MIDLAND GROUP TRAINING SERVICES LIMITED IiEPORT AND FINANCIAL STATEMENTS 31 Mareh 2025 Company ND 984899 Registered Charity No 528785
MIDLAND GROUP TRAINING SERVICF.S LIMITED TRUSTEES, REPORT 31 March 2025 OBJECTIVLS AND ACTIVITIES MGTS an Educatlonal Charlty- Employer Leil 8nd Membership Based Our Alm To be a national centre of excellence for education, trditting and development ond a55essment sw)porting both young people and adults in the development of engineering oompetenc¢s associated with engineering. To achieve improved customer business perforniance by d¢livering cost elTe¢tive employee technical and people development solutions to machinery reliant industries. Ch4rity Airns To support young people wishing to access the engineering industry To support adult employees and learners t(Trd¢v¢lop themselves, engineering fimctions and syems to improve business perfOrnIaCe To contnliuie io the developmeni of specialist engineering competen¢e$ wilhin the National workforce to en¢ourage development The main activities of the Charity have continued io be ihe provision of Apprenticeships, Training Needs Analysis and Administration. Training ld Development CQUTSes and events To achieve this, the Charity.. Consults with members and employers to athieve a clear understanding of indu5ty needs and provide effecrive solutions Consuhs with Governme1 and Agencies to ensure that MGTS strategy supports indu5ty related people developmeni policies Consults with [al Enierprise Partnerships ILEPSI, Local Authority and Schools to develop collalxirntive solutions to supportyoung people's developmenl understanding and enty into industry Our Values I. MGTS aims to provide our customer$ with training and a&sessmeni activiti¢s ihat are relevant to the individual, their Organisatio and its industy sector. 2. We b¢li¢ve that training and assessment activtty undenaken should be clear and concise in 11$ design and deltvery. 3. That the delivery of any traintng and assessment activities are undertakcn in a way and at a time which llY meets and 5UPPOrts the requirements of our customers, whatever those requiremcnts may be. 4. MGTS will endeavour to take the lead in a professional manner, 4pplying wisdom and knowledge whilst being supponing and encourdging. Our Commltment MGTS commit to provide our customers with access to compeieni Staff. learning oppornjnities, comprehetjsive equiprnent and technology and rapid response to meet their training and assesstn¢nt requirements. We will whieve this through the application in all instances ot our core values by consis¢eTttly maintaining a high level of knowl¢d8c and understanding of the markeLs and environments within which our customers operate.
MIDLAND GROUP TRAININC SERVICES LIMITED TRUSTEES, REPORT 31 March 2025 Public Benefit We have refeed to the guidan¢e contained in the Charity Commission's general guidan¢¢ on public benefit when reviewing our airns and obj¢aiv¢s and in planning our future activili¢s. tn particularthe trustees consider how planned adiviti¢s will ¢OT)tribute to the aims and objectiveg they have set. Our Strntegic Objectives . mgts MCTS 5s a re9Sstered charitydedicated to supportlTh9 bothyoun9 people ènd adults lft the development of competences associated wlth engineerlng. We aim to be a N•tlon•l Centre of Excellence for educatio iraihing. developm¢nt and assessmert. Our Strategic objectives are: EOPLE GROWTH PRODucr COMWTTO EXCELLENCE STAKEHQLDE ENGAGEMENr GOVERNANCE v**•¥Fqkn In UNLOCKING POTENTIAL. DELIVERING PERFORMANCE CHALLENGES, ACHIEVEMENTS AND PERFORMANCE The full year results for f15cal year 24ll5 have returned a surplus, although1¢55 than the previous year and slightty below the planned budgetary f¢. With in¢ome overall at slighily below budge4 the surplus was generated due to expendit being well beltswbudgetfor the Same peri1. Apprentice income hasèeen negatively impacted by highcrthan usual lev¢ls of early leavers and completion fullding has a150 slowed with fewer students compl¢ting EPA in the year than had been budgeted for. The businesg will undetoke a deep dive on the issue of early le8ver51non-achievers and WO ha5 alrtady begun to rnap thehist0ricalnumbe for compariM ofboth the ab501ute numtrtrand more importantly th¢ reasons behind the number&. Commercial course activity remain5 strong, and the results reflect this, reISIng 2A above budget and prtor year perfomiancc. The commercial course Calendar continu¢s to b¢ well populated and is fi]rther OIstered by the completion in late August 2024 of the new commercial suitc of cla&8roorns and practi¢al training areL This has Ik¢n very well recetved by customers, in turn allowing for additional changes in thc practical and ¢la5sroom environment for apprentic¢ships to fiffther Inease our capaciry and user experien¢e.
MIDLAND GROUP TRAINING SERVICTS LIMITID TRUSTEES, REPORT 31 M#rch 2025 KPI Perform8iice PRIMARY '. KPIS Sr Many of the Key Perforniance Indicators (KPI"'s) by which w¢ rneasure the business remain strong or very strong &s per the image aEx)ve. As noted previously> wehave experienced ahigher-than-nornJa] level ofeorly l¢aYers and nort-achieYer4 those who decide nol io participate in the f]nal, End Point Assessment (EPA} phase of the apprenticeship. This irnpacts directly on our RetentioD and Achievement KPI metric and is reflected in the amber colour in the image. The Customer Satisfaction 8nd Impact KPJ is also shown in amber. The amber rating that we have awarded the busill, signifies the desire and necessary focus within the business, to solicit a greater breadth and depth of feedback from our ¢wtomer bas¢ lo ¢ontinue the dTive of contiiJu4)Us improvemenl and in doing so, deliver on the Strategic objective of commitnhent to excellence and in no way refle¢ts on any deterioralloll ID Customer satisfadion or deliveTwble impact. Capital Projects Forsome time now there hasi%en arealisation thatthe current ITsetupwithin Mtifs is outdatedandh&8 inhetrntfragility particularly around physical equipmenl. TnLSttts. the MGTS SLT and the MGTS IT ptter have agreed to definc a proj¢ct will addr¢ss these concerns forthe business. The project will commence during fiscal year 25126. The following objectives have been identified and will be factored into the roadm4). l. Ageing Physical Infrnstructure 2. Improve securily W>re 3. Minimise hdware replacement nttdq 4. Take advantsge of cloud services 5. Improve user experienc¢ 6. Review Disaster Rewv¢rylBusiness Coniinuity plans 7. Erjsure dats-int¢grity and relevatt¢e
