Centre for Innovation in Regulatory Science Limited - Period Ending 2014-12-31

Registration number: 07273030

Centre for Innovation in Regulatory Science Limited

Annual Report and Financial Statements
 
for the Year Ended 31 December 2014

Centre for Innovation in Regulatory Science Limited

Strategic Report for the Year Ended 31 December 2014

The directors present their strategic report for the year ended 31 December 2014.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act of 2006.

Definitions

As used in this annual report, "the Group" and "Thomson Reuters" refer to the Thomson Reuters Corporation and its subsidiary undertakings, including joint ventures and associates. "The Company" refers to Centre for Innovation in Regulatory Science Limited.

Fair review of the business

The principal activity of the Company is to conduct pharmaceutical research, facilitate dialogue and encourage productive discussions to promote understanding of the science that will form regulatory and reimbursement policy.

The loss for the financial year amounted to £356,000 (2013: loss of £25,000). No dividends were paid during the financial year (2013: £nil).

Principal risks and uncertainties

The directors consider the results for the year and the position at the end of it to be satisfactory and they expect the present level of activity to be sustained for the foreseeable future.

From the perspective of the Company, the principal risks and uncertainties are integrated with the principal risks of the Group and are not managed separately. Accordingly, the principal risks and uncertainties of Thomson Reuters Corporation, which include those of the Company, are discussed in Thomson Reuters Corporation’s annual report which does not form part of this report.

Given the nature of the business, 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 business.

Financial risk management
The management of financial risks is co-ordinated with those undertaken at Group level by Thomson Reuters Corporation. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's and the Group's financial performance. More details of the Group's risk management programme can be found in the Thomson Reuters Corporation 2014 Annual Report.

Approved by the Board on 18 June 2015 and signed on its behalf by:

.........................................
J. Brett-Harris
Director

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Centre for Innovation in Regulatory Science Limited

Directors' Report for the Year Ended 31 December 2014

The directors present their report and the audited financial statements for the year ended 31 December 2014.

Directors of the company

The directors who held office during the year and up to the date of signing of the financial statements were as follows:

J. Brett-Harris

I. Fraser (resigned 30 April 2015)

L.E. Liberti

The following director was appointed after the year end:

S.P. Hartman (appointed 30 April 2015)

Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, 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 prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 apply them consistently;
	• make judgements 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; and
	• 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.

Going concern

The directors believe that preparing the accounts on the going concern basis is appropriate due to the continued financial support from intermediate parent company TR (2008) Limited. The directors have received confirmation that TR (2008) Limited intends to support the Company for at least one year after these financial statements are signed.

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Centre for Innovation in Regulatory Science Limited

Directors' Report for the Year Ended 31 December 2014

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 18 June 2015 and signed on its behalf by:

.........................................
J. Brett-Harris
Director

Registered office: 2nd Floor, 1 Mark Square, Leonard Street, London, EC2A 4EG.

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Centre for Innovation in Regulatory Science Limited

Independent Auditors' Report to the Members of Centre for Innovation in Regulatory Science Limited

Report on the financial statements

Our opinion

In our opinion, Centre for Innovation in Regulatory Science Limited’s financial statements (the “financial statements”):
•
give a true and fair view of the state of the Company's affairs as at

31 December 2014

and of its


loss

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.

What we have audited

Centre for Innovation in Regulatory Science Limited's financial statements comprise:

•	the Balance Sheet as at 31 December 2014;
•	the Profit and Loss account for the year then ended; and
•	the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exception

Adequacy of accounting records and information and explanations received

Under the Companies Act 2006 we are required to report to you if, in our opinion:

•	we have not received all the information and explanations we require for our audit; or
•	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.

We have no exceptions to report arising from this responsibility.

Directors' remuneration

Under the Companies Act 2006 we are required to report if, in our opinion, certain disclosures of directors’ remuneration specified by law have not been made. We have no exceptions to report arising from this responsibility.

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Centre for Innovation in Regulatory Science Limited

Independent Auditors' Report to the Members of Centre for Innovation in Regulatory Science Limited

Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: take advantage of the small companies exemption in preparing the Directors’ Report; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the directors

As explained more fully in the Statement of the directors’ responsibilities set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What an audit of financial statements involves

We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:

• whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed;

• the reasonableness of significant accounting estimates made by the directors; and

• the overall presentation of the financial statements.

