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Registered number: 05379768
CORNWALL INSIGHT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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CORNWALL INSIGHT LIMITED
COMPANY INFORMATION
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N W Field (appointed 26 October 2023)
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Chartered Accountants & Statutory Auditors
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1st Floor, Prospect House
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CORNWALL INSIGHT LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Statement of Financial Position
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Notes to the Financial Statements
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CORNWALL INSIGHT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their strategic report for the Company.
Strategy and business model
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The Company provides market regulatory, policy analysis, insight, training and advisory services to businesses and other stakeholders engaged in the energy sector. Services are delivered through subscription reports, consulting advisory and through training provision.
The purpose of the Company is, through the provision of these services, to enable our customers to succeed in making the net zero transition a reality.
The strategy of the business is to:
∙Place our clients at the centre of everything we do, by building sustainable and strategic relationships with the proliferating range of actors who become engaged with the energy sector through the drive to further decarbonise all aspects of developed economies;
∙Digitalise the delivery of services and the user interfaces of clients with our insight;
∙Dynamically refine and improve existing service propositions around customer needs;
∙Diversify our service provision across commercially interesting parts of the energy value chain;
∙Enter selected new international markets where the directors consider that there are strong opportunities for Cornwall Insight to succeed; and
∙Create meaningful and exciting careers for our people in a culture built on sound values and consistently strong leadership.
The core KPIs for the business are the progression of revenue and EBITDA.
Company revenue in the year ended 31 March 2023 increased by 15% to £8,364,664 compared to the previous financial year (2022 - £7,265,479).
This top-line growth is reflective of a robust and positive outcome for the Company in the trading period, with strong performance arising from returns on investment in key areas of the Company's strategic plan, in particular the bolstering of our key client and relationship management function, review of our service proposition, and the expansion of our consulting business into broader areas of activity.
Underlying Company profitability continues to be strong. EBITDA, excluding exceptional items and group management charges, increased to £2.32million (from £2.20million for the year ended 31 March 2022).
Our resilience reflects a well-diversified business, which allowed us to generate off-setting growth for any headwinds experienced in individual parts of the energy value chain. This cross value chain focus is a distinguishing characteristic of Cornwall Insight that sets it apart from many of our competitors.
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CORNWALL INSIGHT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Business review (continued)
Growth in the Company's subscription order book continued to be strong, with growth in key account relationships generally, and expansion of market share in the low carbon and end user/corporate space more specifically underpinning the overall trends. Subscription revenue grew 20% compared to the previous financial year.
The Company's consulting revenues increased by 16% compared to the prior year as our team continues to capitalise on a growing reputation in the flexibility and low carbon sectors as well as investment due diligence and transactional space.
Training revenues also continued to grow, increasing 7% compared to the previous financial year.
In terms of investment, we have invested in developing a new digital platform for our subscription services as well as investments in our teams in the UK, Ireland, and Australia and the expansion of our sales and technology capabilities. In most cases, given the lag between investment and revenue, we did not see returns on these investments arise in the financial year. Rather we anticipate that these will drive growth in the future.
Principal risks and uncertainties
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The directors have identified the following principal risks and uncertainties affecting the Company:
∙Talent acquisition: The tightness in the labour market that emerged at the end of the Covid pandemic remains, and is heightened in our sector as skillsets to support decarbonisation and programmes to reduce energy costs are in high demand. We consider that acquiring and retaining talent will remain challenging in the period ahead of any labour market correction that could be driven by the movement to a recessionary environment. To address this, our People and Talent function have overhauled and significantly improved our approach to hiring, training and development and employee benefits.
