Registered number:
(A Company Limited by Guarantee)
FOR THE YEAR ENDED 31 MARCH 2021
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
COMPANY INFORMATION
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
CONTENTS
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2021
I
ntroduction
The directors present their Group Strategic Report for the year ended 31 March 2021. Business Review Digital Catapult is the UK authority on advanced digital technology. Through collaboration and innovation, we accelerate industry adoption of advanced digital technologies, to drive growth and opportunity across the economy. We bring together an expert and enterprising community of researchers, startups, scaleups and industry leaders to discover new ways to solve the big challenges limiting the UK’s future potential. Through our specialist programmes and experimental facilities, we make sure that innovation thrives and the right solutions make it to the real world. Our goal is to accelerate new possibilities in everything we do and for every business with which we partner, breaking down barriers, de-risking innovation, opening up markets and responsibly shaping the products, services and experiences of the future. Digital Catapult has grown and scaled its programmes over the past financial year despite the challenges posed by the pandemic. The organisation migrated its entire function online, which meant developing a new set of tools and solutions to help our partner companies continue to be able to do business and develop their solutions. It meant ensuring our entire workforce continued to be able to work from home, protecting their well being and mental health as well driving increased productivity. In this challenging context, our commercial partnerships slowed down, inevitably some companies needed to withdraw from innovation work entirely, but overall we grew our business as the appetite for digital adoption accelerated in the pandemic. This also meant developing new initiatives in cross technology applications such as Advanced Digital Infrastructure, scaling our regional presence and building new facilities. During the pandemic, through the Financial year 20/21, Digital Catapult successfully pivoted to a remote working setting and put in place various mechanisms and initiatives to support our teams. This included events as well as improvements in some of our business systems. We ensured we were listening to our team members' needs by running surveys and through focused group conversations and responded to the needs of our team in varying ways. Through the year, we addressed different aspects of wellbeing and mental health, running events for all team members and related training sessions for managers. For example, we ran a series of training on building resilience within ourselves and our teams. Additionally, we continued to promote the benefits we have in place to support health and wellbeing, including our free for all Employee Assistance Programme and other optional health benefits. We also ensured that we continued to develop our EDI programme, again as a means of supporting our team's wellbeing and in order to build an understanding of the benefits of building a diverse team and to create a sense of belonging for all who work at Digital Catapult. In Financial year 20/21, we have also worked with companies to innovate through the pandemic and into recovery, helping the economy to build back better. In the midst of the emergency we were able to act as a helpful interface between our ecosystem of high growth businesses and government. We fed regular information back into government departments about what the companies were telling us they needed to survive the impact of the pandemic. Some companies struggled to survive, but many brought new products and services to market, transformed their business operations and have grown despite the many challenges faced over the past year. The longer-term impact of our work will be visible in the customers of those new products and services and the benefits to wider society and the economy from those innovations. Overall, this past year has seen us create real momentum in the marketplace, growing our reputation through a track record of high-level technical competence, leading edge innovation capability and a responsible approach to technology optimism, as well as ambition for the companies we work with across all regions of the UK. We are more than excited about what we can do in the coming year as our ambition and impact grows.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Highlights of achievements in FY 20/21 Digital Catapult completed the third year of its second Five Year Delivery Plan (2018 to 2023). During this third year, we have built a new facility called the SmartRAN Open Network Interoperability Centre (SONIC Labs) announced as part of DCMS’ 5G Diversification Strategy. This is a joint programme between Digital Catapult and Ofcom to foster emergence of new solutions in the telecom supply chain in the UK, focusing on multi-vendor open, disaggregated and software-centric network products, solutions and services, starting with Open RAN, which has been live and operational from June 2021. Digital Catapult has continued to build and develop our innovation and acceleration programmes. In October Digital Catapult launched The Made Smarter Technology Accelerator, a national programme funded by UKRI, set to shape technology innovation for the manufacturing sector. Working with both manufacturers and innovative UK startups and scaleups, the programme sees leading innovators develop technology prototypes that will address some of the UK’s most prevalent manufacturing challenges. This year Digital Catapult has worked closely with over 500 SME’s - largely early stage and high growth deep tech companies. Digital Catapult reached each of its KPI targets which were set by Innovate UK. Another highlight has been the realisation of our ambitions, set out in last year's accounts, to grow our offer across the UK. Maintaining our strategy of leveraging local strengths has been particularly relevant during COVID-19 to develop deeper and new partnerships regionally. As outlined previously, scaling our interventions is paramount to success, examples of this include; the developing 'Design Smarter' Digital Twin project with commercial partners in Northern Ireland, 5G SPRING in partnership with West Midlands Combined Authority; and a Digital Catapult North East & Tees Valley £1.5m Digital Adoption programme. In 20/21 we have also launched a collaboration with Bristol University focused on developing translational vehicles for advanced digital technologies within the creative and manufacturing sectors in the South West of England. In 20/21 we added two new regional sites and significantly scaled existing sites/centres, therefore our