MIDLAND GROUP TRAINING SERVICES LIMITED REPORT AND FINANCIAL STATEMENTS 31 Mareh 2023 Company No W899 Registered Cbarlty No 528785
ItDLAND GROUP TRAINING SERVICES LIMITED TRUSTEES, REPORT JI March 2023 OWECTIVKS AND ACTivrrIES MGTS In Edu¢•tloDAi Ch8rlty- Employer Led and Membershlp Bgsed Our Aim To be tt national centre of excellenee for edueotiorn tr8it)ing and development and assessment SUprting both young people and adults in the development of etigineering compet¢e$ associated with engin. To achieve improved customer bUsitie perfornmnrx by d¢liv]ng cost effedive employee thnICal hnd people development solutions to mathÉncry Eeliatti industries. Chrlty Alms To Sup1 young peopl¢ wishing to access the engineering industry To support adult employees and learner5 to dcvel¢)p themselve4 ¢ngineering fllnctlons and systems to improve business performance To conknl>ut¢ to the development of specialist engineeriD8 competence6 within th¢ Nationthl workforce to encourAge Konomie development The main activities of the Ctwity have continued to be the provision of Apprenticeships, Training Needs Allalysis and Administrdtion, TTainin8 and Development courses artd events To achieve this. the Chtirity. Consults with rnembths and ejnployers to 8thieve a clEar understanding of ilUs needs and provide effective solutions Consults with Govtsment and Agen¢i¢s ts) ¢Ule thai MGTS strategy supp)rts industy related people deVelOent policies Consults with Iwai FterprISe Partnerthips tLEP5], Lo¢al Autbority and Sth¢xTrls to d¢veiop eollaborative solution5 10 SUPPOrt young wle's d¢v¢lopTnent, understanding and enty into industry 0r Values I. MGTS ain to provide OUT Custorners with training and &85essment a¢tivities that are relevant to the individual, tbeiT organisation, and its industry sKtor. 2. We believe that ITainiDg and aswsment activity und¢rtaken should be clear aThJ ¢oncis¢ in its design aDd delivery. 3. That the delivery of Ally training and assessment activitie5 are undertsken in a way and at a tirne which fiLIIy meets and supports th¢ QUIrements of OUT Custorners, whavcr those requireMts may be. 4. MGTS will deavour to tak¢ the lead in a profe55iollai maJ]ner* applying wisdom and knowledge whilst being suFgortiug and ¢ncoutaging. Our Commfitment MGTS Commit to provide our cuslorner5 with access to competent staff, leaming oppo1nItieS, comprehensive equipment and technology and rdpid response to meet their training and a&sessment requirements. We will achieve this through the application in all instsnce8 of our core values by consisiently maintaitiitig a high level of knowledg¢ and unknstandin8 of the market8 and environments wsthin which our customers operate.
MIDLAND GROUP TrAINIliG SERVICES LIMTfED TRUSTEFS, RKPORT 31 M8r£h 202J Public Benefit We hav¢ referred to the guidance conlained in the Charity Commission's general guidanc¢ on public benefrt when reviewillg our aims and obje£tiv¢s and in plann1t our future activities. In particular the tiIL%tees consid¢r how planned activities will ¢ootribute to the aims and objectives they have set. Our Strntw¢ Objectives l. Annually increase the number of customers stsategically &nvestillg in PEopl¢ development,. achieving lo¢aL regional and nation81 groMrtb. 2. Develop and ddiver products and seNi¢es offenllg progression through educati¢)n. training and development and cssmettt" unlocking potential and delivering improved customer busines5 perfomiaDCe. 3. Con¢inu¥lly improve quality of contenL quality of delivtty and quality of leaming maoageJnenL 4. Work in partnerthp with customers and stskel)olders to pmvide solution5 kn their requirements and the greater ¢ommunity. localty, regionally and nationally. 5. utilise the charity's resources resp0ft5ibty in PUTSUit of ihe strategie objectives. CHALLENGES, ACHIEVEMEIYTS AND PERFORMANCE The 11 yeaT results for ftscal year 22n3 show a healthy 5UTplus and in line the plarnd budgeL Both income and expendxttwe were iu line with budget eXclaOn5 and vcry sitDi]ar to prior ytar re8ulrs. Commercial eA)urse activity reTnaiDS strong, and the rsults refle¢t this at some 120h above budgei and 3010 above prior year. The commercial coutse calendar is very well pY)pulated, additional dates being athled to support the demand. End Point Asse&sments {EPA) ¢ale challgeS for the busilltss for two reason4 the fjrst of which is the &DJal tiInill8 of the eveni and the subsequent completion payment thai is made to MGTS. There are a fair of EPA'S that were exrKctcd to complete in the 22123 fiscal yeat that will now th place in 23124. The second reason is that tIre are apprelltic that are now refvsiog to undertake the EPA and purely relying on their qualifications as lestament to their appmiiiceship. Sadly, tr)0 marty of tbe employ¢rs do not seem willing to push their apprentice5 to undertak¢ the EPA as part of the overall apprEJJticethip. Failure to und¢rtak¢ the EPA in results in no 200/0 completioll paymellt ty MGTS. ruitmeni ra$ for the Septeml*r2022 intake wcrc at 150 which r¢presrntI a cwity Utilisati¢)n and 10 apprentices above the bUdged number. Within the apprentice stsrtq for the past yeaT was the fitsi eolK)rt of FDEM apprentices tts undertake the progtamme at the Coventry facilty. Apprenlice numbers for the 2023 intake look very POSiliYe vlith six new eonwanies conynitting to apprenticeship Iraining with MGTS for the first titne. The recjultent team colltinued to engage witb careus event$ tbroughout tchment areas for iK>th Coventy alld Reddit¢h centres and sinct Sq)kmber ovEr 65 rvents have been attended. supporting the drive lo ireaSe appltcant iDtere&t and numttrs. MGTS continues to achieve bigb levels of learner sue¢a48 rnies ond mllirtthin a p05iiion of at least 12V• above the national a¢hievewenl rate. Thi5 is undfflpitmed by the levels of work and progr corttiouing at pace on executing the MGTS Qualty Framewo& Stratrgy, paTticu]arly oround curticulllln development and teaching and learnin8. Month]y Quality Improvement Meetings tske place and link dtrectly to the QIP (Quality IproVEent Plan) aod SAR {Self- Asse&8ment Report).
MIDLAND GROUP TIL41NING SERVICES LIMITED
TRUSTEES. REPORT
31 March 2023
FinaDeial revlew
The financial year result was an u1¢StrIcted SuluS of £218.452 (2022 £233,052). The Company balance sheet I
irnproved year on ycar with cumt assets at the YearmI of £2.Im12022 £1.8m).
Incorne
rotal unrestricted incorne of £4.4m was ge41erdted in 2022-2023. which 15 broadly the same as in the previous year.
Apprentice traiTEing inwme represented 76Yo of this. with commercial a¢tivities. reserve movements and inv&5tment
income rnaking up the balance. Commercial ei)urse demand continues to be buoyant and revenue from this business
area is now 2.5Vo above prtrpandemi¢ l¢ve]s.
