The directors present their annual report and financial statements for the year ended 31 March 2021.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The 2020/21 financial year saw significant change to the structure and operation of InvestSK. Almost immediately after the turn of the new financial year the Country was hit by the Covid-19 pandemic and it was necessary for InvestSK as the economic development and regeneration company for the District to adapt its ways of working to best support the South Kesteven business community.
Prior to the new financial year starting the decision had already been made that staff seconded to InvestSK from South Kesteven District Council would return to their substantive posts within SKDC thus presenting a much-reduced core staffing structure in the company. Those that remained did so as employees of the company and for a period were deployed solely on administering the local Government response due to the pandemic.
In the first wave alone £27m was administered through the company with the support of finance and revenues and benefits colleagues within SKDC. By the end of the financial year 2020/21 this figure had increased to over £40m of grant support to nearly 2,700 South Kesteven businesses.
To compliment this process monthly 'virtual' briefings were delivered by the team, with consistently over 100 local businesses attending in order to receive the latest support, advice and guidance regarding grants and other operational factors during the various lockdowns and restrictions.
This activity not only drew InvestSK closer to the business community but also provided an excellent segway into increasing its communications reach and ultimately allowed the company to grow its business database from around 400 businesses at the start of the year to over 1,600, all of whom continue to receive regular updates and information.
The administration of the grants was an incredibly time intensive process but ultimately demonstrated the worth and knowledge of those involved and gave a real identity to the company right across the District.
As a result of the excellent work done in the first half of the year and the need to refocus the operating model as a result of the pandemic a revised Business Plan was approved in September 2020 that further streamlined the operation and gave even greater clarity to its role and function. This did however necessitate a further restructure with the removal of senior posts from the structure and a far closer relationship developed with senior officers within the parent company (SKDC).
In addition to strengthening the business support function within the revised plan the other key themes of 'visitor economy' and business growth and inward investment' were also identified as key pillars of the company function.
As was well documented, the tourism, hospitality and visitor economy sectors were particularly hard hit during the pandemic and InvestSK provided dedicated officer support in working with these businesses to ensure they had access to all relevant information and grant support that allowed them to operate as effectively as possible.
The importance of place promotion took on greater significance as it became apparent foreign travel would continue to be restricted and again dedicated support was provided in order to ensure the District is well positioned to attract staycation visitors from Spring 2021 and beyond.
Prior to the pandemic a great amount of time and emphasis was placed upon developing an inward investment offer worthy of a District that is so well serviced by key arterial road and rail links. And whilst the emphasis was clearly upon retaining our existing business base work continued on supporting the private sector in bringing forward key development sites and infrastructure necessary to grow the Districts economy in future years. Examples of successful partnerships included detailed engagement in the planning process to deliver 64 acres of employment land on the A1 corridor in Grantham and the successful planning consent for 17 acres of employment land in Bourne.
The final key pillar within the new business plan evidenced strong recognition of activity started prior to the current year and that would continue to be delivered by InvestSK on behalf of SKDC into future years. The most significant of these being the retention of the 'Regeneration and Placemaking' function in order to continue the development of funding proposals to Government for the ' Grantham Future High Street Fund' and to Historic England for the 'Grantham High Street Heritage Action Zone' programme. In both cases these bids were successful and will see nearly £7m spent on the regeneration of Grantham Town Centre and surrounding areas by March 2024.
In what were unprecedented times for all it is hoped that this directors' report demonstrates some of the significant achievements delivered by the company over the year that have ultimately contributed to the successful retention of business and jobs in the District while at the same time securing a longer term and successful future for our town centres and rural communities.
The auditors, Duncan & Toplis Limited will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
Basis for opinion
Conclusions relating to going concern
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 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit :
the information given in the directors' r eport 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.
As explained more fully in the directors' r esponsibilities s tatement, 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.
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 .
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit
The potential impact of different laws and regulations varies considerably, Firstly the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit.
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amount of disclosures in the financial statements. We identified the following areas as those most likely to have such an effect; Health and Safety regulation and employment laws.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detention of irregularities as these may involve collusion,, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 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.
InvestSK Limited is a private company, limited by guarantee, registered in England and Wales, The companys registered number and registered office address can be found on the Company Information page.
The financial statements are prepared in sterling , which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.
Core Income is recognised as it becomes receivable over the period in which it relates. Project income is recognised to reflect the stage of completion of the project, with any remaining income being deferred.
Expenditure is recognised s soon as there is a legal or constructive obligation committing the company to that expenditure and it is probable that settlement will be required and the amount of the obligation can be measured reliably. In particular the following policies apply to grants payable.
- Grants are accrued once the recipient has been notified of the grant award.
- Provisions for grants are made when the recipient has been notified of a grant award, but the timing of the grant of the amount payable remains uncertain.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit .
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors , bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the company during the year was:
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
There are no restricted funds held within the reserve figure.
The controlling party is South Kesteven District Council, its sole legal member.