MIDLAND GROUP TRAINING SERVICES LIMITED REPORT AND FINANCIAL STATEMENts 31 Mareh 2024 Company No 984899 Registered Charity No 528785 MtDLAND GROUP TRAINING SERVICES LIMITED TRUSTEES, REPORT 31 Mar£h 2024 OWECTIVES AND AcfiviTIES MGTS An Edlleational ChArlty- Employer Led Ind Membersbip Based Our Afim To be a national centre of excellence for educatio￿ trnining al￿ development and assessment suprthting both young people and adults iti the development of enginetiing comkxten¢es ll&￿18ted wlth enginecLYti8. To achieve ijnproved ¢usiomer business perfornwice by deliv¢Ting eost effective e4Dployee teehtiieAI and people development solutions to nMd)inery reliant industri&%. Charity Alms To support YOW￿ pwple WiAhinB to access the engineering industy To wpportthltemployees and leprners￿ develop thernyelves. engine¢ring fundions aDdsystems to improve business perforn)ance To wntribute to the development of specialist engine¢ritig compet¢nc¢8 WithiJJ the Natioll￿ workforce en¢ourd8e economic development The main activities of tbe Charity lyave continued to be the provision of Apprenticeshi￿ Trailling Nethts Anatysis and Admintstration, Training and Development cours&s artd event To achieve thi￿, the Cljarity.. Con8uIts with Jnembers and eJDployus to aGlJieYe a ¢lcar undeJ¥tattding of inthtsty ne¢its and provide effectiv¢ solutions Consults with Government and Ag¢nci&s ¢0 ensur¢ th4t MGTS strategy I￿llsty related wle deYeloprn¢nl w>lieies Cotwlts with Local Ettterpri5e PHrtnership8 tIEPs], Awtbority and Schoojs to d¢vebp co1]abO￿Ve solution$ to SUFQOrt young people's develcom¢n¢ understhnding and enty into indu5ty 0￿r Valu I. MGTS Aim8 to provide our customers vlith traininE and wesslnent activities that are relevant to the itidividval, their organisatiOD, and its industy seclor. 2. We believe that trnining And w¢8ment 8Ctivity undertak¢ll should be clear and concise in its d&sigll and delivery. 3. That the dclivery of any training attd a&8essment activits¢3 are undertakcn in a way and at a time whAch ￿llY meets and supports the requirements of our custr)mers, whatever those requirem￿t8 may be. 4. MGTS wAll endeavour to take the lead iti a prOfe￿lOnal manrKr, applyiDg wisdom and knowledge whilst bellhg upporting 8Ad encournging. Our Cornn￿tIllent MGTS coj))mit to piovide our customers with aceess to compeleni stsff. learning opportuniti&%. Compre1*￿4)V¢ equipment and technology and rapid TesFoll8e to tt)eet theirtrdining and assessrnent requirements. We will ￿hl¢ve this through the wli¢atlOD in all Instsn￿$ of ow¢ore values bycoD8i8tendy maintainÉng a bigb level of lo)owledge and understauding of the and e￿vIronments within which our custorners opera*. MIDLAND GROUP TRAINING SERVICES LIMITED TRUSTEES, REPORT 31 Mareh 21124 Public Bellefit We have referred to th¢ guidanc¢ contained in the Charity ConJmis5ion'5 general guidance on publi¢ benefit when reviewing OUE aitDS and objectiv&s aad in plannills our future activiti¢s. Inparti¢ularthe tsustees ¢oDsid¢r how plallned actiYitie5 will coDtnbute to the airn5 and obi¢ctive8 tbey hav¢ s¢t. Our Strategie Objeetiv¢$ l. Promote lifelong Icarning alld dcvelopmenl with Icarners, stsff aDd employ¢rs. 2. Develop and dcliver products and service5 offering progrelsion ￿ough education, ￿lDing, devclopm¢nt and a4e&qment, unlocking potential and deliv¢ritig improvwj ￿￿orn¢T business perfojmallce. 3. Continually improve quality of content and delivery. f(KU5SiD8 on 5tretcbinB both the ¢apabllity and experien¢¢ for the leamer. 4. WoAt in pllrknership v/itb cu5tomcr5 al￿ stakcholdcrs to provid¢ solutions to their requirements at a locaL reBion¥l and national leyel. 5. Utili5e the Ch￿Ity'S resource5 resEKJnsibly in punuit of the strdtegic objectives. CHALLENGE& ACHIEVEMENTS AND PERFORMANC The fith year results for fiscal ye4r 23124 have r¢tumd 8 very healthy sU￿1u$, well above the plajmed budgetary figure. In￿Me0Ve￿lI wasonbudget8nd some IOV/ts up onpnoryear. comme￿1￿ courye activityretllait)s strong, a￿1 the results [ell￿t this at 170 akne budget and prior year. The con)1n￿¢￿I course calendar is very well populaied, 8md in line with ever-increa8ing deman￿ investrnent 18 planned for the early part of fiscal year 24125 to develop a commcrcial suite of c]a85riK)ms and prdctical training area. This in wi]] 811ow for additional ¢han8es in the pts¢ti￿ and Classroom enviroDttKnt for apprenticesljips kn fikn illcre&￿e resented a 10(f/• ¢opa¢ity utili58tion and was &bove ￿ budgettAI number. Within the apprentice stsrts for the pam year was the fjrst ￿￿Ort of FDME apprcnticw to undertake the PrO￿￿￿e at the Coventy facility. Apprentice numt¢rs for the 2024 intske look very positive with new COmEpallies com￿lti]ng to 4Jprenti¢tsh41 traiDin8 WitbMGTS forthe firs¢ time. The r￿rUl￿]enl team contitiue to en8ag¢ with c&rers events throughout catchment are4s forboth Coventy and Reddith eentr¢s, Suppor￿ the drive to ille￿&se applicant lltteresl andllUmb￿. MGTS continues to athicve high l¢vd8 of l¢arn¢r8uc￿8 ratey glld maintsin a position ofat least 12Yo above thenational llchievcrncllt Tate. This i% uttderpitmed by the levels of v/ork and progrw continuing at pace on executiDg the MGTS Qual1tyFramewo￿ S￿legy. particularly around curriculuru devcloprnent and teaching and learning. The oppoirttinent of acurriculum M8magerhas smthened the Seni0rLeadetsb￿j Tea￿ and supwrLs th¢ fows on the drffive to higher sta]dar(ts of teachll)g and leaming curriculum deve]opmenL Monthly (￿lty ImprovementMeeting8 tskep]arxaDd jink dir￿ to the QIP {￿￿]Ity Improvcment PlaD) and SAR (Self-Assessmeat ReFQrt). MGTS t(K)k the &ision within the l&st year to better utilise its slK)rt-term dqx)sits and w0￿ed with all lllvest￿ent company on a chaTity specific investment pxka8e. Areas ￿ch &8 ethica] objections OD inv￿￿￿l￿ along with liability fOr￿ast￿g and liquidity were all Considered b) develop the most suitable investsnent potrfolio ￿ WP[￿rt the cbarity and its aitns. Apprenlicvs oncc win rArtiLipthl ill outdoor cljallengc programmes with over l(K) ￿￿ertak￿g the Sxperience which supp)ttsthc behavioux5 elementof their appmticeship in &ctivitiesthatare difftrent to thc normal Wo￿lD8 environttLenL MIDLAND GROtJP TRA[N￿G SERVICES LIMITED TRUSTEES, REPORT 31 March 2024 Flnanclal revlew The financial year resultrd in an unrestricted sU￿lUS of £469,877. an incre&8e frotll £218,452 in 2023. InLome Totaj Unrestri￿ ineome of £4.8m was generated in 2023-2024. itiorease of 8.SVo over the previo￿9 year. ApprenticetrJinÈngitieome repTesented 751b/o of income, with c¢)mmercial activities, reservemovements and imTestrnent in¢on)e rapkillg up the balance. Con)mercial wurse demand continues t(> be buoyant and revenu¢ from this busine area continu¢s to gTY)W. tllvestmeot returns #rt showing significant growrh year-oyer-year. Ilriv¢n in part by the continued high interest rate environmelll. Recosnising the lin)xtations of tradikn'onal inter&st-beaTill8 accounts, the Board of Tru5tce5 ￿ade a stTategic thision to invest £1.5m in a diversified ￿rtfoliO of investment &￿ts. This offus potential for a 8uperior T&te of relurn wmpared to lower-yielding $8vings options. Expendift4re Unreslricted expenditure in 2023-2024 was £4.3m. £lm of this is related to our comm¢roiai 4rtivities, and the remaining £3.3m was spent Bupporfin8 our ¢harAt8ble aims. F￿P￿S Tothl fpnds on 31 March 2024 were £4.Im (2023 £2.2m) of which all but £264,709 were uore4tricted. Prillclpll Risks and u1￿ertaInt1e Ofved- the inttoductioo of th¢ Education InsF*diiTrn FrgTnework in September 2019 means a renewedfocus on quality and comp]iance e.g. Inspecto￿5 willbe spendillg Iw time IcK>king atperfornwi¢¢ data, and more time considering how providers are making wre their leamers ar¢ developing the knowl￿8¢ ski]Is 8nd behaviours requirnl ¢0 allow thelll to successfiJlly pro8re&s and achieve. MGTS has now been inspected in the forni of a full inspe¢tion. Having been 7 years 5illce the last short inspection and 13 yeats since the knt full iwtion, this Vds undoubtcdiy a siwjificalli ￿vieW of MGTS and its apprenticthip provisiotL The results as show) below te&tamcnt to the con(inued su¢cess of the b￿]nesS at￿ the hard Wo￿t0 COXLtiTwaJly strive foE u¢elience acros5 a]1 fac¢ts of th¢ busille Overall effecttYetie&s G(M)d The quality of education Good B¢haviour and attithdes Good PeT50nal development Good Lead￿Ship and management Good Apprenticesbips Gwd In5pe¢tors took accouDt of the MGTS'S most recent s¢lf-&sses8ment ttport and development plans, and the previous iti8pection reporL The inspection was carrled out using the fjJrther esknatioo al￿ skills msttttioll halldbwkand t(KTrk into account 811 relevant provision at MGTS. Inwtors wllected a wide Tange of evideD¢¢ to iTJforni judgement4 in¢luding visiting learning session4 SCNtinising learners, work. seeking the views of l¢arnu4 stsff and other stak¢hold¢rs. and examining MGTS'S documentation and rryor Inflation - the UK'S rate of infiation ha5 continued io impact on the business over the last 12 months. ¢triv¢ll by suth factors food pricing, wholesale gas PTy¢es 8nd worker shortages and wage Illcre￿e demands. Increasing l¢v¢l$ of pricing in raw materials Ims a major impact on MGTS which specializes in engffin￿g blas￿ trailling attd developme￿( particularly when one factors in the sta8nation of appienticeship fimding levels. TRUSTEESI REPORT 31 March 2024 Staff rtcrnlthiw- re¢niitinen¢ in 8eneThl across all sectors mins challellging. none more so those r¢l4ted eng11￿er]llg and fifftber education. fv job adverti8emeDts can take a cimsiderable firne to fill> particularly with what appears to be a weakened tslent pool. Undoubt¢d]y high perforniers are being retttincd by their existXn8 busille&8. De￿Ite these challenges MGTS is moving fomrd and c4)ntinues lo strengthen the team for both practical and theory based educational training. Government I￿￿ence- ever pre8ent Ire th¢ risks and un¢ertaiatie8 from modifications lo slN¢ttwe and fundtnR of the apprenticeship education and trainittg sector made by Governm￿11. Pollcles Resthves TheBoardof Tnthes haveassessed the free reservcs (unrthc*d fi￿dSex¢lVdthg f]xed asse￿ desigDated fiLlld This eLsur&8 continued suroort fori)ur charitsblc mission even amidst potential firancial flU￿ationS. TheTnL8tttseoLsiderthatatt appropriate I￿¢1 of freereseryes on 31 m￿￿h 2024wouldlx 6monthofthegroup' budgetgj expendifftue amountitig to £2.15 milliots The free reseryes on that date St(￿ at £1.6 million, . 8hortfall of £0.55 million compath to the targeL This is efF￿tiVelY thsed by th¢ long-temi illVE*ttnent FOrtfo]io valued at £0.9 million on 31° M8ryh 2024. This demonthte5 our commitment to pntht fitsallcial b) Investments Under the Memorandum aTMI Articles of As￿clatio￿ tbe charity Iw the p)wtr io invest in any way the trustees wish. The Trustees have deterniined that the Charities sbort temi inv&stments 5htxdd be in the form of illterest. lThring cash deposits with major banks or fJnan¢ial instiiutioLs. Intetest rates Should be ¢on]petitive and free of kkn the capitsl. LaDies. The trustees who are the tharitsble company's direthor$ are pleased to present their tTNxt trjgether with the finan¢ial 8taternents of the clwitable Company for the yeaT ￿<￿￿8 31 March 2024. AUD￿0￿5 A re80kniion will beputlo the forthco]ning AGM to reaE>PQilltLvckn￿ ththParkerLimikd as Audit(Ys for th¢ year ending 31 M8Jch 2025. Statement *5 to dlvlos￿rt of Anforniatlon to *udltor8 The wbo were in office on the date of approval of these