Cornwall Plus Limited
Directors’ Report and Financial Statements for the year ended 31 July 2015 Company registration number 08058424
Cornwall Plus Limited
Directors
Mrs J Michelle Brunton Mrs Elizabeth Crawford Mrs Niamh Lamond Mr Colin Wakefield
Secretary
Ms Ruth Olver
Auditors
KPMG LLP Plym House 3 Longbridge Road Plymouth PL6 8LT
Registered number
08058424
Registered Office
Penryn Campus Penryn Cornwall TR10 9FE
Bankers
Barclays Bank plc 3rd Floor Windsor Court 3 Windsor Place Cardiff CF10 3BX
Cornwall Plus Limited
Index Report of the Directors Statement of Directors’ Responsibilities Independent Auditor’s Report
Pages 1-2 3 4-5
Profit and Loss Account
6
Balance sheet
7
Notes to the Financial Statements
8 - 11
Cornwall Plus Limited Report of the Directors For the year ended 31 July 2015 The Directors submit their report and the financial statements for the year ended 31 July 2015. Principal Activity Cornwall Plus Limited (Cornwall Plus) is a wholly owned subsidiary of Falmouth Exeter Plus (FX Plus) which is a joint venture company with exempt charity status established by Falmouth University (Falmouth) and the University of Exeter (UoE). The primary purpose of Cornwall Plus is to operate the commercial, non-charitable activities of the joint venture primarily relating to non-student letting of residences, non-academic conferences, external events and corporate hospitality for third parties. Review The 2014/15 year saw income grow by 50% as a result of increased activity from Penryn Summer Apartments and conferencing and events. Against this costs grew by 70% as the company invested in additional capacity for the Commercial & Campus Events team and in new laundry equipment. Principal risks As a service provider, meeting customer expectations and the proper delivery of the service is the principal objective and risk, and it is monitored in various ways including customer feedback surveys, customer reviews, stakeholder meetings and service level agreements. Cornwall Plus relies on its main service provider, FX Plus, for the delivery of the majority of service requirements as well as an appropriate level of investment to maintain the infrastructure of the campus at a competitive standard. Cornwall Plus is heavily reliant upon the availability of accommodation between student lets and the need to dovetail availability with the same short window of opportunity to maintain the premises. The demand for summer accommodation in Cornwall is a key success factor as is the importance of promoting our distinctive offer which is currently divided into market segmented promotional activities including Penryn Summer Apartments. The Cornwall Plus Risk Register is updated regularly and monitored at six monthly intervals by the Cornwall Plus Board. Results and dividends The profit and loss account for the year shows a profit which has been donated, under a gift aid agreement, to the parent company, FX Plus. Directors The Directors who served during the period and their interests in the share capital of the Company were as follows: Mrs J Michelle Brunton Mrs Elizabeth Crawford Mrs Niamh Lamond Mr Colin Wakefield None of the Directors held any shares in the Company.
1
Cornwall Plus Limited Report of the Directors For the year ended 31 July 2015 Directors’ statement as to disclosure of information to auditor The Directors who were members of the Board at the time of approving the Directors’ report are listed at the front of the financial statements. Having made enquiries of fellow Directors and of the Group’s auditor, each of these Directors confirms that: •
to the best of each Director’s knowledge and belief, there is no information relevant to the preparation of their report of which the Group’s auditor is unaware; and
•
each Director has taken all the steps a Director might reasonably be expected to have taken to be aware of relevant audit information and to establish that the Group’s auditor is aware of that information.