∙Macro-economic uncertainty: The global macro-economic picture is being impacted by high inflation, high interest rates, supply chain constraints in the exit period from the Covid pandemic, and by the ongoing wars in Ukraine and Gaza. The impacts of this are being felt by our clients, particularly in the investment space where we have observed reduced levels of final investment decisions on low carbon and flexibility infrastructure assets. On balance, we consider that the Company’s mix of subscriptions and consulting capabilities, and the diversity of our interests across different energy sectors, leaves us well positioned to trade strongly even if risks increase. However, like all businesses, managing the impact of inflation on our cost base via our approach to pricing of our services, whilst remaining competitive and attractive to our customers, will be a paramount area of focus for us. We consider that our focus on continuous improvement of services, the non-substitutable nature of many products that we offer, and our focus on building enduring and long term mutually valuable relationships with our clients is of considerable value in this environment.
∙Return on investment: We are pursuing a range of investment activities to deliver future growth, and risk arises to profitability and cash flow if return on investment lags expectation. We are managing this through staging of total investment into defined portions, and through quarterly evaluation of performance in areas where investment has been made so regular changes to the speed or quantum of further investment can be made.
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CORNWALL INSIGHT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Strategy and future developments
Our strategy is to continue to expand our subscription and consulting services, and develop the technology and packaging of our services to best meet our clients’ needs. This includes the continued development and launch of our new digital platform.
This report was approved by the board and signed on its behalf.
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G Miller
Director
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N W Field
Director
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CORNWALL INSIGHT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, 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 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 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.
The principal activity of the Company is the provision of consultancy, information and training services to the energy sector.
The loss for the year, after taxation, amounted to £2,024,667 (2022 - profit £1,139,822).
No final dividend (2022 - £Nil) was recommended for payment.
The director who served during the year was:
Future developments are discussed in detail within the Strategic Report.
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CORNWALL INSIGHT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Qualifying third party indemnity provisions
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The Company maintains liability insurance for its directors and officers. The directors and officers have also been granted a qualifying third party indemnity provision under section 234 of the Companies Act 2006. Neither the Company's indemnity nor insurance provides cover in the event that a director or officer is proven to have acted fraudulently or dishonestly.
Matters covered in the Strategic Report
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Financial risk management objectives and policies, information and exposure on price risk, credit risk, liquidity risk, cash flow risk and future developments are discussed in the Strategic Report.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditors, Larking Gowen LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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G Miller
Director
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N W Field
Director
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CORNWALL INSIGHT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL INSIGHT LIMITED
We have audited the financial statements of Cornwall Insight Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, 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 March 2023 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.
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.
Conclusions relating to going concern
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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.
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CORNWALL INSIGHT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL INSIGHT LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙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; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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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 Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which 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.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 is 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.
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CORNWALL INSIGHT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL INSIGHT LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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.
Due to the field in which the Company operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which, whilst not having a direct impact on the financial statements, are fundamental to the Company's ability to operate, including health and safety, employment law and compliance with various other regulations relevant to the Company's operations.
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
∙Enquiries with management about known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, potential litigation or claims and fraud;
∙Reviewing legal and professional fees to confirm all matters where the Company engaged lawyers during the year;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Reviewing board minutes and any relevant correspondence with external authorities;
∙Challenging assumptions and judgements made by management in their significant accounting estimates; and
∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business.
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.
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CORNWALL INSIGHT LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORNWALL INSIGHT LIMITED (CONTINUED)
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.
Anders Rasmussen FCA (Senior Statutory Auditor)
for and on behalf of
Larking Gowen LLP
Chartered Accountants
Statutory Auditors
1st Floor, Prospect House
Rouen Road
Norwich
NR1 1RE
21 December 2023
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CORNWALL INSIGHT LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
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Exceptional administrative expenses
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Amounts written (off)/back on investments
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Interest receivable and similar income
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Interest payable and similar expenses
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Retained earnings at the beginning of the year
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(Loss)/profit for the year
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Retained earnings at the end of the year
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There were no recognised gains and losses for 2023 or 2022 other than those included in the Statement of Income and Retained Earnings.
The notes on pages 13 to 30 form part of these financial statements.
