Cambridge Environmental Research Consult - Limited company accounts 20.1

REGISTERED NUMBER: 01926883 (England and Wales)

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

CAMBRIDGE ENVIRONMENTAL RESEARCH

CONSULTANTS LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Profit and Loss Account

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

DJ Carruthers

JCR Hunt

TJ Newton

SECRETARY:

TJ Newton

REGISTERED OFFICE:

3 Kings Parade

Cambridge

Cambridgeshire

CB2 1SJ

REGISTERED NUMBER:

01926883 (England and Wales)

AUDITORS:

Prentis & Co LLP

Chartered Accountants & Statutory Auditors

115c Milton Road

Cambridge

CB4 1XE

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

DJ Carruthers

JCR Hunt

TJ Newton

DIRECTOR'S INTERESTS IN THE COMPANY

The interests of the directors in the shares of the company at 31 December 2020 were as follows:

Ordinary shares of £0.25 each

31 December 2020

31 December 2019

Number

Nominal

Number

Nominal

Value

Value

£

£

DJ Carruthers

645

161

645

161

JCR Hunt

450

113

450

113

TJ Newton

300

75

300

75

1,395

349

1,395

349

"A" Ordinary shares of £0.25 each

31 December 2020

31 December 2019

Number

Nominal

Number

Nominal

Value

Value

£

£

DJ Carruthers

430

107

430

107

JCR Hunt

300

75

300

75

TJ Newton

200

50

200

50

930

232

930

232

The "A" ordinary shares rank pari passu to the ordinary shares in all aspects other than in the event of the winding up of the company, or the sale of the entire share capital, they shall not be able to participate in the first £60,000 of any proceeds.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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), 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Prentis & Co LLP, 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.

ON BEHALF OF THE BOARD:

TJ Newton - Secretary

27 September 2021

Opinion

We have audited the financial statements of Cambridge Environmental Research Consultants Limited (the 'company') for the year ended 31 December 2020 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity 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 31 December 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 UK, including the FRC'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.

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

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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 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.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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 considered the nature of the industry and sector, control environment and business performance.

- We have enquired with management in regards to their own assessment of the risks of irregularities, including fraud.

- We have obtained relevant documentation and representations in order to form an opinion on potential irregularities, including fraud.

- Our audit work is limited to samples inherently used under International Auditing Standards, therefore not all transactions are reviewed so the detection of irregularities, including fraud is limited to this.

- Any matter we identified from our audit tests that indicate the potential for a misstatement in the financial statements, fraud or other irregularities we have investigated further assessed the risk in relation to the financial statements and communicated to management to enable their understanding of the issue and assist in mitigating issues through internal controls where practical.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud is in relation to the overstatement of revenue. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory environment and frameworks in which the Company operates, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

Relevant identified laws and regulations were communicated within the engagement team so they remained alert throughout the audit for indications of fraud or non-compliance.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Ian Shipley FCCA (Senior Statutory Auditor)

for and on behalf of Prentis & Co LLP

Chartered Accountants & Statutory Auditors

115c Milton Road

Cambridge

CB4 1XE

27 September 2021

TURNOVER

1,787,381

1,870,840

Cost of sales

946,568

1,032,849

GROSS PROFIT

840,813

837,991

Administrative expenses

747,969

752,561

OPERATING PROFIT and

PROFIT BEFORE TAXATION

92,844

85,430

Tax on profit

-

-

PROFIT FOR THE FINANCIAL YEAR

92,844

85,430

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

27,667

26,003

Investments

7

69,450

69,450

97,117

95,453

CURRENT ASSETS

Stocks

50,316

123,136

Debtors

8

645,741

716,063

Cash at bank

687,695

273,815

1,383,752

1,113,014

CREDITORS

Amounts falling due within one year

9

398,039

215,849

NET CURRENT ASSETS

985,713

897,165

TOTAL ASSETS LESS CURRENT LIABILITIES

1,082,830

992,618

PROVISIONS FOR LIABILITIES

258,149

260,781

NET ASSETS

824,681

731,837

CAPITAL AND RESERVES

Called up share capital

581

581

Capital redemption reserve

919

919

Retained earnings

823,181

730,337

SHAREHOLDERS' FUNDS

824,681

731,837

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

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2021 and were signed on its behalf by:

