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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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The University of Manchester I3 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 I3 Limited |
The University of Manchester I3 Limited (Registered number: 05177409) |
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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 | 8 |
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Statement of Changes in Equity | 9 |
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Notes to the Financial Statements | 10 |
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The University of Manchester I3 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 I3 Limited (Registered number: 05177409) |
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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 to identify and assess The University of Manchester's intellectual property and select and |
register that intellectual property which has commercial potential and to undertake its commercialisation by licensing and/or |
spin-out company project management and to give advice to The University of Manchester on good practice university intellectual |
property policy and procedures. The company also provides business support services (sales & marketing, accounting, legal, HR) to |
its sister company The University of Manchester Innovation Centre Limited and also Graphene Enabled Systems Limited. |
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GOING CONCERN |
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in |
operational existence for the foreseeable future. |
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The company is part of the wider University of Manchester group of companies. The University of Manchester, the ultimate parent |
company of the group, has confirmed in writing its intention to provide ongoing support to the company for a period of at least 12 |
months from the date of signature of these accounts. Having considered the ability of the University of Manchester to provide that |
support, and based on the confirmation received, the directors believe that the company is well placed to manage its business risks |
successfully. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. |
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REVIEW OF BUSINESS |
The results for the year are set out on page 7 of the financial statements. |
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The position at the year end was satisfactory. |
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RESULTS AND DIVIDENDS |
The profit for the year after taxation amounted to £377,379 (2018: profit £44,660) |
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The directors do not recommend a gift aid payment (2018:£218,831) |
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The directors do not recommend the payment of a dividend (2018: £nil) |
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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 I3 Limited (Registered number: 05177409) |
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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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ON BEHALF OF THE BOARD: |
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The University of Manchester I3 Limited (Registered number: 05177409) |
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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 I3 Limited |
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Opinion |
We have audited the financial statements of The University of Manchester I3 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 16, 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 profit 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 |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt
about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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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: |
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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 |
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the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take
advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Directors' Report. |
Independent Auditors' Report to the Members of |
The University of Manchester I3 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 I3 Limited (Registered number: 05177409) |
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Statement of Comprehensive Income |
for the Year Ended 31 July 2019 |
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2019 | 2018 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales | ( |
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GROSS PROFIT |
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Administrative expenses | ( |
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OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
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The University of Manchester I3 Limited (Registered number: 05177409) |
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Statement of Financial Position |
31 July 2019 |
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2019 | 2018 |
Notes | £ | £ |
FIXED ASSETS |
Computer software | 8 |
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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 ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 12 |
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Retained earnings | 13 |
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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 I3 Limited (Registered number: 05177409) |
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Statement of Changes in Equity |
for the Year Ended 31 July 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 August 2017 |
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Changes in equity |
Total comprehensive income | - |
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Gift aid payment | - | (218,831 | ) | (218,831 | ) |
Tax credit on gift aid payment | - | 42,642 | 42,642 |
Balance at 31 July 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 July 2019 |
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The University of Manchester I3 Limited (Registered number: 05177409) |
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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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These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The University of Manchester I3 Limited is a private company, limited by shares, incorporated in England and Wales. The registered office is the Core Technology Facility, 46 Grafton Street, Manchester, M13 9NT. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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 7. |
The University of Manchester I3 Limited (Registered number: 05177409) |
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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 |
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue |
in operational existence for the foreseeable future. The company is part of the wider University of Manchester group of |
companies. The ultimate parent company of the group, has confirmed in writing its intention to provide ongoing support to |
the company for a period of at least 12 months from the date of signature of these accounts. Having considered the ability |
of the University of Manchester to provide that support, and based on the confirmation received, the directors believe that |
the company is well placed to manage its business risks successfully. Accordingly, they continue to adopt the going concern |
basis in preparing the annual report and accounts. |
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Intangible fixed assets |
Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. |
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Externally generated software is initially capitalised at cost. Upgrades and enhancements are capitalised only where |
additional functionality of capacity is provided. |
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Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, |
using the straight-line method. The intangible assets are amortised over the following useful economic lives: |
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Software cost | - | 4 years |
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Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