MIDLAND GROUP TRAINING SERCEs LIMITED TRUSTEES, REPORT 31 Mareh 2025 A foTrnal risk and issues log will be creatr4 however in summary, key risks are. l. Ageing iDfrastNc 2. Sthrage Capacity Issues 3. Change in CapEx io OpEx models 4. Budgetary expectations for transforniation 5. Dath-retention & 'iidy-up' activiti¢s 6. BAU workloa(ts (obility to focus on ¢hange) 7. Ability to schedule downtime for key migrations 8. Network Infrastructure refresh if applicable 9. Improvcment towards removing any perceived single wjints-of-failurc from IT perspective MGIShas already initiatedaprojcctforthe nex¢fJnancialyearto install solarpanel$iotheroofofth¢ main officebuilding in Coventy. Offsetting rising electricity costs and th¢ opportunity to sell back to the gtid any unused power that is generatrd. coupled with a three and a half to four-year payback ]xtiod demonstrates a good use of the ServeS bein8 reinv¢sted in¢0 the business Hnd an ¢xarnple of the charity govern8n¢e strategic objective to utilise the Charity's resources re5ponsibty. The high ROI and savings n]nning into many hundreds of thousands over the 25-year predicted lifetime of the installation futther supports the decision iaken by the Board. Cutting the MCJTS carbon footprint, combating ¢limate change.through the adoption of sLsiainablc wwerforthe busine55 Is imEx)rtant and i5 an actual onsite, real-world example to yppr¢nti¢¢4 who Study renewables as part of thetr prowamme at bAGTS. whilst undertaking iheir apprenticeship. Outdoor Ch2Uell%e Apprentices once again partiripthd in outdoor challenge progrdmmes with over 100 undertaking th¢ experienct which supports the behaviours element of their apprenticeship in activities that are different to the nornial working environmenL
MIDLAND GROUP TrAINING SERVICES LIMITED TRUSTEES, REPORT 31 March 2025 Financi*l review The financial year resulied in an unrestricted Surplus of £191,364, a fall from £469,877 in 2024. Jrtcome Total urwestricted income of £4.7m was generated in 2024125, a deuease of 3.60/0 from the previous year. Apprentice training income represented 75 /0 of income, with coTnrnercTal activities, reserve movements and inve5tm¢nt income making up the balance. Demand for commercial training operations remains robust, and the Tnte¢S made a strategic investment this year to enhance our commcrcial training facilities Wtth the clear goal of boosting ¢omJn¢rcial course turnover. This proactive step was deyigned Eo stttngthcn our financial position moving forward. The investment portfolio renm)ed a superior rate of return compared to lower"yielding savings options, despite the volatility of global markets. Expendilure Unrestricted expendilmre in 2024125 was £4.56rn, £1.04m of this is related to our commercial a1VitieS, and the remaining £3.52m was spent SLWOrting our charitable aims. Funds Total funds on 31 March 2025 were £4.2m (2024 £4.Im) of whi¢h all bui £222,025 were unrestricted. Principal Kisks and Uneertalntles SkUl¥E#Eldnd- when it was announ¢ed in the King's Speech in July 2024, Nurnber 10 said the aim of Skills Eing12nd will be to "briDg together business¢¥, PToviders, untons, mayordl combined authorities (MCAS) and national government to ensure we have the highly trAined workforce that F.ngland needs." At the same time, it also confmtd that powers frorn the Institute for Apprenticeships and Te¢hni¢al Education {ItATEI will be Iran5teTr¢d to Skills England. As we close thi5 CUTrent fiscal vear for MGTS it is still not cleor what concrete changes will be made to the world of apprenticeships and ultimately how this will affect the businEs5 going forward. One of the key topics is the governrnent's intention to r¢forni the system of assessment in apprenticeships, including EPA. Further changes are atready being mentioned 5u¢h as foundation apprenticeships and changes to the off-the-job training polic5'. Ofsled- having success11Y completed the most recent audit in 2024 with an overall grade of GOOD, Ofsted ha$ unveileda new inspection framework sei to be Come into force in NoYember2025, ann0Cing a significant shift aimed al enhancing tranarentY and fairness in educational assessments. The main Ofsted ¢hanges for 2025 include detailed report cards and a revised evajuation syste. These updat¢s ¥irn lo provide a MO nuanced understanding of school perfomianc¢, uhirnately benefiting educatorsi parents, and stak¢holders alike. Inflfjilon, Growth and TtIOn- Government targets to reduce inflalion back to the 20/0 level have gAined traction. however they have not yet reached that level from th¢ diuying heights ofthe previous Government. The result is that there is still pressure on businesses from a cost of living that Continues its steady upward trend. An inLrcas¢ in the most recent budget on National Insuran¢e, also heaps tnore financial pressure on MGTS through rising employment co#s. It is too early to tell whether this will impact employer's appetiies for apprentice recruitment in the future. All of this impacts on not only MGTS, plans for gromoh and ¢xpall5ion but the plans oc those ¢ustoTners we serve through our apprenticeship and commercial course offerings.
MIDLAIYD GROUP TRAINING SERVICES LIMITED TRUSTEES, REPORT 31 March 2025 Polleiel serv The Bowd of Tntee6 have the freereserves (wuestricted fiuwjs ¢xcluding fixed a&set4 desip)ated fundg, nd rICted fiuth) needed to maiDtsin operdtii)ns if some in¢ots)e-gener4tsng activities are iemporardycurtailed. This ensures ¢ontmued suw for our charitable mission even amidst pofrniial financial flU¢tUatio. The Ttee8c0n8iderthat anappropriate kniel of frcer&qerves on 31 Marth2025 wouldbe 6months of budgeted expenditure amountillE to £2.17 milliorL The acts free ServeS OD (hat dat¢ 5thod at £1.29 Millio a shortfall of £0.88 million compared to the larget. Thi8 18 effeuively a&lr¢ssed by the I0-terni iovestnLCllt portfolio V8hd at £0.9 million on 31. Mar¢h 2025. This demonstrS our ¢ommittDent to prndent fimciAI Tement 8nd ensures the availability of r¢80urc&% even during periods of temporary incow reductioL A cOmprehs1Ve reiew of the re5eryes p)licy is o]rrenttyunderway will be c(ImpletvJ in the n¢xi fiscal year. Under the Memorandum and AJticles of Au(Kiation, the charity has the power to iDv¢st in any way th¢ trustee8 wish. The Tnjgtees hkvc deternixned that the Clwities short terni inve5unents should in the forni of iDtere8t. aring eash deN)sits v/ith major banks or financial institutions. Interest rates should be compdittv¢ al free of risk to theeapitsl. tDng¢r terni investments havebcen placedwitb inVeStmeAtmana8 in two sepat8t¢portfolias as follows.. Portfollo l - is Managed in line with The