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(a company limited by guarantee) |
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Year Ended |
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Company Number
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Knowledge Transfer Network Limited
(a company limited by guarantee)
Report and financial statements
for the year ended 30 June 2020
Contents
Page: |
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1 |
Strategic report |
3 |
Directors' report |
5 |
Independent auditor's report |
8 |
Statement of income and retained earnings |
9 |
Balance sheet |
10 |
Statement of cash flows |
11 |
Notes forming part of the financial statements |
Directors
J M Brown
R Croudace
A Greated
R C B Judge
D K Lawrence
N A J Lieven
Company secretary and registered office
Company number
08705643
Auditors
Knowledge Transfer Network Limited
(a company limited by guarantee)
Strategic report
for the year ended 30 June 2020
KTN exists to connect innovators with new partners and new opportunities, helping to accelerate ambitious ideas into real-world solutions. Businesses make up the core of our network, but our diverse connections span government, funders, research and the third sector. This overview and connectivity enable us to take partners, clients and communities through the complex landscape of research, development and innovation.
The majority of funding for KTN comes from an Innovate UK (part of UK Research and Innovation) grant, which funds a dedicated programme of work. Other work is funded from a range of private business, UK Research and Innovation, UK Government Departments, Devolved Administrations, the EU and other network organisations.
Business Review
Year ending June 2020 was one of significant disruption. Our UK and Global societies and economies were heavily impacted by the Covid-19 pandemic, which saw much of the world move into significant periods of lockdown.
The pandemic has heightened awareness of the need for effective innovation to address some of the world's changing and urgent societal and economic challenges. It has also brought even greater attention to Net Zero, Equality and Diversity and Global Innovation at regional, national and global levels.
Throughout 2019/20 KTN adapted quickly to not just maintain operations, but to build and extend our reach into areas where it was most needed. This included supporting the work around delivering the Sustainable Innovation Fund and creating curated groups who could, for example, consider how industrial mathematics could support food charities or how workboat capacity might be safely run during the pandemic.
Subsequent to year end, in August 2020, KTN launched our five-year strategy, which describes our purpose as creating diverse connections for positive change and sets out a series of commitments through which we will deliver that purpose.
As part of this work, we have committed to forging even more impactful relationships between business and research through the Knowledge Transfer Partnership (KTP) programme of work. In 2020, we collaborated with Innovate UK to launch Management KTPs. Effective business management has never been more important than it is now as we navigate the changes brought about by the impact of Covid-19 and Brexit. 41 Management KTPs were introduced this year, complementing the other 740 KTPs across the UK.
KTN's Innovation Networks bring together diverse ideas and expertise as a purposeful community to address key societal, economic, business or sustainable challenges. Our current portfolio of Innovation Networks reflects the priorities of the organisation in focusing on net zero, equality diversity and inclusion, local and global innovation and innovation adoption and diffusion. The networks include, for example, Hydrogen Economy; Decarbonising Ports & Harbours, Made Smarter and Geospatial Insights.
The number of employees (FTE) at the start of the year was 188 and this had increased to 193 by the year end. Throughout this year, we have focused significant attention on the wellbeing and support of our people and teams, encouraging new ways of working and interacting to ensure they are well-placed to continue driving change through innovation.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Strategic report
for the year ended 30 June 2020
Principal risks and uncertainties
The funding from Innovate UK contributes to 90% of KTN income. Loss of this funding would threaten the viability of the business. Currently there is a four-year Memorandum of Understanding in place from Innovate UK for the period April 2020 to March 2024 with funding profiles included.
The Department for Business, Energy and Industrial Strategy (BEIS) has published a Roadmap which outlines plans to shape the £22 billion investment in research and development by 2024 and a targeted 2.4% of GDP by 2027, and 3% in the longer-term.
However, alongside this and in light of the impact of Covid-19, UK government has also taken the decision to reduce funds available for Official Development Assistance (ODA). The impact of this decision on UKRI meant a £125m budget and a £120m gap between allocations and commitments. This has and will have variable levels of impact on KTN work, but in the short term led to us reshaping a significant part of our KTN Global Alliance activity. This work was done pro-actively and managed effectively. KTN will use this model as an opportunity to support programmes of work led by other partners and clients which will need to adapt from original plans to deliver impact.
KTN, Finance the Audit Committee and the Board of Directors review and update the company's risk register quarterly.
Financial key performance indicators
Our business planning and financial management require us to balance resource against grant and non-grant income to deliver high quality results against objectives. This balance is continually changing as we attract new clients who complement the work of our grant-funded activity with Innovate UK.
Grant funded activities have been managed within the set budget and business growth is on track.
