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Directors' Report and |
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Audited Financial Statements for the Year Ended 31 July 2019 |
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for |
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The University of Manchester Innovation |
Centre Limited |
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REGISTERED NUMBER:
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Directors' Report and |
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Audited Financial Statements for the Year Ended 31 July 2019 |
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for |
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The University of Manchester Innovation |
Centre Limited |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Contents of the Financial Statements |
for the Year Ended 31 July 2019 |
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Page |
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Company Information | 1 |
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Directors' Report | 2 |
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Statement of Directors' Responsibilities | 4 |
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Independent Auditors' Report | 5 |
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Statement of Comprehensive Income | 7 |
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Statement of Financial Position | 9 |
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Statement of Changes in Equity | 10 |
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Notes to the Financial Statements | 11 |
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The University of Manchester Innovation |
Centre Limited |
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Company Information |
for the Year Ended 31 July 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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1 Colmore Square |
Birmingham |
B4 6HQ |
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BANKERS: |
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Manchester University Union Branch |
323 Oxford Road |
Manchester |
Greater Manchester |
M13 9PS |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Directors' Report |
for the Year Ended 31 July 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 July 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the company is The University of Manchester's management company for its incubator buildings in |
connection with both biotechnology and high-tech activities. It also provides an innovative centre environment for enterprise |
events, conferencing and networking and promotion of intellectual property projects. |
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The decision has been made to transfer the building to The University of Manchester during the year ending 31 July 2020. The |
University has also taken on the management of the Incubator buildings from the company, as well as the events and conferencing, |
with effect from 1 August 2019. |
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The intention is then to wind up the company as soon as practically possible. |
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GOING CONCERN |
Due to the plans to close The University of Manchester Innovation Centre Ltd in the near future and transfer the assets and |
liabilities within the University group, these accounts have not been prepared on a going concern basis. |
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As a result of ceasing to apply the going concern basis the lease premium within creditors has been reclassified as due within one |
year as the company will need to repay this to The University of Manchester (the tenant) upon the transfer of the building and the |
surrender of the lease. |
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REVIEW OF BUSINESS |
The results for the year are set out on page 7 of the financial statements and the prior year results on page 8. |
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The loss for the year after taxation amounted to £230,853 (2018: loss £299,184) |
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The directors do not recommend the payment of a dividend (2018: £nil). |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2018 to the date of this report. |
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Professor L G Georghiou (The University of Manchester Nominated Representative) |
Dr L Hakes |
Mrs J Kelley |
Professor M Schroder |
Mrs J N Shelton |
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Other changes in directors holding office are as follows: |
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Mr S B Dauncey - appointed 21 November 2018 |
Mr C G Rowland - resigned 6 January 2019 |
Mr J Stockwood - resigned 18 June 2019 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being |
information needed by the auditor in connection with preparing its report, of which the company's auditors are unaware. Having |
made enquiries of fellow directors and the auditor, each director has taken all the steps that he or she ought to have taken as a |
director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors |
are aware of that information. |
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AUDITORS |
Ernst & Young LLP, have indicated their willingness to be re-appointed for another term and appropriate arrangements have been |
put in place for them to be deemed re-appointed as auditors in the absence of an Annual General Meeting. |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Directors' Report |
for the Year Ended 31 July 2019 |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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BY ORDER OF THE BOARD: |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Statement of Directors' Responsibilities |
for the Year Ended 31 July 2019 |
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The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable |
law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have |
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United |
Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102. Under company law the directors |
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the |
company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are |
required to: |
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- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue |
in business; |
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and |
explained in the financial statements. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's |
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure |
that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the |
company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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The directors are responsible for the maintenance and integrity of the corporate and financial information included on the |