Expendittwe
Unre5trictcd eXnditre in 2022-2023 rernained at £4.2m, £l.Im of this is related to our commeIal activiti¢S, alld
the remai0& £3.Im was spent supporting clwitsble aitDs.
Fun
MIDLAL¥D GROUP TRAINING SERVICES LJMITED TRUSTEES, REPORT 31 M#rth 2023 The tsusttts have forecast tbe level of free r&wves (that is those fund¥ not tieil up in fLxed a&ts., desigDated and restrictyj funds) requir&J tr> sustsin its oJmtioAS in the event that )me incomtng generating a¢tivitses are curtailed iemporarily wbilst the charitable aCtitieS are continued. The In]stegs coosthr that th¢ m( appr(yriate level of free reserves on 31 Mah 2023 would be 9 montlL8 of the group's iwdged exFKndibJre i.e. £3.16m. The acDJai free r&serves on 31 March 2023 were £2.05m beitig £1. Im12022.. £1.Im} short of the target figure. Whilst the shortfall remai18 unehan8e4 the level of free reserves h&8 Increas ye8ron year. b) tnvestments Urtder the Menjorattdum knieles of AsSrtiatiO the charity Iw th¢ Wer to Iti$t in gny Wdy the ¢rnstees wish. The trustees have detemined that the Charity investments should bc in the forni of ititeresi-Ewing c&8h dep)sils with major banks or financial itistitytioffjs and invwlment propty. Interest rates should be ¢ompetilive and free of risk to the capitsl. STRUCTURE, COVERNANCE AND MANAGEMENT The Charity is a company, limited by gurntee, And has no slMtE c4)ital. It was incotrd on 17 July 1970. Its governing dLKument i8 its Memorandwn and Article8 of AssocilOll, which were updated on 6th Maych 2019. The liability of each member in the event of windiDg is limited to £20. Charity numFxr 528785 984899 Gu]son R(Ad, Covahty, CVI 2JG Principal OtTi¢e The PT5ncipal ofyth of the clwithble ¢ompJny are: "To advance the thretIcal and prncti¢ai education and training of persons engaged or Intendll to engaged in engille¢rll general itidustn'al and c<mimercial activitie5" To allow the ¢liarilAble ¢ompotty to trade irt a¢tiviti¢s complementary to its objects a b51d1ary company GTs Business and Tralning Services Limited, was ineorpDrAted on 22 SepternF*r 2000. The Chlty own5 the I,0 issued sbares of £1 each. T&xable profits arising from the subsidiary are Gift Aided to the Charity.
MIDLAND GROUP TRAINING SERVICFS LEMITED TRUSTEESI REPORT 31 March 2023 Trnsteesl Direetors The Tn$ art elected by the Mem1r5 of th¢ Compally and serv¢ for five yeats before retsring. The Articles of the Company allow for unlimited TnLStee&Di[th. The Tntee5 may C0 to fill casual va&incies arising during th¢ The followin8 were Trustee5 dunng the whole of theyearw)der review.. MsCB¢ll Mr K Kane Mr G F LAwton Mr D Montgom¢ry Mrs T Re5molds Mrs R Ritchie Mr A Watson The folloWig We apwjinted as Tntsrees durD)g the ye4r. The Tn¢5 of the Clmtity meet at least 4 tirnes year. They Set budgets for the Cl)arity and morritor its financial perfom)ance through d¢tailed quarterly flljancial reix)rts. MaioT decisions affectti)g the Charity's Ofrntions are taken by the Trnstees. The Chief ExecutiY4 David Bridgens is rq>onsible for implementing the Trustees Folicies. He reports on a qiiarterly basis to the Trustees. Additional ad hoc Trustees Jnettings are Called whenever it is felt necessary either by the Trnstees or the Chief ExetIVe. Trustee itiduetion and training New treS undetEo a series of briefill8s io inforni them on their legal obligations UDd¢r cbarity alld conwaDy law, the Content of the Memorandum and Articl&8 of A&4Ki8tion, the n(DIttee and (kcision-rnakitig processes, the business plan attd rlt finoncial perforllwKe of tbe charity. During the induction they m¢¢t key empk>yeu and other Iee8. Trustees encourdged to attend appropriate training ¢v¢uts where these will fxilitate the UTLdetsknding of their role. Key Man8¥ement Pemnllel The following were key nmnagement perso] during the year review.". Chief Ex1Ve Officer DirlOr of Delivery and Operntions Dir10[ of Fintin¢e and HR Business Syst¢ms and Contrac¢s Manager Quality and Compliance Manttger Customer En8ag¢ment Manager David BridgeThs Steve Pahner Ruth Srni Adrian Lawrence {igned 26.3.23) Ruth PlaDe AdriaD Sitth"&s Arr4n%ernets ft)r settiDg pay #nd remuneratlon TnLStees do not Teceive any forn) of remuneration Bnd give their time freety. The ITste¢s rrview pay annually in Octolxr for All stsff, ]lUdIng key personnel. Consid¢rJtion is tsken of the rate of Jnfiation. and benchmatk pay rates within the industy.
MIDLAL¥D GROUP TRAINING SERVICFS IJMIT TRUSTEES, REPORT 31 Mxreh 2013 Risk management We confjrm that tDajw risks have beeD reviewed that systems and pr0Eed hav¢ been ¢stablished to manage those risks. Government •nd Agencie$ The government 15 committed to supporting apprenticeships through tnnovation and increas] filllg. In Septeber 2021 a new online wvice launched to make it e&sierfor large employers that pay the AFgrenti¢&ship Levy to s1 their fund% and for otheremployers to review and apply forfiu)din8. Governntht furmjing for apprntice5hips is set to Incre by £170 million to £2.7 billion in 2024-25. The ESFA have updated the &pprentic&ship accountability framework tthieal specifi¢ation which outlines the quality indi(¥tor8 that forn) part of the apprentice6hip accounthbijty fEamework and lW thu¢ are applied for this first ycar. It has beenpdat•j to include infOrnlI0n about the tknrsholds for OT (Off the Job Training), achievement Tatrs and IEteDtion rates. In wxmse io feethk from training providers, the ESFA have als) thnendoj the threshol& for withth?wal4 learner5 past planned end date and breaks in learning forprovid•s that fall into the'kneeds improvem¢nf' category. The thTl1ds Includ in the fr&newrt arenot wgets for the apptihIps prOamme and sbould not be ud by providers as targets (o b¢ncbmaTk their provislon agamst. thstel tbvae threS1Id5' reflwt minimum eXpeClon$ and will be used to inform any inteentiOn actions the ESFA wJ]I take in response to ¢oncerns about tbe quality of d¢liYery at a provider. Both the Ki¢kstart Scheme and additional apprnticeship thding incentives star1 in September 2020 have now fjnished as of the 31 January 2022. The Kickstart Scheme had 250,000 tarye*d role& tt) fill and only 100,IK)O available roles have been filled. The employer in¢entive paymeni scheme for takinE on art apprenlice will now revertback to th¢ £i,(KK).