We primarily focus our work in these areas by assessing the directors’ judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements.

We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.

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Centre for Innovation in Regulatory Science Limited

Independent Auditors' Report to the Members of Centre for Innovation in Regulatory Science Limited

In addition, we read all the financial and non-financial information in the Annual Report and Financial Statements to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

...........................................................................
Simon Friend (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London

Date: 18 June 2015

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Centre for Innovation in Regulatory Science Limited

Profit and Loss Account for the Year Ended 31 December 2014

	Note	2014 £ 000	2013 £ 000 (As restated)
Turnover	2	1,281	1,169
Cost of sales		(1,668)	(1,205)
Gross loss		(387)	(36)
Administrative expenses		(79)	(86)
Other operating income		110	97
Operating loss		(356)	(25)
Loss on ordinary activities before taxation	3	(356)	(25)
Tax on loss on ordinary activities	6	-	-
Loss for the financial year	10	(356)	(25)

All results from both years arise from continuing operations.

The Company has no recognised gains or losses for the year other than the results above, so no separate statement of total recognised gains and losses is presented.

There is no difference between the loss on ordinary activities before taxation and the loss for the financial year stated above and their historical cost equivalents.

The notes on pages 9 to 13 form an integral part of these financial statements.
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Centre for Innovation in Regulatory Science Limited

(Registration number: 07273030)
Balance Sheet as at 31 December 2014

	Note	2014 £ 000	2013 £ 000
Current assets
Debtors: amounts falling due within one year	7	846	524
Creditors: amounts falling due within one year	8	(1,141)	(463)
Net (liabilities)/assets		(295)	61
Capital and reserves
Called up share capital	9	-	-
Profit and loss account	10	(295)	61
Total shareholders' (deficit)/funds	11	(295)	61

The financial statements on pages 7 to 13 were approved by the Board of Directors on 18 June 2015 and signed on its behalf by:

.........................................
J. Brett-Harris
Director

The notes on pages 9 to 13 form an integral part of these financial statements.
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Centre for Innovation in Regulatory Science Limited

Notes to the Financial Statements for the Year Ended 31 December 2014

1

Accounting policies

Basis of preparation

These financial statements are prepared on the going concern basis, under the historical cost convention, and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom.The principal accounting policies, which have been applied consistently throughout the year, are set out below.

Cash flow statement and related party disclosures

The Company is a wholly owned subsidiary company of a group headed by Thomson Reuters Corporation, and is included in the consolidated financial statements of that company, which are publicly available. Consequently, the Company has taken advantage of the exemption within FRS 1(5)(a) ‘Cash flow statements (revised 1996)’ from preparing a cash flow statement.

The Company is also exempt under the terms of FRS 8(3)(c) ‘Related party disclosures’ from disclosing related party transactions with entities that are part of the Thomson Reuters Group.

A summary of the significant accounting policies, which have been consistently applied throughout the year, is set out below.

Use of estimates

Management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. These estimates and assumptions are based on historical information and other factors which management consider reasonable. The financial statements affected by these are provisions, accruals and revenue recognition.

Turnover

Turnover represents revenue received and the value of goods supplied and services rendered to third parties, net of VAT, and is stated after deduction of trade discounts and commissions. Revenue is recognised either on dispatch of goods in case of one-off product sales, or proportionately over the subscription period for products and services sold through a subscription. Revenue is only recognised when all significant conditions attaching to its receipt have been satisfied. In addition the Company licenses its data, limiting the use of data to a predetermined contract term. Revenue is recognised pro rata over the term of the contract when the service is provided.

Deferred revenue

Subscription revenue due in advance of the delivery of services or publications is included in deferred revenue, and as services are rendered or publications are sent to subscribers the proportionate share is taken to the profit and loss account.

Foreign currency translation
Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

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Centre for Innovation in Regulatory Science Limited

Notes to the Financial Statements for the Year Ended 31 December 2014

1 Accounting policies (continued)

Current taxation

Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised directly in equity. In this case the tax is directly recognised in equity.