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CORNWALL INSIGHT LIMITED
REGISTERED NUMBER: 05379768
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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CORNWALL INSIGHT LIMITED
REGISTERED NUMBER: 05379768
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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G Miller
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N W Field
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The notes on pages 13 to 30 form part of these financial statements.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Cornwall Insight Limited is a private company, limited by shares and incorporated in England and Wales, registration number 05379768. The registered office is Floor 1, The Atrium Merchant's Court, St Georges Street, Norwich, NR3 1AB.
2.Accounting policies
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Basis of preparation of financial statements
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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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
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Financial Reporting Standard 102 - reduced disclosure exemptions
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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 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Cornwall Insight Group Limited as at 31 March 2023 and these financial statements may be obtained from Companies House.
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Exemption from preparing consolidated financial statements
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The Company is a parent Company that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The Board of Directors have assessed a period of not less than 12 months from the date of these financial statements. Taking the actual and expected financial performance, financial position, liquidity, and maturity of debt facilities of the Company into account the Board of Directors believe that the Company will continue to meet its liabilities as they fall due and therefore that the going concern basis of preparation is appropriate.
In forming this view the Company has prepared forecasts of future revenues, profits, cashflows, and net assets that take into account a range of factors including conditions in the Company’s end markets, demand for its services, and macroeconomic conditions. The Company has performed scenario and sensitivity analysis to quantify the potential impact on its business of a range of potential adverse events including adverse variances in revenues, costs, and cashflows, and external events such as adverse changes in interest and foreign exchange rates.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Turnover relates to the provision of consultancy, information and training services to the energy sector.
Income from consultancy services is recognised based on the stage of completion of the contract.
Turnover from subscriptions is recognised over the subscription period on an accruals basis.
Turnover from training services is recognised on the date that the training course takes place.
At the period end, accrued income represents amounts earned by the Company that have not been billed, while deferred income represents amounts received from customers but not yet earned, in accordance with the above.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of Income and Retained Earnings over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
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 the Statement of Income and Retained Earnings over the remaining vesting period.
Where equity instruments are granted to persons other than employees, the Statement of Income and Retained Earnings is charged with fair value of goods and services received.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
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.
The estimated useful life of computer software assets is 5 years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is provided on the following basis:
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Short-term leasehold property
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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 the Statement of Income and Retained Earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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 Statement of Financial Position.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Judgements in applying accounting policies and key sources of estimation uncertainty
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Preparation of the financial statements requires management to make significant judgements and estimates. The key items in the financial statements where these judgements and estimates have been made include:
Impairment of debtors
The Company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors including the current credit rating, the ageing profile of debtors and historical experience.
Accrued income
The Company makes an estimate of the degree of completion on consultancy contracts at the year end by consideration to the percentage of work done on each project at the year end date.
Useful economic lives of intangible assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually and are amended when necessary to reflect the current use of the assets acquired.
All turnover arose from the principal activity of the Company, namely the provision of consultancy, information and training services to the energy sector.
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All turnover arose within the United Kingdom.
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Government grants receivable
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The operating (loss)/profit is stated after charging:
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 1 director (2022 - 2) in respect of defined contribution pension schemes.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Other interest receivable
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Interest payable and similar expenses
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Current tax on (losses)/profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Short term timing differences
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Taxation on (loss)/profit on ordinary activities
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
12.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:
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(Loss)/profit on ordinary activities before tax
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(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
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Amounts owed by group companies provided for
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Tax relief on exercise of share options
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Adjustment to tax charge in respect of previous periods
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Income not taxable for tax purposes
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Remeasurement of deferred tax for changes in tax rates
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Total tax (credit)/charge for the year
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Factors that may affect future tax charges
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The main rate of corporation tax increased to 25% with effect from 1 April 2023.
The Company has corporation tax losses carried forward of £2,675,528 (2022 - £Nil) available for use against future profits.
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Provision for loans to subsidiary companies
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Other exceptional costs relates to matters such as an office relocation.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Charge for the year on owned assets
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Short-term leasehold property
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Charge for the year on owned assets
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Investments in subsidiary companies
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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The following were subsidiary undertakings of the Company:
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Provision of energy consultancy, information and training services to the public sector.