flljancwi ststancnts have confimjed &$ far as they are aware, that there is no rdevatll audit infomiati(m of which the auth'tors are UDawdre. The tsustees bavc confmed that they have taken a]1 th¢ 5*pg tbai they ought to have tsken as trustees in ordcr to ]n&ke th￿e1ve& aware of any relevant auditinforn]*ion and to establisb that li has conjmunicated ¢0 the auditor. PROFESSIONAL ADVISORS The ChaTity is provided with profe&sional services on a con]n)er¢ial b&8is ty. Luckllwts D￿kett Parker Limited Audit Lloyds Bank Pk Balld Hatton Button Solicitors Legaj Lov¢itts Estste Agen¢5 Property J¢nstCD Gr Evel)n Pa￿er5 On bchalf of the Bwd G Lawton Gulson lioad Cov¢ntry CVI 2JG 13th NoVeM￿r 2024 MIDLAIYD GROUP TRAINJNG SERVICLS LtMflED DJJiEcfoRSI RESPOIYSIBILITIES IN THE PREPAIL4TION OF FINANCIAL STATEMEf4TS 31 March 2024 The di[￿torS are ￿SpOnsIb￿ forpreparing the Annua] Repon and the fmall¢ial stotejnents in ￿cOrdanCe wlth applicable law 8lld UDittsJ Kingdom Gcnerauy A¢¢epted AccowJtin8 Practice. CollLpaDy Ir¢W r¢quire8 the direcwrn to prepaTe rinaTLcial statements for each finan¢ia] year which give a trne alld fair view of the stste of affairs of the ¢han'table Company and of the intornll￿ resources and application of resi)urces. including the income and eXpendIts￿¢. of the ch4ritsble ¢ompally for that pcrio tn preparing those fmancial stat¢rnents. the directors are required to.. 8elwt suitable accouttting po]tcie8 and th¢n apply tlm wnsis*ntly. make judgements and &stimates thai are leas0t￿le and prudent. prepare tbe fmancial statements on the goitig e4)n¢¢rn basis unlesg it is inapproirri8te to presume that the cbaritabl¢ compally will continue inbusin&ss" observe the methcth and prA￿lpleS in the Charity SORP The directors aTe Tesponsible for keeping proper ae¢outtting Tr¢ords whi¢h di%lose with reasonable accurdcy at any time the fmancial position of the charitable con]pany alld to enable them to enswe that the financial statements comply with the requirenwits of the Companies Art 2006. Th¢y are also Tesp)nsible for safeguarditig the a&qets of the charitable Company and hence for tskng T¢￿ble slep5 for the prevention and detection of fraud alld otber iNegularities. MMLAND GROUP TRAINll¥G SERVICES LIMYfED AUDITOR'S REPORT Independent auditor's report to the memb¢rs of Mldl8Dd Group Tr*ining S¢rvle¢8 Limited Oplnlon We have audited the fman¢ial statements of Midland Group Trnining Services L¢d (tbe ￿t compan￿) and its subsidiaries (the 'group') for tbe year ended 31 March 2024 wbich comprise the Consolidated Statement of Finall¢ial Activities, the consolidat￿ Balance SheeL the paretkt compally Balance Sheet, th¢ consolid￿rd Cash Fl¢)w Statement and notes lo the fll)ancial statements, iDcludin8 a sunllw of significant accouTLting policies. The finaocial reporting fram'ework thai has be¢D applied in theiT pr¢parntion is applicable law aDd Urrited Kitigdojn Accounting Standards (United Kingdon) Generally Accepted Acwuutiug Practice). In our opinion the finallcial ststemeots." give a true alld fair view of th¢ sta* of the group's and par¢nt cornpatys affairs as at 31 March 2023 and of its inwming resources and appli¢ation of resou￿¢4 including its income and expenditsT4 for the year then have b¢en properly prepaT¢d iti a￿ordanCe with United Kingdom G<￿erallY Accepted Accountin8 Practic4 hav¢ been prepared in a¢wrdance with the requirem¢nts of the Cornpanies Act 2006. Ba81$ for oplnlon We ¢ondueted our audii in acCO￿￿￿1th InÉernational Standarits on Alldiiing (UK) (ISAS (UKII and applicable law. Our r¢sponsibilities urLder those Standards are fiwth¢r described iti the AuditOTS responsibilities for the audit of the futhneial $tatemellts section of our rerorL We are indyndent of the group it] ac¢oTdan¢¢ with the ethical requiTements that ar¢ relewdnt to our audii of the financial statemenL$ in the UK including the FRC'S Ethical Standard, and we have fu]filled our other ethirAI resrthsibilities in accordance with these requirements. We believe thai the audit eYidew¢ we havt obtained is sufficient and appropriate to provide a basis for ouropinion. CoDcIu8ions relating to golng eoncern We have nothing to report iti resped of the following malters in Telation to which the ISAS (UK) require us to report lo you where". the In￿¢¢¢8, use of the going concern bo518 of accounting In the prepaTrtion of the financial stst¢ments is not appropriate. or the twstttg have not disclosed in the financial statementy any identified tllalerial wi¢ertainti¢s that may c&st significant doubt about the Charitable ¢ompanYs ability to continue to adopt the going ¢oncern basis of accoualing frjr a period of at lea$t tw¢lve montLs from the da* wh¢D tILe fitwicial statements are authorised for issu¢. Other lttform*tlon The lrnstees are responSi￿le for the other inf0M￿lon. The other ]nfOrn￿tiOll comprises th¢ inforniation illcluded in the annual r¢poffj other the fin￿rial gtAteJnents arid our Report of the Indep￿dent Auditor8 thereo Our opinion on the fiD￿ciaL sthtements doe5 not Cover ¢h¢ otber infom)atton and we do not exptrss any forn of assurance conclusion there¢xL In eonnection with our audit of the financial slHtem¢Dts, tsurre￿onSibIlity is to read the otber informatioD and. in doing 80, eon5idEr whether the other infomiation is materially illWDSiStent with the financial sl&tements or ow knowledg¢ obtained ill the audit or otherwise appears to be materially Ini￿lated. If, based on the WO￿ we have pcrf0nnc￿ we conclude thai there is a matrrial misslAtemen¢ of tbis other inforniation, we are required to reFOrt f￿t. We have nothing lo report in this r¢Bar Oplnlon other mstters pre￿rIbed by the Companles Act 2006 Ill our Opinio￿ based on the work undertaken in the course of the audit: the