The current tax expense is based on the results for the year as adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that have been enacted or substantively enacted at the balance sheet date.

Other grants

Grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the costs, which it is intended to compensate, are expensed. Any unamortised deferred income relating to the grant is included under 'Accruals and deferred income' in the balance sheet.

Re-classification of balances
Cost of sales for the year ended 31 December 2013 is restated to include recharges of £350,000, which were included in administrative expenses in 2013.

2

Turnover

The Company's loss and turnover arises principally in the United States.

	2014 £ 000	2013 £ 000
United Kingdom	116	165
European Union	225	224
North America	802	700
Other	138	80
	1,281	1,169

3

Loss on ordinary activities before taxation

Loss on ordinary activities before taxation is stated after charging:

	2014 £ 000	2013 £ 000
Auditors' remuneration	15	15

Operating loss is stated after charges of £1,738,405 (2013: £1,272,790) from other group entities.

4

Employees

The Company did not have any employees at any time during the year (2013: nil).

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Centre for Innovation in Regulatory Science Limited

Notes to the Financial Statements for the Year Ended 31 December 2014

5

Directors' emoluments

None of the directors had any beneficial interest in the share capital of the Company or an interest in any transactions or arrangements with the Company which require disclosure. None of the directors received any payment for their services as directors of the Company (2013: £nil).

6

Tax on loss on ordinary activities

	2014 £ 000	2013 £ 000
Total current tax	-	-

The table below reconciles tax calculated at the UK standard rate on the loss on ordinary activities before tax to the actual tax charge recognised in the profit and loss account. The differences were attributed to the following factors:

	2014 £ 000	2013 £ 000
Loss on ordinary activities before tax	(356)	(25)
Corporation tax at standard rate of 21.5% (2013: 23.25%)	(77)	(6)
Other timing differences	-	6
Group relief not paid for	77	-
Total current tax	-	-

The Finance Act 2013 included legislation to reduce the main rate of corporation tax from 21% to 20% from 1 April 2015. This change became substantively enacted on 2 July 2013.
 

7

Debtors: amounts falling due within one year

	2014 £ 000	2013 £ 000
Trade debtors	729	262
Amounts owed by group undertakings	117	225
Prepayments and accrued income	-	37
	846	524

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Centre for Innovation in Regulatory Science Limited

Notes to the Financial Statements for the Year Ended 31 December 2014

8

Creditors: amounts falling due within one year

	2014 £ 000	2013 £ 000
Amounts owed to group undertakings	410	51
Other creditors	39	24
Taxation and social security	9	8
Accruals and deferred income	683	380
	1,141	463

Amounts owed to fellow group undertakings are unsecured, non-interest bearing and repayable on demand.

9

Called up share capital

Allotted, called up and fully paid shares

	2014		2013
	No.	£	No.	£
Ordinary shares of £1 each	1	1	1	1

10

Reserves

	Profit and loss account £ 000
At 1 January 2014	61
Loss for the financial year	(356)
At 31 December 2014	(295)

11

Reconciliation of movements in shareholders' (deficit)/funds

	2014 £ 000	2013 £ 000
Loss for the financial year	(356)	(25)
Net movement in shareholders' funds	(356)	(25)
Shareholders' funds at 1 January	61	86
Shareholders' (deficit)/funds at 31 December	(295)	61

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Centre for Innovation in Regulatory Science Limited

Notes to the Financial Statements for the Year Ended 31 December 2014

12

Company status and ultimate parent undertaking

As at 31 December 2014 the Company’s immediate parent company is TR Organisation Limited. Within the meaning of the Companies Act 2006 (“CA2006”), Thomson Investments Limited (“TIL”) is regarded by the Directors of the Company as being the Company’s ultimate parent company and controlling party. Within the meaning of CA2006, Thomson Reuters Corporation (“Thomson Reuters”) is the parent undertaking of the only group of undertakings for which group financial statements were drawn up and of which the Company was a member for the year ended 31 December 2014. TIL and Thomson Reuters are incorporated under the laws of the Province of Ontario, Canada.

Copies of Thomson Reuters' annual reports are available from: The Thomson Reuters Building, South Colonnade, Canary Wharf, London E14 5EP, and are publicly available at www.thomsonreuters.com.

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