Registered number:
FOR THE YEAR ENDED 31 MARCH 2019
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
COMPANY INFORMATION
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
CONTENTS
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2019
The directors present their report and the financial statements for the year to 31 March 2019.
2018/19 was another busy and successful year for the Company. The Board were delighted with the success of the seven Investor Network showcase events held at some fantastic locations which included Blenheim Palace, Centrica and Rathbones. A total of nearly 100 impressive, and carefully selected, companies presented during the year and were very well received by OION’s growing angel investor base. In 2018/19, 48% of presenting companies raised investment (2017/18: 42%) through OION/TVIN and its investors and venture capital fund managers. Turnover from investment network management activities totalled £162,860 in the year which represented an increase of 8.6% over the prior year (2017/18: £149,932). The company generated total revenues of £634,428 which included £471,568 received as a result of carried interests in funds managed by others.
The company is exposed to a variety of financial risks resulting from its operating activities. The board is responsible for coordinating the company's risk management and focuses on securing the company's cash flows.
The company does not actively engage in the trading of financial assets and has no financial derivatives. The most significant financial risks to which the company is exposed are described below: Credit risk The company's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of any allowance for doubtful debts, as estimated by the directors. The company has no significant concentration of credit risk, with exposure spread over a large number of clients. Cash flow risk The company seeks to manage risks to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by management actively monitoring future cash flow requirements on a regular basis.
Key performance indicators are shown below:
Turnover for the year to 31 March 2019 was £162,860 (2018: £149,932) Profit before taxation for the year to 31 March 2019 was £451,920 (2018: £Nil) No dividends were paid during the year ended 31 March 2019 (2018: £Nil)
This report was approved by the board on 16 July 2019
and signed on its behalf.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2019
The directors present their report and the financial statements for the year ended 31 March 2019.
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;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £
366,055
(2018:
loss
£
50
)
.
The directors do not recommend a dividend for the the year ended 31 March 2019 (2018: £Nil).
The directors who served during the year were:
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
There have been no significant events affecting the Company since the year end.
The auditor, James Cowper Kreston, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board on
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
We have audited the financial statements of Oxford Investment Opportunity Network Limited (the 'Company') for the year ended 31 March 2019, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity
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:
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 Auditor's 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.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the directors
' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED (CONTINUED)
required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the 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.
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:
As explained more fully in the Directors' Responsibilities Statement 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, 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.
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 Auditor's 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.
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 Auditor's Report.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF OXFORD INVESTMENT OPPORTUNITY NETWORK 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 Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditor
2 Chawley Park
Cumnor Hill
Oxfordshire
OX2 9GG
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2019
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
REGISTERED NUMBER:
07719853
BALANCE SHEET
AS AT
31 MARCH 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 10 to 17 form part of these financial statements.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 MARCH 2019
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
Oxford Investment Opportunity Network Limited is a private limited company incorporated in the UK and registered in England and Wales. The Company's registered office is Oxford Centre For Innovation, New Road, Oxford, Oxfordshire, OX1 1BY.
The principal activity of the Company is the management of business angel networks.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The 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 following principal accounting policies have been applied:
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 11.41(b), 11.41(c), 11.41(e), 11.41(f), 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 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of the ultimate controlling company, SQW Group Newco 2018 Limited for the three months ended 31 March 2019 and the immediate parent company, SQW Group Limited as at 31 March 2019 and these financial statements may be obtained from Oxford Centre for Innovation, New Road, Oxford, Oxfordshire, OX1 1BY.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
Revenue from success fees earned and carried interest income due is recognised upon the reciept of cash. The Directors feel this is appropriate given uncertainty experienced in the past in relation to such receipts. The appropriateness of this policy is kept under close review.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
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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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
2.
Accounting policies (continued)
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.
The preparation of the financial statements requires managment to make judgements, estimates and assumptions that affect the amount reported for assets and liabilites as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effects on amounts recognised in the financial statements.
Taxation (note 8) Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that ban be recognised, based upon likely timing and the level of future taxable profits, together with future planning strategies.
The whole of the turnover is attributable to the operating of an investment network.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
9.
Taxation (continued)
Legislation has been passed to reduce the rate of UK corporation tax to 17% from 1 April 2020. The future impact of the changes on the deferred tax asset has been considered.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
Share premium account
The share premium account represents the amount by which the amount received by the Company for stock issue exceeds its nominal value.
Capital redemption reserve
The capital contribution reserve represents capital contributions from another group company.
Profit & loss account
The profit & loss account is the Company's accumulated profits or losses at the year end date.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
The immediate parent undertaking of the Company is Oxford Innovation Limited, registered in England and Wales.
The ultimate controlling party up to 29 November 2018 was SQW Group Limited, a company registered in England and Wales, by virtue of its 100% shareholding in the Company. On 29 November 2018 SQW Group Newco 2018 Limited, registered in England and Wales, acquired 100% of the shareholding of SQW Group Limited and its subsidiaries. From this date SQW Newco 2018 Limited became the ultimate controlling party. The consolidated statements of SQW Group Newco 2018 Limited and SQW Group Limited and the financial statements of Oxford Innovation Limited are all publically available from Oxford Centre for Innovation, New Road, Oxford, Oxfordshire, OX1 1BY.
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