DJ Carruthers - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2019

581

644,907

919

646,407

Changes in equity

Total comprehensive income

-

85,430

-

85,430

Balance at 31 December 2019

581

730,337

919

731,837

Changes in equity

Total comprehensive income

-

92,844

-

92,844

Balance at 31 December 2020

581

823,181

919

824,681

1.	STATUTORY INFORMATION

Cambridge Environmental Research Consultants Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Turnover

Turnover, which excludes value added tax, represents the invoiced value of goods and services supplied.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on cost

Furniture, fixtures and fittings

-

10% on cost

Stocks and work in progress

Stocks and work in progress (stated at the lower of cost and net realisable value) represent the cost of labour and, where appropriate, materials on contract research in progress at the balance sheet date, which has been incurred but not yet invoiced.

Taxation

Recognition in the financial statements of claims made under the Corporation Tax Act 2019, Part 13, is deferred until their receipt is certain.

Deferred tax

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

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.

Finance leases

Assets acquired under finance leases are capitalised at their fair values and depreciated using the methods and rates disclosed above. The obligation to pay future rentals is recorded as a liability on the balance sheet, net of finance charges. Finance charges are allocated to accounting periods so as to approximate to a constant rate of return on the outstanding balance.

Operating leases

Rentals under operating leases are charged on a straight line basis over the lease term.

Long term contracts

The results of long term contracts in progress at the balance sheet date are stated in accordance with Statement of Standard Accounting Practice No. 9. In particular, turnover is included to the extent that it represents work completed by the balance sheet date. A proportionate part of the profit attributable to the contact is credited to the profit and loss account only where the outcome of the contract may be ascertained with reasonable certainty. Losses are charged to the profit and loss account as soon as they become apparent.

Development expenditure

The company defers development expenditure on new software products where the amounts are material and the project meets the criteria for deferral specified in Statement of Standard Accounting Practice 13 (revised). Development expenditure is amortised over the period in which the product is expected to be sold, commencing in the period in which it is launched.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2019 - 28 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

£

Depreciation - owned assets

11,409

10,142

5.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 January 2020

and 31 December 2020

188,547

AMORTISATION

At 1 January 2020

and 31 December 2020

188,547

NET BOOK VALUE

At 31 December 2020

-

At 31 December 2019

-

6.	TANGIBLE FIXED ASSETS

Furniture,

fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 January 2020

43,449

14,764

58,213

Additions

14,005

-

14,005

Disposals

(3,827

)

(1,573

)

(5,400

)

At 31 December 2020

53,627

13,191

66,818

DEPRECIATION

At 1 January 2020

20,745

11,465

32,210

Charge for year

10,416

993

11,409

Eliminated on disposal

(2,895

)

(1,573

)

(4,468

)

At 31 December 2020

28,266

10,885

39,151

NET BOOK VALUE

At 31 December 2020

25,361

2,306

27,667

At 31 December 2019

22,704

3,299

26,003

7.	FIXED ASSET INVESTMENTS

The company owns 64.7% of the ordinary share capital of CERC Overseas Limited, represented by 79,588 shares.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

280,681

308,925

Amounts recoverable on contract

108,015

111,203

Other debtors

138,542

209,409

Tax

85,805

49,999

Prepayments

32,698

36,527

645,741

716,063

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Payments on account

128,997

76,488

Trade creditors

16,033

2,745

Social security and other taxes

136,036

95,594

Other creditors

53,957

9,630

Accruals

63,016

31,392

398,039

215,849

10.	RELATED PARTY DISCLOSURES

Other debtors includes £138,420 (2019: £171,071), which is owed to the company by CERC Overseas Ltd.

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party are the directors, who jointly own 100% of the issued share capital of the company.

12.	TOTAL REMAINING COMMITMENTS UNDER OPERATING LEASES

2020

2019

£

£

Other non-cancellable operating leases

-

60.000

The company's operating lease expired on 31 December 2020, with new lease negotiations ongoing at present. In the meantime, the company is continuing to pay rent of £60,000, per annum, as per the expired agreement.