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2025-07-31-accounts

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

Accounts

For the year ended 30 July 2025

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
Accountants' report 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 - 24

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2025

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 2025 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

The board is continued with the agreement with the privately owned business, Elevated Knowledge Ltd (EKL) who took over our apprenticeship provision in 2023 and 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, although it has struggled a little this year, 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 been a challenging year with commercail health and safety income dropping from £437K to £300K. This was partly down to a large govenment contract being downsized due to the change in government. This change also caused uncertainty in the markets and had a further impact on general safety bookings.

Cost savings measures allowed us to minimise the impact of this drop in income and resulted in a defecit of £31K, budgets have been set moving forward based on this reduced income level.

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.

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.

1

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2025

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 throughout the UK.

Achievements and Performance

2024/25 continued to be a difficult year after the impact of OFSTED in 2022/23. With some small costs associated with discontinued operations that were still contracted to be paid after the year and so these operations still had a mixed impact on the accounts this year.

Safety and Short Course delivery continued to drop in turnover, and resulted in some cost saving measures to be implemented.

Financial Review

The agreement entered 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 2024/25 continued to be from the rental of the training centre. For the majoriity of the year, 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 £299,993 (2024 £440,933) - A decrease had been expected but not to this extent that we were below our reduced budget by £27,000. The main driver for this decrease was the impact of the new government on two fronts:

1) Uncertainty in the markets lead to a reduction in Health and Safety bookngs from £216,000 in 2024 to £162,000 in 2025

2) Public cost cutting measures resulted in a reduction in Border Force bookings for our Hand and Power tools training, dropping from £116,000 in 2024 to £56,000 in 2025.

Cost saving actions were taken that sadly resulted in the redundancy of one safety trainer, associated redundancy costs included in subsidiary costs were £19,228. This resulted in a net deficit for the subsidiary company of £6,644 (2024 surplus £104,490). Profits from the commercial training have previously been giftaided back to the Charity to aid it in fulfilling its charitable aims, £0 has been gift aided in 2025 (£104,490 in 2024).

The financial result for the period was a net deficit in funds of £30,659 (2024: surplus £31,360).

The effect is that our consolidated balance sheet still shows a positive picture with total funds of £1,005,476 compared to £1,036,135 (2024).

In the year we have secured a short term investment in preference shares in Elevated KNowledge Limited of £120,000 to be held as an investment to create additional income for the Charity to supplment its income.

Budgets had been set for the next year as:

Year 2025/26 Turnover £457,000 Expenditure £450,000

2

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2025

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 2025 would equate to between 3 and 6 months of non-course related expenditure. Three months being £89,000 based on 2025 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 £1,005,476 as at 30 July 2025. The free reserves, being those unrestricted funds not represented by fixed assets and their associated finance, were negative £68,058 at 31 July 2025 (Positive £35,577 in 2024), a decrease of £103,635.

We still 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 two 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 2025

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 months.

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 atwotradingtradingsubsidiary,subsidiaries,SETASETATrainingTraining& Advisory& AdvisoryServicS e srvicesLtd LtdLtd whoseand SETAaccountsTrainingare repo(Cyp r ted separately,us) Ltd whose accounts are reported separately,and are consolidated into these accounts.and are consolidated into these accounts.

BothThis company wasthese companiesset upwereto sp e trformup totradingperformactivit estrad i ng toactivitiesprovidetofundsprovidefor thefundscharity.for theAs sta edchari t y. Asin thestatednotesin theSETA Training and Advisory Servicesnotes SETA Training and AdvisoryLtd made a small loss of £6,644 before distributioServices made a profit of £75 and SETA Traini n gs.(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 2025

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: 23rd April 2026

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 2025.

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: Christopher Abbott FCA

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

DJH Manchester Limited St Georges House Manchester M2 3NQ

Date: 24/04/2026

6

Stockport Engineering Training Association Limited Consolidated Statement of Financial Activities (Incorporating a Consolidated Income and Expenditure Account) for the year ended 30 July 2025

----- Start of picture text -----
Unrestricted Unrestricted
Total Total
2025 2024
£ £
Notes
INCOME
Income from trading activities 3 322,712 476,356
Investment income 3 125 687
Income from charitable activities: 4 188,774 163,801
Total income 511,611 640,844
EXPENDITURE
Expenditure on raising funds 5 338,901 387,462
Expenditure on charitable activities 6 203,369 222,022
- -
Other Expenses
Total Expenditure 542,270 609,484
NET EXPENDITURE (30,659) 31,360
- -
Gains/(Losses) on revaluation of Fixed Assets
Net movement of funds for the year (30,659) 31,360
RECONCILIATION OF FUNDS
Total funds brought forward 1,036,135 1,004,775
Funds balances carried forward 1,005,476 1,036,135
----- End of picture text -----

