Registered number:
09776636
NCIUL Limited
(A company limited by guarantee)
Financial statements
Information for filing with the registrar
For the Year Ended
31 December 2019
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NCIUL Limited
(A company limited by guarantee)
Registered number:
09776636
Statement of financial position
As at
31 December 2019
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
18 August 2020
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The notes on pages 3 to 8 form part of these financial statements.
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NCIUL Limited
(A company limited by guarantee)
Statement of cash flows
For the Year Ended 31 December 2019
Cash flows from operating activities
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(Loss)/profit for the financial year
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Depreciation of tangible assets
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Decrease/(increase) in debtors
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(Decrease)/increase in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 3 to 8 form part of these financial statements.
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NCIUL Limited
(A company limited by guarantee)
Notes to the financial statements
For the Year Ended 31 December 2019
The company is incorporated in England and Wales and has its registered office address at 4 Selsdon Way, Northern & Shell House , London, E14 9GL.
The principal activity of the company remains that of providing first degree level higher education and post graduate level higher education.
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 Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The following principal accounting policies have been applied:
During the year the company made losses of £1.3 million and at balance sheet date the company had net liabilities of £1.2 million. These conditions indicate the existence of material uncertainty which may cast significant doubt about the company's ability to continue as going concern. However, the financial statements are prepared on a going concern basis which assumes that the company will be able to continue to trade for the foreseeable future. The validity of this assumption depends on the continuation of funding from the controlling party. Directors are confident that continuous financial support shall be received from its parent company which enables the company to continue its trade for the foreseeable future hence its appropriate to prepare financial statement under going concern basis.
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:
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the contract;
∙
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
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NCIUL Limited
(A company limited by guarantee)
Notes to the financial statements
For the Year Ended 31 December 2019
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 profit or loss 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.
The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 January 2018 to continue to be charged over the period to the first market rent review rather than the term of the lease.
Finance costs are charged to profit or loss 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.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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 profit or loss 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.
Tax is recognised in profit or loss 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.
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NCIUL Limited
(A company limited by guarantee)
Notes to the financial statements
For the Year Ended 31 December 2019
2.
Accounting policies (continued)
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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20% reducing balance method
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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 profit or loss.
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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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.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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.
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The average monthly number of employees, including directors, during the year was
13
(2018 -
18
)
.
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NCIUL Limited
(A company limited by guarantee)
Notes to the financial statements
For the Year Ended 31 December 2019
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Charge for the year on owned assets
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Due after more than one year
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Prepayments and accrued income
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NCIUL Limited
(A company limited by guarantee)
Notes to the financial statements
For the Year Ended 31 December 2019
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
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 £11,262 (2018 - £9,000) . Contributions totaling £1,786 (2018- £1,910) were payable to the fund at the reporting date and are included in creditors.
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NCIUL Limited
(A company limited by guarantee)
Notes to the financial statements
For the Year Ended 31 December 2019
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Related party transactions
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During the year, the company advanced £nil (2018: £15,418) to a company under common control by the same director. Amounts due from companies under common control at year end were £nil (2018: £90,788).
During the year, the ultimate parent company advanced €2 million to the company. Amount payable to the parent company at year end was £1,684,831 (2018: £133,102). This is interest free unsecured advance which is repayable on demand.
During the year the company entered into agreement with its parent company for using the campus premises and student accommodation owned by the parent for free of rent. In the opinion of directors the estimated rental value for these premises is approximately £840k per annum.
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The company is controlled by Universita Degli Studi Niccolo Cusano - Telematica Roma, a company registered in Italy.
The auditors' report on the financial statements for the year ended 31 December 2019 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements. During the year the company had losses of £1.3 million and at balance sheet date had net liabilities of £1.2 million. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. However, the directors are confident that continuous financial support shall be received from the parent company which enables the company to continue its trade for the foreseeable future hence its appropriate to prepare financial statement under going concern basis. Our opinion is not modified in respect of this matter.
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The audit report was signed on
18 August 2020
by
Janak Raj Pokhrel
(Senior statutory auditor) on behalf of
Mantax Lynton Limited
.
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