MIDLAI¥D CROUP TRATNING SERVICES LIMITED TRUSTEFS, REPORT 31 March 2023 Small Cornpallie5 Exemption This" report is prepared in accordattce with ycial PTOViSiOL8 of part 15 of the Compani¢$ Aet 2006 relating to small The trustees who are the charitable company's directors are pleased to pre5enf their rwt together with the fin8ncial ststetneDls of the charitable company for the year ending 31 March 2023. Ai]DrroRS A rewlution will be to the forth¢oming AGM re4woint Luckni8n8 Duckett Parker Limited as Auditors for the year endinE 31 March 2024. Statement as to digclosur¢ of infonnadDll (o audltors The tsustee5 who were in office Im the date of approval of tkn r]nancial statements have confim)ed as far as they are , that there is no Telev8nt audit iDfonDation of whi¢b the audiior3 aTt UT]aw8re. The trustees have confim)ed that they have tsken all the Steps tbat they ought to have tak¢n as tnL¥tees in order to nmke themselves aware of any relevant audit iJJforni4¢ion and to tstabiish that it IMbea] communi¢ated to the awjiior. PROFE&SIONAL ADVISORS The Charity is provid¢d with professional services on a ¢omrnercial b&8is by.. Audit Lloyds TSB PIC Battd Hatton Button Solicitors Loveitts Esta* Agcthts Jensten Group IL4UT&ttee On behalf ofthe Board G Lawton Gulson R(wd Covenlly CVI 2JG 6th SepteJ)Iber 2023
MIDLAND GROUP TRAINLYG SERVIC&8 LIMITED DIRECTORS, RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL sfATEMENTS 31 March 2023 The directors areresponsible for preFw1 the Annuaj Rq and the fJDancial statemets ill accordanee with applicable law and UDikd Kingdonl Generally Accepted Accounting Practice. Company law requires tbe dire¢knrs to pr4)are f]nancial 8tstement$ for each fit)ancial year which give a lrne and fair view of the state of affairs of the charithble ornpany and of the incoming resources and application of resources. including the incojne and ¢xpenditure. of the tharitable company for that period. In prepari those financial statejnents. the direciors are requircd to.. select suitsble accounting )11¢]8 and then 4)ply th•n ¢onsi$iently" makeiudgements and estimates that are renttble and pwdenf" prepaTe the fJn8ncial sthtements on the going con¢em b&8]8 U1¢&$ it Is Inappropiidte to presume that the clwitable c4)mpany WAll continue ill bu¥ill¢sB' observe the methods and principles in the Ch•Tity SOI The dire¢toTs are responbIe for keepitig pmper accounting T0[5 which dI109e with reasonable a¢¢wacy at ally time the fllwicial p)sition of the clwithble cojnpany alld to ¢nabl¢ them to ensure that the financial Statements omply with the requirements of the Companies Aci 2006. Tbey are 81so resF<)nsiTrJle for safeguarding the assets of the charitable company and hellce for taktng re&wnable Steps foT the PreVOn and detectii)n of fraud and other iTregularities.
MIDLAND GROUP TRAINING SERVICES LIMrrED AUDITOR'S REPORT Independent auditor'5 report to the members of Midland Croup Training StrYie¢s Llmlted Oplnlon We have audited the fman¢ial ststements of Midland Group Training Servi¢es Lid (the 'parent company) and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise th¢ Conwlidated Stsiemenl of Financial Activities, the Consolida1 Balance SheeL the parent company Balanc¢ Sh¢¢i the Consolidated Cash Flow Statemenl and rlotes lo the fmancia] statemenL$, including a sumn)ary of significant accouuting lICieS. The fJnan¢ial reporting framework thai has been applied in th¢ir preparnion is applicable law and United Kingdom Acc(ywthng Standards (United Kingdom Generally Aep}ed A¢¢ounting Ptice). In our OPll)ion the fill¢121 St8Ments.. give a true alld fair view of the state of the group's and parent cotnpany's affairs as at 31 Mar¢h 2023 and of irs incoming resources Hnd appli¢#tion of resource4 ]lUding its illcome and expenditur4 for the year then have been properly prepared in a¢¢ordance with United Kmgdom Generally Accepted Accounting Prtlee" have be¢n prepaTed in cOrdat witb the requiTements of the Compat)ies Act 2006. Ba61$ for oplDlon We ¢onducted our audit ITh xcordallce with tnternational StaIards on Auditing (UK) (ISAS IUK)) and applible law. Our responyi17ilities under those standards are fier described in the Auditors r¢spon%ibilities for the audit of the financial stalements S¢10 of our reporL We are independent of the group in accordance with the ethical requirementg are relevan¢ to our audit of the financial ststements in the UK, including the FRCS Etbical Standa14 and we have fulfilled our other ethical Tesponsibilities in accord8noe with these requirements. We believe tbat the audtt evidence we have obtslned is sllfficient and arq>ropriate to provide a b&sts for our opitiiotL Conelusions relatlDg to golng concern We have llothillg to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where: the Irustees. uye of the going concern basis of accounting in the preparation of the flljancial swements is not appropriate. or the trnstees have not disclosed in the fmancial statements any identified material uncerlainties that may cast significant doubt about the ¢haritabl¢ company's ability to continue to adopt the going con¢ern b&si& of accounting for a period of at least fr1Ve months from the date when the flln¢la1 statements are authoriscd for issue. Other lfOrmatIOn The trn8tees are responsible for the other infonllation. Th¢ oth¢r itifonnation comprises the inforniation included ill the aftnual reiTht other tban the f]nancial statement8 and our Report of the Itthpendt Auditors thereon. Our opinion on the r]nancial statements does not cover the other inforntiOll and we do not express any forni of ssurance conclusion tber¢oJL In C4)nnection with our audit of the financial slat¢m¢nt$, our reswnsibility is to read the other information an(L in doing so. consider whether the other inforn)alion is ll]ateriIY in¢onsi$t¢nt witb the financial state4nents or our knowledge obrained in the audit or otherwise appears to be materially mi&stated. If, based on the work we have perform we ¢onclude that there is a malerial misstatement of this other IorntiOn, we are r&]uired to rewrt that tact. We have Dothing rqKJrt in this regard. OplDlon on other matters prescrlbed by the Companles Act 2006 tn our opinion, based on the work undertak¢EL ill tbe course of the audit". the information given in the Report of the Trustees for the fitwicial year for which th¢ fmuncial statements are prepared is consistent with the financial statements. and the Report of the Trustees has been prepared in accordance with applicable legal requirements.