focus for 21/22 will be to embed ourselves further and reinforce the growth within those regions. This will deliver to our levelling up strategy and will support the growth of the network in areas of emerging opportunity. Funding Digital Catapult is funded by Innovate UK (UK Government grant) in accordance with the grant funding agreement to 2023. In addition, the company generated income from Collaborative Research and Development projects and Commercial business activities. Commercial Income This is the eighth year of trading for our subsidiary, DCS Ltd and we are pleased to report £3,350,013 of income Principle risks and uncertainties The risk register is reviewed in combination with the parent company register, which was presented to the Audit Committee and Board. Each risk is followed up and actions taken to mitigate risk where practicable. The most significant risks for the Group are: A reduction in government funding or a material change in government policy, continues to be an ongoing risk. The government focus on covid-19 for some time may delay decisions for example on spending
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
The impact of UK withdrawal from the EU may affect the availability of EU funded projects. The availability and timing of new funding opportunities by the UK government may be slow to materialise. This could impact the scope of collaborative research and development projects, innovation investment in the market and the speed of commercial adoption The economic impact of the pandemic on certain industrial sectors will create a downturn unevenly across different sectors. This will result in company failures and increased unemployment which will have a knock-on effect in terms of industrial participation in DC activities. The Grant funding agreement (GFA) with Innovate UK contains a number of key performance indicators (KPIs), which, if not met for two years in succession would give Innovate UK the right to review the terms and continuation of the GFA.
This report was approved by the board
and signed on its behalf.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2021
The directors present their report and the financial statements for the year ended 31 March 2021.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the
consolidated
financial statements in accordance with applicable law and regulations.
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the surplus or deficit of the Group for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the Group's financial statements 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 Group will continue in business.
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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
With policy responsibility sitting with both the UK Government’s Department for UK Government’s Business Energy Industrial Strategy (BEIS) and the Department for Digital Culture Media and Sport (DCMS), as well as being part of the world-renowned Catapult Network, Digital Catapult is the UK’s leading advanced digital technology innovation centre. We accelerate the adoption of new and emerging technologies to drive regional, national and international growth for businesses across the UK economy. With 180+ technology, innovation, industry and policy experts - Digital Catapult works with the supply and demand for advanced digital technologies - from start-ups and scaleups, to established businesses, investors, government and public sector, research and academia. Digital Catapult helps to discover and design new ways of solving industry challenges, increasing productivity and opening up new markets. Digital Catapult’s focus is on a new and emerging advanced digital technology stack, that combines: • Future networks: 5G, the internet of things (IoT) and other next generation network technologies • Artificial intelligence and machine learning • Distributed systems (distributed ledger technologies, including blockchain) • Immersive technologies (virtual, augmented and mixed reality, and haptics) Digital Catapult (1) builds and operates physical and virtual facilities that would not exist without its investment; (2) designs and delivers specialised regional, national and international innovation programmes, that tackle capability and market failures, driving UK leadership and economic growth; and (3) build combined technology proof of concepts and pilots through collaborative and commercial research & development (R&D), unlocking the economic potential of innovation, helping to prove the business case and accelerate the adoption of emerging technology start-ups and scaleups solutions into industry. We accelerate practical approaches to adoption – with ethical and security considerations – so that the UK can benefit from these technologies at a national scale. The review of the business is presented in the strategic report Sources of Income In the current year, Digital Catapult was funded by a UK Government grant. In addition, the Company generated income from Collaborative Research and Development projects and Commercial business activities.
Turnover of £21,719,459 (2020: £18,416,441) was made up of grants totalling £18,369,446 (2020: £15,421,438) received from Innovate UK and Collaborative R&D projects and also £3,350,013 (2020: £2,995,003) of Commercial income from the Trading subsidiary, Digital Catapult Services Limited. Operational costs of the organisation were £21,747,418 (2020: £18,190,623) and Other operating income of £109,157 (2020: £128,512) resulting in an operating profit of £81,198 (2020: profit £354,330).
The surplus for the year, after taxation, amounted to £
33,769
(2020 :
£
249,026
)
.
The directors have disclosed some required information within the Group Strategic Report.
The directors who served during the year were:
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
2021/22 will be significant for the UK as we move out of the pandemic into a stage of economic recovery, with a focus on levelling up regional capabilities, establishing better resilience through digitalisation across multiple sectors and driving the UK forward as a global leader in science and technology innovation. This includes a shift towards innovations and R&D for cyber physical systems and infrastructure - which brings together the digital and the physical worlds through applications and solutions such as digital twins, virtual production and new human machine interfaces such as AR Cloud. Digital Catapult will continue to help the UK become more globally competitive in this environment, by leveraging our ability to specialise and capitalise on our international reputation for innovation and creativity. Technology is at the heart of this, and the UK has a vibrant and growing tech ecosystem that with the right support, delivered locally, can continue to flourish and scale.