Evdyn Parthers Strdtegy 4 approach to investhient risk and is described a5 being appropriate for an investor who is comfortable with medium vo]atility of r¢ttun8, typically having ari)und 550/0 of theif portfolio invested in equities, and who is #bl¢ ¢0 tolerate a Ioss of up to 154)A of the value of their portfolio in any one year. This percenlage loss is bas¢d oll what might be reasonably expected 95Q/o of the time. The projected aDllualised rate of rthm QV¢T the longer tern is the Consun)erPrice Ind¢x (CPI) +2y• Porrfollo 2 is a bespoke portfolio designed to match MGTS 8nti¢wated liabilities moving forward. As $u¢ the a¢¢ount is invested ttt a Tnix of short-daied UK Government b(mds (I month to 2 years, with the majority of the capital invested at the shorter end) allowing grow of the priticipai whilm perniitting realibalion of th¢ fvnds at defined tijne intervals (if requir1). STRUCTURE GOVERNANCE AND MANAGEMEIYT The Charity is a compamy, limited by guaraniffj and has no share capital. It was itiCOTFK)fdted on 17 July 1970. Its govemingdocument i8 its Memordndumattd Articles of AssociatiOJL whichwere utdated on6thMarch 2019. The jiability of each member in tbc evrnt of windin8 up is limited to £20. 528785 984899 Guknn Roa4 Coventy, CVI 2JG Compat)y number incxpai Office The principal objects of the charitable wrnpaay are.. "To ddvance the theoreti¢al and prtiCal education and trailling of persons engaged or inknding to be engaged in gIneing gelle1 industrial and wmmarial a¢tivities"
MIDLAND GROUP TRAINll¥G SERVICES LIMITED TRUSTEES, REPORT 31 Mirch 2025 To allow thechaTitable company totrade in activities complementary to its obje¢ts & subsidlary Company MGTS Business and Training Services Limited, wa5 inCoorated on 22 September 2000. The Charity owns the 1,000 issued shares of £1 ea¢h. Taxabl¢ profits arising from th¢ 5ubsidi8ry are Gift Aided to the Charity. Trn$teesl Directors Th¢ Trustees are ¢le¢ted by the Members of the Comparty and setve for five y¢ws befi)re ring. The Articles of the Comp8ny allow forunlimited Tn]St¢eDLrect0rS. The Trustees may CO&OPt to fill¢asua] Yacan¢ies lSIngdurIngthtY. The following were TneS during the whole of the year underrevi¢w.' M5 C Bell Mr N Foster MrKKe Mr G F L8Wton Mr D Montgomerv Mrs T Reynolds Mr A Watson The followin8 w¢re app)inted as Trusttts duting the year.. Mr5 J Mustard- appointed 22 May 2024 The following resigned as Trustee5 during the year.. Mr S Marson- rest)ed 14 August 2024 The Truslees of the Charity meet at least 4 (imes per year. They set budg¢ts for the Charity and monitor its financial perf(Trrnian¢e through detatled quarterly fjnancial repoits. Major decision5 aff¢rting the CharALy'$ uperations ar¢ takcn by the Trustees. The Chief Ixxutive. David Bridgens is responsible for implementing the Trustees policies. H¢ reports on A qu8rt£rty basis to the TTU5tees. Additional ad hoc-I'nJ5tees meetings are called whenever it is feltnecessary either by the Trustees or the Chief Executive. Trustee induction trninirtg New ttustees undetEO a series of briefmgs to infomi theT]] on their leg81 obligations under charity and company law, the content ofthe Memorandum and Articles of AssociatioT4 the cornmilt¢e and decision-making preSSeS. thebusincss plan and recent fmancial wfomance of the charity. During the indu¢ti¢)n they meet key employees and other bitstee& Trustees are encournged to attend appropriate training events where these will facilitate the understanding of theirToIe. Kry Man8gement Personnel "Ihe following were key management personnel during the yetr undtrrcview:_ Chief Executive Officer Director of Delivery and Operdtions Dire¢itsr of Finance and IIR Quality and Complian¢e ManageT Customer Ertgagement Manager Curriculum Manager David Bridgens Steve Pabner Ruth Smith Ruth Plane Adrian Simkiss Adam Murray Arrnngtmtnts for setting pay and remuntrntion Tn]stees do not receive any fomi of remuneration and ve thcirtime freely. The trustees review pay at)nually in (ktober for all stsff. including key pcrsonnel. Consideration is taken of the rate of inflation, and benchmark pay rates within the industry.
MIDLAND GROUP TRAINING SERVICES LIMITED TRUSTEES, REPORT 31 Marth 202S Rtsk mangement We confrm that major risks have been reviewed and that systerns and procedures hay¢ been establtsh¢d to manage those risks. Government and Ageneleg Thc Govemrnent will lty fijnd 4)prenticeships in small bu$ine$5es from 1st April 2024 by paying the full cost of rraining for YOne up to the age of 21- reducing ¢osts and burden5 for bu5ine5ses and delivering more OppOrnitieS for young people io kick stsrt ihetrcoreers. This will remove the need for small employcrs to meet some of the cost of trainitjg and saves time costs forproviders like fither education colleges who Quent need to souwe fid1Thg sep8rately from the governmet)i And I81ness¢$. The move is underpinned by an additional £60 million of new government fLmding fornextyear, guaranteeing that where there is demand for apprenticeships from businesses, the governmenl will ensur¢ the is enough fimding to deliver them. From the start of April, the guvernrnent will also increase the amount of fimding that employers who are paytng the apprenticeship levy can pass onto other bu5iness¢s. Apprenticeships currLMtly be fimded by a Icvy paying employer ltznsfein8 up to 25/0 oftheir unused levy to a different employer. IfATE aTe undertaking a set of exceptiona] fijnding band reviews fur 20 high-volume apprenticeships in skills 8hortag¢ occupations and priority sectors. The 20 apprenticeships. which are all at l¢v¢l 2 or 3, were choscn by the DtE following Consultation with provider typresentstive b(NAies. and taking account of available evidence on the impact of cost inflation on appreniiceships delivery. The reviews are intended to help ¢mployers and apprcnticeship providers tackle rising costs in Priority secTS with skills thortages. including enge¢ring. ESFA funding rules version 2, of the apprenticlP funding rules, brought kty changes, including recognising thai I 18-year-olds starting apprenticeships are unlikely to hold relevant prior learning. Providers must ¢heck an individual's prÉor learning rord and d5$$$ their work history for relevant prior learnlljg. Where there is no relevant prior learntng and work experience, providers should document this with the employer and no further action is needed. If there is Televant PTior learning and wo] experience, providers can compietc the nornial skills scan pro¢ess to detemiine whether there should be a reduction in price. content and duration.