MIDLAND GROUP TRAINIIYG SERVICES LIMITED AUDITOR'S REPORT Inde ndent auditor's re rt to the members of Midland Grou Tr¥iDin Service5 Lirnited Matters OD which we are required to report by exception In the light of thc knowledge and understanding of thc group aDd the parent company and its environment obtsined in the coprse of the audit, w¢ have not identified matwial mi5Statements in tFte Report of the Thistee5. We have nothyng to report in respect of the following matters where the Companies Act 2006 requires us to report toyou if, in our opiiiion.. adequate accounting records have not been kept or returns adequate for our audit hav¢ not en Teeeived fro]D branches not visited by us. or the financial statements aTe not in agreernent with the accounting records and returns" or certain disclosures of trllstees, remuneration specifteAI by law ore not made. or we have not received all the inforniation and explanations we require for our audit; or the trustees were not entitled to take Advantage of the smill companies exemption from the requiremem to prepare a Strategic Report or iti prepartng the Report of the Trustees. ReS11b11ites oftrustees As explained more fully in the Statement of Trustees Respon811)ilities. the tnJste¢$ (who are also the directors of the parent Company for thepurposes of company law) 2re responsible for the preparntion of the fnhancial attments ond for being satisfid that they give a trne and fair view. and for su¢h internal control as the truste¢s determine is necessary to enable the ptyparation of financial ststements that are free frm rnat¢ria] mi5ststemen1 Ivhether due to fraud or error. In preparing the flli8ncial stalemenis. tbe trustees are responsible for assessing the group and the parent ¢omp8ny's abilty to continue as a going concern, disclosing, as applicable, matrers reled to going concern ond using the going concern basis of accounting unless the trnstees either intend to liquidate the group orthe p8rent company or to cease operations, or have no realistic aliemive but to do so. Our respoDsibi]itie5 for the audit of the fiDancial statements OUT objectives aTe to obtain Teasonable assurdnce about whether the financial statements a whole are free from material misstatemenL wbether due to fraud or eOr. and to issue & Report of the Independent Auditors that ijjcludes our opinion. Reas¢)nJble a55UTanc¢ is a high l¢v¢l of assurance, but Is not a guarattlee that Bn audit conducted in accordan with ISAS (UK) will alway5 del¢¢t a mat¢riJl misstatement when it exists. Misststements ¢an arise from fiaud or error and are ¢onsidered material if, individually or in the aggregate, they could reasonably be ¢xpe¢ted to influen¢e the ecoDomi¢ decisions of users faken on the b&4is of these financial 5tatem¢nis. Irregularities, including frdu¢ are instances of non-compliance with laws and regulalions. We design procethJre$ iti line witb our resp)nsibilities. out]ined ai*)ve, to detect malerial misststements in re$pe¢t of irregularities, iticluding fraud. The extent to which our procedures are capable of detecting these itregularitie& including fraud is d¢tailed below.. identifyittg and assessing the risk of material misstatement in respect of irregularitie& induding fraud ond non-compliance with laws and regulations, our procedures Included the followtll8: reference to past bistory and experience of the Entity, enquuy of management, including obtaining arAd reviewing sUPPOrtiDg documentstlOD con¢¢ming the Entity's proceduTes relating to.. -identifying and complying with l&ws and regulations and whether they were aware of aLy iry5tan¢¢5 of Dori-compliancc" -detection and TestK)nSE to risk of fraud and whether they were aware of ally ath1 or suspected instances of fraud. assessrnent of the controls ond processes that the Entity has In place to mitigate risk. Our assessments included the identificalion of the following potential areas for fraud.. Management override of control. and Revenue recognition- spe¢ifi¢ally the re¢ognition a¢¢ordingtotiming of the provision of trainlng services, and Manipu1J0n of revenue thTough managemeni ovetyid¢ of joumals. io
MIDLAND GROUP TRAINING SERVICES LIMITED AIJDTfoR'S 14EPORT ndent audltor's re ort (o the members of Midlond Grou Trainin Service5 Limited Inde We design audit procedurts by tailored and direct testing to aid and support the l¢Y¢l of determined level of risk. ID response to the assessed risk we plan audit tests and procedures that iarget spe£ific areas where misstatement m8y occur. These pro¢¢dures and the extent lo which ihey are capable of detecting irregularities, in¢Mding fraud. 8rc detailed below.. We critically assessed the appropriateness and tested the appli¢ation of the revenue and cost recognition policies. We tested the appropTiat¢De&8 of accounting jIMmMls and oth¢r adjusttnents made in the preparation of the r]nallcial $ements. We r¢viewed the Entity's accounting policies for non-compliance with relevant standards. We made enquiri¢5 ofjnanagement and rcviewed spOndence wxth the relevant authoritie5 10 identify any iJregularities or instances of non¥complian¢e with laws and regulations. In performing an audit in accordance with UK GAAP, we exer¢ise profelOnal judgement aud maintsin professional scepticism throughout tbe audit PToce&s. We also wmmunicated rclevant identified laws and regulations and potential fraud Tisks lo all engagement t¢am members aTLd ttmained alert to ally indi¢ation$ of fraud or non-¢ornpli8nce with laws and regulaiions througboui the audit. The risk of not detccling a ma*Tial misstatement resulting fro fraud is higher tlwi for on¢ resuhing from error, as fraud may involve collusion or oveKTidc of internal controls. There are inherent limitations in the audit procedures perfonn¢d. A furfher descriplion of our responsibilities for the audit of th¢ fm8ncial statements is located on the Fi[le1a1 Reportin8 Council's website ai wThw.fro.org.uklauditorsresponsibiliiies. This de5¢riPtIOD forms part of our Rert of the Jndependent AuditOTS. Ust of our report This report is made solely to the charitable c4)mwany'5 melnbets, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. OUT audit WO has b¢¢D undeLtsken 50 that we might state Lo the charitable COMpY'S me]JJbers those matters w¢ are required to stsle to them in an auditors, rq)ort and for no other pllrpose. To the fullesc extenl permitted by law. we do not accept or a5surne responsibility to anyone other than the charitable company and th¢ charitable company's rnembers as a kndy, for our audit work, for this repor¢ or for the OPiBions we have forTn¢ Mark Spafford FCCA ACA ( nior Statutory Auditor) for and on behalf of Lu¢knLaDs Duckett Parker Limitryj I 110 Elliott Court Coventry Business Park Herald Avcnue Coventy West Midland5 CV5 6UB Date.. ..6th S¢ptember 2023