Reappointment of Auditor Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office. By Order of the Board
Ruth Olver Secretary 23 October 2015
2
Cornwall Plus Limited Statement of Directors’ Responsibilities For the year ended 31 July 2015 Statement of Directors’ Responsibilities The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). 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 judgments and 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 have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. BY ORDER OF THE BOARD
R Olver Secretary 23 October 2015
3
Cornwall Plus Limited Independent Auditor’s Report For the year ended 31 July 2015 We have audited the financial statements of Cornwall Plus Limited for the year ended 31 July 2015 set out on pages 6 - 11. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice). 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. Respective responsibilities of directors and auditor As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www.frc.org.uk/auditscopeukprivate. Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the company's affairs as at 31 July 2015 and of its profit for the year then ended; • have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
4
Cornwall Plus Limited Independent Auditor’s Report For the year ended 31 July 2015
Matters on which we are required to report by exception 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 take advantage of the small companies exemption from the requirement to prepare a strategic report.
Emma Holiday (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants Plym House, Plymouth PL6 8LT
5
Cornwall Plus Limited Profit and Loss Account For the year ended 31 July 2015
Note Turnover
2
Cost of Sales Gross Profit Other Operating Expenses Interest Receivable and similar income
Year to 31/7/15 £
Year to 31/7/14 £
769,409
513,338
(459,859)
(237,725)
309,550
275,613
(134,074) 147
(112,442) 12
Profit on Ordinary Activities Before Taxation
3
175,623
163,183
Taxation
4
-
-
175,623
163,183
(175,623)
(163,183)
Profit on Ordinary Activities after Taxation Gift Aid payment Retained Profit for the Year after Gift Aid payment
-
A statement of retained reserves is set out in note 9 to these financial statements. All of the above relate to continuing activities. There were no recognised gains or losses other than the profit/(loss) for the year as shown above. The notes on pages 8 to 11 form an integral part of the financial statements.
6
-
Cornwall Plus Limited Balance Sheet As at 31 July 2015
Note
2015 £
2014 £
Current Assets Debtors Cash at Bank and in Hand
6
35,039 352,263 387,302
Creditors - Amounts falling due within one year
7
(387,300)
196,589 184,438 381,027 (381,025)
Net Current Assets
2
2
Net Assets
2
2
Capital and Reserves Called Up Share Capital
8
2
2
Profit and Loss Account
9
-
-
2
2
Shareholders’ Funds
The financial statements on pages 6 to 11 were approved by the Board of Directors on 23 October 2015
Niamh Lamond Director 23 October 2015 Registered number 08058424 The notes on pages 8 to 11 form an integral part of the financial statements.
7
Cornwall Plus Limited Notes to the Financial Statements Year to 31 July 2015 1. Principal accounting policies Accounting convention The financial statements have been prepared on the going concern basis, under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards. Basis of accounting and preparing the Financial Statements The Company has taken advantage of the exemption under FRS 8 not to disclose transactions with the parent since it is 100% owned. The Company has also taken advantage of the exemption from presenting a cashflow statement afforded by FRS 1 because it is a wholly owned subsidiary of Falmouth Exeter Plus which prepares consolidated accounts which are publicly available. The Board of Directors has reviewed the Company’s accounting policies and considers them to be appropriate for the Company. Going concern The Company has sufficient financial resources together with continued funding. As a consequence the directors believe that the Company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements. Turnover Turnover represents amounts receivable for goods and services provided in the normal course of business, net of trade discounts, VAT and other sales-related taxes and is recognised on despatch of goods or delivery of services. Equipment Equipment with a value over £5,000 is capitalised. Items with a value below £5,000 are expensed on acquisition. Where the equipment is acquired with the aid of specific grants it is capitalised and depreciated as above with the related grant being credited to a Deferred Capital Grant account and released to the Profit and Loss Account over the expected useful economic life of the related equipment. Taxation The charge for taxation is based on the profit or loss for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred tax is recognised in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19. Gift aid payment presented within shareholders’ funds The ICAEW issued on 31 October 2014 new guidance in relation to the payment of gift aid by subsidiaries. As a result, for the year ended 31 March 15 and subsequent years gift aid payment is only recognised as a liability at the year end to the extent that it has been paid prior to the year end, there is a deed of covenant prior to the year end or a Companies Act s288 written resolution has been approved by the shareholder in the year to pay the taxable profit for the year to its parent by a certain payment date.