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 2025

----- Start of picture text -----
Notes 2025 2024
£ £
FIXED ASSETS
Tangible assets 11 1,370,506 1,404,439
Investments 12 120,000 -
1,490,506 1,404,439
CURRENT ASSETS
Stocks 13 1,847 2,994
Debtors 14 102,531 236,813
Cash at bank and in hand 19,068 42,959
123,446 282,766
CREDITORS
Amounts falling due within one
year 15 (238,827) (233,204)
NET CURRENT ASSETS (115,381) 49,562
TOTAL ASSETS LESS
CURRENT LIABILITIES 1,375,125 1,454,001
CREDITORS
Amounts falling due after more
than one year 16 (369,649) (417,866)
NET ASSETS 1,005,476 1,036,135
FUNDS
General funds 19 1,005,476 1,036,135
TOTAL FUNDS 1,005,476 1,036,135
----- End of picture text -----

8

Stockport Engineering Training Association Limited Consolidated Balance Sheet as at 30 July 2025

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 July 2025.

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

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.

The financial statements were approved by the board of Trustees on 23rd April 2026 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 2025

----- Start of picture text -----
Notes 2025 2024
£ £
FIXED ASSETS
Tangible assets 11 1,370,506 1,404,439
Investments 12 121,000 1,000
1,491,506 1,405,439
CURRENT ASSETS
Debtors 14 54,605 167,226
Cash at bank and in hand 8,911 29,331
63,516 196,557
CREDITORS
Amounts falling due within one
year 15 (174,552) (149,294)
NET CURRENT LIABILITIES (111,036) 47,263
TOTAL ASSETS LESS
CURRENT LIABILITIES 1,380,470 1,452,702
CREDITORS
Amounts falling due after more
than one year 16 (369,649) (417,866)
NET ASSETS 1,010,821 1,034,836
FUNDS
Restricted funds - -
General funds 1,010,821 1,034,836
TOTAL FUNDS 1,010,821 1,034,836
----- End of picture text -----

10

Stockport Engineering Training Association Limited Charity Balance Sheet as at 30 July 2025

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 July 2025.

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 23rd April 2026 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 2025

Cash used in operating activities
23
Cash flows from investing activities
Interest Income
Purchase of unlisted Investments
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
2025
£
155,257
125
(120,000)
(11,056)
(130,931)
(48,217)
(48,217)
(23,891)
42,959
19,068		 Group
2024
£
13,092
687
(5,168)
(4,481)
(46,344)
(46,344)
(37,733)
80,692
42,959		 Charity
2025
£
158,853
-
(120,000)
(11,056)
(131,056)
(48,217)
(48,217)
(20,420)
29,331
8,911		 Charity
2024
£
68,841
-
(5,168)
(5,168)
(46,344)
(46,344)
17,329
12,002
29,331

12

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

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 undertaking; SETA Training & Advisory Services Limited; on a line-byline 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 2006 and paragraph 397 of the SORP.

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: Activities for raising funds 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. Investment income Investment income is accounted for on an accrual basis. Income from charitable activities Apprentice training – Government funding is recognised when the Charity is entitled to Government funded receipt on an accrual basis. rental income Income from providing a specialised training centre facility.

13

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

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) 2025 2024
% %
Engineering training income - -
Safety and short courses 50.0 50.0
Governance 50.0 50.0
Training Centre expenses (Staff Time) 2025 2024
% %
Rental Income - -
Governance 100.0 100.0
Short Course expenses (Staff Time) 2025 2024
% %
Safety and short courses 100.0 100.0
Canteen expenses (Delegate Numbers) 2025 2024
% %
Safety and short courses 100.0 100.0
Premises expenses (Floor Area) 2025 2024
% %
Safety and short courses 13.0 13.0
Rental Income 85.9 85.9
Governance 1.1 1.1

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

14

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

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.

15

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

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.

2 FINANCIAL PERFOMANCE OF THE CHARITY

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £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		 2025
£
188,555
-
188,555
(180,245)
(32,325)
(212,570)
(24,015)
1,034,836
1,010,821
1,010,821
1,010,821		 2024
£
159,505
104,490
263,995
(191,893)
(37,266)
(229,159)
34,836
1,000,000
1,034,836
1,034,836
1,034,836