MIDLAI¥D GROUP TRAINING SERVICES LIMITED CONSOL]DATED STATEMENT OF FINANCIAL ACTivrrtES for th¢ year ended 31 March 2023 llrestrlcted rllnd$ Restrleted fndS Total 2023 Totsl J122 Note Ineome: Comnavirns Job R¢teniioti S¢heme income 8242 IncORfroM Choritable lIVI11.. subscriptio5. traillÈn8, projects, course fees and extra serviees 3,081,699 79,0 3.160,699 3,382,174 Jneomefvm othertrqding4eliFYkes." Commerctal knditig operations 1299,079 1299,079 1.120.082 JnvestmentioTr¢ 14.781 14,781 2,130 Totsl Ineonthi8 rewur¢¢$ 4J95 J59 4.474.559 4.512,628 xpenditure: Costs ofrn¢singf&nds.' Investmellt nwttgement costs Commercial trading operdtion5 1.067,497 1.067.497 882,591 Eylldithre on cknritablt ocrfivits£% 3.109,610 I 19.684 3229,294 3,468,669 Tolai expendlture 4,177,107 119,684 4,296.791 4J51260 Net kneomelooss) belore other 218.452 140,084) 177.768 161J68 Chonge in fairvalue of pension liability 12 Net movement its fund5 for the year Fund bolatt brought fonvard at l Apri12022 218.452 {40,684) 177,768 161,368 1,701,591 363.577 2,065,168 1903.800 Fund ba]aDC¢ carried forward at 31 March 2023 1.920.043 322.893 2242.936 2,065.168 Th¢ stateffjellt of fmaTLcipI tiVitieS includes all gains and losses recoElled An the yegr and in the previous year. All the company's activities clas8ed as continuing. 12
MIDLAND GROUP TRAINING SERVICES LIMITED BALANCE SHEETS at 31 March 2023 Company No 984899
| Group | Charity | Charity | |||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | ||
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible fixed assets | 8 | 2,774,130 | 2,981,849 | 2,774,130 | 2,981,849 |
| Investment in subsidiary undertaking | 9 | - | - | 1,000 | 1,000 |
| 2,774,130 | 2,981,849 | 2,775,130 | 2,982,849 | ||
| Current assets | |||||
| Debtors | 10 | 630,076 | 587,457 | 433,993 | 381,907 |
| Short term deposits | 2,477,173 | 2,472,463 | 2,477,173 | 2,472,463 | |
| Bank balance and cash | 144,190 | 107,109 | 65,441 | 59,371 | |
| 3,251,439 | 3,167,029 | 2,976,607 | 2,913,741 | ||
| Creditors- amounts falling due | |||||
| within one year | 11 | (1,183,617) | (1,318,514) |
(1,141,367) | (1,303,717) |
| Net current assets | 2,068,822 | 1,848,515 | 1,835,240 | 1,610,024 | |
| Creditors -amounts falling due | |||||
| after more than one year | 11 | (2,599,016) | (2,765,196) |
(2,599,016) | (2,765,196) |
| Net assets | 2,242,936 | 2,065,168 | 2,011,354 | 1,827,677 | |
| Funds: | |||||
| Restricted funds | 13 | 322,893 | 363,577 | 322,893 | 363,577 |
| Unrestricted funds | 13 | 1,688,461 | 1,464,100 | 1,688,461 | 1,464,100 |
| Non-charitable trading funds | 13 | 231,582 | 237,491 | - | - |
| Total funds | 2,242,936 | 2,065,168 | 2,011,354 | 1,827,677 |
The financial statements have been prepared in accordance with special provisions of part 15 of the Companies Act 2006 relating to small charitable companies.
The financial statements on pages 12 to 26 were approved by the Board of Directors and authorised for issue on 6[th] September 2023 and were signed on its behalf by:
13
MtDLAI¥D GROUP TRAINING SERVICFS LIMrrED CASH FLOW STATEMENT for th¢ year ended 31 Mareh 2023 Group 2023 2022 Note Cash floJv$ from Dperathg acllvitiej: Casb gtrat£d from operations 144,756 (335,603) Net cash provided by (uued in) operdng activities 144,756 (335.603) Ca8b IItsw5 from investing •ctivitieB: Purchase of tangible fixed assets S&le of tsttgible fixed assets (187 J71) 69,625 14.781 (334,539) 55,086 2.130 Net c8h provided by (used in) investing (102,965) {277,323) Change An cash and e88h equlv*nt$ In the repordng perfiod 41,791 (612.926) Cash cash equlv&ients at the beOnnlng of the reporttDg perlod 2,579,572 3.192.498 Cash alld cA5b equlvAleDts #t the end of fhe reportSng perlod 2,621,363 2579,572 14
MIDLIND GROiJP TRAINt¥G SERVICES LIMITED NOTES TO THE CASH FLOW STATEMKNT for the year eded 31 March 2023 ReeoDclllatlon of net illtome to net cath floTV from operating Aetlvities 2011 2022 Nel IDcoJne for the reporting period (as per the ¥tstemeDt of financial aetivities) AdjusimenLs for. DePclai10 Charges Profil on disposal of fixed &4sets Change in fairvalue of pension scheme liability Interest received {Increaseythr¢ase io debtors 1llcTh{de¢reaSe) iti ueditors 177,708 161.368 332,062 (33,436) 26.040 (14,781) (36,849) {306,048) 313,680 (27,544) 46,219 (2,130) {38,787) (788,409) Net cash provided by (used in) operatin8 activities 144,756 (335,603) 15
MIDLAND GROUP TrAINJI4G SERVICLS LIMITED AccoufiTll¥G VOLICIES 31 M4rcb 2011 Accounthig Pollcks Basts of pr¢prntio The []njaI s¢al¢ments of the chaTitsbk company, which is a pub]ic benefit entity wider FRS102. have been prepwrd in ordanCe with the Charities SOIIP {FRS102) 'Accounting and Reportingby Charities: Statement of RecomD7ended Pra¢ti¢e applicable to chan'ties preparing their acc¢Junts tn accordallce with the Finar181 Reporting stand? iu the UK and Republic of Ireland (FRS102K effective l Januw 2019).. Finaneial Reporting Standard 102 'The Finala7 Reporting Standard applicable in the UK and Republic of Ireland. and the Compani¢s Act 2006. The thJan¢ial slalemenls have been prepattd under the historical c05t convention WAth the ex¢¢ption of inVtMents wbi¢h are iDcluded at market value. A¢¢ountlng ¢h8Mg¢¥ The significant accounting policies adopd are dn1)ed below. Siyifi¢aDt judgements eslimateB The pr¢yaration of th¢ fujancial $rat¢n)ents requires management to Jnake SlE(all1 judgements and estin]tite8 that affect the arnounts re[rted within the balam¢e shea and thtement of fllw¢io1 a¢tivitie& The followiti8 ar¢ the Comwdny's key 50urc¢5 of ¢stin)ali¢)n uncertainty.. Multl- employer deflned benefit penthn scheme ]Iablllty The edUle of contrjbutions for the multi-employer defined benefit %h¢m¢ 18 detern]ined using a¢¢uariaJ Ivations. The a¢tyarial valuation involves making a&4umptions about discount rate4 future salary increases, mortality rates and future F¢nsioll increases. Due th the cotllplexity of the Valuatio the underlY1g assumptions and the long" teTh nature of these p]ans, such estimates are subierr