company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may |
differ from legislation in other jurisdictions. |
Independent Auditors' Report to the Members of |
The University of Manchester Innovation |
Centre Limited |
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Opinion |
We have audited the financial statements of The University of Manchester Innovation Centre Limited (the 'company') for the year |
ended 31 July 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of |
Changes in Equity and the related notes 1 to 18, including a summary of significant accounting policies The financial reporting |
framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 |
"The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting |
Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 July 2019 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our |
responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements |
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our |
audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical |
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and |
appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
Conclusions relating to basis of preparation; financial statements prepared on a basis other than going concern |
We draw attention to note 2 to the financial statements and the Director's Report which explains that the directors intend to |
liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in |
preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as |
described in note 2. Our opinion is not modified in this respect of this matter. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Directors' Report |
and the Statement of Directors' Responsibilities, but does not include the financial statements and our Auditors' Report thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated |
in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, |
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the |
audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material |
misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material |
misstatement of the other information. If, based on the work we have performed, we conclude that there is a material |
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent
with the financial statements; and |
- | the Directors' Report has been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have |
not identified material misstatements in the Directors' Report. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our |
opinion: |
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not |
visited by us; or |
- the financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we require for our audit; or |
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take |
advantage of the small companies exemptions in preparing the directors' report and from the requirement to prepare a Strategic |
Report. |
Independent Auditors' Report to the Members of |
The University of Manchester Innovation |
Centre Limited |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the |
preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as |
the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, |
whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going |
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the |
directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material |
misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a |
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material |
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the |
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial |
statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's |
website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act |
2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to |
state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume |
responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for |
the opinions we have formed. |
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for and on behalf of
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Birmingham |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Statement of Comprehensive Income |
for the Year Ended 31 July 2019 |
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2019 | 2019 | 2019 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
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TURNOVER | 3 |
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Administrative expenses |
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( |
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OPERATING LOSS | 6 |
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( |
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Amounts written off investments | - | - | - |
Interest payable and similar expenses | 7 |
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LOSS BEFORE TAXATION |
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Tax on loss | 8 |
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LOSS FOR THE FINANCIAL YEAR |
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( |
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OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | ( |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Statement of Comprehensive Income |
for the Year Ended 31 July 2019 |
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2018 | 2018 | 2018 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
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TURNOVER | 3 |
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Administrative expenses |
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( |
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OPERATING PROFIT | 6 |
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Amounts written off investments | - | - | - |
Interest payable and similar expenses | 7 |
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( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 8 |
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( |
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LOSS FOR THE FINANCIAL YEAR |
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( |
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OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE LOSS FOR THE YEAR | ( |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Statement of Financial Position |
31 July 2019 |
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2019 | 2018 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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CURRENT ASSETS |
Debtors | 10 |
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Cash in hand |
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CREDITORS |
Amounts falling due within one year | 11 | ( |
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NET CURRENT (LIABILITIES)/ASSETS | ( |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 12 |