MIDLAND GROUP TRAINING SERVICES LIMITED TRUSTEES. REPORT 31 March 2025 Small Companies Exernpiion This report is prepared in accordatKe with special provisions of part 15 of the Companies Act 2006 r¢lattng to small companies. The tsustees who are the charitable c(JmpaDy'S directors are pleased to present their report togetber with the fllwicial statements of the charitable company for the year ending 31 March 2025. AUDITORS A resolution will be putto the forthcoming AGM to reappoint Lucktnans Du£k¢tt Palker Limited as Auditors for the year ending 31 Match 2026. Slatement as to diselosure of inform*tion to auditors The trtts who were in otTtce on the date of aroroval of these financial ststements have conf]rnied &$ far as they are aware, thai there is no relevant audit inforniation of which the allditors are unaware. The trnstees hav¢ confimied that they have taken 1 the steps that they ought to have taken 8$ trustees in order to rnake thelnselves aware of any relevant audit infoTmalion and to establish thal it has trKen communicated to the audi¢Or. PROFESSIONAL ADVISORS The Charity is provided with professional Services on a commerciAI basis by.. Lu¢kman$ Du¢k¢tt Parker Lllnited Audil Lloyd5 Bank Pl Bal]ng tland Hatton Button Solicitor5 Loveitts Estate Agents Jensten Group Insurance Evelyn Parthers Investment management (kn behr of the Board G IAwton Chairman Gulson Road Coventy CVI 2JG 13 August 2025
MIDLAND GROUP TRAINING SERVICES LIMITED DIREcfoiis' RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS 31 March 202S The directors are Tesp)n8ible foT preparing the Annual Report and the fllJan¢ial statements in accordance with applicable law and United Kingdom Generally Acceptrd Accountitjg Practice. Company law requires the directors to prepare financial stalernents for each fin8ncial year which give a and fair view of the state of affairs of the ¢haritable company And of the incoming resources and application of yesources, including the income arld expenditttr¢, of the chaTitable company forthat period. In prewing those financial Statemen the directors are required to.. select suitable accounting policies and then apply them consistently. make judgements and estimates that are reasonable and prudent. prepare the fmancial statements on the going ¢oncern basi5 unless it is inappropriate io pr¢sum¢ that the charitable company will continue in business: observe the methods and principles in the Charity SORP 'Ihe directors are reswnsible for keeping propet 4COUntlgI record5 which disclose with r¢asonable accurncy at any time the financial position of the charitable company and to enable them to ¢nsure that the fmancial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the ¢harit2ble eompany and hence for taking reasonable sleps for the preventi¢)n and detection of fraud and other I¢gularitIcS. 10
MIDLAND GROUP TRAINING SERVICES LIMITED AUDITOR'S REPORT Indepelldent iuditor's report to the member5 of Midland Group Tr4ining Services Llmlted Opinio We have audited the fina¢11 ststements of Midland Group Training SerYi¢es Ltd (the barent con)pany') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities. the Consolidated Balance Sheet. the parent company Balance Sheet, the Consolidated Cash Flow Statement and notes to the flnancial stAtements, including a summary of significant aCCOLmting policies. The f]nancial reportillg framework that been applied in their preparation is applicable law and United Kingdom Accounting Standards (Un]d Kingdom Generdlly Ac¢¢ptrd A¢¢ounting Practice). In our opinion th¢ fmancia] statements.. give a true and fair view of the state of the group's and parent company's affairs as at 31 March 2025 aod of its Coming resources ond application of resources, including its income and expenditure, for the year then have been property prepared in accordance wilh Uniied Kingdom Genernlly Accepted A¢¢ounting Practice. and have been prepared ill a¢¢ordan¢e with the requirements of the Companies Act 2(M)6. Basis for opinio We conducted ouraudit in accord8ne¢ with Inlemaiional Standards on Auditing (UK) USAS (UK)) and applicable law. Our responsibilities under those standards are further des¢Tibed in the Auditors responsibilities for the audit of the financial siatements section uf our report. We are ndependent of the group in accordance wlth the ethical requirements that are relevant to our audil of the f1¢1 siatements in the Lry(, including the FRC's Ethical Standard, and we have Ifilled our other ethical responsibilities in aCCordce with thes¢ requirements, We believe that the audit evidence we have obtained is sufficient and appropriate to piovide a basis for our opinion. Conclusions r¢l8¢ing to going concern We have nothing to report in respect of the following matter5 in rela¢ion to which the ISAS (UK) require us io rcport lo you where.. the trnstees, use of the going concern basis of accounting in the prcparalion of the fmanoiai statemenis is noi appropriate; or the trustees have not dis¢losed ill the fmancial statemenls any identified material uncettsintie5 that may c&4t signtfi¢ant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the datc wh¢n the fmancial staiements are authorised for issue. Other Information The trnstees are responsible for the other inforniation. The other information cornpri5es the inforniation included in the annual reporL other than the financial siatements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other infornjation and we do nol ¢xpre5s any forni of assurance conclusion thereon. In connection with ouraudit of the financial statements. ourresponsibility i5 to readthe other information and, in doing so, Consider whether the other infomiation is materially inconsistent wlth the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstatcd. If, based on the work we have peTforn)ed, we conclude thai ihere is a material misstatement of this other infomiation, we are required to report thai fa¢t. We have nothing to rep)rt in thi$ regard. Opinion oth other matters preseribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infonnation given in the Report of ihe-lrnsiees for the financial year for which the fmancia] statements are prepared is ¢onsistent with the financial statements. and the Report of the Trusiees ha5 been prepared in accordance with applicable legal requirements.
