Registered number:
FOR THE YEAR ENDED 31 MARCH 2022
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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 2022
The directors present their report and the financial statements for the year to 31 March 2022.
The Board were delighted with the company’s performance – both operationally and financially – in 2021/22. Following the successful close of the Company’s first EIS Fund – the Oxford Innovation EIS Growth Fund – in March 2021, this year saw the full deployment of Fund 1 in nine promising, innovative tech companies. In addition to these fund investments, the team ran 7 well attended online showcase events during the year at which a significant number of companies received investment from OION angels. The successful companies received an average of £201k per company from our committed, and growing, angel investor community.
Fundraising commenced for the second EIS Fund in January 2022 and, in spite of more challenging macro-economic conditions, the Board were pleased to close the fund during the first quarter of 2022/23. Deployment of fund 2 is already underway, with no apparent shortage of high growth tech companies from which to carefully select investment opportunities during 2022/23. Record-breaking turnover of £351,151 (2019/20: £177,797) was generated in the year of which £115,000 was attributable directly to the Fund’s activities. Due to the high level of investment activity by our angels, success fees generated from the investment network was over twice that of the prior year; testament to the quality of presenting companies and to the alignment of interests with the angels attracted to our network. 43% of the network’s success fees were generated from companies in which angels co-invested alongside our EIS Fund; this reinforces the synergies that exist between OION’s two streams of activity in investing our Fund and in facilitating angel investment. No other income (2020/21: £23,982) was generated from carried interest during the year. As we look forward, we are starting to witness a much more challenging environment for early-stage investing. The turbulence in financial markets and the rise in inflation and interest rates are all likely to contribute to a diminished risk appetite vs that enjoyed in 2021/22. However, longer term, the Board remain confident in OION’s business model and its potential for success, as demonstrated by our first full year of fund investment activity, and a successful fundraising round in 2021/22.
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.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Key performance indicators are shown below:
Turnover for the year to 31 March 2022 was £351,151 (2021: £201,779) Profit before taxation for the year to 31 March 2022 was £21,813 (2021: £4,842) No dividends were paid during the year ended 31 March 2022 (2021: £Nil)
The board of directors of Oxford Investment Opportunity Network Limited (“OION”) consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefits of all its stakeholders.
The Company has a long and distinguished history. Our low staff turnover reflects the continued commitment to achieving high staff satisfaction and we consider that our ongoing success in attracting impressive companies to pitch so effectively is a direct result of our team’s ability to deliver an expert, dedicated service of the highest quality. OION is a socially responsible company. We make a great effort to consider the impact of our business practices on society and strive to ensure that what we do, and how we do it, is beneficial to our presenting companies, investor community, employees, business partners and the environment.
This report was approved by the board
and signed on its behalf.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The directors who served during the year were:
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 £
14,660
(2021 -
£
3,710
)
.
The directors do not recommend a dividend for the year ended 31 March 2022 (2021; £Nil).
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
After the year-end, Oxford Investment Opportunity Network Limited and their respective partnered nominee formally closed on a funding round valued at £1,655k.
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 and signed on its behalf.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS 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 2022, 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).
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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED (CONTINUED)
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.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED (CONTINUED)
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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to a material misstatement in the financial statements or non-compliance with, regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙
Enquiry of management and those charged with governance around actual and potential litigation and claims;
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Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
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 MEMBERS 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 2022
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
REGISTERED NUMBER:
07719853
BALANCE SHEET
AS AT
31 MARCH 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 12 to 21 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 2022
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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 11.42, 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 as at 31 March 2022 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 2022
2.
Accounting policies (continued)
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 profit or loss.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet 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 Balance Sheet.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
Accounting policies (continued)
Taxation (note 10) 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 can be recognised, based upon likely timing and the level of future taxable profits, together with future planning strategies.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
During the year, the Company had no employees other than the directors (2021: Nil). Included in the cost of sales figure are wage costs totalling £158,203 (2021: £86,932) for work carried out for the Company, which were recharged from another group company.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
10.
Taxation (continued)
In the Spring Budget 2021, the Government announced that from 1 April 2023 the main corporation tax rate will increase to 25%. As a result of the rate change the corporation tax expense for the period has
increased and the deferred tax liability has increased. The impact of these changes is not expected to be material.
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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OXFORD INVESTMENT OPPORTUNITY NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Share premium account
Capital redemption reserve
Profit & loss account
The immediate parent undertaking of the Company is
The ultimate controlling party is The consolidated statements of SQW Group Newco 2018 Limited and the financial statements of Oxford Investment Opportunity Network Limited are all publically available from
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