marketing
-
Staff costs
-
Training costs
-
Travel
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Safety and short courses
Marketing
16,709
Staff costs
143,513
Training costs
107,824
Travel
10,287
Premises costs
24,627
Office and sundry costs
38,645
Depreciation
8,208
349,813
-
TOTAL
349,813		 Discontinued
operations
£
-
35,423
-
35,423
-
Discontinued
operations
£
(2,907)
-
-
-
(2,907)
Discontinued
operations
£
59
34,625
-
-
2,965
-
37,649
-
-
-
-
-
-
-
-
-
37,649		 2024
Total
£
-
35,423
440,933
476,356
687
2024
Total
£
(2,907)
-
-
166,708
163,801
2024
Total
£
59
-
34,625
-
-
2,965
-
37,649
16,709
143,513
107,824
10,287
24,627
38,645
8,208
349,813
-
387,462		 2023
Total
£
1,438
245,226
511,682
758,346
596
2023
Total
£
567,720
132,098
-
85,563
785,381
2023
Total
£
3,606
68,109
54,038
5,153
38,962
11,798
16,770
198,436
16,924
187,500
130,048
28,353
20,787
24,696
7,395
415,703
-
614,139

18

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

6
EXPENDITURE ON CHARITABLE ACTIVITIES
Continuing
operations
£
Apprentice training-government funded
Marketing
-
Staff costs
-
Training costs
-
Travel
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Apprentice training-Other funded
Marketing
-
Staff costs
-
Training costs
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Rental Income
Marketing
-
Staff costs
-
Training costs
-
Travel
-
Premises costs
110,457
Office and sundry costs
17,340
Depreciation
33,290
161,087
Governance costs (note 7)
48,280
TOTAL
209,367
7
GOVERNANCE COSTS
Continuing
operations
£
Marketing
-
Staff costs
7,650
Training costs
8,874
Travel
42
Premises costs
1,503
Office and sundry costs
26,694
Depreciation
3,517
48,280		 Discontinued
operations
£
105
-
9,874
-
-
2,676
-
12,655
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,655
Discontinued
operations
£
-
-
-
-
-
-
-
-		 2024
Total
£
105
-
9,874
-
-
2,676
-
12,655
-
-
-
-
-
-
-
-
110,457
17,340
33,290
161,087
48,280
222,022
2024
Total
£
7,650
8,874
42
1,503
26,694
3,517
48,280		 2023
Total
£
3,858
370,880
253,500
5,675
7,993
25,551
3,668
671,125
-
70,197
23,920
17,733
3,509
7,273
122,632
-
4,794
47,534
13,696
66,024
133,177
992,958
2023
Total
£
80
44,065
6,123
2,798
12,356
59,490
8,265
133,177

19

10

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

Stockport Engineering Training Association Limited
Notes to the Consolidated Accounts
for theyear ended 30 July 2024
8
NET RESOURCES EXPENDED BEFORE TRANSFERS
This is stated after charging:
Depreciation
Directors' remuneration
Compensation to past directors for loss of office
Pension costs
Auditors' remuneration
Independent Examiners fees
Independent Examiners none-assurance services
9
TRUSTEES' REMUNERATION AND BENEFITS
Total remuneration paid to trustees’ amounted to:
R.G Howarth
£1,500
(2023 £1,500)
J. R. Moss
£1,500
(2023 £1,500)
Total
£3,000
(2023 £4,500)		 2024
2023
£
£
45,015
57,068
-
73,438
-
29,290
5,745
22,427
-
17,538
2,000
1,350

This has been agreed with the Charities Commission due to the additional time involved in being a Director of the Trading subsidiary company SETA Training and Advisory Services Limited

There were no trustees’ expenses or other benefits for the year ended 30 July 2024 nor for the year ended 31 July 2023.

STAFF COSTS
Staff costs during the year amounted to:
Wages and salaries
Social security costs
Pension costs
The average number of employees during the year,
including full time equivalents of part time employees, was:
Apprentice training-government funded
Engineering training
Safety and short courses
Governance		 2024
£
157,687
11,270
5,745
174,702
-
-
5
1
6		 2023
£
653,739
64,088
22,426
740,253
5
5
4
3
17

The employees performed training, administrative and management functions.

The above includes holiday pay accrual amounting to £3,879 (2023 £4,751)

The emoluments of no members of staff, including benefits in kind, is within the range £60,000 to £69,999 (2023 - One), not including retirement benefits which are accruing under a money purchase scheme.

