Year Ended
Registration number:
Cornwall Marine Network Limited
Balance Sheet
31 March 2021
Note |
2021 |
2020 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets/(liabilities) |
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( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Deferred income |
(12,000) |
(10,000) |
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Net liabilities |
( |
( |
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Capital and reserves |
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Profit and loss account |
( |
( |
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Total equity |
( |
( |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Company Registration Number: 04477226
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
General information |
The company is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
The company has taken advantage of the exemption under paragraph 33.1A "Related Party Disclosures" of FRS102 from disclosing transactions with wholly owned members of the group.
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Going concern
CMN has a record full order book with new and existing projects amounting to £9 million which are currently being recognised and will continue to be for the next two to three years through turnover.
The new commercial income being generated from training support for our Members, supported by our training delivery expansion across the wider South West UK, will result in record trading surpluses for the next three years which cumulatively are estimated to be +£250k.
The growth in accrued income towards the end of the year, as a result of the new contracts won, has been a key contributor to the net current asset position of £106k (2020 – net current liabilities of £24k) at the year end.
It is important to note the business model which CMN has so successfully adopted does give rise to fluctuations in the balance sheet position. CMN acquires knowledge of the barriers to growth faced by our member businesses, CMN then uses this market intelligence to bid for Public sector project funds, which when successfully won enables CMN to hire expert mentors and trainers to support members to achieve growth in their business. CMN is required to cash flow up to the first 6 months of new projects because claims to government funders are made quarterly and paid in arrears. This adversely impacts the balance sheet in the year projects start, but the final project payments enable the cash flow loans to be fully repaid. During FY2020-2021, CMN started a record volume of new business, requiring an increase in temporary cash flow loans.
The record growth planned will be key to CMN meeting future debt servicing requirements, with plans in place to repay the majority of loans between 2022 and the end of December 2023.
At the balance sheet date CMN had net liabilities of £72k (2020 - £98k) and this is being managed through maintaining strong relationships with key lenders and ensuring that appropriate repayment terms are in place. Loans that are due for repayment after more than one year amounted to £203k (2020 - £92k) at the year end.
Further emphasising the above, post year end CMN has been able to convert a Bounce Back loan of £50k to a CBILS loan of £165k. This has enabled further growth in CMN services and allowed for improved cash management until projects complete and loans are repaid.
CMN acquired two new offices during peak pandemic, initially to accommodate the increased CMN team, with the intention to develop the offices into smaller managed workspaces to be rented to Marine start-up businesses, adding a new commercial income and enabling more local businesses to grow and prosper. New commercial business support products are also being planned for launch during the next 12 months.
Given the above the directors have decided that it is appropriate for the accounts to be prepared on a going concern basis.
Revenue recognition
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of services to customers.
Government grants
Government grants in respect of capital expenditure are credited to deferred income and are released to the profit and loss over the expected useful lives of the related assets.
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Other grants
Due to the nature of the company's trade its primary source of income is government and other associated bodies grant funding. Each funding project is assessed individually based on the terms of the funding agreement and income is released to the profit & loss account so as to match with the related expenditure incurred by the company.
Where the terms of the agreements are subjective the directors use their judgement to assess the release of this income and this is carried out regularly throughout the year. At the year-end a full reconciliation is completed to ensure that income recognition is in line with relevant Accounting Standards and UK GAAP.
Intangible assets
Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition and development.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Website development costs |
20% straight line |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
20% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank and other loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank and other loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank and other loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Critical accounting judgements and estimation uncertainty
Management evaluate estimates and judgements on an annual basis, and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The key estimates applied by management are as outlined below:
Revenue recognition
Due to the varying nature of the projects undertaken by CMN, management carefully review the contracts in place to ensure that revenue is recognised appropriately.
When projects advance funds to CMN before the provision of services, or expenditure being incurred, CMN will defer the funds as deferred income. This will then be released to the profit and loss account as the services are provided and expenditure incurred.
Conversely, CMN will accrue for revenue when the project makes payments in arrears. This is based on the value of services provided and expenditure incurred up to 31 March 2021.
Recoverability of debtors
Management regularly assess the debtors outstanding and there likelihood of recovery. Where management believe there is uncertainty over the recoverability of the balances outstanding provisions are put in place to reduce the balance down to its anticipated recoverable value.
Depreciation and useful economic lives of intangible and tangible assets
Management have carefully considered the depreciation estimates applied on the intangible and tangible assets held by the group. This assessment is performed on an annual basis, and would be amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of each asset.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Intangible assets |
Website development costs |
Total |
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Cost or valuation |
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At 1 April 2020 |
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At 31 March 2021 |
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Amortisation |
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At 1 April 2020 |
- |
- |
Amortisation charge |
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At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
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At 31 March 2020 |
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Tangible assets |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 April 2020 |
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Additions |
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Disposals |
( |
( |
At 31 March 2021 |
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Depreciation |
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At 1 April 2020 |
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Charge for the year |
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Eliminated on disposal |
( |
( |
At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
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At 31 March 2020 |
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Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Investments |
2021 |
2020 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 April 2020 |
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Disposals |
( |
At 31 March 2021 |
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Carrying amount |
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At 31 March 2021 |
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At 31 March 2020 |
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All of the above companies are currently dormant and the registered offices are the same as the parent company.
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Holding |
Proportion of voting rights and shares held |
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2021 |
2020 |
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Subsidiary undertakings |
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Ordinary shares |
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Ordinary shares |
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Ordinary shares |
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Ordinary shares |
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Ordinary shares |
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Ordinary shares |
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Ordinary Shares |
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Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Undertaking |
Holding |
Proportion of voting rights and shares held |
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Ordinary Shares |
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Debtors |
Note |
2021 |
2020 |
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Trade debtors |
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Amounts due from related parties |
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Other debtors and accrued income |
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Prepayments |
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Creditors |
Creditors: amounts falling due within one year
Note |
2021 |
2020 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Amounts due to related parties |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2021 |
2020 |
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Due after one year |
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Loans and borrowings |
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Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Loans and borrowings |
2021 |
2020 |
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Current loans and borrowings |
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Bank borrowings |
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- |
Bank overdrafts |
- |
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Finance lease liabilities |
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Other borrowings |
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2021 |
2020 |
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Loans and borrowings due after one year |
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Bank borrowings |
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- |
Finance lease liabilities |
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Other borrowings |
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Share capital |
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members are liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Other commitments
The company is the sole member of Cornwall Apprenticeship Agency Limited a company limited by guarantee. In the event of the company entering liquidation the company would be liable to contribute an amount not exceeding £10 towards the assets of Cornwall Apprenticeship Agency Limited.
Cornwall Marine Network Limited
Notes to the Financial Statements
Year Ended 31 March 2021
Related party transactions |
The company has taken advantage of the exemption under paragraph 33.1A Related Party Disclosures of FRS102 from disclosing transactions and balances with wholly owned subsidiaries.
Summary of key transactions with Members
During the prior year certain members advanced £62,000 as loan notes. These loan notes are repayable on demand and attract interest at 5.5% above base. At the balance sheet date the amount owed to these members was £62,000 (2020 - £62,000).
Summary of transactions with other related parties
During the year the company charged Cornwall Apprentice Agency Limited management fees of £10,923 (2020 - £3,500). At the balance sheet date the amount due from Cornwall Apprentice Agency Limited was £38,716 (2020 - £28,633).
During the year the company charged Cornwall Marine Academy C.I.C. management fees of £8,000 (2020 - £11,000). At the balance sheet date the amount due from Cornwall Marine Academy C.I.C. was £8,025 (2020 - £16).
Audit report |