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PROVISIONS FOR LIABILITIES | 13 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 14 |
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Revaluation reserve | 15 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Statement of Changes in Equity |
for the Year Ended 31 July 2019 |
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Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 August 2017 |
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Changes in equity |
Total comprehensive loss | - | ( |
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( |
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Gift aid payment | - | (151,486 | ) | - | (151,486 | ) |
Tax credit on gift aid payment | - | 28,782 | - | 28,782 |
Transfer from revaluation |
reserve | - | 78,261 | (78,261 | ) | - |
Balance at 31 July 2018 |
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Changes in equity |
Total comprehensive loss | - | ( |
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( |
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Transfer from revaluation |
reserve | - | 78,261 | (78,261 | ) | - |
Balance at 31 July 2019 |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Notes to the Financial Statements |
for the Year Ended 31 July 2019 |
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1. | STATEMENT OF COMPLIANCE |
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2. | ACCOUNTING POLICIES |
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Basis of preparation |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 (FRS102) "The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial |
statements have been prepared under the historical cost convention. |
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The following accounting policies have been applied consistently in dealing with items which are considered material in |
relation to the company's financial statements. |
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Financial reporting standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as |
permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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- the requirements of Section 7 Statement of Cash Flows. |
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Significant judgements and estimates |
In the process of applying these accounting policies, the company is required to make certain estimates, judgements and |
assumptions that management believe are reasonable based on the information available. These are reviewed on a regular |
basis by the management team. Significant estimates and material judgements used in the preparation of the financial |
statements are as follows: |
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Recoverability of debtors |
The provision for doubtful debts is based on an estimate of the expected recoverability of those debts. Assumptions are |
made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The |
provision is based on the current situation of the customer, the age profile of the debt and the nature of the amount due. |
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Impairments |
Management make judgements as to whether any indicators of impairment are present for any of the company's assets. |
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Provisions |
Management apply judgement to arrive at the best estimate for any obligation required. The amount recognised as a |
provision is management's best estimate of the present value of the amount required to settle the estimate. To arrive at |
this amount management assess the likelihood and extent of any future settlement and make judgements based on these. |
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Taxation |
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax |
authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, |
such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the |
responsible tax authority. |
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Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon |
likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Further details are contained in note 8. |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to |
customers. Turnover is recognised at the point the company has performed its obligations, based on the fair value of the |
right to consideration. |
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Going concern |
Due to plans to close The University of Manchester Innovation Centre Limited as soon as practicable, these accounts have |
not been prepared on a going concern basis. |
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Adjustments have been made as a consequence, specifically in relation to the reclassification of long term liabilities to |
current liabilities. |
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Tangible fixed assets |
Equipment and fixtures and fittings are measured at cost less accumulated depreciation and any accumulated impairment |
losses. |
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Depreciation is provided to write off the cost, less the estimated residual value of tangible fixed assets, by equal |
instalments over their useful economic lives, as follows: |
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Long leasehold property | - remaining life of lease (57.75 years) |
Fixtures and fitting | - 2-10 years |
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No depreciation is charged on land. |
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Residual value is calculated on prices prevailing at the date of acquisition. |
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Revaluation reserve |
The company has taken advantage of a transitional provision under FRS102 to revalue its land and buildings as at the date |
of transition and use this as deemed cost. An external valuation was undertaken by Gerald Eve LLP as at 31 July 2014. |
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The subsequent uplift in value has been allocated to a revaluation reserve in line with the Companies Act. An adjustment |
equivalent to depreciation on the revalued amount held in the revaluation reserve is released to retained earnings on a |
straight line basis over the remaining useful life of the building. |
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Operating leases |
Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or |
incentives are spread over the minimum lease term. |
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Lease premium |
The lease premium represents rental income received in advance and is spread on a straight-line basis over the lease term. |
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Government grants |
Grant funding is recognised as income upon entitlement. Income received in advance of any performance related condition |