iTJfom18tion giveTh in the Report of the Twstees for the fmancial year for which the financial statcmenls are wq)8rtd is consistent with the financial statements. and thE Rewt of the Truytees has been prepared in accordance with applicable legal rquirelnents. MU)IAND GROUP TRAINING SERVICES Lllm￿£D AUDITOR'S REPORT Inde endeDt audltor's re ort to the metnbers of Midland Grou Trai￿￿n Servi¢¢s Limited M•tters whSclk we are requlred lo report by ex¢eptlQD In the lightof the knowledge and uTMlerstandiDg of the ¢haritable company and tts environment obtaiThed in the course of the audiL we have not identified rnaterial misstatements in the Report of the Tnbstees. We have nothing to Tq)Ort in respect of the foIlowiDg matters where the Companies Act 2(K)6 requires us to to you if, in our opinion.. adequate accounting recoryts bave not been kept or returns adequate forour audii have notbeen received from br8nehes not visited by w. or the financial statements aye not in agreement with the accounting ￿COrdS alld returDS' or certain disclosures of trnstees, remuneration specified by law are not ￿ade. or we have not received all the infotmation and explanalions we requirc forour audit" or the trnstees were not entitled to take advantage of the small companies exeJnptioD from the requirement tr) prepare a Stratrgic Report or in prepaTing the Report of the TE￿￿tee$. Responyibllities of trurtees A8 explained more ￿1]Y in the Statement of Trnsttts Responsibilities. the trnsteu (who are al￿ tbc dyrectors of the parent company for the purw>ses of company IAW) aTe responsible foT the prcparation of the fmall¢ial slaiements and for being satisfied that they give a true and fair view, and for such internal control as the trusteu d¢terniine is nece&wy to enable the preparation of financia] statements that are frc¢ from materlal mi&%tatement, whether due to In PTq)aring the financi81 ststements. the trustres are responsible for assessing the group and the parent company's ability to continue as a going Conc￿ dis¢losing, as appli¢able, matters related to going concern and using the 8Oill8 concujj basis of accounting ujjless the ttustees either intcnd ta liquidate th¢ charitable company or to ccase operdtions, orhave no realistic alternative but to do $0. Our re8pollFlbllitie5 for the audlt of the flnancRal stAtement8 Our objectives are to obtain reasonable assurnice alx)ut whether th¢ finallcial sl&temenLs as a whole are free from DJ8terial misstatement, whether thje to or error, alld to iS8ue a Report of th¢ Tndependent Auditt)rs that includes our opinioTh Rea8ooable aSsUrn￿e is a bigh level of a5surallce, 15 not a guaTantee that an audil ci>nducted in a¢wrdatt¢e with ISAS (UK) will always detect a Jllaterial JnisstateJneDt whell it exists. Misslatements can aris¢ frorn fraud OT em)r and are ¢ODsidered n￿[erIal if. individually or in the aggre¥ate, they could reasonably be expected to influ¢n¢¢ th¢ ewnomic decisions of users taken on the basis of tbe8e fjnallcial statements. Irregulariti¢$. in¢luding fraud, are instances of non-conlpliance with laws al￿ regulati(ms. We desigti procedures in litie with our responsibilities. out11t￿d above, to detect nhaterial mi￿18tell￿tnts in respect of irregularities. including fraud. The extent to wbi¢h our pro¢¢th￿¢S are capable of detecting these iTregulariti¢s. including fraud is detailed below.. Ill ideJLiifyinE awl a$s￿5]llg the risk of rnateri81 mi5Staten)ent itl Tespect of Irregularities. iDcluding fraud and non- compliance law5 and regulati¢)Ds, our proc￿luTeS included the following: reference to past history and experience of the Entity, enquiry of maDagemenL including obtaining and reviewinB supporting dooum¢ntation Concerni￿ the Elltity'5 Proced￿ relating lo.. -identifyitig awl complying with laixs and regulations and whether they wer¢ awa￿ of any instances of non- -detection and response to risk of fiaud and wh¢ther they were aware of ally a¢tU41 or SUSF¢Cted instances of assessment of the controls and proce&se5 that the Entity has in pla¢e to mitigate rAsL assessments included the identification of the followiti8 Potential areas for fraud: Management override of control; attd Revenue recogllition. specifically the recognition according to timing of the provision of training services, and n)anipulalion of revenue through management oveTride of journa]s. 10 MIDLAND GROUP TRAINL¥G SERVICES LIMITED AUDITOR'S REPORT rt to the members ofmidland Grou Trnlnln Inde Dd¢nl auditor s re Servi¢es Limlted We design auditprocedures by tailored and direeted testing to aid and support the level of determined level of risk. In re4x)nse to the assess&J risk w¢ plaD audit tests and procedwes that target specific aTeas where tnisststement may OCCUT. Th&￿ procedures and the ¢xt¢Dt to which they are ¢apabl¢ of detecting inrgularitie5, inchJdfft8 fraud, are detailed below.. We cri¢i¢ally assessed th¢ apprtipriatejhess and tested th¢ application of the revenue and cost reeognition policies. We testol the appropriateness of accounting j¢)urnals and other adjustments made in the pry8ration of the rll)allcial statem¢nts. W¢ reviewed th¢ Entity's arcounting poii¢i¢s for non-compliance with ￿levant standarth. We made enquiri¢s of lllanagement and reviewed correspondence with the relevant autlM)rities to identify any irregulariti¢$ or installGes of non-compliance with laws and regulations. ill perfomiing an audit in ￿cord￿L¢t with UK GAAP, we exercise professional judgement ond maintain Professional epticism throughout the audit process. We also communi¢a*d relevant identified laws and regulations alld potential fraud risk8 to all engagement team members and Temoined alert to any indications of fraud or ]￿n-CoMplian¢e with laws and regulations tbroughout th¢ audit. Th¢ risk of not detecting a material Jnisstatement resultin8 from fraud is higber than for one ￿sUlting from ernr. as fraud Jnay involve collusion or override of interna] controls. There are inherent limitstions in the ￿ditpro¢edur¢s fomied. A further d¢scription of ow responsibilitie8 for the audkt of the finatt¢ial ststements is located on the Financial Reporting Council's weLxsite at www.fv.