SOUTHERN GROUP ENTERPRISES LIMITED (REGISTERED NUMBER: N1019910) Report of the Trustees FOR THE YEAR ENDED 31 MARCH 2023 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the fmancial statements of the eharity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims The objects of the charity are: To enhance education, in particular for young people, by providing training facilities for the acquisition and development of occupational skills and work experience for periods in each case not nonnally exceeding two years. The main objectives for the year continue to be focused on the provision of community based training. Public benefit The trustees are confident that the charitable aims of Southem Group Enterprises Limited satisfy the principles of public benefjt as defmed in the Charities Act. They have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning its future activities. The public purpose of Southern Group Enterprises Limited is to provide an educational programme, based on occupational and essential skills, to those pupils at school who wish to opt out of the formal academic route. The target group are those pupils who at the age of fourteen to sixteen are seeking an alternative educational system that challenges them to develop and demonstrate their individual capabilities and creative skills. The provision of the vocationavoccupational programmes provided by Southern Group Enterprises Limited is an extension to the secondary level of the mainstream educational system. The benefit of this is two fold in that it enhances and supports the career departments within the local schools by providing the opportunity for work related training for pupils during school time and secondly the beneficiaries, the pupils, gain through maximising their potential through obtaining a vocational career and the feeling of Self esteem and respect from this achievement, attaining relevant academic and vocational qualifications but also developing life skills both at a personal and social level. The age at which pupils enter the vo¢ational/occupational programmes is one that Southern Group Enterprises Limited see as a defming time of a young person's life during which time their personalitylexpectations are deterniined and defmed for later life. The public putpose therefore is the starting point under which education can provide a stable environment and base for each young person going fonvard. As for the community the benefit derived is that upon entering society at large the pupils have become young adults displaying responsibility and self belief within themselves that originates through the acquisition of skills attained within the educational programme. ACHIEVEMENT AND PERFORMANCE Charitable activities The end of the year saw a result in which there was a demand upon the charity's fmancial resources and the results for the year are set out in detail on page5 5 to 14. The company returned a surplus for the year of £40,015. FINANCIAL REVIEW Principal funding sources The main source of funding is derived from the provision of training under the STEPS and VEP Programmes. charity provides these services directly to the local schools, ultimately the nding is provided by the Southern Education & Library Board. Investment policy and objectives Under the Memorandum and Article of Association, the charity has the power to invest in any way the trustees wish. However in fonnulating an investment policy, the charity has recognised that whilst it may have surplus fund5 to invest, these are likely to be called upon in the short tenn. The policy is to maintain high levels of capital security by minimising interest rate risk, maximising returns and liquidity and maRntaining low transaction costs.
SOUTHERN GROUP ENTERPRISES LIMITED (REGISTERED NUMBER.. N1019910} Report of the Trustees FOR THE YEAR ENDED 31 MARCH 2023 FINANCIAL REVIEW Reserv¢s policy The Management Committee have examined the charity's requirements for reserves in light of the main risks to th¢ organisation. A policy has been established whereby unrestricted ndS not committed or invested in tangible assets held by the charity should be between 6 and 9 months of the annual budgeted expenditure. Budgeted expenditure for 2022123 is approximately £255,000 and therefore the target is between £127,500 and £191,250 of general unrestricted funds. The reserves are required to meet the working capital requirements of the charity. The charity Tecognised the continued need of a fund to both refurbish and make improvetllents to their land and buildings. As such a designated fund of £550,000 was set aside for the redevelopment and improvement of the charity's property. To date an amount of £291,870 of this fund has been used leaving designated ndS for the redevelopment and improvement of the charity's land and buildtngs of £258,130. Free reserves at 31 March 2023 amount to £145,835, which falls short of the lower target figure of £159,375 for unrestricted nds. In calculating reserves the designated fund (£258,130) and the net book value of fixed assets held (£320,177) have been excluded. Although the strategy is to continue to build reserves, the Management Committee is aware that it is unlikely that the target can be reached for a number of years. The charity plans to continue the objectives and activities outlined above, subject to satisfactory funding arrangements. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The company was incorporated on 22 October 1986 as a charitable company limited by guarantee, and also received charitable status from HM Revenue & Customs. The company was registered with the Charities Commission in Northern Ireland on 16 December 2015. The Company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Recruitment and appointment of nelv trustees The directors of the company are also charity trustees for the purposed of charity law and under the company's Articles are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Manag¢ment Committee are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting. Due to the nature of the charity's work the trustees seek to ensure that these needs are appropriately reflected through the diversity of the trustee body. To enhance the potential pool, trustees are requested to provide a list of their skills (and update it each year) and in the event of particular skills being lost due to retirement, individuals are approached to offer themselves for election. Induction and tralning of new trustees New trustees are briefed on their legal obligatÉons under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent fmancial perforniance of the charity. They also meet other trustees and are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. All trustees are already familiar with practical work of the charity. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number NIOI 9910 (Northern Ireland) Registered Charity number 103568
SOUTHERN GROUP ENTERPRISES LJMITED (REGISTERED NUMBER: N1019910) Report of the Trustees FOR THE YEAR ENDED 31 MARCH 2023 Registered office Unit 22 Rampart Way Greenbank Ind Estate Warrenpoint Road Newry Co. Down BT34 2QU Trustees C P Bagnall Mobile Engineer Ms M D M Coulter Solicitor R G Coulter MBE Building Contractor P G Duffy Retired Accountant (resigned 251712022) K McGivern Chart¢red Accountant C O'Hare Administrative Officer Company Secretary Mrs B Rocks Independent Examiner Mr Conaill McGrady FCA M.B.McGrady & Co Chartered Accountants Rathmore House 52 St Patricks Avenue Downpatrick Co. Down BT30 6DS Solicitors MDM Coulter 125 Harbour Road Kill(eel Co.Down BT34 4AT This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the board of trustees on 26 June 2023 and signed on its behalf by: Mrs B Rocks - Secretary