being met is deferred until the performance related condition is satisfied. |
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Employment benefits |
Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in |
which the employees render service to the company. Any unused benefits are accrued and measured as the additional |
amount the company expects to pay as a result of the unused entitlement. |
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Post retirement benefits |
The company is a member of The University of Manchester Superannuation Scheme (UMSS). UMSS is a defined benefit |
scheme which is externally funded and contracted out of the State Second Pension (S2P). Contributions to the scheme are |
charged to the statement of comprehensive income as though the scheme was a defined contribution scheme. This is in |
accordance with the accounting for multi-employer pension schemes whereby the assets and liabilities of the scheme |
cannot be readily split between the participating members. The liabilities of the scheme are recognised within the financial |
statements of the ultimate parent company, the University of Manchester. |
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For defined contribution schemes, the amount charged to the statement of comprehensive income is the contributions |
payable in the period. |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Taxation |
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past |
reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date. |
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Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. |
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Deferred tax assets are only 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. |
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If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is |
reversed. |
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Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacted by the |
reporting date that are expected to apply to the reversal of the timing difference. |
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With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is |
presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the |
tax expense (income). |
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Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. Deferred tax |
assets and deferred tax liabilities are offset only if: |
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- the group has a legally enforceable right to set off current tax assets against current tax liabilities, and |
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- the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either |
the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net |
basis, or to realise the assets and settle the liabilities simultaneously. |
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Related party disclosure |
As the company is a wholly owned subsidiary of The University of Manchester, the company has taken advantage of the |
exemption contained in FRS102 section 33.1a, and has therefore not disclosed transactions or balances with entities which |
form part of the group. The consolidated financial statements of The University of Manchester, within which this company |
is included, can be obtained from the address given in note 17. |
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3. | TURNOVER |
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The turnover and profit on ordinary activities before taxation is wholly attributable to the principal activity of the company |
and arise solely in the United Kingdom. |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
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4. | EMPLOYEES AND DIRECTORS |
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The aggregate payroll costs of these persons were as follows: |
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2019 | 2018 |
£ | £ |
Wages and salaries | 279,107 | 275,725 |
Social security costs | 29,871 | 29,655 |
Other pension costs | 52,721 | 57,956 |
Severance costs | 138,574 | - |
500,273 | 363,336 |
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The average number of persons employed by the company (including directors) during the year was as follows: |
2019 | 2018 |
No | No |
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Building management | 7 | 8 |
Conference and events | 1 | 1 |
8 | 9 |
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5. | DIRECTORS' EMOLUMENTS |
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None of the directors who held office during the year received any remuneration or pension contributions from the |
company in the year (2018:£nil). |
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The total number of directors serving the company during the year amounted to 6 (2018: 7). The above emoluments relate |
to none of the directors (2018: none). 6 of the directors are employed and remunerated by The University of Manchester |
and its other subsidiaries and were remunerated by these entities (2018: 7). |
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6. | OPERATING (LOSS)/PROFIT |
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2019 | 2018 |
Operating (loss)/profit from continuing operations is stated after charging: | £ | £ |
Fees payable to the company's auditor: |
- audit of these financial statements | 9,484 | 7,322 |
Depreciation of tangible fixed assets: |
Owned | 497,999 | 462,106 |
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7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
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2019 | 2018 |
£ | £ |
Interest on group loans | 7,241 | 9,516 |
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The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
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8. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
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Deferred tax: |
Origination and reversal of |
timing differences | ( |
) |
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Tax on (loss)/profit | ( |
) |
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UK corporation tax has been charged at 19% (2018 - 19%). |
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Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained |
below: |
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2019 | 2018 |
£ | £ |
(Loss)/profit before tax | ( |
) |
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(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
(2018 - |
( |
) |
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Effects of: |
Expenses not deductible for tax purposes |
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Income not taxable for tax purposes | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Tax which would be payable in the absence of a gift aid payment |