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Cornwall Insight Ireland Limited
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Provision of energy consultancy, information and training services to the private sector.
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Cornwall Insight Australia Pty Ltd
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Provision of energy consultancy, information and training services to the private sector.
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Registered Office:
Pixie Energy Limited - Floor 1, The Atrium Merchant's Court, St Georges Street, Norwich, NR3 1AB.
Cornwall Insight Ireland Limited - Joyce House, 22/23 Holles Street, Dublin 2, D02 YP92.
Cornwall Insight Australia Pty Ltd - Level 13, 664 Collins Street, Docklands, Victoria 3008.
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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An impairment credit of £1,143 (2022 - £44,199 impairment charge) was recognised against trade debtors.
Under intra-group liquidity management arrangements amounts owed by subsidiary companies and the parent company group are repayable upon demand, and therefore are classified as due within 12 months. An impairment charge of £2,997,498 (2022 - £Nil) was recognised against amounts owed by group undertakings.
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Cash and cash equivalents
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Details of secured creditors are provided in note 20.
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Creditors: Amounts falling due after more than one year
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Bank loans of £Nil (2022 - £689,739) relate to amounts borrowed through the Government's Coronavirus Business Interruption Loan Scheme (CBILS). The loan was repayable over 3 years, with no repayments in the first 12 months. Interest was payable on the loan at a rate of 2.99% over base rate.
Bank loans were secured by way of a debenture dated 29 March 2018 and cross guarantees from fellow group companies.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Charged to profit or loss
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Accelerated capital allowances
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Short term timing differences
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Losses and other deductions
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The amount of net reversal of deferred tax expected to occur next year relating to existing timing differences is £17,070 (2022 - £5,796).
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Allotted, called up and fully paid
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4,960 (2022 - 4,960) Ordinary A Shares of £0.02 each
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582 (2022 - 582) Ordinary B Shares of £0.02 each
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24 (2022 - 24) Ordinary C Shares of £0.02 each
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Share premium account
The share premium account includes amounts paid for issued shares in excess of the par value of the shares purchased.
Capital redemption reserve
The capital redemption reserve is a non-distributable reserve arising from the Company's purchase of its own shares.
Profit and loss account
Profit and loss account includes all current and prior period retained profit and losses less dividends paid.
The Company is a party to security arrangements given in respect of group-wide bank facilities. As at 31 March 2023 the contingent liability in respect of charges outstanding amounted to £6,469,912 (2022 - £689,739).
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £170,487 (2022 - £136,739). Contributions totalling £2,354 (2022 - £24,078) were payable to the fund at the reporting date and are included in creditors.
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Commitments under operating leases
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At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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CORNWALL INSIGHT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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Related party transactions
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The Company has taken advantage of the exemptions available under FRS102 section 33 not to disclose transactions between wholly owned members of a group.
During the year, sales were made to BGF Investment Management Limited, an affiliate of a former shareholder in the Company, of £Nil (2022 - £15,000). No amounts were outstanding at the year end (2022 - £Nil).
Total key management personnel compensation for the year was £925,008 (2022 - £804,002).
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The parent company of Cornwall Insight Limited is Cornwall Insight Group Limited, who draw up consolidated accounts for the Group.
On 24 June 2022 the entire issued share capital of Cornwall Insight Group Limited was acquired by Canary (Bidco) Limited. As a result the immediate parent company of Cornwall Insight Group Limied is Canary (Bidco) Limited, a company incorporated in England and Wales, and the ultimate parent company is Canary (Topco) Limited, a company incorporated in Jersey. Both companies are controlled by funds managed by Bowmark Capital LLP and its affiliates.
The largest group for which consolidated financial statements are prepared is Canary (Midco 1) Limited, a company incorporated in England and Wales, the financial statements of which are available from The Atrium, St. Georges Street, Norwich, England, NR3 1AB.
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