(rg.uklaUditorstrsp￿lblljtse￿ This descrytion fonns part of ourRe￿rt of the lthpendent Auditors. Use ofour report This rqjort is tnade solety to th¢ ¢lwitsble compa￿8 &8 a body, in accordance with Chapter 3 of Part 16 of the Compatiies Act 2006. Our audit work ILas been undertaken so thai we tnigbt state to the cTrwitable company's members those matters we are requiTed to sthtr to then) in an auditor¥' re]x)n and for no other pur￿)Se. To the ￿lIest exterlt perniitted by law. we do not accept or assun)e respon$Jbility to anyone other than the cTrwitsble ¢ompany 8nd the charitsble CoAnpan￿s members &4 8 body. or our audit w￿, for tbis report. or fw the opinio￿8 we have fornie MgTk Spafford FCCA ACA (se￿or Stathwry Auditor) for and on behalf of LuckmaD5 Duckett Parker Limit¢d I 110 Elliott Court Coventy Busine&8 P8rk Herald Avenue Coventty Westmiillands CV5 6UB Date.. I'37•1 MIDLAND GROUP TRAINll¥G SERVIC&8 LIMrrED CONSOLIDATED STATEMENT OF FINAiYCIAL A￿￿￿lEs for the year ended 31 M*reh 2024 Unre8tri¢ttd funds Restrlcted runds Tolal 2024 Total 2023 Illeome: Incomefrom Chorieoble uctivittes.. Su￿CriptiOnS, trainiD8, proj¢¢ts, cowse fets aDd extsa services 3J95J32 76,000 3.471,332 3.160.699 lJ36,582 lJ36,582 1299.079 tnvestsncnt incornc 39947 39,947 14.781 Tot*i llleomlng rewurtes 4,771,861 76,(xJ) 4,847,861 4.474559 xpendltsre: Costs olrnis¥ngfunds.' Investment managejnent ¢￿$t& 1.046.210 1.046210 1,067.497 3255,774 134.184 3389,958 3.229,294 Total e4)enditure 4JOI,984 134.184 4,436,168 4296.791 Netlntomel Ooss) before otl 469.877 (58.184) 411,693 l77.768 Chottge In fairvalue of pe]]sion Scheme liability UJJrealised gain on investment a&8e 12 1,367,524 1.367.524 59J02 59J02 Net movement ID funds for the year 1.896,703 (58,184) 1.838,519 177,708 Fund baknce brought foTward at l April 2023 1,920,043 322,893 2242.936 2,065,168 Fnnd bilance cvried forward at 31 Mareh 2024 3,816,746 264.709 4.081,455 2242,936 The 8tatemenl of fin￿￿1￿1 adivities includes all gains and losses ￿e0￿l￿d in the year and in the Fbtevious year. All the compatys xtiviti&s 8tE classed &8 Co￿1nU1llg. 12 MIDLAND GROUP TRAll4lNG SERVICFS LlhfITED BALANCE SHEETS at 31 March 2024 Com ni. No 984899 Grow) Charity 2024 2024 2023 2023 Note Flxed asset$ Tawble fixal &ssets Jove5tmttit io subsldiary undertaking Other investments 2,649,158 2,774,130 2,649,158 l.(x)O 1,559.302 2.774,130 1,0 I J59302 4208,460 2.774,130 4,209,460 2,775.130 Current a89ets io 602,498 1,169,189 68,139 630.076 2,477.173 144,190 380,663 1.169,189 23,915 433,993 2.477,173 65.441 Shorttem dwtts Bank balance and cash 1.839,826 3251.439 1.573,767 2976,607 Crnlltors- amounts fallijg ¢Jue within one yeaT li 1905,339) (1.183.617) (927,105) {1,141,367) Net eurrenl ￿et9 934.487 2.067.822 646,662 1,835.240 Crelitor5- amounts fAUin8 due (1.061.492) (2J99.016) (1.061,492) (2J99,016} Net 4,081,455 2,242,936 3,794,630 2.011.354 Funds: Restricted fimds u￿Sti￿¢ted fjjnds Non4haTitable tradlllg fiwd8 13 13 13 264,709 3529,921 286,825 322,893 1.688,461 231,582 264,709 3,529,921 322,893 1.688.461 Totsl fund5 4,081,455 2242.936 3,794.630 2,01 l J54 The fm8JKial ststernertts ImTe beenprep￿j in ￿(ordan¢e with special provisiow of 15 of Conyu¢s Act2(N)6 relating to ￿nall ¢haritable compw)i¢s. The flnanci￿ stat¢Tnents on paB&s 12 to 26 were approved by the Bosrd of Directors and knd for 18S￿e on 131b Nov er 2024 and were 5i8ned on its beha]f by.. 13 MIDLAND GROUP TRAINING SERVIC￿5 LIMrrED CASH FLOW STATEMENT for the year ended 31 March 2024 2024 21)23 ote Cuh Aows from operntlng actI￿des. C85b g¢llerat￿ fiDm operntion5 282.374 144,756 Net eash proldded by (u*d Sll) operathg actlvfities 282,374 144.756 Casb flow4 from IDvesdDg a¢tlvltleB: IDt¢r¢str¢¢¢iY¢d Sale of tangible fixed assets Purc]we of tawble rued assets Purcb&se of inv&%tments 39,947 27 J21 {233,677) (1,51M),(KM)) 14,781 69,625 (187.371) Iyel tx$h provided by {used iti) inve#ting *edvltle8 (1,666.4(YJ) (102,965) Ch•nge ill ￿$h and ¢*sb eqpaiyalents ill the rtpfyrtitigp¢riod (lJ84,035) 41,791 Cash and eAih equivalents at the be¥nnlng of th¢ reportlng perlod 2.621,363 2.579,572 C4sh and ¢8th e4￿¥41¢llts at the end (trf the reptsrtin8 period 1237528 2.62lJ63 J4 MIDLAND GROUP TRAINING SERVICES LIMITED NOTES TO THE CASH FLOW STATE11￿￿T for th¢ ytsr ended 31 March 2(124 ReConti]iatiO￿ of Det income to ne¢ Cash tlow fr4)m operAtIDg a¢tlvltie5 2024 2023 Net Ineome for the repordDg perlod (As per the $tstement of •¢t&￿￿es) Adjuslments for.. Dep￿Ciation ¢baryes Profit on di￿0881 of fixed assets Change in fairvalue of pension the liabi]ity Ullrealised gain gn inve51ment assets Inv¢s¢rn¢llt illcom¢ {tn¢rewydecrea5c in debtors Inu¢wl{decrEase) cteditors 1,838,519 177,768 334.088 (2.760) (l J67,524) {59,302) {39.947) 27.578 (448278} 332,062 (33,436) 26,040 [14,781) (36,849) (306.0481 Net ca8h pmided by {used in) opernting activities 282,374 144,756 15 ACCOUNTING POLICIES 31 March 21124 A¢eouDthig Polleks Bas15 Of prepgr4th)n The knial ststements of the charitable company. which is a pub]ic be￿rit Enlity undu FRS102, havebeenpryard ill ordance with the Charities SORP (FRS102) 'Accounting and Rewting by Charities: Statement of Recornmended Practi¢e applicable lo charities ptepAring their accounis in aceoydance with tbe Fitiancilll Reporttiw Standard in the UK andRyblic of treland(FRS102X effective l January 