|
|
Adjustments in respect of previous periods deferred tax | ( |
) |
|
Fixed asset differences |
|
|
Payment for prior year group relief claimed |
|
|
Adjust opening/closing rate to 19% |
|
(1,254 | ) |
Total tax (credit)/charge | ( |
) |
|
|
The tax on profit for the year is before the tax credit arising from the gift aid payment which is shown in reserves. |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
|
9. | TANGIBLE FIXED ASSETS |
Long | Fixtures |
leasehold | and |
property | Land | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2018 |
|
|
|
|
Additions |
|
|
|
|
At 31 July 2019 |
|
|
|
|
DEPRECIATION |
At 1 August 2018 |
|
|
|
|
Charge for year |
|
|
|
|
At 31 July 2019 |
|
|
|
|
NET BOOK VALUE |
At 31 July 2019 |
|
|
|
|
At 31 July 2018 |
|
|
|
|
|
The long leasehold property and land were valued on a fair value basis as at 31 July 2014 by an external valuer, Gerald Eve |
LLP, a regulated firm of Chartered Surveyors. As the property is a specialised property it was valued by reference to |
Depreciated Replacement Cost. The valuation was performed in accordance with RICS valuation- Professional Standards |
April 2015. In accordance with the FRS 102 transitional provisions these revised values are now used as the deemed cost of |
the buildings going forward. |
|
Depreciation commences from the month after that in which the asset is purchased. |
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Taxation and social security |
|
|
Other creditors |
|
|
|
|
|
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2019 | 2018 |
£ | £ |
Other creditors |
|
|
|
As the decision has been made to close the company, the deferred income relating to the lease premium paid in advance |
by The University of Manchester (the tenant) has been reclassified as due within one year as it is repayable upon the |
surrender of the lease. |
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
|
13. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax |
Differences between |
accumulated depreciation |
and capital allowances | 413,537 | 441,743 |
413,537 | 441,743 |
|
Deferred |
tax |
£ |
Balance at 1 August 2018 |
|
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 July 2019 |
|
|
14. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 50,000 | 50,000 |
|
15. | RESERVES |
|
Retained earnings | Revaluation reserve | Total |
£ | £ | £ |
Balance at 1 August 2018 | 6,356,640 | 6,383,557 | 12,740,197 |
Loss for the year after tax | (230,853 | ) | - | (230,853 | ) |
Transfer from revaluation reserve | 78,261 | (78,261 | ) | - |
Balance at 31 July 2019 | 6,204,048 | 6,305,296 | 12,509,344 |
|
The University of Manchester Innovation |
Centre Limited (Registered number: 03278630) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
|
16. | EMPLOYEE BENEFIT OBLIGATIONS |
|
The company participated in two pension schemes in the year. Details are as follows: |
|
The University of Manchester Superannuation Scheme (UMSS) |
|
The company was up until 1 August 2019 a member of The University of Manchester Superannuation Scheme providing |
benefits based on final pensionable pay. Because the company is unable to identify its share of the scheme assets and |
liabilities on a consistent and reasonable basis, as permitted by FRS102, the scheme is accounted for by the company as if |
the scheme was a defined contribution scheme, the cost recognised within the statement of comprehensive income being |
equal to the contributions payable to the scheme for the period. |
|
The benefits were restructured with effect from 1 January 2019. The final salary section (1/80th final pensionable salary |
and 3/80th cash) and the current Career Average Revalued Earnings (CARE) section (1/80th and 3/80th cash) were closed |
on 31 December 2018. All existing UMSS members now receive a defined benefit provision under a new 1/100th CARE |
section with effect from 1 January 2019. The scheme is closed to new joiners, who now join a new defied contribution (DC) |
scheme called the University of Manchester Pension Saver. |
|
A full actuarial valuation was carried out at 31 July 2016 and this most recent full valuation showed a deficit of £207.4m. |
The University has agreed with the trustees that it will eliminate the deficit over a period of 17 years and 6 months from 1 |
August 2017 by the payment of annual contributions of £6.0m per annum, increasing in line with RPI each 1 August until 31 |
January 2035. With effect from 1 January 2019, the University has agreed to pay contributions at the rate of 19.75% of |
pensionable pay for CARE members who participate in PensionChoice and 26.25% of pensionable pay for CARE members |
who do not participate in PensionChoice. |
|
The valuation was updated for FRS102 purposes to 31 July 2019 by a qualified actuary. The deficit was £138.0m on an |
FRS102 basis. Further details can be found in the University of Manchester financial statements (see note 17). |
|
The contributions made by the employer over the financial year have been £50,384 (2018: £57,956) equivalent to 19.75% |
of pensionable pay for members who do not participate in Pension Choice and 19.75% of pensionable pay plus the |
appropriate member rate for those who do. Members who do not participate in Pension Choice pay contributions at the |
rate of 7.50% for the Final Salary and 6.50% of pensionable pay for the CARE section. |
|
The University of Manchester and UMSS Ltd have agreed in principle a Flexible Apportionment Arrangement whereby the |
University takes over the responsibility for all the UMSS pension liabilities in respect of The University of Manchester |
Innovation Centre Ltd (UMIC) as "Replacement Employer". UMIC ceased to be a member of UMSS with effect from 1 |
August 2019. No payment of the pension liability was triggered. |
|
Defined contribution scheme |
|
The contributions into the new University of Manchester Pension Saver from 1 January 2019 to 31 July 2019 were £2,337 |
(2018 £nil). |
|
17. | ULTIMATE PARENT UNDERTAKING |
|
The company is a wholly owned subsidiary of The University of Manchester, a University incorporated by Royal Charter. |
The largest and smallest group in which the results of the company are consolidated is that headed by The University of |
Manchester. |
|
The University of Manchester is the ultimate controlling party and the ultimate parent of the company. |
|
Copies of the group financial statements can be obtained from that University's registered office, which is The University of |
Manchester, Oxford Road, Manchester, M13 9PL and are also available on the University's website. |
|
18. | POST BALANCE SHEET EVENTS |
|
On 1 August 2019 The University of Manchester took over the management of the Incubator buildings and events and |
conferencing activity. |
|
As set out in note 16, on 21 August 2019 a Flexible Apportionment Arrangement was signed whereby the University |
became the Replacement Employer within UMSS and the company ceased to be a member of UMSS. No payment of the |
pension liability was triggered. |