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.
- Member companies of the Association have priority access to this service for their identified needs.
- - Meet the challenge and succession planning for key personnel from qualified and competent replacements. - Improve Adult Learning Budget initiative for employers.
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:
- Setting Budgets
- Producing Cash flows
- Producing Monthly Management Accounts
- Setting Business Development Plan
- Monitoring all of the above at every Trustee meeting
## **Investments Held**
The investments held by the charity are share capital held in two companies:
- SETA Training and Advisory Services Limited - 100% oridnary shareholding - held in order to allow the charity to access other commercial training to supplement it's income.
- Elevated Knowledge Limited Limited - £120K preference shareholding - held as a short-term investment to create additional income for the Charity to supplment its income.
## **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