Directors of Liverpool schools and adult learning venture, The Progress Group, take over the business from its US-based owners as pre-tax losses are cut from £2.4m to £1.6m. Tony McDonough reports

Schools and adult learning venture The Progress Group (TPG) is reporting further annual losses but says its prospects are much improved following a restructure and management buyout (MBO).

Liverpool-based TPG has just posted its annual results for the 12 months to July 31, 2024, on Companies House. They reveal revenues of £15.2m up from £14.9m in the previous year and pre-tax losses down to £1.6m from £2.4m in the previous year.

In the last set of accounts a year ago directors acknowledged a “material uncertainty” that cast doubt over the group as a going concern but added a strategy was in place to turn around its fortunes.

To add to its woes at that time it was reported that its wholly-owned subsidiary, Progress Schools, had received a number of inadequate Ofsted inspections.

These latest accounts show signs of significant improvement in its fortunes, despite the further pre-tax losses. Until early this year TPG was owned by its principal backer, US-based Bankers Life Insurance Company (BLIC).

On March 4, TPG directors Jayne Worthington and Eammon Price completed an MBO of the business in a “share-for-share exchange” and are now the principal shareholders. However, BLIC remains its main source of funding.

TPG’s full range of services include independent alternative provision schools, careers advice and guidance, Government-funded adult training programmes and commercial training.

Following the restructure it now operates via five divisions – Progress Schools, Progress Careers, Flourish Learning, Flourish Works and Complete Skills Solutions. The group employs more than 200 people.

Writing in the annual report, Eammon Price said: “Among the group’s key achievements this year were the outstanding performances of Progress Schools and Grey Matter Learning (now part of Flourish Learning) which achieved annualised growth rates of 40% of 49% respectively.

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“Progress schools made a particularly notable contribution to the group’s improved financial position following a comprehensive commercial review in 2023. This strategic initiative resulted in a financial transformation that enabled further investment and contributed to enhanced Ofsted outcomes.”

He added that TPG’s objectives for the current year are an expansion of its service offering, operational integration, investment in new technology, a push for further improvement in Ofsted ratings and a focus on getting the business into profit.