Northern Consortium UK Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04842064 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021

FOR

NORTHERN CONSORTIUM UK LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Dr M Butler

Mr M Holmes

Ms C Morley

Mr S Willis

Mr M Bartlett

Mr M Ismail

Mr C Stychin

Ms J Ward

REGISTERED OFFICE:

76 King Street

Manchester

M2 4NH

REGISTERED NUMBER:

04842064 (England and Wales)

AUDITORS:

Kay Johnson Gee Limited

Chartered Accountants and Statutory Auditors

1 City Road East

Manchester

M15 4PN

SOLICITORS:

Knights plc

The Brampton

Newcastle-Under-Lyme

Staffordshire

ST5 0QW

FIXED ASSETS

Tangible assets

4

27,854

24,546

Investments

5

-

-

27,854

24,546

CURRENT ASSETS

Debtors

6

123,727

350,263

Cash at bank and in hand

3,875,600

3,884,457

3,999,327

4,234,720

CREDITORS

Amounts falling due within one year

7

(1,259,225

)

(1,679,711

)

NET CURRENT ASSETS

2,740,102

2,555,009

TOTAL ASSETS LESS CURRENT LIABILITIES

2,767,956

2,579,555

PROVISIONS FOR LIABILITIES

(5,045

)

(4,362

)

PENSION LIABILITY

(393,586

)

(346,832

)

NET ASSETS

2,369,325

2,228,361

CAPITAL AND RESERVES

Called up share capital

9

1,306,000

1,306,000

Retained earnings

1,063,325

922,361

SHAREHOLDERS' FUNDS

2,369,325

2,228,361

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18th February 2022 and were signed on its behalf by:

Ms J Ward - Director

1.	STATUTORY INFORMATION

Northern Consortium UK Limited is a private company limited by share capital, incorporated in England and Wales, registration number 04842064. The address of the registered office and principal place of business is 76 King Street, Manchester, England, M2 4NH.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Northern Consortium UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Northern Consortium, 667-669 Stockport Road, Manchester, M12 4QE.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Going concern

The directors have deemed it reasonable to prepare these financial statements on a going concern basis. Management has determined that there is no material uncertainty that casts doubt on the entity's abilitiy to continue as a going concern.

Turnover

Turnover represents amounts recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of providing educational courses and training programmes which are recognised at the point of which the goods or services are provided.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods:

Computer equipment

- 33.33% on cost

At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Government grants

Government grants are recognised on the accrual model and are measured at fair value of the asset receivable. Grants are classified as relating either to other income or to assets. Grants related to other income are recognised in profit or loss over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund.

Defined benefit pension obligation

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The entity's net obligation in respect of a defined benefit plan is calculated separately by estimating the amount of future benefit that employees have earned in return for their services in the current and past periods: that benefit is discounted to determine its present value. The fair value of any plan assets is deducted. The entity determines the net interest expense (income) on the net defined liability (asset) for the period by applying the discount rate as determined at the beginning of the annual period to the net defined benefit liability (asset) taking account of changes arising as a result of contributions and benefit payments.

The discount rate is the yield at the balance sheet date on AA credit rated bonds denominated in the currency of, and having maturity dates approximating to the term of the entity's obligations. A valuation is performed annually by a qualified actuary using the projected unit credit method. The entity recognised net defined benefit plan assets to the extent that it is able to recover the surplus either through reduced combinations in the future or through refunds from the plan.

Changes in the net defined benefit liability arising from employee service rendered during the period, net interest on net defined benefit liability, and the cost of plan introductions, benefit changes, curtailments and settlements during the period are recognised in profit and loss.

Re-measurement of the net defined benefit liability/asset is recognised in other comprehensive income in the period in which it occurs.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand. Bank borrowings and overdrafts are included in creditors.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 60 (2020 - 48 ) .

4.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1st September 2020

188,194

Additions

25,730

At 31st August 2021

213,924

DEPRECIATION

At 1st September 2020

163,648

Charge for year

22,422

At 31st August 2021

186,070

NET BOOK VALUE

At 31st August 2021

27,854

At 31st August 2020

24,546

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1st September 2020

and 31st August 2021

70,001

PROVISIONS

At 1st September 2020

and 31st August 2021

70,001

NET BOOK VALUE

At 31st August 2021

-

At 31st August 2020

-

Details of the investments in which the Company holds 20% or more of the nominal value of any class of share capital are as follows

Name

Country

Class of share

Holding

Principal activity

NCUK Australia Pty Ltd

Australia

Ordinary

100%

Educational services

NCUK Pakistan (PVT) Limited

Pakistan

Ordinary

70%

Dormant

The financial year end for the above subsidiaries is 31st August.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

7,339

310,206

Amounts owed by group undertakings

18,034

18,187

Other debtors

98,354

21,870

123,727

350,263

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

138,143

85,511

Amounts owed to group undertakings

5,420

-

Taxation and social security

97,675

443,127

Other creditors

1,017,987

1,151,073

1,259,225

1,679,711

Defined benefit pension schemes

Universities Superannuation Scheme (USS)

The total (gain)/loss charged to the profit and loss account is £208,331 (2020: £49,382).

The total pension liability at the balance sheet date is £393,586 (2020: £346,832).

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2018 (the valuation date), which was carried out using the projected unit method; a more recent valuation is not yet available.

Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2018 valuation was the fifth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have a sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme's technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.

The key financial assumptions used in the 2018 valuation are described below.

Discount rate (forward rate)

Years 1-10: CPI +0.14% reducing liability to CPI -0.73%

Years 11-20: CPI +2.52% reducing linearly to CPI +1.55% by year 21

Years 21+ CPI +1.55%

Pension increases (CPI)

Term dependent rates in line with the difference between the fixed interest and index Linked yield curves, less 1.3% p.a.

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme's experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table

Pre-retirement:

71% of AMC00 (duration 0) for males and 112% of AMC00 (duration 0) for females.

Post retirement:

97.6% of SAPS S1NMA "light" for males and 102.7% of RFV00 for females.

Pension increases (CPI)

CMI 2017 with smoothing parameter of 8.5, and a long term improvement rate of 1.8% p.a. for males and 1.6% p.a. for females.

The current life expectancies on retirement at age 65 are:

2018

2017

Males currently aged 65 (years)

24.4

24.6

Females currently aged 65 (years)

25.9

26.1

Males currently aged 45 (years)

26.3

26.6

Females currently aged 45 (years)

27.7

27.9

A new deficit recovery plan was put in place as part of the 2018 valuation, which requires payment of 2% of salaries over the period 1 October 2019 to 30 September 2021 at which point the rate will increase to 6%. The 2020 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

2021

2020

Discount rate

2%

2.64%

Pensionable salary growth

n/a

n/a

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

196,629

77,652

Between one and five years

41,914

-

238,543

77,652

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

1,306,000

Ordinary

£1

1,306,000

1,306,000

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Michael Garrett (Senior Statutory Auditor)

for and on behalf of Kay Johnson Gee Limited

11.	ULTIMATE CONTROLLING PARTY

The parent charity of the largest group that includes the company and for which consolidated financial statements are prepared is Northern Consortium. Copies of these financial statements for Northern Consortium can be obtained from the registered office at 667-669 Stockport Road, Manchester, England, M12 4QE.