MIDLAND GROUP TRAINING SERVICES LIMITED AUDITOR'S REPORT rt to the members of Midland Crou Trainin Services Limited Inde ndent audltor's re M8lt¢rs on Ivhich we are requlred to report by exeeptlon In the light of the knowledge and understanding of the charitable ¢ompany and its environment obtsined in the course of the audit, we have not identified material mis51atements' in the Report of the Trustees. We bave llothing to report in respect of the following m#tters where the Companies Acl 2006 requires to report to you if, in our opinion.. adequate a¢¢ounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us,. or the fll)ancial statements are nol in agreement with the accounting records and returns. or certain disclosures of trnstees, remuneration specified by law are not made, or we have not received all the inforn]ation and explanation5 we require for our audil. or the thjstees were not entitled to take advantage of (he small companies exemption from the requirement to prepare a Strdtegic Report or in preparing the Report of the Trustees. Responslbllltles of trustees As explained more fijlly in the Statement of Trustees Responsibilities: the tru5t¢¢5 (who are also the dire¢torn of ihe parent company for the purposes of ¢ompany law) are responsible for the preparation of the financial stat¢m¢nts and for being satisfied that they Biv¢ a true Jnd fair view, and for such internal control as the trusiee5 deterniine is ne¢ess8ry to enable the prepardtion of financial ststements that are frcc from rnaterial misstatern¢nt, whether due to fraud or ern)r. In preparing the financial staiements, the trustee8 are responsible for assessing the group and the parent company's ability ro continue as a going concern, disclosit)E, a5 applicable, matters related to going concern and using the going concem basis of accounting unless the rrustees either intend to liquidaie the charitabl¢ ¢ompany or to cease operdlions. or have no realistic alternative but to do so. Our responsibilities for ihe audit of the financl818tatements Our obj¢¢tive$ are to obtsin Teasonable assurdnce about whcther the financial statements as VI whole are free from material missiatem¢nL whether due to fraud or etTor. and issue a Report of the Independent Auditors that includes our opinion. Reosonabl¢ assurance is a higj leyel of assurance, bt iy not a guarantee th an audit conducted in a¢¢ordan¢e with ISAS {UK) will alway5 detect a material misstatement when it exists. Misswernenr8 Can arise from fraud or erroT and are consided material if. individually ur in the aggregate, they could Teasonably be expectcd to influence the economic decisions of wers taken th¢ b4LSi5 of these fiTW]cial siatemcnl$. ItTegularitie5, including fraud are instances ofnon-rurnpliance with laws and regulations. We design proccdures in line with our responsibilities, outlined abov¢, t(Tr detect material misstatements in respect of itTegularitie5, including fraud. The exient to which our procedures ate ¢apJbl¢ of deltIng these itTegularitie5, including fraud is detailed below.. In identifying and assessing the risk of material misstJt¢ment in respect of irregularities. includtng fraud and non- compliallce with laws and regulalions, our pro¢¢dures included the folloWg.. reference to past history and experience of the Entity, enquiry of managemeni including obtaining ¥nd reviewing supporting do¢umentation concerning the Entity's procedure5 relating to.. -identifving and cornplying with laws and regulation5 and whether they w¢r¢ oware of any insian¢es of non- compliance- -detection and response to risk of fraud and whether they were aware of any actual or suspecied instances of fraud. aSS¢5srnent of the conlrols and processes that the Entity ha5 in plac¢ lo mitigate risk. Our assessments included the identification of the following potential areas for fraud: Management override of control; and Revenue recogni¢ion- specifically the recogtlition according to tin)ing of the provision of tsining serYice& and manipulation of revenue through mallagcment override of journals. 12
MIDLAf4D GROUP TRAINING SERVICFS LIMITED AUDITOR'S REPORT ort to the members of Mldland Grou Inde endent auditor'5 re Tr¥Jini 5ervic¢s Limited We design audit procedures by tailored and direeted testing to aid and support the deterjnined level of risk. In reswnse to the assessed risk we plon di1 tests and procedures that target specific areas where miystatement may (Kcur. These procedures and the extent to which they ar¢ ¢Apabl¢ of detecting irregularities, including frau ar¢ det&iled below: We critically assessed the appropTiateness and tested the application of the revenue and cost recognition policies. Wc $t¢d the appropriatene&s of accounting journals at)d other adjustments made in the preparation of the fll)ancial statements. We reviewed the Entity's accounling polieies for non-compliance with relevant standards. We made enquiries of rnanagemcnt and reviewed correspond¢nce with the relevant authorities to identify any i)Tegularities or instances of non-compliance with laws and regulations. In perforniing an audit in accordJnLe with UK GAAP, we exercise professional judgcment and maintain professional skepticism through0 the audit process. We also communicated relevan( identified laws gnd regulations and potential fraud risks to all engagement tealn mem1Is and remained alert (o any indicalions of fraud or non-Lompliance with laws and regulations throughout the audit. The risk of not detecting a material misststemeni reslllting frorn fraud is higher than for one Tesulting from error, as fraud may involve collusion or override of internal eontrols. There ar¢ inherent limitstions in the audit procedures perfornJ¢d. A further description of our r¢5ponsibilitie5 for the audit of the fancial staiements is located on the Financial Reporting Coun¢il's w¢bsit¢ at www.fr¢.org.uklauditorsresponsibilities. This description fornis part of our Report of th¢ IndyDdent Auditor5. Use of our report This report is rnade 501ely to the charitable company's members, as a bod).: in accordan¢¢ with Cbapter 3 of P4rt 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the ¢haritable c4)mpany's Inembers those matteTS we are required to state to th¢rn in an auditors, report and for no other Purpose. To the fullest extent pemiitted by law, we do not accept or assume r¢5ponsibility to anyone other than the charitable company and th¢ charitable cornpany's mernb¢r a body, for our audit Work, for this repoo or for the Opinions we have fornied. Mark Spafford CCA ACA (S£nior Statstory Auditor) for and on behalf of Lucknwis Duckett Par Limited I 110 Elliott Court Coventy Business Park H¢r&ld Avenue Coventy West Midlands CV5 6UB Date.. 2fr. 13
MIDLAND GROUP TRAINING SERVICES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the year eDded 31 MAreh 2025 Unre51ri¢t¢d fund5 Restricted Tot41 2025 Totsl 2024 Note Income: Ineomefrnm Charlltble Qcilvld.' Subscriptions, training, ptroj¢¢ts. ¢outBe fees and ex¢rn services 3297.492 77,000 3J74,492 3,471.332 Incopmelrnm other iradlng act1.. c(er¢ial trading operations 1248,100 1,248,100 1,336,582 Invesknent income 60,750 60,750 49.145 Tol41 Intomlng resources 4,606,342 77.000 4,683,342 4,857,059 Expenditure: Costs 0frU1zfvd.¥.' Inv¢5tmcnl managcmcnt costs Commercial trading OFernllons 1,034,943 1,034,943 1,046210 E¥ptsllthre ehtsrtsttbleaeV1lIs 3,403,546 119,684 3.523230 3.i89.958 Totsl expendithre 4.438,489 119,684 4,558,173 4.436,168 Net ineomel (loss) before othtr retognised 8Ain$ 167.853 (42,684) 125,169 420,891 Other recognisedloKves Change in fair value of pension h£Tr¢ li&bility Unrealised gain on inv¢siment assets 12 1.367,524 23,511 23,511 50,104 N¢t moY¢m¢nt In fvDd$ for the year 191.364 (42,684) 148,680 1,838,519 Fund balance broughi fojward at April 2024 3.816.746 264,709 4,081.455 2242,936 Fund balanct crried forward at 31 March 2025 4,008,110 222,025 4.230,135 4,081,455 The staiement of fll)ancial activities includes all gain$ and loss¢s r¢¢ognis¢d ID the year and in the prewous yeor. All the compaTLy'S actiTrities are cla55ed as continutng. 14