to sigt)ificant uncertainty. Th¢ rnortalty rate is based on publicly available mortality tsbles for the specific county. Futtwe sY aJLd pension increa8¢s are bas on expected tle inllation ra6 for the reSptiVe couThty. Th¢ Cornwdny h&% includ a liabi]ity within the fJDan¢ial ststhellts to rell1 its future fvnding Obligati based upon a diSWunt casb tk)w buis. The discounted cash flow h&8 been calculad by tsiD¥ predicted futu iTfflation rdtcs of IO°h in yeaTS l ar 2 a[ 6Q/v therfter. The di8Unt rate used is 0.85¥.. In d¢terIlliD8 the appropri4* dioUnt ratA managernent Considers the interest rate of AA CO)rate bonds denomiDaied ID Greai Briiish pound sterling, with a bond matilty similar in duration to the def]ll benefit funding obligation. Group Illlanelal statement8 Thc ststenient of fiDaDcial aCtitieS (SOFA) group ba]ance sheet consolidate the financial ststertKnts of the charity and ILS subsidiary undertkng. The rtsuits of th¢ subsidiary are consolidated on a jine by line bftsi& A separate SOFA and income and expenditse account are not PTesent¢d for the ¢lwity itself following the exemplions afforded by Se£tion 408 of the Compantes Act 2(. tncome refognitlon PD]icy Income is rQgniSed when the clwity bas entitlement the fund& ally Pf0M&tW¢ condition8 attached to the itern(s) of tn¢ome have been m¢L it is probabk that the incolne wAll be rxtived at)d the can be meawed ]Iabfy. Incom¢ from gov¢mrn¢nt and other grdnts, whether '¢apital' grants or 'Tevenue' gMIts, i¥ re¢ognisl when the Gharity has CltIe¢t lo the fiwds, any perfomw¢e conditions attached to tbe grants bave beett meL it is probable that the i]Kome will be received, and the amount me&wred reliably and ib not deferred. The charitable company recognises support from the Coronavirus Job Retention Scheme on a rrfeivable basis as all unrestricted donation to the charitable company. Investrtsent iticome is reCOged <)tt a receivabl¢ basis. 16
MtDLAND GROUP TRA]TrIING SERVICES L]MTfED ACCOiTNfING POLICIES (CODtinued) 31 M8r¢h 2023 Re50urce$ expended Irrecoverable VAT Expenditure is rOgniSed whcn a liabilitv is incu1 Contsactual arramgemeThts and rfOlanCe rclatcd ¥rants a recogni8 &s goods servic¢s wpplie Chlble activities include expenditure associated in the provision of training Servi and include both the di ccksts and support costs relatmg to th¢8¢ (ivI¢& The chatitAble company r¢wgnises tbe cost of ¢ontr4ctyal redundancy payments as being part of the cost of the delivery of ¢baFitable activities. Govemallce costs include those irtCULYed in the gov¢rnaDce of the charity and its ets and ore PrinrilY associated with COT]Stitutional al 8lu10ry requirenients. Support cosrs include the central Ojnctions and have been allocated to activity c&8t e8tegories on a basis consisteni with the use of u[c¢S, e.g., staff cosisby the estinutcd time spent and other costs by their estimated usage. Ittecoverable VAT is ¢haryed against the catcgory of $oUr¢ expeaded forwbich it was incu. T#xadoD The c4myany is a regi$ter&J charity alld is exejnpt fiDm taxation Im it% Chlble acuvities. The wbgidiary company has. no tax liability as it donates its taxable profits to tbe charity under gift aid. Tanglble fixed 48sets Fixedassets ¢05tiD8 £3,000 ormore aTe capitalised at cost. Depreciation is by in8taiments at rates &stimated to yryite off the costof the asset less w rtsiduai value over the eX¢tl use1 lives at the following rat&%:_ 2/1¥o per 8J)num on freehold buildings 4/0 perannum on freehold building improvemenL¥ l(P/o per Srmurn on leasehold builijing improvemenL8 I(YA to 250/0 per aT]num on equipment and vehicles 33113QA per annum on computer equipm¢nt On dsswl of assds in tbe orditwy cour8c of busine adjusttnents are Dtsde Lo tbe deprlation ¢harg¢ to reflcct differences between the acmal and estirnated a8gresate depreciats¢)n. Pension$- Defined Benefit Scherne The defmeAi t¢nefit scheme w&s clos to u¢w Conthu¢l0nS 1)n 315# August 2010. lo cOrdanCe with Paragtaph 28.11 of FRS102 the Gompally as a p8Iticipa¢iDg ¢mployer w the stheme, ha5 recognised the present value of its share of the agreed contributions on the balanc¢ sheet as a liabilitv on a discounted cash flow basis. MGTS'S cstimated liability as at 31. March 2021 wa5 £3.6M 4lld is recalculated eath year: witb lllovements in tbe liability refiected in ¢he stsiemerit of Financial Activities gJ)d the ekw¢nt reLaiing to the unwinthn8 of the discouni in int£rest payable. The Company has renegotiated its recovery p]an as a result of the latest actiwial valuation on 31* March 2020. Further inforn)ation in relaiion to att update on the Current stabls of the pension scheme deficit and the most rt valuation coll be found in not¢ 12 on page 23. The Company is liabl¢ for its own fijllding ob]igations and is also ]iabl¢ foT those Of the other spon50ring employer4 Should tlK)Sf spon50rwg ¢rnployet3 default ¢)n their obli8ations. PeDslon costs- Defm¢d Contrlbutlon Scheme The amow)l Charged to the Statement of Financial Activities in rwt of pension costs is the contribution payable in the year. Any differences be¢ween contributiorjs payable in the year and contribu¢ions ac11Ypald are shown &% Eitber dccnwls or pr¢payKuents in the ba]ance sheet. 17
MIDLAND GROUP TRAININC SERVICES LIMtTED NOTES ON FINANCIAL STATENIENTS 31 March 21123 Funds 5tru¢ture The charity has a number of restricted income &¢count for siti]Qn$ where a donor reqyir&8 that a donation must be spent on apariicuiar purwsc orivhere fund5 have been Tri5ed for a specific pu4)ose. All other fiJDds att eStriCted income al statuj of the Charity The Charity is a company, limited by guarantee, and has no share ¢apitsfft. It w&s inconx)rated on 17 July 1970. Its governing document is its MemoTwkn and Articles of A&so¢iation. The liability of each memkn in the event of winding up is litllited to £20. Inveg¢ment In¢om¢ 2023 21122 Short t¢rnL Ikwsit inlerest receivable 14,781 2.130 Ineome Charitabk Ac¢ivities Training 5UVi¢G8 F(Dvided 3.1(rfI,099 3281.874 Charltable Actlvltk$ Costs The cl)arity undert&e5 direct charitable activities Ynd doe$ not moke gtaDt payments Provision of training services and projects Support - salaries and office costs 3,138,016 91278 3,387,721 80948 3,229294 3.468,669 Govtrnart¢e costs Salaries and offiLe costs Auditors, remuneration . Audit 16.170 13,533 7,075 1,500 9,925 1,5(X) 24,745 24,958 18
