ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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COMPANY INFORMATION
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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 who served during the year were:
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 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 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 for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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DIRECTORS' REPORT (CONTINUED)
For the Year Ended 31 March 2021
Under section 487(2) of the Companies Act 2006, Blick Rothenberg Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
LOMBARD STREET RESEARCH LIMITED
We have audited the financial statements of Lombard Street Research Limited (the 'Company') for the year ended 31 March 2021, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company 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 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 Directors' report 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.
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INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
LOMBARD STREET RESEARCH LIMITED (CONTINUED)
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 Directors' report.
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 Auditors' 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the Company’s policies with regards to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the Company’s policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the Company’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the Company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this context included the UK Companies Act 2006 and applicable tax legislation. As a result of performing the above we identified manipulation of revenues and the risk of fraud through management override of controls as particular focus areas. Our procedures to respond to risks identified included the following: considering the appropriateness of accounting policies and judgement around revenue
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INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
LOMBARD STREET RESEARCH LIMITED (CONTINUED)
recognition; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the Company for evidence of any large or unusual activity which may be indicative of fraud; enquiring of management in relation to any potential litigation and claims; reviewing legal expense accounts and board minutes for indications of the same; and testing the appropriateness of journal entries and other adjustments.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 Auditors' 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 Auditors' 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
Statutory auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
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STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 31 March 2021
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BALANCE SHEET
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 9 to 21 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
Lombard Street Research Limited is a private company limited by shares incorporated in the United Kingdom and registered in England and Wales at 5th Floor, 20 St Dunstan's Hill, London, EC3R 8HL. The company's principal activity is the provision of institutional macro-economic research services.
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 company is a subsidiary of TSL Research Group Limited, the consolidated financial statements of which are publicly available. It is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006 and paragraph 9.3 of FRS 102. Accordingly, these financial statements present information about the company only, and not about the group it heads. Details of subsidiary undertakings are included in note 10. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. Management do not consider there are any key accounting estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
Management are also required to exercise judgment in applying the Company accounting policies. Due to the straightforward nature of the business management consider that no critical judgements have been made in applying the company's accounting policies.
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of TSL Research Group Limited as at 31 March 2021 and these financial statements may be obtained from Companies House.
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
2.Accounting policies (continued)
The Company has net current liabilities of £667,660, including net amounts due to group undertakings of £701,709. Accordingly, the Company is dependent on the financial health of the Group of which it forms part to realise these assets and more generally on support from the wider Group of which it forms part.
The global economy has been adversely impacted by the coronavirus pandemic and the level of uncertainty about future forecasting has increased. The Company and Group of which it is part are not immune to this downturn or the uncertainties it brings, although to date the Group's financial performance has not suffered any significant detrimental impact. The Group and Company have prepared forecasts which indicate that the Group and Company can continue to meet their liabilities as they fall due for a period of not less than twelve months from the approval of the financial statements. While acknowledging the current economic climate means that actual performance is more prone to material variance from such forecasts than is normally the case, the directors believe that the forecasts are achievable. Performance to the date of approval of these financial statements is supportive of that belief. The Group has loan notes issued to shareholders of £1.161m which were, at the balance sheet date, due to be repaid in May 2021. In May 2021 the repayment date of these loans was amended to May 2023 without significant financial penalty. In the light of all of the above, the directors do not believe that there is a significant chance of the Group or Company becoming financially distressed in the short to medium term, including a period of not less than twelve months from the approval of these financial statements. Accordingly, the directors continue to adopt the going concern basis in the preparation of the financial statements.
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.
Amortisation is provided on the following bases:
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
2.Accounting policies (continued)
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.
The company does not trade in financial instruments and all such instruments arise directly from operations.
All trade and other debtors are initially recognised at transaction value, as none contain in substance a financing transaction. Thereafter trade and other debtors are reviewed for impairment where there is objective evidence based on observable data that the balance may be impaired. The company does not hold collateral against its trade and other receivables so its exposure to credit risk is the net balance of trade and other debtors after allowance for impairment. The company’s cash holdings comprise on demand balances. All cash is held with banks with strong external credit ratings. Trade and other creditors and accruals are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished. As the company only has short term receivables and payables, its net current asset position is a reasonable measure of its liquidity at any given time.
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.
The directors consider that the company has a single class of business.
No analysis of turnover by geographical destination is presented as the directors consider that to do so would be seriously prejudicial to the interests of the company.
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
7.Taxation (continued)
The company has carried forward losses of £501,175 (2020: £444,524) which will be available to relieve profits of the company and fellow group subsidiaries in future years. No asset has been recognised in respect of these losses due to uncertainties over the nature and timing of such future profits.
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
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NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2021
TSL Research Group Limited is the immediate and ultimate parent company and produces consolidated accounts, copies of which are publicly available.
In the opinion of the directors there is no ultimate controlling party.
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