MIDLAND GROUP TRAINING SERVICES LIMITED BALANCE SHEETS at 31 Mareh 2025 Com No 984899 Group Charlty 2025 2025 2024 2024 Note Tangible fixed &ssets Investsnent in subsidiary undertaking Other inve$tmeDi$ 2,896,466 2,649,158 2,896,466 1,000 1,666,036 2,649.158 1.000 1,559.302 1,666.036 1,559,302 4.562,502 4208,460 4.563,502 4.209,460 Current aMets Debtors Short tenn deposits Bank balanc¢ and ¢ash 10 564,Y86 793,522 154,571 602,498 1,169,189 68,139 346.201 793,522 11.914 380.663 1.169.189 23,915 1.513,079 1,839,826 1,151,637 1.573.767 Credil•ry- amounts falliDg due within one year {948J32) (905J39) (801.726} {927.105) Net current assets 564,747 934,487 349,911 646,662 Creditors- amounts falling due after more than one year (897,114) (1.061,492) (897.114) (1,061,492) Iyet asgets 4230,135 4.081,455 4,016299 3.794,630 Fundi,. Restrietsd fi]nds lJnTcstheted fimds N(m.charitsbl¢ trading fund5 13 222,025 3,794,274 213,836 264.709 3.529,921 286,825 222.025 3,794274 264,709 3.529.921 13 Total funds 4230.135 4,0¥1,455 4,016299 3,794.630 The f3¢121 sratements have been wepared in aeeordance with ela1 prnvi5ion5 of part 15 of the Companies Act2006 relating to sm&ll charitable eompanies. The fmancial statements on pages 14 to 27 were approved by the Board of Dir¢cwrs and authorised for issue on 13th Augus 025 aDd wetT signed on its behalf by.. G Lawton Chaintia 15
MIDLAIYD GROUP TRAINING SERVICES LIMITED CASH FLOW STATEMENT for the year ended 31 Mareh 2025 Group 2025 2024 Nole Cxsh flows from oper8ting activities: Cash generated from otkralions 315,527 282.374 Net e*sh provided by (used in) operating Aetivities 315,527 282,374 Cash liows from investithg setiviti. Interest received Sale of thngible fLxed &ssets Illlrhase of Lgile fed assets chase of YesnentS 27,527 133.219 (715,508) (50.000) 39,947 27,321 (233,677) (1,500,000) Net cash provlded by (used in) Investlng activltles (604.762) (1,666,409) Change In casb and eash equiv#knt5 In the reporting period (289235) (1.384,035) Cash and equlv8lents at tbe beglnnlng of the rertIllg p¢rlod 1237,328 2,621.363 Cash and cash equivalents at the end of the reportin% period 948,093 1237,328
MIDLAND GROUP TRAINING SERVICES LIMITED NOTES TO THE CASH FLOW STATEMENT for the year ended 31 March 2025 Reconciliation of net income to net cash from opernting aetivities 2025 2024 Net income for th¢ T¢POrtirtgp¢riod { perthe statement of financial activities) Adjllsknents for. 148,680 1,838,519 Depreciation charges Profit on disposal of fixed assets Inve51ment income retained Invesunent income reinvested Unrealised gain on investment ets Notional interest on i10n liability Change in fair value of p¢nsion scheme liability {Increaseydecrease in debtors InCreI{deCre3se) in creditors 350,361 {15,380) (27.527) (33.22i) (2i.511) 9,022 334,088 {2.760) (39.947) (9.198) (50,104) (1.367,524) 27,578 (448,278) 37,512 (130.407) Net cash provided by (used in) operating activities 315,527 282,374 17
MtDLAND GROUP TRAINING SERVICES LIMITED ACCOUNTING POLICIES 31 March 2025 AeeouDting Polities JJ•sis ofpreparalion The financial ststements of the Chilable company, which is a public benefrtcntity under FRS102, have been prepared in accordance with the Charities SORP (bKS102) 'Accountti)g and Reporting by Charities.. Statsjnent of Recommendcd Practice applicable to charities preparing their acLounts in accordance with the Financial Repornng Standard in thc UK arAd Republicof Ireland (FRS102X effective l January 20191,, Financial Reporting Srandard 102 'Th¢ Financial Rewrting Standard applicable IA the UK and R¢public of Ireland, and the Companies Act 2006. The fllwicial stat¢ments have been prepared under the historical cost conY¢ntion with the exception of investments which are included at market value. Actounting changes The significant aeCoug r<)lieies adopted are descri below. Slgnlllcant Judgements and estimates The prepar10ft of the financial ststements require5 management to make significant judgements estiTnates that affe¢t the amounts reported within the balance sheet and statement of fmancial activities. The following ar¢ the Company's key sourees of estimation uneertainty.. Multiv employer defin benefit pension Scheme liability The schedule of contnbulion5 for the multi-ernployer defined benefit pension schem¢ is deterned using actuarial valuations. The aciuarial valuation involves rnaking assumptions about di$Unt Tate5, future salary tncreases mortalTty rates and futtwe pension incrcascs. Due to the complexity of the valuation, the derIll8 &ssumptions and the long-teTm t]ature of these plans. such es(imates are 5ubjectto significant uncertainty. The mortality rate isbuedon publicly available mottslity iables for the specific county. FbtLre salary ald pension increases are b&5ed on exctrd tUre irttlation rat¢5 forthe respective county. "lThe Company has included a liability within the financial siatements to reflect its own future fimding obligations based un a discounted cash flow basis. 'Ihe discount rdtt used is 0.85fj/o. In deterniining the approExiate discount rate. management considers the interestrnte of AA corporate bonds denominated in Great British pound sterling. with a bond mattvity Simil in duration tts the defined benefit fLthding obligation. Croup Ilnanclal ststements The statement of financial activities {SOFA) and 0Up balan¢e gheet ¢onsolidate the f]nancial statements of the chariry and its subgidiary undertaking. The results of the $ubsithary are ¢onsolid*ed on a line by line b8SiS. A separnte SOFA and income and expendiwre a¢¢ouni are not presenied for the charity itself following the exemptions afforded Section 408 of the Companies A¢¢ 2006. Ineome recognltlon pollcy Income is recOlS¢d when the charity has entitlement to the nds, any perfOrnice conditi(x)s attached to the item{s) of income have been meL ir is probable that the income will be received and the amount can be measuredreliably. Income from governmenl and other gra11 whether 'capital' grants or 'revenue' gran¢s, is recolSed when the clwity has entitlement to the fiinds, any perfomiance conditions attached to the grants have been met. it is probable that the income will be receivel and the amount can be measured reliably and As not d¢f¢Tr¢iL InvesDnent incotne is recognised on a receivable basis. 18
