ENTERPRISE_NORTHERN_IRELA - Accounts

The directors present the strategic report for the year ended 31 March 2020.

Both the level of business and the year end financial position were considered satisfactory given the Company's objects.

The key business risk and uncertainty affecting the Company is the decrease in programme and revenue grant income.

The Company's management endeavour to mitigate these risks by implementing regular strategic and operational reviews.

Financial risk management

The Company's operations expose it to a variety of financial risk that include credit, liquidity and foreign exchange risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company.

Credit risk

Due to the nature of the Company there is no exposure to credit risk.

Liquidity risk

Due to the nature of the Company there is no exposure to liquidity risk.

The Company's directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the Company.

Given the Company's success in bidding for and securing contracts the outlook is relatively stable until the end of March 2022. The focus for the Company during this year will be on further business development activity to renew existing contracts and to identify commercial opportunities to develop additional net income.

On this basis the directors are satisfied that the Company has sufficient revenue from existing contracts along with reserves to continue to operate at the current level in the medium term and to finance the further business development work needed to sustain the longer term future of Enterprise Northern Ireland Ltd.

On behalf of the board

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Enterprise Northern Ireland Ltd is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Aghanloo Industrial Estate, Aghanloo Road, Limavady, BT49 0HE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income and expenses are included in the financial statements as they become receivable or due.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in surplus or deficit, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 payments 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. Amounts 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 not carrying on a business for the purposes of making a profit. Consequently, corporation tax is only provided on taxable interest from bank deposits received and receivable.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Loans and provisions for bad debts

Specific provisions are made as a result of a detailed appraisal of risk assets. In addition, general provisions are carried to cover risks which, although not specifically identified, are present in any portfolio of loan advances. The total provisions for bad debts are deducted in arriving at the balance sheet figure of loans. Provisions made during the year, less existing provisions no longer required and bad debts recovered previously written off, are charged against surplus. Interest is not taken to the Income and Expenditure Account where recovery is considered doubtful.

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:

Loan fund debtors are stated after provision of impairment of £2,386,571 (2019 - £2,919,840).

The Company is limited by a guarantee from each member of the Executive Committee and does not have an issued share capital.

Every director being a member of the Executive Committee undertakes to contribute to the assets of the Company, in the event of the same being wound up while he is a member, or within one year after he ceases to be a member, for payment of debts and liabilities of the Company contracted before he ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributors among themselves, such amount as may be required not exceeding £1.00.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Government grants:

The Company has an obligation to repay certain grants and capital funding received from government and other funding bodies in whole or in part if the Company fails to comply with a number of conditions. In the opinion of the directors, the terms of the letters of offer have been complied with and no loss is expected.

Other contingencies:

Lisburn and Castlereagh City Council served Notice of Material Breach on ENI in relation to the contract for delivery of the NI Business Start-Up Programme by letter dated 31st January 2019.  ENI have liaised with the Council on an ongoing basis to remedy the alleged breaches where possible and in January 2021, an agreement in principle was reached with Lisburn and Castlereagh City Council to settle the matter and the necessary adjustments have been reflected in the accounts.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The Covid-19 pandemic has developed rapidly since mid-March 2020 and measures taken by various governments to contain the virus have affected economic activity.  As a Company, we have taken various measures to monitor and mitigate the effects of Covid-19 including health and safety measures to protect our staff and their families including social distancing. virtual meetings and remote working from home.  We have also adapted our business operations and processes where possible to allow us to continue to provide services in as Covid-19 secure way as possible.  We have also, when eligible, availed of financial support from government.  As a result, at this stage, the impact on our business, financial performance and liquidity has not been significant.  We will continue to follow all relevant government advice and will continually review and adapt our business operations and processes to ensure, where possible, we can continue to provide our services as safely as possible.

On this basis, the directors consider the outbreak to be a non-adjusting event. Accordingly, the financial statements do not reflect any adjustments as a result of the subsequent increase in economic uncertainty.

Enterprise Northern Ireland Ltd ("ENI") engages member agencies to manage/deliver enterprise development and other programmes and in some cases charges member agencies for services provided by ENI. The value of services provided by and for member agencies during the year and the outstanding amounts owed by/(to) each agency at the start and end of the financial year are analysed as follows:

The remuneration of key management personnel is as follows.