2019),, Financial Reporting Standard 102'The Financial Re￿nIng Standard appli¢abl¢ in the UK andRewbli¢ of Ireland, andthe Companies Act2006. The f￿an¢]￿ statements]webeen prypred Mnd¢r th¢hiswi¢al cost¢onvention with the exception of Investments which ar¢ in¢hthd at value. Accounting ¢haDges Th¢ Significant accounliog policies adopted aTe describedbelow. Significant JI￿geMents and e$timate The prqwdtion of the financial statements requiresmanagement tomakesigni&atstjydg¢ments and &siimates thataffe¢t the amounts reported within the balance 5heeS and thtemenl of rtnancial activIt￿s. Th¢ following are the Company's key sourc45 of ￿tIMation u￿er￿mIy. employer delllled benefit penslon icbemellabjllty The Sc]Jth￿t of contrlbutions for the multi.emp]oyer defilled benefit pejtsion sch¢me 18 det￿￿1￿ using actiwi valuations. The actiwial valuation involv&8 makng a&sumptions about diwullt rat¢8, salary iticreases, morta]ity rd*s and fuiurepe4Jsion increase& Due to the complexity of the Valuatio￿ tbe wid¢rlying assumptions and the lonby.teTm nature of the8eplaDs, sucb estinjatesare subj￿¢ to significant uttctrtaitity. TheJnoTtality rateisbAsedonpubliLlyavai]ab rnortality tsbles for the specific country. Futswe ￿ and pension illcxeases ar¢ bwj on expected It￿atiOnr8te8 for th¢ resKrttive county. The Compally hag inthided a liability within the fmancial ststements to rEflect its own fiJture fi￿dIllg obligatAOllS b&sal up)n a diwwitfAI cash flow basxs. The disco￿1 rate used is 0.85Y.. In deterrriw the appropTiate discoulltTat4 managementconsiders the ittterest rate of AA wryK)rdte Ert)nds thnominated in Grcat British tM)und sterlin& with a bond matillity simi]ariD duTrtioll to tbe definEd F£nefit fimdiug obligatio Group IlnaDcRal statemellts The statement of fillallcial aetivities ISOFA) wi wup balmce sheet Consolidate the firthncial Ststern￿ts of the clwlty aud its subsidiary Un¢J¢rtak]￿. Th¢r¢8uIts of th¢ subsidiary are cowolidated on a li￿ by line basis. A %par8le SOFA and aud ¢xpenditure a¢￿)Unt are not FYe8ented for tbe charity its¢if followiDg th¢ exenwtio afforded by SectioJJ 408 of tbe CoME￿e5 Act 2006. tncome recognition policy tncome is reco￿$￿1 when the cl)arityh&s entitlanent to th¢ fi￿. aThyperforniance conditions atta¢hed to th¢ itan(s) of tiK4)me have been mel xt As prolmble thatthe inco]tL¢ will be receivd and the am¢xMrtcanbe measured reliably. Income from government and other granty whether 'capitsl' grattts or'revenue. A IS Twised kn the ¢harity has eniitlement to the funds. any perforniance conditions attached to the grdnts have been mel it is probable that the income will be rettived. and the am¢)unt can be measured rEliabty and is not d¢f¢rre tllyestsnent income 15 recogw8&J on a Ttteivable basi& 16 MIDLAND GROUP TRAINING SERVICES LIMITED ACCOiINTING POLICIES (contlDued) 31 March 2024 Resour¢e$ expended Irretover8ble VAT Exp￿ltUre is I￿ognISed when a liability is incu￿& Contractual arrangements p¢rfornwJce related grallts a$ g￿ld8 8nd services 8r¢ suppli¢ Charitable activities iDclude ¢xp￿itu￿ awKia*d in the provision of tratsiing seJvi¢es and inchmle IK>th the direct costs attd 8UPPOrt o)sts relating to the5¢ acliviti¢& The cban"tsble comwly rwniw the cost of contr￿￿￿1 redl￿ payments as being part of the cost of the delivery of ci)aritsble xtivities. Governance costs includ¢ tlTh¢ iticutr￿ in the governance of tbe ¢lJarity and its &￿t5 and are prnnarily associat)I with congtiDJtional and stalutory r4uirements. sUp￿)rt costs iDolud¢ the centr8J fimctioThs and have bE¢ll all￿d to activity cost e&legories on a basis cl￿91$tellI with the use of re80urc¢s. ¢.R.. stsff costsby the estimated time spent &nd othcr costsby their estsmated usage. Irrwoverable VAT is ¢harged against the *ory of resources expell￿ forwbieb it W&8 incurral. T4x4tion The compally is a JrgI￿e￿j charity atd 18 exejttpt from t￿tion ¢)n its elthritable activities. The 6vbsidiary cottynyh&8 no tax liability &8 it dollates its taxable profits to the chaTAty unts gift aid. TallKibl¢ r￿ed asset8 FixeAI ￿Sets (excluding investsnents) are ststed at ￿t less a￿umUlated d4)r￿latiOn. Assets costing £3,000 or leas are not withliqed. Depff¢iation isehaTged by Ittstsln)￿￿ts at rat¢$ &stitithied ￿ write off the C{￿ of the &sSet1￿ any residual Yalue over the expected uscfid lives at the following rate8'.. 2/1 Iyty pet annum on freehold buildings 4 /• per annum on fTe¢hold building iMproven￿nts 10/0 per annum on l(xsehold building in)provem¢nts IO¥o to 25Yo per annum on equipment and vehicles 33113Vo F¢raDnum on coniputrequipment On disposal of ￿ets in th¢ ordsnary Course of busin￿8 adjustments ate rnade to the dep￿Ciatirn charge to r¢ll differences between the acwal 8tMI &Stin￿t￿l Ag8regat¢ d¢p￿latIo Investments Investments held as fixed a￿ets are revglu¢d ot mid-matht valu¢ at tILe balance sheet date aod the gain or lo&s taken to the Statern¢nt of Financial Activities. Pen8ioll8-Defined Benefit Stheme The d¢fJlled benefit scheme was closed to ll¢w contrkbulions OD 315t AugLtst 2010. In accord￿ with paragtwh 28.11 of FRS102 tbe company aB a participaiitig employer to th¢ ¥Cl￿e, has r￿O￿lS¢d the present valuc of Tts share of the agreed contnlyutions on the balan¢e sheet as a liability on a discounted cash flow basis. MGTS'S estimated liability on 31* Matrh 2024 was £1.23m al￿ is re¢alt4llated each yew, with movements ill the liability reficcted in the Statement of Fillancial Activities and the elall¢nt retsting to the unuryndiD8 of the di8￿￿t in interest payablc. The coM￿Y has reDegotiated its recov￿ plan as a resultof the latest actiW1￿ vaiuatioti on 31￿ March 2023. Furtber inforrnation in relation to an update on the current sta￿$ of the p¢n8ion scheme deficit and the most [￿¢￿t valu*ion can be found in w)t¢ 12 on page 23. The CcAnpany is liable for its own funding obligatiolls and is also liable for those of the Ot￿r swnsoring employe should thc6e sponsoring e￿ployerS default on their obh8ations. Pension ¢oJts- Defilled CoDh4butlon Stheme The amount Charged to the Statement of Financial Activities in respect of pthsion costs is the contribution payabk i the year. Ally differences beNeen contributions payable in the yeJT and contributions aCkn￿llYpald are shi)wn &% eitl accn]als or pryyments inthe balancc sheet. 