16

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

3
INCOME FROM OTHER TRADING ACTIVITIES
Continuing
operations
£
Other trading activities
Engineering training income
-
Safety and short courses
299,993
299,993
Investment income
Interest on cash deposits
125
4
INCOME FROM CHARITABLE ACTIVITIES
Continuing
operations
£
Apprentice training-Government
funded
-
Rental Income
188,774
188,774
5
EXPENDITURE ON RAISING FUNDS
Continuing
operations
£
Engineering training
Marketing
-
Training costs
-
Office and sundry costs
-
-
Safety and short courses
Marketing
8,490
Staff costs
159,284
Training costs
77,221
Travel
10,164
Premises costs
24,160
Office and sundry costs
33,834
Depreciation
8,038
321,191
TOTAL
321,191		 Discontinued
operations
£
22,719
-
22,719
-
Discontinued
operations
£
-
-
-
Discontinued
operations
£
-
16,591
1,119
17,710
-
-
-
-
-
-
-
-
17,710		 2025
Total
£
22,719
299,993
322,712
125
2025
Total
£
-
188,774
188,774
2025
Total
£
-
16,591
1,119
17,710
8,490
159,284
77,221
10,164
24,160
33,834
8,038
321,191
338,901		 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

17

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

6
EXPENDITURE ON CHARITABLE ACTIVITIES
Continuing
operations
£
Apprentice training-government funded
Marketing
-
Training costs
-
Office and sundry costs
-
-
Rental Income
Premises costs
105,958
Office and sundry costs
15,162
Depreciation
31,636
152,756
Governance costs (note 7)
50,398
TOTAL
203,154
7
GOVERNANCE COSTS
Continuing
operations
£
Marketing
-
Staff costs
8,911
Training costs
19,941
Travel
20
Premises costs
1,322
Office and sundry costs
18,177
Depreciation
2,027
50,398		 Discontinued
operations
£
-
65
150
215
-
-
-
-
-
215
Discontinued
operations
£
-
-
-
-
-
-
-
-		 2025
Total
£
-
65
150
215
105,958
15,162
31,636
152,756
50,398
203,369
2025
Total
£
8,911
19,941
20
1,322
18,177
2,027
50,398		 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

18

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

8
NET RESOURCES EXPENDED BEFORE TRANSFERS
This is stated after charging:
Depreciation
Pension costs
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
(2024 £1,500)
J. R. Moss
£1,500
(2024 £1,500)
Total
£3,000
(2024 £3,000)		 2025
£
41,701
5,612
4,461
1,350		 2024
£
45,015
5,745
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 2025 nor for the year ended 31 July 2024.

10
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:
Safety and short courses
Governance		 2025
£
177,329
11,487
5,612
194,428
5
1
6		 2024
£
157,687
11,270
5,745
174,702
5
1
6

The employees performed training, administrative and management functions.

The above includes holiday pay accrual amounting to £3,307 (2024 £3,879)

The emoluments of no members of staff, including benefits in kind, is within the range £60,000 to £69,999 (2024 - None), 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 (2024: £3,000).

The number of employees to whom retirement benefits were accruing was 4 (2024: 4)

19

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

11 TANGIBLE FIXED ASSETS - GROUP

Cost or valuation
At 31 July 2024
Additions
Disposals
At 30 July 2025
Depreciation
At 31 July 2024
Charge for the year
On disposals
At 30 July 2025
Net book value
At 30 July 2025
At 30 July 2024		 Land and
buildings
£
1,400,000
-
1,400,000
56,000
28,000
-
84,000
1,316,000
1,344,000		 Plant and
machinery etc
£
240,890
9,176
(36,414)
213,652
185,010
12,854
(36,323)
161,541
52,111
55,880		 Motor
vehicles
£
37,965
1,880
(31,465)
8,380
33,406
848
(28,269)
5,985
2,395
4,559		 Total
£
1,678,855
11,056
(67,879)
1,622,032
274,416
41,702
(64,592)
251,526
1,370,506
1,404,439

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 2025		 2025
£
702,356
(300,630)
401,726

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 2025 is represented by:

Historical cost
Revaluation 2006
Revaluation 2011
Revaluation 2017
Revaluation 2021
Revaluation 2022
At 30 July 2025		 Land and
Buildings
£
702,356
555,825
(495,858)
87,677
395,000
155,000
1,400,000

20

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

12 INVESTMENTS - COMPANY

Cost
At 31 July 2024
Movement
At 30 July 2025
Net book value
30 July 2025
30 July 2024		 investment in
subsidiary
£
1,000
-
1,000
1,000
1,000		 Unlisted
investment
£
-
120,000
120,000
120,000
-		 Unlisted
investment
£
1,000
120,000
121,000
121,000
1,000

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
2025
2024
£
£
322,970
479,349
(329,700)
(375,448)
86
589
(6,644)
104,490
-
(104,490)
(6,644)
-

21

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

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		 Group
2025
184
544
-
1,119
1,847
Group
2025
£
53,691
48,840
102,531		 Group
2024
£
801
1,098
149
946
2,994
Group
2024
£
124,905
111,808
236,813		 Charity
2025
£
-
-
-
-
-
Charity
2025
£
10,273
546
43,786
54,605		 Charity
2024
£
-
-
-
-
-
Charity
2024
£
60,038
656
106,532
167,226