MIDLAND GROUP TIL4tNING SERVICES LlllqlTED NOTES OLY FINANCIAL STATEMENTS 31 March 2023 2023 2022 el lll¢omlllg resomrces N¢t iti¢oming reSoue5 are ststed after Cha1$/ {crediting}: Direcrs, and officers, indemnity iDsurallce D¢pre¢iation of tang1¢ red assets.. . assets . leased assets IProfityk)&s on disposal of tan8Rble fixed assets lllterest on Èxnsion scheme ]iabi]ities 264,793 67.269 (33,436) 26.040 246,909 66,771 (27 J44) 46.219 Staff totts Wages and ]eS Social security costs Pension ¢osts 1.737.273 210.988 136.(K)3 1,602275 194,635 130.042 2.084264 1,926,952 Avernge nvmEe& of employees 43 43 Key management perne1 Emoluments Pension Contrib108 to def]ned Contribution scheme 507,756 30,618 410.062 27,054 538.374 437,116 The number of employees WILQ rr£eived emohunents of more thaD £60,0 in the year was as follows: £60,001- £70,000 £70,001- £80,0(K) £80.001- £90,0(M) £110,000- £120,000 Midlomd Group Training Servi paid £30.618 (2022.. £27,054) a defined contribution pensioll sch¢me for 6 (2022.. 6) higher-paid ernployee& The director% do ttot receive ell1ents or exp¢rn4es. Pe81n eosts- Defincd Benefit Schernt In addiiion to the aiK*ve, the Company made a payment of £169,506 (2022: £757,700) to the ulti¢Mpl0Yer d¢fin¢d kuefii scheme (see note 12 on pa¥e 23). Peu$ioll eosts- Dcfined ContTlbutloD Scheme The cotnpany provides p¢nsioDS for C¢1 employees, through a defined contribution scheme. The employer ¢ontnl)utions for tbe p¢riod were £105,7I312022 £101,370). The ]ning cogts of the s¢heme are amalgan)ai wlth tbe Def¢d Benefjt schetne aTLd ¢anEwt be separakly identified. There wete no outs¢andxng OT prepaid ¢olltnl)utions at the balpnce sheet date. 19
MIDLAND GROUP TRAIliING SERVICES LIMrrED NOTES ON FINANCIAL STATEMENTS 31 Mlrcb 21123 TaDElble fixed a88etS-Eroup and ch#rlty Freebold Lea*hdd F4lllpment Property Imprnvernents & vehleles Total l April 2022 Additio]LS DisFK)sals 2,164.151 10280 1.254.933 2.962.319 150.252 (191,982) 6J81,403 160532 (191,9112) 31 March 2023 2,174.431 1254,933 2.920.589 6J49,953 Depretladon l Aw]] 2021 Charge for year Disposa]s 969J17 11.442 438,474 67.269 1,991.763 3J51 (155.793) 3J99,554 332,062 (155,793) 31 Mah 2023 980,759 505,743 2.089,321 3.575,823 Net book value 31 March 2023 1.193.672 749,190 831268 2.774,130 31 Alarch 2021 1.194,834 816.459 970,556 2.981.849 On 30th Jun¢ 2021 the Company granted in fayow of the Trustees of the EEF Staifpension Fund on uncapped chatBe over the free1]d prowty at Gulson Road, Coventy. included in the balance sbeet 2t £1.2nL 20
MIDLAND GROUP TRAINJNG SERVICES LIMTfED NOTFS ON FINAf4ciAL STATEMEKrs 31 Marcb 2023 Group Ch•rity 21113 2022 21123 2022 Fixed 13stt invtMent Shares in subsidiary uttdertakn"t 1,000 Subsidiary undertaking MGTS Business and Training SeTrioes Limited which w&s incorporated iti England on 22 September 2000 pays all its ¥0b]e profits w the charity by Gift Aid. MGTS Business alld Training Setvices Limited op¢rdte5 as an exe¢utive arni of the chariry. The charity owns the entire issued slwe ¢apitsl of I,(KK) ordinary shares of £1 eath. A 57llJI0ry of tbe trdding r¢sult$ is shown below. Summary of profit and loss ateovnt 2023 2022 Turnover Cos'tof Sales atsd administrative expenses Governance costs 1299,079 (1.063.422) (4,075) 1,120.082 (878.491) 14,100) Net prtsfit Retaitied profit brought fonyard Amount gifted to the chaTity 231,582 237,491 (237,491) 237.491 111.704 (111.7041 R¢tained in the subsidiary 231,582 237.491 Tbe assets aDd liabilities of tbe svbsld5#ry were: Fixed ae¢S Current assets Creditors.. amounts fallitig thie within one year 787,628 (555,046) 914.648 1676.157) Net allets 232.582 238,491 A8Kre8&te share capitsl and reserves 232,582 238.491 21
MIDLAND GROUP TRAINING SKRVICES LIMrrED NOTFS ON FINANCIAL STATEMENTS 31 Mareh 2023 Grow Cb4rity 2023 2022 2023 2022 Debtorg Amount8 falling due withio one year Trade debto 446.463 174,505 9,108 471.919 115239 299 258,782 166,103 9.108 271,269 110339 299 Accrued inctsme Amountdue from wbsidiary uftdethking 630.076 587,457 433.993 381.907 li Cr¢dltor8 Amounts fallin8 due withill one year. TTade ¢r¥Jitors Taxatioll aDd social s¢¢wity pa)thle ACen Pell5ioll deficit liability Amount due to Subsidiary unde¥¢aknng 796,159 103,362 91.876 192,220 861,184 117,329 170.495 169.506 264J47 91.834 80.170 192220 512,796 209,222 100,907 162,722 169,506 661,360 .183,617 1,318,514 1.141267 IJ03,717 Amounts falling due afttr one year. Pension deficit liability 2,599,016 2,765,196 2.599.016 2.765.196 tncluthd within trade ¢reditoTs is deferr&J income of £312J78 (2022 £353,0(KJ). These ajnounts 8Tr def¢ed beCaSe the income lateS to fvture periods. Defetted income at l April 2022 Used in year Deferred in year 353.(KK) {336,351) 295.729 Def&ird income at 31 March 23 312.378 22
MIDLAND GROUP TRAINING SERVICES LThITED NOTES ON FINANCIAL STATEMENTS 31 M2reh 2023 12 Penslons The Company provides pensions for its employees through participation in the Engineuing Employers. Federation Staff Pension Fund (the Fundx which is administ¢red by a Trnstee and maintained inde1)dentlY of the Company's fjnallces for defin¢d benefit lllembers and a separat¢ M&8ter Trust for defuKd contribution membcri. The Fund was estsblished to enFAble a nurnber of autonomow but related employers to operdte a 5¢heme through the sharing of risk within A wider rncmbership base. As such it is not pos1¢ for an underlying employer to identify its share of the nderfying a&sets and liabilities. For multi-¢mploytr schemes where this IS the case, paragraph 28.40A ofFRS102 requi that Midland Group Training Services Limited account for its sbare of the preseut value of the agre pension contributi<ms payable ro the sth¢me and where contributions are affected by 4 surplus or deficit in the scheme, to di5olose information about the ¥urplus Or deficit and the implications of the surplus or deficit to the Company. 