MIDLAND GROUP TRAINING SERVICES LIMITED ACCOUNTING POLICIES (continued) 31 March 2025 Resources expended and irrvover4bl¢ VAT Expenditure is recognised when a liability is incurred. cOntrtual aallgeMellts and perfom)on¢e related graiits are recognised &% goods and services are supplied. Charitable activities incbjde expenditure a$)ciated in the provision of training setvi¢es and include both the direct costs and support costs relating to these Xtivlties. The charitable company recognises the cost of contractual redundancy payments as being part of the ¢ost of the delivery of charitable activities. Govemance ¢ost8 include those IncU¢d in the governance of the charity and its assets aDd are primarily associated with constitutional and statuiory requirements. Support costs in¢lude the central fL]nctions and have been allocated t(> activity cost categories on a ba%is eonsistent with the use of resoue5, ¢.g.. staff costs by the estimated time spent and other ¢ost5 by their estimaied usage. Irrecoverable VAT is charged against the category of r¢sour¢¢$ exrtnded for which it was incurre Taxation The compgny is a registered charity and is exempl from tsxation on its ¢haritable activities. The subsidiary company I no th liability it donate5 Its taxable profits to the charity under gift aid. T&ngible fjxed 55ets Fixed assets (excluding Investmets) arc qtsod at cost less accumulated depre¢iation. Assets costing £3.000 or le55 ar¢ capiialised. Depreciation is charged by instalmcnts at rates estimated to write off the cost of the agset less any residu vAlue over the expected useful lives at thc followTng rates.-- 2⅓•/0 per annurn on freehold butldings 40/0 per annum on ITeehold building improvements IOO/o per annum on leasehold building improvements IOO/• to 250/0 per annu]n on equipment and vehicle5 33 lJi/bo per annum on Gompuler equipment On disposal of assets in the ordinary Course of bu5ine5s adju51ments are mad¢ to the depreciatton charge to reflect differ¢n¢es ben¥een the a¢rual and estitnated aggregate depreciation. InvestmeDts tnvestments h¢ld a5 fixed assets are revalued al mid-matet va]ue at the balance sheet date and the gain or loss tak¢n lo the Statetnent of binancial Activities. Pensions- Defined Benefrt Schetne Th¢ defined benefit scheme was ¢195¢d io new ci)ntribuiions on 3 1st August 2010. tn aCrdance with paragTaph 28.11 of fRSE02 the conLpany as a parttcipating employer to the scheme. has recognised the present value of its share of the agreed Gontribution5 on the balance 5h¢et as a liability on a discounied Cdsh flow basi5. MGTS'S estirnated liability on 31. March 2024 wa5 £1.23m and is recalculated each year, with movements in the liabitity reflected in the Statement of Financial Artivities and the element relattng to the unwinding of the discouni in interest payable. The C4)mpany h&$ renegotiated its recovery pian a5 a result of the lalesl actuarial valuation on 31. Marth 2023. F,urther infomtIOn in relation to an upd¢ on the current status of the pension s¢h¢me deficit and th¢ mosl recent valuation can be found in note 12 tsn page 25. Th¢ Compatry is liable for its own funding obligations aDd is also liable for those of the other Sponsoring ¢mployers, should those sponsoring employers defrdult on their obligations. PensM)n eost8- Deflned Contrlblltlon Scheme Th¢ amount charged to the Statement of Finan¢ial A¢tivitie5 in respect of pension costs is the contribution payable the year. Any difftrences between contributions payable in the year and contributions actually paid are $hown as eith¢r accruals or prepayments in the balance sheet. 19
MIDLAND GROUP TRAINif4G SERVICES LIMITED NOTES or4 FINANCIAL STATEMENTS 31 Mreh 2024 structure The charity has a number of restricted income funds to accouni for situations wherc a donor requir¢s that a donation mt be SF¢nt on a particular pujpose or where funds have been rdised for a SFrtific purwse. All (Nher funds are unre5tricd income funds. Leg81 stalw of the Charity Th¢ Charity is a company, limited by guardntee, and has no shar¢ ¢apital. Jt was incorporated on 17 July 1970. Its governing document is its Memorandum and Articles of Asso¢iation. The liabiliry of each membcr in th¢ event of winding up is limited to £20. Inves(ment income 2025 2024 Interesl re¢eiYable Investsnent incomc rcccivable 27,527 33223 39,947 9.198 60,750 49.145 lthcome from ChATitsble Aotivities TThining gel¢eS provid&J 3.374,492 3.471332 Ch4rltable Acthrltles Costs Th¢ charity undejtskes dir¢a charithbl¢ a¢tivilies and doe5 not make grant payments Provision of training services and projects Support costs- salaries and office eosis 3,422,569 104,361 3.295.785 94.173 3.526,930 3,389,958 Govern4n¢¢ ¢05ts Salaries and office costs Audiiors, rernunetwion Audir 18.270 16,578 9,450 1.800 7.985 1,700 29,520 26263 20
MIDLAND GROUP TRAINING SERVICES LIMITED iYOTES ON FINANCIAL STATEMENTS 31 March 2025 2025 2024 Net in¢oming resources Nd incorning resources stated after chargingl (CTediting): Director5, ond officers, indemnity insurance Depreciation of tangible red assets.. - owned a55ets . lead assets (Profity]oss on diswsai of tangibl¢ fLxed assets Notional int¢rest on pension liability 282,741 67,620 (15.380) 9,023 266,647 67,440 {2,760) Staff costs Wages and salaries Social security cosLs Pension costs 1,959275 231,479 153,985 1,805.913 213,289 132,397 2J44,739 2,151,599 Average number of employc¢s 46 45 The number of employees who received emoluments of Tnore than £60.000 in the year was as follows: £60.001- £70,000 £70.001- £80,000 £80.001- £90,000 £90,(M)O- £IOO,000 £120,000- £130,0(M) £130.000- £140,0(xI Key thanggemertt personThel Emoluments Pension contributions to defined contribution scheme 481,496 30232 447,625 28233 511,728 475,858 Tr directors do rtotr¢¢eive emoluments or expenses. Pensi)n ¢osts- Defined Benefit Scheme In addition io the aiw)ve. the Company made a payment of £170.(K>O (2024.. £192220) to th¢ mu]ti•ernployer def¢d benefit scheme (see note 12 on page 25). Pension costs- Defined Contribution Scheme The company provide5 pensions for current employees. through a dcfined contribution scheme. The employer contributions for the period were £108201 (2024 £108.348}. "n)e running costs of the scheme are amalgarnated with the Defined Benefft scheme and cannot be separately identified. There were no outstanding or prepaid contributions at the balance sheet date. 21
MIDLAND GROUP TRAINING SERVICES LIMITED NOTES ON FINANCIAL STATEMENTS 31 March 2024 Tangibk fixed assets- group and eharity Frtthold IR2sehold Equipment Property Improyemettts & vehicle5 Total April 2024 Additions Disposals 2,283,809 281,699 1.254,933 4,236 3,015,406 429,573 (561,383) 6,554,148 715,508 (561,383) 31 March 2025 2,565.508 1,259,169 2,883.596 6,708.273 DepreCian l April 2024 Charge foryear Disposa15 994.986 26,858 573.183 67,620 2,336,821 255,883 (443,544) 3.904,990 350,361 (443,544) 31 March 2025 1,021,844 640,803 2,149,160 3,811,807 Net book value 31 March 2025 1,543,664 618,366 734,436 2,896,466 31 March 2024 1288,823 681,750 678,585 2,649,158 On 30 June 2021 the Company granted in favour of the Thislees of th¢ EEF Staff Pension Fund an uncapped charge over the freehold properry at Gulson Road, Coventsy, included in the balance sheet at £1.2m. Investments 2025 2024 Mi&m4rktt valu¢ 4t: l April 2024 Invested Income r¢inve5ted Untralised gain on investsnents 1,559.302 50.000 33.223 23,511 ,500,000 9,198 50,104 31 March 2025 1.666.036 ,559,302 22
