TTE_TRAINING_LIMITED - Accounts

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

TTE Training Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is New Horizons House, New Bridge Road, Ellesmere Port, Cheshire, CH65 4LT.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

In assessing the ability of the company to continue to operate as a going concern for the foreseeable future, the directors have considered scenarios which have involved a degree of judgement based upon experience of the sector, forecast activity and the cash resources available to ensure that the financial statements can be prepared on the going concern basis. Since the significance of the economic impacts of the COVID-19 outbreak have become apparent, the Directors have reviewed in detail the Company's position and the appropriate basis on which to prepare the financial statements.true

The Directors do not anticipate that there will be an adverse impact to its operating model as a result of the continuing effects of the pandemic. The Directors have considered projections to 31st August 2022, together with a longer-term assessment, to stress test the financial resilience of the Company and which take into account the possible impact of COVID-19 on future learner and delegate numbers.

Whilst the Directors recognise that 2021 will be another challenging year, on the basis of the experience to the date of approval of the financial statements and consideration of the possible future impact on the customer base, they consider that it remains appropriate to prepare the financial statements on a going concern basis. The full impact of the COVID-19 outbreak still cannot be estimated with any certainty, but the stress testing of the Company's financial position has satisfied the Directors that it has adequate reserves and mitigation strategies available to deal with the impact of the outbreak as it continues to unfold.

Income from contracts is recognised in line with the delivery on the contracted services to trainees. The recurrent grants from the SFA represent the funding allocations attributable to the current financial year and are credited directly to the income and expenditure account. Recurrent grants are recognised in line with planned activity. Any under-achievement against this planned activity is adjusted in the year and reflected in the level of recurrent grant recognised in the income and expenditure account. Provisions for potential clawbacks are established where it is anticipated that funding may be subject to clawback.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other debtors, amounts owed by group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other creditors, amounts due to group undertakings and bank loans are initially recognised at transaction price.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

For defined contribution schemes the amount is charged to profit and loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

The average monthly number of persons (including directors) employed by the company during the year was:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2019 - 2).

Details of the company's subsidiaries at 31 August 2020 are as follows:

Registered office addresses (all UK unless otherwise indicated):

The directors have received written formal confirmation that the £359,761 balance held in other creditors will not be requested for payment until at least 1st September 2021.

Deferred income is included in the financial statements as follows:

The guarantors' reserve relates to the members' capital contribution to the company. The capital reserve relates to a capitalised loan.

The company has no share capital but is limited by guarantee. The guarantee is limited to £10 per member and extends twelve months after the date that member leaves.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

In force at the reporting date is an unlimited guarantee provided to the subsidiary company, TTE Apprenticeship Training Limited. The guarantee is dated 9th December 2015.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The COVID-19 outbreak is likely to have an impact on the financial position of the Company during 2021. Whilst the impact on apprenticeship funding has been minimal to date, reduced capability to deliver commercial courses has inevitably resulted in a reduction in income in this area of business. This reduction has been mitigated where possible by cost savings.

The Directors have identified measures which could be taken to mitigate any operational and financial impact of the outbreak and expect the company to continue operating, having considered the possible impact to its operating model as it works within government's current guidelines.

The full impact of the COVID-19 outbreak still cannot presently be estimated with any certainty, but the stress testing of the Company's financial position has satisfied the Directors that it has adequate reserves and mitigation strategies to deal with the impact of the outbreak as it continues to unfold.

The company continues to address the impact of COVID-19 on the business. Whilst the ongoing situation presents a number of challenges and uncertainties, the directors consider these on a regular basis and have prepared forecasts modelling scenarios which demonstrate that the company should be able to continue to operate as a going concern for the foreseeable future.

No adjustments to the financial statements or non-adjusting post balance sheet events have been noted.

During the year the company has traded with Inovyn ChlorVinyls Limited and TTE Apprenticeship Training Agency Limited. Inovyn ChlorVinyls Limited is a member of the company.

Sales invoices raised during the course of normal trading activities for Inovyn ChlorVinyls Limited amounted to £132,750 (2019: £80,510).

Amounts due to members included in accruals for sponsors' rebates for Inovyn ChlorVinyls Limited amounted to £14,548 (2019: £14,548).

Amounts due from related parties as at 31st August 2020 which are included in debtors include amounts due from Inovyn ChlorVinyls Limited of £12,811 (2019: £28,428).

Amounts owed to related parties as at 31st August 2020 which are included in other creditors within 'creditors amounts falling due after more than one year' include amounts owed to Inovyn ChlorVinyls Limited for £359,761 (2019: £359,761).

Debtors also include amounts due from TTE Apprenticeship Training Agency Limited of £39,993 (2019: £75,235). The company is a wholly owned subsidiary of TTE Training Limited.