8
Cornwall Plus Limited Notes to the Financial Statements Year to 31 July 2015 2. Turnover Turnover represents the value of goods and services supplied within the UK during the period, excluding VAT. 3. Profit on ordinary activities before taxation This is stated after charging/(crediting): Auditors' Remuneration
31/7/15 £ 5,720
31/7/14 £ 4,000
31/7/15 £
31/7/14 £
-
-
-
-
4. Taxation Analysis of charge in year UK Corporation tax Current tax on income for the year Tax on profit on ordinary activities Factors affecting the tax charge for the current year The current tax charge for the year is lower (2014: lower) than the standard rate of corporation tax in the UK of 20% (2014:20%). The differences are explained below.
Current tax reconciliation Profit on ordinary activities before tax Current tax at 20% (2014:20%) Effects of: Gift aid payment expected to be made Total current tax charge (see above)
31/7/15 £
31/7/14 £
175,623
163,183
35,124
32,636
(35,124)
(32,636)
-
-
Reductions in the main UK corporation tax rate from 23% to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. The smaller profits rate, at which the entity is charged tax, has remained at 20% throughout the period. In the Budget on 8 July 2015, the Chancellor announced additional planned reductions to 18% by 2020. This will reduce the company's future current tax rate accordingly. There is no provided or unprovided deferred taxation. 5. Staff costs There were no employees during the year. The Directors did not receive any remuneration from the Company.
9
Cornwall Plus Limited Notes to the Financial Statements Year to 31 July 2015 6. Debtors Amounts falling due within one year: Trade Debtors Other Debtors Amounts owed by related party-University of Exeter Amounts owed by related party-Falmouth University
7. Creditors - Amounts falling due within one year Bank Overdraft Trade Creditors Amounts owed to group undertaking Other creditors Accruals
8. Called up share capital Authorised Ordinary £1 Shares Allotted, Issued and Fully Paid Ordinary £1 Shares 9. Profit and loss account Retained reserves brought forward Retained profit for the year Gift Aid Payable Retained reserves carried forward
2015 £
2014 £
13,930 10,064 9,354 1,691
31,146 3,757 161,686
35,039
196,589
2015 £ 247 83,834 104,592 74,776 123,851
2014 £ 62,340 147,631 25,553 145,501
387,300
381,025
2015 £
2014 £
100
100
2
2
2015 £ -
2014 £ -
175,623 (175,623) -
163,183 (163,183) -
10. Related party transactions The company entered into the following transactions which are all shown on an arms’ length basis. 31/7/15 31/7/14 £ £ Sales to Falmouth University Sales to University of Exeter Purchases from Falmouth University Amounts owed by Falmouth University Amounts owed by University of Exeter
9,576 9,354 2,275 1,691 9,354
10
164,086 161,686 -
Cornwall Plus Limited Notes to the Financial Statements Year to 31 July 2015 11. Ultimate Parent company Cornwall Plus Limited is a wholly owned subsidiary of Falmouth Exeter Plus, a company incorporated in Great Britain and registered in England and Wales, the ultimate controlling party, whose accounts are available from Companies House.
11
Cornwall Plus Limited Profit and Loss account Year to 31 July 2015
This page does not form part of the audited statutory accounts
£
Sales Events Income Cost of Sales Salaries recharges Events Direct Costs Gross Profit Overheads General Office Costs Marketing and Promotions Audit Fee
Year to 31/7/15 £ 769,409
513,338
(283,517) (176,342)
(167,641) (70,084)
309,550
275,613
112,879 15,475 5,720
Interest Receivable Gift Aid payable to Falmouth Exeter Plus Net Profit/(Loss) for the year
12
£
Year to 31/7/14 £
79,028 29,414 4,000 (134,074)
(112,442)
147 (175,623)
12 (163,183)
-
-
