Struggling training provider Learndirect has published its accounts - months after it transpired that it had been rated “inadequate” by Ofsted, putting its future as a provider at risk.

The organisation also faces an investigation by the National Audit Office.

The accounts reveal important details about the provider’s financial status.

What the accounts say

1. The company won 17 contracts with a combined value of £47 million over an 18-month delivery period up to January. Turnover for this period was £204.6 million - significantly more than the £171.3 million in 2015.
2. The provider, however, made an operating loss of £22.2 million.
3. Parent company Pimco (Holdings) has bank debt of £48.8 million, and £2.9 million of other loans from Lloyds Development Capital (Holdings) will become repayable on 30 November 2018.
4. A further £48.8 million of loans from LDC will become repayable in May 2020. “Whilst the bank lenders and LDC continue to be supportive, Pimco (Holdings) Limited’s ability to repay, refinance or extend these loans will be dependent upon the performance of the company and the group over the next 12 months.”
5. Although the Ofsted rating means Learndirect will not receive ESFA funding after July 2018, its subsidiary Learndirect Apprenticeships, which only delivers to levy-paying employers, is not directly affected.
6. The executive team is continuing to manage day-to-day performance closely and is keeping cost levels under close review in order to be able to “mitigate any shortfalls to expected operating income”.
7. The auditors conclude that “the company has adequate resources to continue in operational existence for the foreseeable future”.

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