MIDLAND GROUP TIL41NING SERVICES LIMITED NOTES ON FINANCIAL STATEMENTS 31 March 2025 Group Charity 21125 2024 2025 2024 Fixed asset investmellt Shares ill subsidiary undertaking 1,000 .000 Subsidiary llndertkiDg MGTS Business and Training Services Limited which was incorporated llj England on 22 September2000 pays all its tsxable profts to the chaTity by Gift Aid. MG I'S Buslljess and Training S¢rvice5 Linited operates as an ¢xe¢urive arni of the charity. The charxry omis the entire issucd share capital of 1,000 ordinary shares of £1 ta¢h. A summary of the trading results is shown below. Summary ol proflt Ind loss eeoullt 2025 2024 Turnover Interest receivable Cost of sales and administrative expenses Governance wsts 1248,100 679 (1.030.993) (3,950) 1,336,582 153 {1,046,210) (3,700) Net profit Retained profit brought forward Amount gifted to the charity 2l3,836 286,825 (286,825) 286,825 231,582 (23 1,5821 Retsined in the subsidiary 213,836 286.825 Tbe assets •nd ligbili¢i¢5 of the $ub5idi4ry were: lryixed assets Current assets Creditors.. amounts falling due within one year 659,598 {444,762) 660.948 1379,123) Net asset5 214,836 287,825 Aggregate share capital and Teserves 214,836 287,825 23
MIDLAND GROUP TRAINING SERVICES LIMITED NOTES ON FINANCIAL STATEMENTS 31 March 2025 Group Charity 2025 2024 2025 2024 10 Debtors Amounts falling due within one year Trade debtors Prepayments Accrued income 426,663 123,459 14,864 438,088 160,711 3,699 213,751 117,586 14,864 235,874 141.090 3,699 564,986 602,498 346,201 380,663 li Creditors Amounts falling due within ot)¢ year.. Trade credito Taxacion and social security payable A¢£nlS Pension deficit liability Amount due to subsidiary undertaking 571,045 129,444 74,443 173.400 520.849 134.932 79,558 170.000 163,453 103,179 63,538 173.400 298.156 190,357 98.092 67,768 170,000 400,888 948,332 905,339 801,726 927,105 Amounts falling due after onc year: Pension deficit liability 897,114 1,061,492 897,114 1.061,492 Included within trade creditors 15 deferred income of £372,164 (2024 £285,192). The amounts are deferred because th¢ income relates to fuwre wiods. DefertTd InMe at l April 2024 Used in year Defcrred in year 285,192 (283,247) 370.219 Deferrcd income at 31 Mah 2025 372,164 24
MIDLAND GROUP TRAINING SERVICES LIMITED NOTES ON FINANCIAL STATEMENTS 31 March 2024 12 Pensions The Company provides pension5 for ils employees through participation in the Engineering Employers, Fedemion Staff Pension frund (the bund), which 15 governed by a Trustee Board and maintained independently of the Company's fmance5 for def]ned benefil rntmbers. There is & separdte Master Trust for defjned contribution tnembers, which is a]so operated independently of the Cumpan}'. The Fund was established to enable a number of autonomous but related employers to operate a scheme through the sharing of risk within a wider membership b¢. As such it is noi possible for an undertying employer to identify its share of the underlying assets and liabilities. For multi-employer schemes where this is the case, paragraph 28.40A of FRS102 requires that Midland Group Training Seryi¢es Limited account for its share of the present value of the agreed pension contribution5 payable to the scherne and where contiibutions are affected by a surplus or deficit in the scheme, to disclose infomiation about the sury)lu$ or deficii and the implications of the sulUS or deficit io the Company. 2023 V8luA¢io At the date of the last completed va]uation of the fjjnd {31" March 2023), the m8Tket value of th¢ Fund's assets amounted to £143m. The valuation was carried out by an independent qualified actuary adoptsng a market-based approach SIng the projected unit method and the followin8 main assumptions.. Single equivalent average rates /0 per (inppaaise ierm-depeden¢ crn ore wed) A]uM Rate of investment relurn (initial portfolio) Rate of investment remrn (long tenn ponfolio) Rate of price inflalion Raie of incre&%e in salaries Rote of pension increases.. RPI up to 50/0 RPI up to 50/0.. minimum 3V CPI up to 5Q/o CPI up to 2.5Q/o 3.6 {RPI} As at the valuation date these assets were insufficicnt, on the assumptions adopted, io meet thc cost of the Fund's accrued liabilities. Th¢ Fund had a deficit of £19m on an ongoing funding basis. The split between participating eTllployeTS was rc-evaluated on 3 March 2023 based on updated assumptions, rcsulting in the proportion attribut¢d to MGTS'S mcTnbers decreasing to £1.3m (6.70/0) 2020.. 8.3V/(. sUbequent7y, particspating employers agreed contribution schedule5 with the Ttusiee that are cxpected to b¢ sufficicnt to elilninate their share of the revised deficit over a period acceptable to the Trustce. Under this agreement Midland Group Training Services Limited is liable to make the following contributions in respeet of its Share of the deficit in the defined benefits section= Dales 14 I'equeiic}' £192,220 Payable on 1st April 2023. Oneo £170.000 pa Pay2ble from 1st April 224 to 315t Marcb 2031 inclusive. This will be increased by 20/D each year. Annually In addition, the Company bas granted an uDcapped charge to the TTUSte¢ of the Fund, over the freehold property at Gulson Roa¢ CoveDty included in the Balance Sheet at 31. March 2025 at £1.2m (see no* 8 page 22). It should be noted that the defmed benefit scheme wag closed to all future accruals during 2010. 25
MIDLAND C.ROUP TRAINING SF.RVICES LIMITED NOTES ON FINANCIAL STATEMENTS 31 March 2025 13 Movemetkt In Incoming resources and g*ins RUrceS expended and loyses Gift Aid 31 M&rch 2025 2024 Restricted fi]n(Ls - 24+ Loan Fund - Employer Incentives - LEP Fwlding 2,000 3,500 259,209 2.000 9,500 210.525 77.0(X) (71,000) (48,684) Unrestricted funds Non-chtirit2ble trading funds 3,529,921 286,825 3,381,074 1248,779 (3.403,546) 11,034,943} 286,825 (286.825} 3.794,274 213,836 4,081,455 4,706,853 (4,558,173) 4,230,135 24+ Advanced Learning L<)an "Ihese are fimds made available to be loaned io eligible leantrs. These loans will help learners aged 24 or above pay thc fees charged by colleges and training providers Cor courses at Ixvel 3 and L¢v¢l 4. or Advanced and Higher Apprenticeships. Employer IneeD¢ives The Education and Skills Trknnding Agency ha8 made a number of incentive payments available Lo employers tsking on an apprentice aged 16-18. Th¢ incentives payments are paid to the training provider at set 1n¢& durfftng tbe training and must be paid to the employer. LEP Funding MGTS has invested in a new Advanced Engineering and Manufaeturing Centre in Redditch, Worcestershire. Our £875.000 iTrve3trnenl was matched by funding of £700,000 from the Worce5ter5bire and Binningh&n Local Enterprise Partnerships. The funding will be released over the life of the &8sets. 26
MIDLAND GROUP TRAINING SERVICES LIMrrED NOTES ON vif4ANCIAL STATEMENTS 3] March 202S 14 Iysb of net assets betwetn funds Nonvrh4ritable trnding rund5 Unrestricted Restricted Total Intangible fed assets Tangible fLxed &8sets Currenl assets liabiltties Long tem) liabilitie8 1,666,036 2,685,941 842,981 {503,570) (897,114) 1,666.036 2,896.466 1,513,079 (948,332) (897,114) 210,525 11,500 658,598 14L14,762) 3,794274 213.836 222.W25 4230,135 15 Operlting lease ¢ommitmMts The following opernting lease payments are colninitted to be paid.. 2025 2024 Within ox¢ year Between two and five years In more than five years 110,430 397,243 366,325 108.062 388267 446,917 873,998 943,246 16 Capltsl Commltmtnts Th¢ Charitabk ¢ompany had capital commiknents of £65,809 at the year-end12024 £nil). 17 Rellted Party Tn¢tIOnS There were no related FQtty 1ransa¢tion$ during the year (2024 £ntl). 27