17 MIDLAND GROUP TRAINING SERVICES LIMrrED T40TLS ON FINANCIAL STATEMENTS 31 March 2024 Funds struetllre The charityhas a nurnber of restrict4xi fi]nd5 to ￿COulli for SI￿a￿0￿$ where a donorr¢quires that a donation must be spent on a PArtiwlar purN)5¢ w wher¢ bave rd15￿1 for a 4)￿lfIC purAMW. yt#tui of the Charity The ChaTity 1$ 4 ¢ompany? limited by guarantee, and Iw tm) shaTC capitAI. It was inco4x>rated on 17 July 1970. Its governing doGumeDt is its Memorandum w]d Artieleg of As8oci&tiott. The liability of each member in tb¢ event of winding up is limited to £20. InveBtment kncome 2024 2013 Short tenn deposit inteft8tTeceivable 39.947 14,781 tncojue from Cbarltable Aetlvltles Trnining S￿ViceS provithl 3.471,332 3,IfQ,699 Charltsble A£tirftles Costs The ¢barAty undertakes direct charitable activities and dotsnot make rn Pa￿lleD¢S Provision of training seNAces atsd projects Supixyt eosts- ￿leS a￿UtTl¢¢ Costs 3,295.785 94,173 3.138.016 91278 3,389.958 3,229294 Governance costs "SalaTie8 and Offi￿ wsts AuditoTh' remunerdtion - Audit 16578 16,170 7.985 1.700 7.075 1.5(K) 26263 24,745 18 MIDLAND GROUP TRAINING SERVICES LIMrrED NOTES OF4 FINANCtAL STATEMENrs 31 Mar£h 21)24 2024 2023 het Incoming rewurc¢$ Net iticomiDg resou￿ aFE ststed afier chargitigl {aEditiTL8)'. Directhrs, and offi￿[3, indemnity iijsuraiice Depreci￿0￿ of tangibl¢ fix¢d &ssets: 266.647 67,440 (2,760) 264,793 67269 (33.430 26,040 . leased assets (Profityloss on di$w￿l of (angible fLYed assets Interest on FrtDsion scheme liabilities Stsff Wages and saiaTi¢S Social qecurity ¢05ts Peosion costs 1,805.913 213,289 132,397 1.737273 210,988 136,(K)3 2,151J99 2,084264 Average number of ￿loyeeS 45 43 Key m#llagem¢nt per8ollnel Emollljnents Pension cotknl)ution8 to defjned ¢ontn￿UtiOll sth¢me 447,625 28233 507,750 30,618 475.858 538J74 The number of employe¢s who receiv￿] ¢molumcnts of more than £60,(MXI in the year was as follows.. £60,001- £70,OCKI £70,001- £80,0(K) £80,001- £90,0(K) £i10,O(X)- £120,0(Y) £I20.0￿- £130,0(K) Midland Group Training servi￿ paid £28233 (2023: £30.618) iti￿ adefmed ¢onthThuLion pett8ion Khane for 5 {2023: 6) higher-wd employee& The diTectors do not rerxive emoluments orexpaws. Penyion eosts-Defined Bellent Scheme In addition to the above, the Cotupany made a payment of £192220 (2023: £169￿06) to the multi-employ defined benefit scheme (see note 12 on page 23). Penslon tosts- Defined Contrlbution Sch¢me The company PTovid¢s pensions for curT¢nt employees. thyough a defjned c4)ntnbution scheme. The ellyloyer ¢ontnbutions for the period were £108548 (2023 £105.713). The running costs of the scheme are aD)algatDated with the Defin￿ Barfit scheme and caDllOt be sq)8fdtety ithntified. There were no outstsnding or prq)aid contnl)utions at th¢ balaDce sheet date. 19 MIDLAND GROUP TRAll¥lNG SERVICLS LTrirrED NOTES ON FLYANCIAL STATEMETrITS 31 MArch 2024 T*n8ibk flled auets-group and charlty Freehold Le**hold F4uipment Property Improvementg & vebtel Totsl l Aptyl 2023 Additiorts 2.174.431 109J78 1254.933 2.920.589 124,299 (29,482) 6J49.953 233.677 (29.482) 31 Mar¢h 2024 2283.809 1254,933 3,013,406 6J54.148 Depretlatlon l April 2023 980,759 14227 505.743 67.440 2,089 J21 252,420 (4,920) 3,575,823 334,087 {4,920) Disposals 31 Matth 2024 994,986 573.183 2 J36,821 3904,990 Net book vallle 31 March 2024 1288.823 681,750 678,585 2,649,158 31 March 2023 1.193.672 749.190 831268 2.774.130 On 30th June 2021 the Company granted in favour of the Tn￿tee8 of the EEF Stsff Pension Fund aD uncapped ¢harg¢ over the freehold propety at Gulson Road. Coventy. included in the balaoce sheet at £12 Investments 2024 2Q23 Mld-marketV8lue at: l April 2023 tnvest Unrea]Is￿l gain on inveslments 1,SCKJ.O 59J02 31 March 2024 .559J02 20 MIDLAND GiiOUP TRAINING SERVICFS LIMTTED NOTES ON FINAIYCIAL STATEMENts 31 Mthrch 2024 Gromp Ch#rity 2024 2023 21124 2023 Flxed Asset investmejt Share6 ill subsidiary undertski ,000 1.000 Subsidi¥ry undertaklDg MGTS Business attd Trnining Services Limited which was incoJporated in Eng18nd on 22 Septrmber 2(x)O pays all its tsxable profits to the charity by Gsfi Aid. MGfs Business and TrniniDg S¢rvic¢$ Limited operates as an executive ami of the charity. The charity owns the entire i&sued shRre capital of l.(K)O 0￿Illary shares of £1 each. A swnmary of thc tr￿Illg results is thown below. Summary of profit and loss gleeollllt 2024 2023 Turnovcr In*rut receivable Cost of sales and admillistratsve ￿pen Governance costs lJ36,582 153 {1.046210) (3,700) 1299,079 (1,ffi3,422) 14.075) Net wofii Ketained profit brought forward Amount gifted ￿ the chority 286.825 231,582 (231582) 231,582 237,491 {237.491} Retained in the subgidiary 286.825 231.582 The a55et8 and liabllltie$ of tht sulbsldlary were: Fixed a55ets 666,948 (379,123) 787,628 (555,046) Creditor5: amounts falling du¢ wiLhin one year Net &*sets 287,825 232.582 A8gr¢ga* share capitsl and r¢8erves 287.825 232,582 21 )LAND GROUP TRAINING SERVICLS LIMITED NOTES ON FINANCIAL STATEMENTS 31 MAr¢h 2024 Group Charfty 202A 2023 21124 2D23 111 Dthlor8 Amounts falkng due witbin one year Trade debtOf8 Prqxyments 438,088 160,711 3.699 446.463 174.505 9.108 235,874 141.090 3,699 258,782 166,103 9,108 602,498 630,076 380.663 433993 11 Credltors Amoullts falling due within one Y￿r. 520,849 134,932 79.558 170.