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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Computer equipment | - | 4 years |
Fixtures, fittings and office equipment | - | 6 to 7 years |
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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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Pension costs and other post-retirement benefits |
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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 University. Any unused benefits are accrued and measured as the additional |
amount the University 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 I3 Limited (Registered number: 05177409) |
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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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Gift aid donation |
The gift aid donation is deemed to be a distribution by the company. |
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The gift aid donation recognised is equal to estimated taxable profits of the company at the time of the approval of the |
financial statements. The gift aid paid within nine months of the balance sheet date is equal to the estimated taxable |
profits of the company at time of payment. Any difference between the gift aid donation accrued and the gift aid donation |
paid is recognised at the time of payment. Therefore the payment and associated tax credit are taken through reserves and |
not the Statement of Comprehensive Income. |
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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 16. |
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3. | TURNOVER |
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The turnover and profit before taxation are wholly attributable to the principal activity of the company. Turnover analysed |
by the destination geographical market is as follows: |
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2019 | 2018 |
£ | £ |
United Kingdom | 5,287,276 | 6,298,070 |
USA | 52,987 | 50,418 |
Rest of World | 306,821 | 213,493 |
5,647,084 | 6,561,981 |
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The University of Manchester I3 Limited (Registered number: 05177409) |
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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 were as follows: |
2019 | 2018 |
£ | £ |
Wages and salaries | 1,891,732 | 1,977,792 |
Social security costs | 226,805 | 229,611 |
Other pension costs | 435,685 | 488,501 |
Voluntary Severance | 163,516 | - |
2,717,738 | 2,695,904 |
The company has introduced a salary sacrifice arrangement known as Pension Choice, for employees who are members of |
the UMSS pension scheme. Wages and salaries for UMSS members participating in Pension Choice reflect the reduced gross |
pay earned by staff and the pensions costs include both the employee and employer elements of UMSS pension |
contributions. |
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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. |
Technology transfer | 27 | 30 |
Corporate functions | 9 | 8 |
36 | 38 |
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5. | DIRECTORS' EMOLUMENTS |
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2019 | 2018 |
£ | £ |
Emoluments | 224,883 | 309,423 |
Pension contributions | 29,733 | 46,730 |
254,616 | 356,153 |
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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 3 of the directors (2018: 4) one of whom is employed by the University and seconded to the company. 2 of the directors |
are employed and remunerated by the University of Manchester (2018: 2) The remaining director is not remunerated. |
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One of the directors receiving emoluments is a members of the USS scheme (2018: 2). This is a defined benefit pension |
scheme and the company makes contributions on their behalf. The University of Manchester I3 Limited is not a |
participating employer. The individual who is a member of the USS is employed by The University of Manchester and |
seconded to The University of Manchester I3 Limited. |
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The remuneration of the highest paid director was as follows: |
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2019 | 2018 |
£ | £ |
Remuneration | 93,662 | 181,700 |
Pension contributions | 15,768 | 31,689 |
109,430 | 213,389 |
The University of Manchester I3 Limited (Registered number: 05177409) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
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6. | OPERATING PROFIT |
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2019 | 2018 |
Operating profit from continuing operations is stated after charging: | £ | £ |
Fees payable to the company's auditor |
- audit of these financial statements pursuant to legislation | 4,742 | 4,576 |
Depreciation of tangible fixed assets - owned | 17,237 | 16,994 |
Amortisation of intangible fixed assets | 1,750 | 875 |
Operating lease rentals - other operating leases | 132,915 | 172,835 |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
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Tax on profit |
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UK corporation tax has been charged at 19% (2018 - 19%). |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained |
below: |
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2019 | 2018 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK of
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Effects of: |
Expenses not deductible for tax purposes |
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Adjustments to tax charge in respect of previous periods | ( |
) |
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Tax which would be payable in the absence of gift aid | 11,391 |
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Movement in deferred tax not provided | ( |
) |
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Group relief claimed | ( |
) | ( |
) |
Adjust opening / closing rate to 19% | ( |
) | 253 |
Total tax charge | - | 42,642 |
|
The tax on profit for the prior year is before the tax credit arising from the gift aid payment which is shown in reserves. |
|
Factors that may affect future tax charges |
A deferred tax asset amounting to £1,733 (2018: £nil) has not been recognised because in the opinion of the directors there |
will be no suitable taxable gains available in the foreseeable future. |
The University of Manchester I3 Limited (Registered number: 05177409) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
|
8. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 August 2018 |
and 31 July 2019 |
|
AMORTISATION |
At 1 August 2018 |
|
Amortisation for year |
|
At 31 July 2019 |
|
NET BOOK VALUE |
At 31 July 2019 |
|
At 31 July 2018 |
|
|
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Office | and | Computer |
equipment | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2018 |
and 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 |
|
|
|
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Taxation and social security |
|
|
Other creditors |
|
|
|
|
The University of Manchester I3 Limited (Registered number: 05177409) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
|
12. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 50,000 | 50,000 |
|
13. | RESERVES |
|
£ |
Brought forward reserves at 1 August 2018 | 504,574 |
Profit for the year after tax | 377,379 |
Carried forward reserves at 31 July 2019 | 881,953 |
|
14. | 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 is 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 defined 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 £138m on an FRS102 |
basis. Further details can be found in the University of Manchester financial statements (see note 16). |
|
The contributions made by the employer over the financial year have been £373,373 (2018: £429,670) 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. |
|
Defined contribution scheme |
|
The contributions into the new University of Manchester Pension Saver from 1 January 2019 to 31 July 2019 were £20,249 |
(2018 £nil). |
The University of Manchester I3 Limited (Registered number: 05177409) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2019 |
|
15. | OTHER FINANCIAL COMMITMENTS |
|
At 31 July 2019 the company was committed to making the following payments under non-cancellable operating leases. |
|
2019 | 2018 |
£ | £ |
Operating leases which expire: |
In less than one year | 211,719 | 91,284 |
Between two and five years | 359,657 | 13,043 |
571,376 | 104,327 |
|
|
|
16. | 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. |