Company Registration No. 00170454 (England and Wales)
THE ERA FOUNDATION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
PAGES FOR FILING WITH REGISTRAR
THE ERA FOUNDATION LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
THE ERA FOUNDATION LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2020
30 September 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investments
3
22,140,353
24,055,331
Current assets
Debtors
4
17,519
9,668
Cash at bank and in hand
1,648,751
268,427
1,666,270
278,095
Creditors: amounts falling due within one year
5
(81,314)
(34,724)
Net current assets
1,584,956
243,371
Total assets less current liabilities
23,725,309
24,298,702
Provisions for liabilities
(646,497)
(679,356)
Net assets
23,078,812
23,619,346
Reserves
Income and expenditure account
23,078,812
23,619,346
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.
The financial statements were approved by the board of directors and authorised for issue on 17 December 2020 and are signed on its behalf by:
Dr P Golby CBE FREng
Director
Company Registration No. 00170454
THE ERA FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 2 -
1
Accounting policies
Company information
The ERA Foundation Limited is a
private
company
limited by guarantee
incorporated in England and Wales.
The registered office is
Amelia House, Crescent Road, Worthing, West Sussex, BN11 1QR.
1.1
Accounting convention
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the company’s investments and project expenditure during the year.
true
1.3
Turnover
Turnover
represents management charges in respect of directorship of investments and
is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
during the period.
1.4
Income and expenditure
Income and expenses are included in the financial statements as they become receivable or due.
Income and expenses include VAT, where applicable, as the company is not liable to charge or reclaim VAT.
1.5
Fixed asset investments
Fixed asset investments are intially recorded at cost, and subsequently, where fair value is not available, stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value (bid price) with changes in fair value being recognised in profit or loss.
THE ERA FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, where it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised
cost.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year.
Deferred tax
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
THE ERA FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
1
Accounting policies
(Continued)
- 4 -
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 10 (2019 - 9
).
3
Investments
Investments
£
Market value
At 1 October 2019
26,049,512
Additions
2,175,000
Disposals
(3,594,344)
Revaluations
(495,635)
At 30 September 2020
24,134,533
Impairment
At 1 October 2019 and 30 September 2020
1,994,180
Carrying amount
At 30 September 2020
22,140,353
At 30 September 2019
24,055,331
Investments include listed investments with a market and carrying value of £21,109,543 (2019: £23,118,422). The cost of these listed investments that are carried at market value is £14,896,326 (2019 - £16,139,377).
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
7,001
2,502
Other debtors
10,518
7,166
17,519
9,668
THE ERA FOUNDATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
- 5 -
5
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
55,646
3,549
Taxation and social security
3,230
3,169
Other creditors
22,438
28,006
81,314
34,724
6
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £5.
7
Audit report information
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 and dated 17 December 2020
.
The senior statutory auditor was Michael Strong
The auditor was Saffery Champness LLP.
8
Operating lease commitments
At the year end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
-
6,250
9
Related party transactions
Diamond Microwave Devices Ltd, a company in which The ERA Foundation Limited holds shares giving it significant influence, were invoiced £10,000 (2019 - £17,500) during the year for consulting services.
The carrying value of the long term loan, included in investments, with Diamond Microwave Devices Ltd at 30 September 2020 was £150,000 (2019 - £150,000).