The key management personnel of the group comprise those of the charity, being the trustees, the chief executive and the company secretary. The total employee benefits of the key management personnel of the group were £3,000 (2023: £136,765).

The number of employees to whom retirement benefits were accruing was 5 (2023: 4)

20

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts

for the year ended 30 July 2024

11 TANGIBLE FIXED ASSETS - GROUP

Cost or valuation
At 31 July 2023
Additions
Disposals
At 30 July 2024
Depreciation
At 31 July 2023
Charge for the year
On disposals
At 30 July 2024
Net book value
At 30 July 2024
At 30 July 2023		 Land and
buildings
£
1,400,000
-
1,400,000
28,000
28,000
-
56,000
1,344,000
1,372,000		 Plant and
machinery etc
£
255,898
5,168
(20,176)
240,890
189,690
15,496
(20,176)
185,010
55,880
66,208		 Motor
vehicles
£
37,965
-
37,965
31,887
1,519
-
33,406
4,559
6,078		 Total
£
1,693,863
5,168
(20,176)
1,678,855
249,577
45,015
(20,176)
274,416
1,404,439
1,444,286

All fixed assets held are used for direct charitable purposes.

Except under an order of the registrar, no deposition by the proprietor of the land is to be registered without the consent of the proprietor of the Charge in favour of the Royal Bank of Scotland Plc. referred to in the Charges Register.

If the freehold land and building had not been revalued they would have been included at the following historical cost:

Historical cost
Aggregate depreciation
At 30 July 2024		 2024
£
702,356
(286,583)
415,773

The fair value of the freehold land and buildings has been determined by the trustees of the charity on an open market value for existing use basis on the 31 July 2022. The valuation has been based on a desktop comparison exercise between the land and buildings owned by the charity to similar sized properties in close geographical proximity.

Cost or valuation at 30 July 2024 is represented by:

Historical cost
Revaluation 2006
Revaluation 2011
Revaluation 2017
Revaluation 2021
Revaluation 2022
At 30 July 2024		 Land and
Buildings
£
702,356
555,825
(495,858)
87,677
395,000
155,000
1,400,000

21

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

12 INVESTMENTS - COMPANY

Cost
At 31 July 2023
Movement
At 30 July 2024
Net book value
30 July 2024
30 July 2023		 Unlisted
investment
£
1,857
(857)
1,000
1,000
1,853

The company's investments at the balance sheet date in the share capital of companies include the following:

Country of Class of
Subsidiary Undertaking Incorporation Shares % Held
SETA Training and Advisory Services Limited England Ordinary 100%

SETA Training and Advisory Services Limited (Incorporated in England and Wales)

Nature of business: Providing training for people employed or intending to be employed in industry and commerce.

%
Class of shares:
holding
Ordinary shares of £1 each
100.00
Turnover
Cost of sales and administration costs
Interest receivable
Interest payable
Tax
Net Profit
Amount gift aided to the charity
Retained in subsidiary		 Company Number: 03001863
2024
2023
£
£
479,349
889,239
(375,448)
(740,197)
589
570
104,490
149,612
(104,490)
(185,288)
-
(35,676)		 Company Number: 03001863
2024
2023
£
£
479,349
889,239
(375,448)
(740,197)
589
570
104,490
149,612
(104,490)
(185,288)
-
(35,676)
149,612
(185,288)
(35,676)

SETA Training (Cyprus) Limited (Incorporated in Cyprus)

SETA Training (Cyprus) Limited did not trade during the year and as wound up in April 2024 and funds were transferred to the charity.

22

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

13
STOCK
Registrations
Stationery
Cleaning Materials
Course Books
14
DEBTORS
Trade debtors
Government funding receivable
Other taxes and social security costs
Prepayments and accrued income
Other debtors		 Group
2024
801
1,098
149
946
2,994
Group
2024
£
124,905
111,808
100
236,813		 Group
2023
£
255
580
176
1,939
2,950
Group
2023
£
129,355
94,961
326
224,642		 Charity
Charity
2024
2023
£
£
-
-
-
-
-
-
-
-
-
-
Charity
Charity
2024
2023
£
£
60,038
119,616
656
6,108
106,532
87,123
226
167,226
213,073

On 4th December 1997 the directors of the charity executed a first legal charge over the book debts of the wholly owned subsidiary company.