KTN continues to grow its portfolio of projects including activities which are won by tender or competition. Such projects are costed at commercial rates and are intended to deliver a margin over costs contributing to KTN reserve funds. In line with the plan, the business has generated a moderate surplus in the year. These funds provide some protection in the event of any future potential losses and will be used for deployment against our Business Objectives in future years.
This report was approved by the board on 25 June 2021 and signed on its behalf.
Alicia Greated
Director
Knowledge Transfer Network Limited
(a company limited by guarantee)
Directors' report
for the year ended 30 June 2020
The directors present their report together with the audited financial statements for the year ended 30 June 2020.
Principal activity
The principal activity of the company during the year was the promotion of innovation within the UK.
Results
The profit for the year, after taxation, amounted to £433,653 (2019 - £698,400).
Business review
A review of the business and its principal risks and uncertainties is set out in the strategic report on pages 1 to 2 of these financial statements.
Directors
The directors who served during the year and to the date of this report were:
J M Brown |
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R Croudace |
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A Greated |
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R C B Judge |
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D K Lawrence |
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N A J Lieven |
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R L Mallors-Ray |
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I T Roche |
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(Resigned
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(Resigned
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Disclosure of information to auditor
Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
• |
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and |
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• |
the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
Knowledge Transfer Network Limited
(a company limited by guarantee)
Directors' report
for the year ended 30 June 2020 (continued)
Directors' responsibilities
The directors are responsible for preparing the directors' report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom accounting standards and applicable law). 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:
• |
select suitable accounting policies and then apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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.
Auditor
The auditor, BDO LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
A Greated
Director
Knowledge Transfer Network Limited
(a company limited by guarantee)
Independent auditor's report
Independent auditor's report to the members of Knowledge Transfer Network Limited
Opinion
We have audited the financial statements of Knowledge Transfer Network Limited (the ‘company') for the year ended 30 June 2020 which comprise Statement of income and retained earnings, Balance sheet, Statement of cash flows and notes to the financial statements, 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).
In our opinion, the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 30 June 2020 and of its profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
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 |
• |
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. |
Other information
The other information comprises the information included in the report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information, including the strategic report and the directors report 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.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Independent auditor's report (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
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 strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors' remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the directors' responsibilities statement included within the Directors' report and set out on page 4, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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.
Auditor's responsibilities for the audit of the financial statements
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.
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.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Independent auditor's report (continued)
Auditor's responsibilities for the audit of the financial statements (continued)
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.
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.
For and on behalf of BDO LLP, Statutory Auditor
Level 12
Thames Tower
Station Road
Reading
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Knowledge Transfer Network Limited
(a company limited by guarantee )
Statement of income and retained earnings
for the year ended 30 June 2020
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Note |
2020 |
2019 |
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£ |
£ |
Turnover |
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Grant income |
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Administrative expenses |
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(
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(
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Operating profit |
4 |
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Interest payable and similar charges |
7 |
- |
(
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Profit before tax |
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Tax on profit |
8 |
(
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(
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Profit after tax |
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Retained earnings at the beginning of the year |
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Profit for the year |
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Retained earnings at the end of the year |
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The notes on pages 11 to 21 form part of these financial statements.
Knowledge Transfer Network Limited
(a company limited by guarantee )
Balance sheet
at
Company number 08705643 |
Note |
2020 |
2020 |
2019 |
2019 |
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£ |
£ |
£ |
£ |
Fixed assets |
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Tangible assets |
9 |
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Current assets |
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Debtors: amounts falling due within one year |
10 |
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Cash at bank and in hand |
11 |
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Creditors: amounts falling due within one year |
12 |
(
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(
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Net current assets |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year |
13 |
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(
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(
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Provisions for liabilities |
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Deferred tax |
15 |
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(
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(
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Net assets |
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Capital and reserves |
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Retained earnings |
16 |
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Total equity |
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The financial statements were approved and authorised for issue by the
A Greated
Director
The notes on page 11 to 21 form part of these financial statements.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Statement of cash flows
for the year ended 30 June 2020
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2020 |
2019 |
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£ |
£ |
Cash flows from operating activities |
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Profit for the financial year |
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Adjustments for: |
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Depreciation of tangible assets |
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Interest paid |
- |
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Taxation charge |
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Increase in debtors |
(
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(
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Increase/(Decrease) in creditors |
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(
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Corporation tax paid |
(
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(
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Net cash generated from operating activities |
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Cash flows used in investing activities |
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Purchase of tangible fixed assets |
(
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(
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Net cash from investing activities |
(
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(
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Cash flows from financing activities |
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Interest paid |
- |
(
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Net cash used in financing activities |
- |
(
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
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Cash and cash equivalents at the end of year |
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Cash and cash equivalents at the end of year comprise: |
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Cash at bank and in hand |
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The notes on page 11 to 21 form part of these financial statements.