2020 At th¢ daL¢ of the last completed Yaluatioll of the fund <3] Morch 2020), the market value of the Fund's ass¢ts moun¢¢d to £184m. The valuation was carried out by an independent qualified actuary adoptjng a market-based pproach usitix the Projected unit method aj the following main as5UrnPtions'. Single equivalent aver4g¢ rdtes °h per (inpraeitse tenn-depewleni cu83 are used) Rate of investment return (initial portfolio) Rate of investment return (long kn Portfolio) RBte of price inflation Rate of increas¢ in salaries Rate of F¢nsion increases: 2.8 (RPI) RPI up to 5(*/o minimum 3 /4 CPI up to 5fj/0 CPI up to 2.5 / As at the valuation dale ih¢s¢ assets were insufficient. on the as5uinptions adopted, to meet the ¢ost of the Fund's accrned liabilities. The Fund had a deficit of£60m on an ongoing fundiug basis. to the eXtr¢e volatility of the rnarket around the valatIon date. the Pension Regulator issued guidallce that the Ttwtee can Consid w$¢ valuation experience as part of the valuation. The Trustee considered the position roll forward to 3151 August 2020 wbi¢h revealed a deficit of £47m Tesulting from some re¢ov¢ry in financial nwkets. The split between participating employers was re-evaluated Im 31° March 2020 based on updated assyjmpti resulting in the proportion attributed to MGTS'5 rnembers increaslng to £3.9m (8.31)kn} 2019-. 4.4°h. Subsequenily, pgrticipating employers agreed contribution schedLdes with the Trustee tbat are expected to be sufficient to eliminak their share of the revised deficit over a period a¢c¢ptsble to the Ttustee. Under this agreemenl Mid]and Group Training Services Limited is liable to make the following contribution5 Ln respect of its share of the deficit in the defilled benefits section: ates 14rcqu¢iLCI' £39,426 Payable from 1° April 2021 th 30th 2021 in¢lusive. £718274 Yable July 2021 £157,680 pa Payable from 1st A]1 2022 to 31st MaTch 2034 inclusive. This will be increL8ed in line with the illCTease in th¢ RPI (on a preceding December to December basis). £500,000 P8yabl¢ April 2026 M¢)nthly One off ADnually One off In addition, the Company has granted an uncapped charge to the TNstee of the Fun& over the freehold property at Gulson Road, Coventy inGluded in the f4alance Sheet at 31. March 2023 at £1.2m (see note 8 page 20). It should be noted that th¢ defined benefit scheme was closed to all future acctuals during 2010. 23
MtDLAND GROUP TYiAINING SERVICES LIMrrED NOTES ON FINANCIAL STATETrIENrs 31 Marth 2023 13 Movement in fvnds l ApriI 2022 Incoming ReUrceS expende and losst$ Capltal Expelldlture 31 MArch 2023 Restricted funds - 24+ tKJ8n Fwjd . Employer Incentive5 . LEP Fuudillg 2,0(M) 5.0(Kl 356J77 79.000 {71,1)001 {48,684) 13.(Kl) 307,893 Unre8tricted funds Non-th1bk tr]ng fun(Ls 1,464,1 237.491 3.096,480 1,299,079 (2,872,119) (1,304,988) 1.688.461 231 J82 2,065.168 4,474,559 (4,296.791) 2242,936 24+ AdvaDeed Lrll1Dg Loall Fund Th are funds rnade available tD be 102ned to eligible leaners. These loans vrill help le4tnU6 aged 24 or aknve pay th¢ fets charged by ¢ollcg¢s and training providers for Cour ai J2vel 3 and txvel 4, orAdvanced and Higher Appr¢lltic¢8hips. Employer tncentives The Edwation and Skills Funding AgeAKy has madea number of incentive payments available to employers tsking on o apprentice aged 16-18. These inceniives payments are paid to the training provider at set points during the trdining mustbe paid out to the employer. LEP FuDdlDg MGTS has inN'&4ed in a new Advanced Engineering and Manufackning Celltre IllRdIt Worcestershire. Our £875,000 investsnaK was matched by funding of £700,000 fro & Worce51ersbire and BiTmingham Lo¢al EDI¢[15¢ PahipS. Tbe ndIng will be reled oytr the life of the assets. 24
MIDLAND GROUP TRAINllYG SERVICES Li[rTED NOTES ON FINANCIAL STATEMENTS 31 March 2023 14 Anaiygi¥ of net a$8ets bettveen funds Nonwcbarltable tradlng fund$ UnrtrIcted R¢strieted Intsngible fixed assets Tangible fixed assets 2,466,237 2,449,811 {628,571) (2.599,016) 307.893 15.lYJO 2,774,130 3251.439 (1,183,617) {2J99,016) 786,628 1555,(H6) Cvrreni ]iabi]ities LrnR *mi jiabilities 1.688,461 231,582 322,893 2242,936 IS OperatlDg commitments Thc following operatll¥ lease payments are committed to paid.. 2023 2022 Within one year Brtween ttvo and five year In more than five years 107,326 401,553 533,417 95,615 364,905 619.917 1.042.296 1.080.437 16 Capital Co]Dmitments clwitsble company Iwl capital commitsnents at the of £nil (2022 £36,9W). 25
MIDLAI¥D GROUP TRAINING SF.RVICES LIMITED NOTES ON FINLNCIAL STATEMENTS 31 March 2023 17 Post B818n¢e Sheet Events The triennial pension deficit valuati¢)n Wds based upon a spoi poitit date of 31# March 2020, a Foint in time when the COVID-19 pandemic was respon%ible for a significant shock in financial Markets. As a result of this 5ubstaDtial fall in f]nancial DWk¢ and a corrtsponthug fall in bond yields thepension defi¢it increased materially for the Company. In order to address this increased defi¢iL the Company negotiat a long-tcrni pkn with the Truste of tb¢ pension sthem¢ su¢h thai the deficit repatr contnbutions are maintainell at aTJ atfordable level over a longer period of 14 years. A eombiDation of one-off payments and regular Contribjtions together with grdnting the pensiott Trnstee uncapped security over the freehold building (as ref¢ren¢oJ in note 8 on pag¢ 20) has enabled thE 2022-23 omvards colltribution to be maintained at£158K ph RPI rather ih8n £180K plus RPI under the original plan. Tliis r0Very plan was approved by the PcDsion Trustees and MGTS BoaTd of Trnstees in June 2021, and paymait of the agreed wntrÈbution was made in hll. It should b¢ noted that based upon external valuations c8rrAed out by protssitsnal valuers in April 2021, the freeholdpropety over which the Trustee has gecurity and is currently carryed iti the balance sheet at historic cost, h&8 a market valu¢ (on a vacanl possession basis) which is around £3.7m Wer than tlLÉ book IxThyiDg value. Sill¢e the valuatio pension scheme fid investments haye Irf0m)ed significalltiy better than expec*d which has in tUTD illJprov¢d the deficit position as of Dece]nber 2022 to approximately £16m oll an actuarial basis. 8.30/• of this is attributable to this Company (£1.3m). Whilst this will not imtnediately or directly improve th¢ Company's retkncd deficit on the balance sheeL the Company is exploring options with the Trns¢¢e to capitalise on this investsneni gain in order to redu th¢ risk of greater exposure to futur¢ downside risks. increase the JikelihoThl of memb¢r b¢n¢fits being paid and increase the chanc&8 of the Company recovery payment period being potentially shortened at a later date. The latest triem)iai JtvÈew is in progre ond will lje reflected in the FanCIal statements to 31" March 2024. Notwithstallding the above. at the time of approving the financial statements thc Trustees believe the Company has enouglk sufficient resources to be able to continue trading for the foreseeable future and Bpecifically for at least 12 Tnollths after signing. 26