The loan to the subsidiary company is the subject of a formal loan agreement between itself and the Charity dated 4th December 1997 and which is subject to the following:

a) Interest is to be charged at 1% over bank base rate and the loan is secured by a fixed charge over book and other debts of the wholly owned subsidiary company.

b) The loan is to be renegotiated in the interests of the Charity each year and shall be repayable to the Charity on the 31st July each year.

15
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Group
2024
2023
£
£
Bank loan (secured)
43,816
42,334
Trade creditors
11,035
10,917
Obligations under finance lease and
hire purchase contracts
2,199
4,987
Accruals and deferred income
161,746
216,639
Other taxes and social security costs
13,033
7,864
Other creditors
1,375
844
233,204
283,585
Amounts
owed
to
group
undertakings
and
undertakings
in
which
the
company
has
a
participating interest		 Charity
Charity
2024
2023
£
£
43,816
42,334
2,188
1,648
2,199
4,987
164,261
213,402
3,449
11,277
2,275
1,993
583
844
218,771
276,485

23

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

16 CREDITORS: AMOUNTS FALLING DUE AFTER MORE CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group Group Charity Charity
2024 2023 2024 2023
£ £ £ £
Bank loan (secured) 417,866 462,011 417,866 462,011
Obligations under finance lease and
hire purchase contracts - 2,199 - 2,199
417,866 464,210 417,866 464,210
1-5 years 140,212 155,735 140,212 155,735
More than 5 years 277,654 308,475 277,654 308,475
417,866 464,210 417,866 464,210

17 SECURITY

The bank loan and overdraft is secured by a legal charge over the freehold property of the company.

18 Deferred Income Deferred income comprises advanced sales for courses, quarterly membership and monitoring which are carried out post year end.

Group
Group
2024
2023
£
£
Balance as at 31 July 2023
147,036
225,673
Amount released to income earned from charitable activities
(147,036)
(225,673)
Amount deferred as 30 July 2024
107,459
147,036
~~107,459~~
~~147,036~~
FUNDS - GROUP
£
£
Unrestricted
Funds
Total
£
£
Tangible fixed assets
1,404,439
1,404,439
Net current (liabilities)/assets
49,562
49,562
Liabilities due after one year
(417,866)
(417,866)
1,036,135
1,036,135
Balance at
Income
Expenses
Transfers
1-Aug-2023
£
£
£
£
Unrestricted funds
General reserve
62,595
640,844
(581,484)
(14,047)
Revaluation reserve
942,180
-
(28,000)
14,047
Loan stock
-
1,004,775
640,844
(609,484)
-
TOTAL
1,004,775
640,844
(609,484)
-
Name of Fund
Description, nature and purposes of the fund
General reserve
The 'free reserves' after allowing for all designated funds.		 Balance
30 July 2024
£
107,908
928,227
-
1,036,135
1,036,135

19 FUNDS - GROUP

The value of freehold property at market value in excess of carrying value at historical cost.

Revaluation reserve

24

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2024

20 Operating Leases

Operating Leases
Within one year
Between two and five years
Greater than five year		 2024
£
9,683
20,446
30,129		 2023
£
9,683
30,129
-
39,812

21 ULTIMATE CONTROLLING PARTY

There was no ultimate controlling party during the year under review or the preceding year.

22 MANAGEMENT REMUNERATION

Decisions on management remuneration levels are made by the Board of Directors taking into account the job role, peer group salary evaluations, appraisals and advice from the Financial Accountant.

23 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net movement in funds
Add back depreciation charge
Sale of Fixed Assets
Less profit on disposal of FA
Add back (Gains)/Losses on
revaluation of Fixed Assets
Movement in Investments
Deduct interest income shown in
investing activities
Decrease (increase) in stock
Decrease (increase) in debtors
Increase (decrease) in creditors		 Group
2024
£
31,360
45,015
-
-
-
(687)
(44)
(12,171)
(50,381)
13,092		 Group
2023
£
(62,774)
57,067
66,464
(28,753)
(596)
17,992
101,585
(162,393)
(11,408)		 Charity
2024
£
34,836
45,015
-
-
-
857
-
45,847
(57,714)
68,841		 Charity
2023
£
(62,531)
57,067
66,464
(28,753)
(18)
-
-
(117,346)
154,365
69,248

24 RELATED PARTY TRANSACTIONS

During the year, the company purchased services totalling £12,887 (2023 – £4,000) from Lyncfield Services Limited, a company in which Mr M. C. Field has a controlling interest. These services were purchased on an arm’s length basis. There was £1,500 outstanding to the company at the period end.

25