Knowledge Transfer Network Limited
(a company limited by guarantee )
Notes forming part of the financial statements
for the year ended 30 June 2020
1 General information
Knowledge Transfer Network Limited is a private company limited by guarantee and incorporated in
2 Accounting policies
Basis of preparation of financial statements
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Going concern
The financial statements have been prepared on the going concern basis. This basis is required to be adopted in all general purpose financial statements except where management intends to liquidate the entity or to cease trading, or has no realistic alternative to liquidation or cessation of operations. The directors are required to assess the validity of the going concern basis for a period of at least twelve months from the date of approval of the financial statements, and to disclose any relevant material uncertainties in the financial statements.
In making their going concern assessment in relation to these financial statements, the directors have noted that the validity of the assumption in relation to the company depends on the continued availability of grant income. The company's grant income is currently provided by Innovate UK, part of UK Research and Innovation (UKRI). The Memorandum of Understanding (MoU) for 2020/24 has been signed. This is a four- year agreement, Letter of Assurance was provided by Innovate UK outlining level of funding for 3 years from April 2021. KTN has received a Grant Offer Letter confirming funding for Work Programme provided by Innovate UK for the period from April 2021 to March 2022 dated 25 February 2021.
Since the start of COVID-19 pandemic, KTN has had to move all events online. KTN continues to deliver ‘digital only' events for all clients until restrictions will be removed nationally.
As a result the directors have concluded that it is appropriate for the financial statements to continue to be prepared on the going concern basis with the grant offer letter received from Innovate UK to support KTN in operating at its full capacity.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
2 Accounting policies (continued)
Turnover
Turnover relates to commercial and other income from activities and events which are not funded by grant income. It is recognised as revenue as and when the relevant activity or event takes place. Amounts that have been invoiced but the relevant activity or event has not taken place are included in deferred income.
Grant income
Income from grants is included to the extent of the expenditure incurred during the year and comprises grants recognised by the company, inclusive of irrecoverable value added tax. Grants not recognised in the year are included in creditors as deferred income. Where income from grants is expected to be received by the company on expenditure incurred in the year such income is included in debtors as accrued income.
Finance costs
Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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:
Leasehold improvements |
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over the life of the asset |
Computer and office equipment |
- |
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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 the statement of income and retained earnings.
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
2 Accounting policies (continued)
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Financial instruments
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than its legal form.
The company‘s cash at bank and in hand and other debtors and its trade and other creditors are measured initially at the transaction price, including transaction costs, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Foreign currency
Foreign currency transactions are translated into sterling at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet date. Any differences are taken to the statement of income and retained earnings.
Operating leases: the company as lessor
Rentals under operating leases are charged to the statement of income and retained earnings on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
Holiday accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
2 Accounting policies (continued)
Pensions
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of income and retained earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
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the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
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• |
any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
3 Judgements in applying accounting policies and key sources of estimation uncertainty
In preparing these financial statements, the members have made the following judgements:
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Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
Other key sources of estimation uncertainty:
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Tangible fixed assets (see note 9) |
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• |
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4 Operating profit
|
2020 |
2019 |
The operating profit is stated after charging: |
£ |
£ |
Auditors' remuneration |
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- in relation to the audit of the financial statements |
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- in relation to other services |
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Operating lease expense |
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Pension costs |
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Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
5 Staff costs
|
2020 |
2019 |
Staff costs, including directors' remuneration, were as follows: |
£ |
£ |
Wages and salaries |
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Social security costs |
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Cost of defined contribution scheme |
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Redundancy costs |
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- |
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The average monthly number of employees, including the directors, during the year was as follows: |
Number |
Number |
Directors |
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Employees |
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6 Directors' remuneration
|
2020 |
2019 |
|
£ |
£ |
Directors' emoluments |
|
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The highest paid director received remuneration of £
During the year retirement benefits amounted to £19,740 (2019 - £19,267) in respect of defined contribution pension schemes.