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
2025
2024
£
£
Bank loan (secured)
47,323
43,816
Trade creditors
80,300
11,035
Obligations under finance lease and
hire purchase contracts
-
2,199
-
Accruals and deferred income
105,375
161,746
Other taxes and social security costs
4,781
13,033
Other creditors
1,048
1,375
238,827
233,204
Amounts
owed
to
group
undertakings
and
undertakings
in
which
the
company
has
a
participating interest		 Charity
2025
£
47,323
-
-
120,867
3,273
2,833
256
174,552		 Charity
2024
£
43,816
2,188
2,199
94,784
3,449
2,275
583
149,294

22

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

16
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Group
Charity
2025
2024
2025
£
£
£
Bank loan (secured)
369,649
417,866
369,649
1-5 years
128,196
140,212
128,196
More than 5 years
241,453
277,654
241,453
369,649
417,866
369,649		 Charity
2024
£
417,866
140,212
277,654
417,866

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.

Balance as at 31 July 2024
Amount released to income earned from charitable activities
Amount deferred as 30 July 2025
FUNDS - GROUP
Unrestricted
Funds
£
Tangible fixed assets
1,370,506
Investments
120,000
Net current (liabilities)/assets
(115,381)
Liabilities due after one year
(369,649)
1,005,476
Balance at
Income
1-Aug-2024
£
£
Unrestricted funds
General reserve
107,908
511,611
Revaluation reserve
928,227
-
Loan stock
1,036,135
511,611
TOTAL
1,036,135
511,611		 Balance as at 31 July 2024
Amount released to income earned from charitable activities
Amount deferred as 30 July 2025
FUNDS - GROUP
Unrestricted
Funds
£
Tangible fixed assets
1,370,506
Investments
120,000
Net current (liabilities)/assets
(115,381)
Liabilities due after one year
(369,649)
1,005,476
Balance at
Income
1-Aug-2024
£
£
Unrestricted funds
General reserve
107,908
511,611
Revaluation reserve
928,227
-
Loan stock
1,036,135
511,611
TOTAL
1,036,135
511,611		 Balance as at 31 July 2024
Amount released to income earned from charitable activities
Amount deferred as 30 July 2025
FUNDS - GROUP
Unrestricted
Funds
£
Tangible fixed assets
1,370,506
Investments
120,000
Net current (liabilities)/assets
(115,381)
Liabilities due after one year
(369,649)
1,005,476
Balance at
Income
1-Aug-2024
£
£
Unrestricted funds
General reserve
107,908
511,611
Revaluation reserve
928,227
-
Loan stock
1,036,135
511,611
TOTAL
1,036,135
511,611		 Group
2025
£
107,459
(107,459)
75,226
75,226
£
Expenses
£		 Group
2024
£
147,036
(147,036)
107,459
107,459
£
Total
£
1,370,506
120,000
(115,381)
(369,649)
1,005,476
Transfers
£		 Balance
30 July 2025
£
107,908
928,227		 511,611
-		 (514,270)
(28,000)		 (14,047)
14,047		 91,202
914,274
1,036,135
1,036,135		 511,611
511,611		 (542,270)
(542,270)		 -
-
-		 -
1,005,476
1,005,476

19 FUNDS - GROUP

Name of Fund Description, nature and purposes of the fund

General reserve The 'free reserves' after allowing for all designated funds.

Revaluation reserve

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

23

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2025

20 Operating Leases

Within one year
Between two and five years
Greater than five year		 2025
£
9,683
10,762
20,445		 2024
£
9,683
20,446
-
30,129

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

Group
2025
£
Net movement in funds
(30,659)
Add back depreciation charge
41,702
Sale of Fixed Assets
2,280
Less profit/Add loss on disposal of FA
1,007
Add back (Gains)/Losses on
revaluation of Fixed Assets
-
Movement in Investments
-
Deduct interest income shown in
investing activities
(125)
Decrease (increase) in stock
1,147
Decrease (increase) in debtors
134,282
Increase (decrease) in creditors
5,623
155,257		 Group
2024
£
31,360
45,015
-
-
(687)
(44)
(12,171)
(50,381)
13,092		 Charity
2025
£
(24,015)
41,702
2,280
1,007
-
-
112,621
25,258
158,853		 Charity
2024
£
34,836
45,015
-
-
857
-
-
45,847
(57,714)
68,841

24 RELATED PARTY TRANSACTIONS

During the year, the company purchased services totalling £15,227 (2024 – £12,887) 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 £0 outstanding to the company at the period end.

24