(M)O 796.159 103.362 91,876 192.220 190J57 98.092 67,768 I70,(x)O 400888 264,347 91,834 80,170 192220 512,796 Taxatton and sccial seLuritypayable Accruals Pension deficit liability 905,339 1.I83.6l7 927,105 1.141 J67 P¢Dyion deficit ]iability 1,061,492 2599.016 1,061.492 2J99,016 Enduded within trade ¢￿aitOrS i8 deftrred income of £285.192 (2023 £312.378). These amowits pr¢ d¢f¢Th￿l Defetted ineome at l April 2023 U9&1 in year 312,378 (309.098) 281.912 Def¢rr¢d inwm¢ at 31 March 24 285.192 22 MIDLAND GROUP TRA￿lING SERVICES LIMITED F40TES ON FINANCIAL STATEMENTS 31 Mar¢h 21124 l2 Pensiott$ The Company provides pensions for its employees through participation in the Engineering Employers, Federation Staff Pe#sion Fund (the F￿dI, which ig governed by a Trustee Board and maintained indepelld¢lltly of the Company's fjnances for defin¢d benefit members. Tbere is a separAte Master Trust for d¢fill¢d CQELtribution rnember4 wbich is also operated indcpendently of the Compatty. The Fund was esthblished to ellable a number of autonomous but related employeTy to opernte a 8chen)¢ through the sharing of risk within a wiikr MeMbers￿"p base. As w¢h it is not possil)le foT an underlying employ¢r to identify its. share of the uod¢rAyitig assets and liabilities. For multi-employer scbem¢s where this is the case. parnwph 28.40A of FRS102 rryu1￿ that Midland Grow) Training Serrices Limi*d account for its share of the pr¢s¢nt volue of the agreed pensiou oontiibutions payable to the $chernt and where contributions are affected by a surplu$ or deficit in the scheme. to dI￿A0$e ithM￿tiOn abcmt the sutplu$ or deficit and the implioations ofthe SUTplu$ or d¢fi¢it to the Con)pany. 2023 val￿110￿ At the date of the I￿1 eojnplet￿I val￿tion of the fi￿d (3151 March 2023), the matl(et value of the Fund's assets amounted 10 £143m. The valuation was ¢arLied out by an independenl qualified acttwy adopting a market-baged approach using the prnjected unit r(L¢thod and the followins matn assumptiOllS.' Single equivalent averdge rnt¢s Yo per (inpractue t¢nn-depeNdenl c￿￿¢$ are tLYed) Rate of investmeTAt return (initial portfolio} Ratr of investsnent return Ilong terni ￿rtfOlIO) Rate of price infiation Rate of increase in salaries Rate of pensioo incr¢a8es'. RPI up ￿ 5Yfr RPI up to 5Yo.' minimum 3/ CPI up to 50/ CPI up to 2.5% 3.6 IRPI) As at ih¢ valuation date these a55ets were itisufficienL on the a55wnMions adopted, to meet the ¢ost of the Fund'g accrued liabil&tie8. The Fund I￿1 a d¢fi¢ii of £19m on an ongoing funding basis. Tbe split between participaling employers was re-evaluated on 31* March 2023 bAsed OD upd&ted a￿UMpti(￿lS. resuhing in the proportion attributed to MGTS'S members decreasing to £1.3m (6.7Y*) 2020.. 8.3Q/47. Subsequeutly, participalmg employers agreed Contsibutitrn s¢hedules with the Trnstee that aTe expe¢ted to be sufficient to eliminate th¢ir share of the revised deficit over a period acceptable to the TnL8tee. Under tl)is agreement Midland Grow) Training S¢rYi¢es Limited is liable to make the following coDtributions in r&4pe¢t of its slwe of the deficit In the defined bentfits Se￿lon. Amount l)ates 'Tequtncy £192,220 Payable on 1st April 2023. One off £170,000 pa Payable from 1st April 2024 to 31st March 2031 itt¢lusive. Thi8 will be increased by 2Yo eaeh year. Anllually In addition, the ￿rnpany has granted an unwped charge to the Trnstee of the Fund, over the freehold pro&￿ at Gulwn Road C4)venty in¢luded iti the Balance Sheet at 31. March 2024 at £1.2m (See note 8 page 20). It should be noted that the defU￿d b¢nefit gcheme was closed ¢0 all future accruals dur&ng 2010. 23 MtDLA]¥D GROUP TRAIN]F4C SERVICFS LIMrrED NOTES ON FINANCL4L STATEMENTS 31 Mareh 2024 13 Movement in lunds l April 2014 Incoming resourtt8 And gains ReW￿rCeS eypended and Ios5QS Tr￿sTerS 31 Mareh 2024 Re￿ICIed fimds . 24+ lthll Fulld - Employer]n￿￿tiV¢s 2.000 3.5 259209 13,0(K) 307,893 76,000 (85,5001 (48,684) Unrestrictoj 1.688,461 231.582 4.861,952 1.336.735 (3,020,492) {1281.492) 3,529,921 286,825 2242,936 6274,687 (4.436.168) 4.081,455 24+ AdY*nced Learning LibaD Fund Th¢s¢ Ire fimds made available to be loaned to eligible leaDer5. These loaw h¢]p learners aged24 or above pay the fe¢s cbarged by ¢olleges and trainin8 pmvider5 foT COUT5G8 at t£vel 3 al￿ Level 4, or Advanced alld Higher AppTentice8hip% Employer Incentives The Educ4¢ion Skills Fwlding Agency l148 n￿de a numE¢r of io¢¢n¢iY¢payments ftvailable to employers takm8 OD an aPPTentice aged 1&18. These ineelltive5 payments are paid to the training provider at set points during the training and must be paid out to the employer. LEP FuDdlDg MGTS has invested in B new Adwanced Engit￿liti8 alld Mattufa¢tUTing Centre in Re4JJitcl Worcesterkn. Our £875,000 tnvestment matched by funding of £7W,000 from the Worcestershire and Binninghom Local Fnterprlse Partimsbw Tr fiwding will ￿ relwed ovw the life of th¢ &ssel& 24 LlfEDLAND GROUP TRAINING SERVICLS LJMrrED NOTES ON FINANCIAL STATEMENTS 31 March 2024 14 Analys18 of net ssstt¥ betr4een funds NoD4harlt•ble tradlng Dd Unrestri¢tsO Restrffictsd Intangjble fixed a8Sd$ Tangible fL￿￿ as 896,273 2J89949 1.830,407 1526,2161 {1,061,492) 896273 2,649,158 2.502,855 (905 J39) 11.061,492) 259,209 5.5(K) 666.948 {379,123) Curtent liabililie Long liabilities 3528,921 287.825 264.7( 4,081,455 IS OperAdng lease conmllitwnts The foll¢)wing OF*rnting lease payments are committed io ￿ paid.. 2024 2023 Within one year Between two alld five years In mor¢ than five years 108,062 388267 446917 107J26 401553 533.417 943246 1.042296 10 C8pAtal Commitrnents The chaTitsbl¢ company had no rapithl ¢ornmitinents at the year-end (2023 £nil). 25