The core principles of the Digital Catapult strategy will remain the same, and our vision of the new technology stack will take a step further forward in development. However, in 2021 new themes have emerged in resilience, sustainability, and net zero. We will also provide expert insights for the UK Government around Cyber Physical Infrastructure and Digital Twins, supporting the UK in developing new innovations in these areas that can benefit the wider economy and society. This includes work around telecoms supply chain diversification, through our recently launched SONIC OpenRAN facility for 5G in partnership with Ofcom and DCMS. These initiatives will also enable interventions across industries, particularly in our manufacturing work as we embark on new projects in the food supply chain and seek to build ambitious collaborative projects to address climate change. In the creative industries we are starting to develop the UK’s position as the leading global digital media production centre and stimulate the development of new digital production techniques along with some ambitious proposals with academic and industrial partners for the creation of new world class facilities across the UK. Digital Catapult will be at the heart of the most critical digital technology developments for business and for national innovation and R&D strategies for the UK over the course of the next year. In both the short term and in the longer term, Digital Catapult will ensure that opportunities are grown for UK innovation - leveraging our strengths and the capabilities of advanced digital technology supply and demand to position us for the future.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
After the year end, the Group issues £200,000 3% unsecured loan notes to Creative Capture Studios Limited.
The auditor, James Cowper Kreston, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF DIGITAL CATAPULT
We have audited the financial statements of Digital Catapult (the 'parent Company') and its subsidiary (the 'Group') for the year ended 31 March 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity
and the related notes, 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF DIGITAL CATAPULT (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF DIGITAL CATAPULT (CONTINUED)
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 Auditor's 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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
·
Enquiry of management and those charged with governance around actual and potential litigation and claims;
·
Enquiry of management and those charged with governance to identify any material instances of non- compliance with laws and regulations;
·
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
·
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
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 Auditor's Report.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF DIGITAL CATAPULT (CONTINUED)
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 Auditor's 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.
for and on behalf of
Chartered Accountants and Statutory Auditor
2 Chawley Park
Cumnor Hill
Oxfordshire
OX2 9GG
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
REGISTERED NUMBER:
07964699
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 17 to 35 form part of these financial statements.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
REGISTERED NUMBER:
07964699
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 17 to 35 form part of these financial statements.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 MARCH 2021
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 MARCH 2021
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Digital Catapult is a company incorporated in England and Wales, and limited by guarantee.
Digital Catapult is the UK’s leading advanced digital technology innovation centre. It drives the early adoption of digital technologies to make UK businesses more competitive and productive to grow the country’s economy The Company's registered office is 101 Euston Road, London, NW1 2RA.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of Company and its own subsidiary ("the Group") as if they formed a single entity. Intercompany transactions and balances between group companies are, therefore, eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date upon which control is obtained. They are deconsolidated from the date control ceases.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.
Accounting policies (continued)
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
Funding for the 5 year term from 2018/19 onwards was confirmed in November 2018. This core funding is supplemented by funding from other sources.
The Grant funding agreement (GFA) contains a number of key performance indicators (KPIs), which, if not met for two years in succession, would give Innovate UK the right to review the terms and renewal of the GFA. The Directors believe that the Group can continue to operate as a going concern.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.
Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.
Accounting policies (continued)
Grants are accounted for under the accruals model as permitted by FRS 102.
Grants relating to expenditure on tangible fixed assets are credited to the Consolidated Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.
Accounting policies (continued)
When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.
Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: The recognition of income arising from government grants has been carefully considered to ensure compliance with the requirements of the accruals based approach permitted under FRS 102.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Analysis of turnover by country of destination:
Page 24
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 25
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 26
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
11.
Taxation (continued)
In the Spring Budget 2021, the Government announced that from 1 April 2023 the main corporation tax rate will increase to 25%. As the proposal to increase the rate to 25% had not been substantively enacted at the balance sheet date, its effects are not included in these financial statements. However, it is likely that the overall effect of the change, had it been substantively enacted by the balance sheet date, would be to increase the tax expense for the period and to reduce the deferred tax liability. The impact of these changes is not expected to be material.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 28
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 29
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 30
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 31
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 32
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Page 33
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
Profit & loss account
The Company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the Company in the event of liquidation.
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DIGITAL CATAPULT
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension charge represents contributions payable by the Group to the fund and amounted to £775,940 (2020: £624,541). Contributions totalling £nil (2020: £95,892) were payable to the fund at the balance sheet date and are included in creditors.
There is no single controlling party.
Page 35
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