During the year retirement benefits were accruing to
7 Interest payable and similar charges
|
2020 |
2019 |
|
£ |
£ |
Bank interest payable |
- |
|
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
8 Taxation
|
2020 |
2019 |
|
£ |
£ |
Corporation tax |
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Current tax on profits for the year |
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Adjustments in respect of previous periods |
(
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(
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Total current tax |
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Deferred tax |
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Origination and reversal of timing differences |
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(
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Adjustment in respect of prior periods |
(
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Effect of tax rate change on opening balance |
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Total deferred tax |
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(
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Taxation on profit on ordinary activities |
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Factors affecting tax charge for the year
The tax assessed for the year is higher than (2019 - higher than) the standard rate of corporation tax in the UK of 19% (2019 - 19%). The differences are explained below:
|
2020 |
2019 |
|
£ |
£ |
Profit on ordinary activities before tax |
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%) |
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Effects of: |
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Expenses not deductible for tax purposes |
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Adjustments to tax charge in respect of previous periods |
(
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(
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Adjustments in respect of previous periods - deferred tax |
(
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Adjustment to deferred tax rate |
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Total tax charge for the year |
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Factors that may affect future tax charges
The 2021/2022 budget included an increase in the Corporation tax rate to 25% from 1 April 2023 for profits over £250,000, profits under £50,000 will remain at 19% and where profits fall between the two thresholds a company will be able to claim an amount of marginal relief providing a gradual increase in the corporate tax rate. These rates were substantially enacted at the reading of the Finance Bill 2021 on 24 May 2021 and this will impact the company's future tax charge accordingly.
The deferred tax liability at 30 June 2020 has been calculated based on the rates substantively enacted at the date of the balance sheet.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
9 Tangible fixed assets
|
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Computer |
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Leasehold |
and office |
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improvements |
equipment |
Total |
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£ |
£ |
£ |
Cost or valuation |
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At 1 July 2019 |
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|
|
Additions |
|
|
|
At 30 June 2020 |
|
|
|
Depreciation |
|
|
|
At 1 July 2019 |
|
|
|
Charge for the year |
|
|
|
At 30 June 2020 |
|
|
|
Net book value |
|
|
|
At 30 June 2020 |
|
|
|
At 30 June 2019 |
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|
|
10 Debtors: amounts falling due within one year
|
2020 |
2019 |
|
£ |
£ |
Trade debtors |
|
|
Prepayments and accrued income |
|
|
Other debtors |
|
|
|
|
|
The bad debt provision released to profit or loss for the year in respect of bad and doubtful trade debtors was £30,080 (2019 - impairment loss of £87,791).
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
11 Cash and cash equivalents
|
2020 |
2019 |
|
£ |
£ |
Cash at bank and in hand |
|
|
12 Creditors: amounts falling due within one year
|
2020 |
2019 |
|
£ |
£ |
Trade creditors |
|
|
Other taxation and social security |
|
|
Accruals and deferred income |
|
|
Other creditors |
|
|
Corporation tax liability |
|
|
|
|
|
13 Creditors: amounts falling due after more than one year
|
2020 |
2019 |
|
£ |
£ |
Deferred income |
|
|
14 Financial instruments
|
2020 |
2019 |
|
£ |
£ |
Financial assets |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities |
|
|
Financial liabilities measured at amortised cost |
|
|
Financial assets that are debt instruments measured at amortised cost comprise cash, trade debtors, accrued income and other debtors.
Financial liabilities measured at amortised cost comprise trade creditors, accruals and other creditors.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
15 Deferred taxation
|
2020 |
2019 |
|
£ |
£ |
At beginning of year |
|
|
Charge to profit or loss |
1,354 |
(1,379) |
At end of year |
|
|
The provision for deferred taxation is made up as follows:
|
2020 |
2019 |
|
£ |
£ |
Accelerated capital allowances |
|
|
1 6 Reserves
The company's reserves are as follows:
Retained earnings
Retained earnings represents cumulative profits or losses, net of dividends paid and other adjustments.
17 Company status
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.
18 Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £834,797 (2019 - £785,503). Contributions totalling £Nil (2019 - £Nil) were payable to the fund at the reporting date and are included in creditors.
Knowledge Transfer Network Limited
(a company limited by guarantee)
Notes forming part of the financial statements
for the year ended 30 June 2020 (continued)
1 9 Operating lease commitments
At 30 June 2020 the company had future minimum lease payments under non-cancellable operating leases as follows:
|
2020 |
2019 |
|
£ |
£ |
Operating lease commitments which are owed: |
|
|
Within one year |
|
|
Between one and five years |
|
|
|
|
|
2 0 Related party transactions
During the year to 30 June 2020 there were no related party transactions and there were no balances with related parties 30 June 2020.
During the year to 30 June 2019 the company entered into transactions with Innovate UK, a company in which T. Sawyers is a director. T. Sawyer was a director of the Knowledge Transfer Network Limited until his resignation on 27 November 2018. During the period of common directorship, the company entered into grant income transactions of £5,612,254.