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Liverpool Vision Limited GROUP FINANCIAL STATEMENTS For the Year Ended 31 March 2011 "A0059ZR7" A43 14 / 12 / 2011 #153 COMPANIES HOUSE Company RegistratiOn No 06580889.
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Liverpool Vision Limited Group Financial Statements (for the Year Ending 2011)
Liverpool Vision Limited GROUP FINANCIAL STATEMENTS For the Year Ended 31 March 2011 "A0059ZR7" A43 14 / 12 / 2011 #153 COMPANIES HOUSE Company RegistratiOn No 06580889.
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Liverpool Vision Limited GROUP FINANCIAL STATEMENTS For the Year Ended 31 March 2011 "A0059ZR7" A43 14 / 12 / 2011 #153 COMPANIES HOUSE Company RegistratiOn No 06580889.
Copyright:
Attribution Non-Commercial (BY-NC)
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For the Year Ended 31 March 2011 "A0059ZR7" A43 14/12/2011 #153 COMPANIES HOUSE Company RegistratiOn No 06580889 ' . Liverpool Vision Limited CONTENTS DIRECTORS AND ADVISORS DIRECTORS'REPORT 2 DIRECTORS' RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS 8 INDEPENDENT AUDITOR'S REPORT 9 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME I I CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION 12 CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN EQUITY 13 CONSOLIDATED STATEMENT OF CASH FLOWS 14 COMPANY STATEMENT OF CASH FLOWS 15 ACCOUNTING POLICIES 16 NOTES TO THE GROUP FINANCIAL STATEMENTS 22 ' ' Liverpool Vision Limited DIRECTORS AND ADVISORS DIRECTORS M D Parker (Chair) Cllr J Anderson Cllr W Simon (Appomted 24 May 2011) DG Bundred J Kehoe Perkmson T Slack Cllr N Small (Appomted 24 May 2011) SECRETARY I J McCarthy REGISTERED OFFICE IO'h Floor The Capital 39 Old Hall Street Liverpool LJ 9PP Tel +44 151 600 2900 Fax +44 151 600 2970 Company no: 06580889 AUDITORS Baker TIIly UK Audit LLP Chartered Accountants No I Old Hall Street Liverpool L3 9SX TAX ADVISORS Baker TIIly Tax and Accountmg Limited Chartered Accountants No I Old Hall Street Liverpool L3 9SX TAX ADVISORS (VAT) KPMG LLP St James Square Manchester M26DS BANKERS NatWest Liverpool City Office 22 Castle Street Liverpool L2 OUP J H Kelly SirT P Leahy Cllr R M Kennedy (Appmnted 24 May 2011) A E WIIson J A Corner Cllr P Keaveney (Appomted 24 May 2011) Page 1 ,. Liverpool Vision Limited DIRECTORS' REPORT Company Registration No 06580889 The directors submit their report and the consolidated financial statements of Liverpool VISion Limited for the year ended 3 I March 20 I I PRINCIPAL ACTIVITIES The prmc1pal actiVIty of the group IS to promote and facilitate the economic development and regeneratiOn of Liverpool REVIEW OF BUSINESS Durmg the year the company contmued to dnve and support the poslllve momentum which has been bmlt m the City over the last decade, focusmg activity of the Board on the established "Strategic AmbitiOns" which promote the achievement of the Economic Prospectus for the City In Apnl 2008 Liverpool Land Development Company Limited ("LLDC") became a subsidiary of Liverpool Vtston Ltmtted It ts mvolved m the phystcal and economic regeneration m the Strategic Investment Areas (SI As) m Speke, Halewood, AtlantiC Gateway, Approach 580 and Eastern Approaches Operatmg Context and Governance Throughout 2010/11 the company mamtamed the strong support of Its Members Liverpool City Council, Northwest Regional Development Agency ("NWDA") and the Homes and Commumt1es Agency ("HCA") Members have mamtamed an active, shared commitment to the bus mess and ethos of the company and to the contmumg economic regeneration of the City of Liverpool Our fully committed Board have contmued to be very actively engaged m the work of the company through a programme of Board Workshops and the Sub- Committees of the Board The need to reduce public spendmg resulted m the decision by both HCA and NWDA m the year to end their fundmg contnbutwn to the operatiOn of the company at 31 March 20 I I Both orgamsatwns have made a considerable contributiOn to the transformatiOn of Liverpool over recent years The company had antiCipated the loss of operatiOnal fundmg, and made plans to reduce operatiOnal costs to reflect the reduced mcome posttton The very difficult economic condlllons, particularly for Commercial Development, and t1ghtenmg Public Sector fundmg environment contmued through 2010/11 Despite this, the company has contmued to contnbute to the posttive momentum wh1ch has bUilt m Ltverpool over recent years Liverpool IS growmg m confidence, has an mcreasmgly postttve natiOnal and mternattonaltmage, and vastly Improved busmess environment The economic conditiOns should encourage partners to work even more closely to achieve shared objectives and whilst conditiOns have been difficult, there have been some notable successes 2010/11 was a watershed for Liverpool VISIOn lt was the year m which we showcased Liverpool to the world at the Shanghai Expo, re- establishmg Liverpool as a global player Liverpool City Council has demonstrated Its strong commitment to the company by Its very considerable financial commitment and Its positive, high level representatiOn on the Board The company's Busmess Plan (2009/10- 2011/12) had been approved by Its Executive Board m Apnl2009 Ongomg liaison and scrutmy by the City Council had contmued through the year by Its RegeneratiOn Select Committee The City Council have committed both operatiOnal and programme fundmg support for 20 I I I 12 Along With the deciSIOn to cease operatiOnal fundmg by HCA and NWDA both organisations mfonmed the company of their mtent10n to retire from Membership of the company Havmg been agreed by Liverpool City Page2 ' Liverpool Vision Limited DIRECTORS' REPORT Council, when the retirement IS executed, Liverpool VISIOn Will become a wholly owned subsidiary of Liverpool City Council The Board of Liverpool V IS Ion remams consciOus of the need to reduce pubhc expenditure and mamtam strong management of both operatiOnal and programme costs The Board IS clear that the ongomg difficult economic conditions, reductions m the level of pubhc fundmg and pressure for change on each of the Members of the company remforce the need for and Importance of Liverpool VISion to mamtam Its contnbutiOn to the long term economic recovery of the City of Liverpool Low levels of developer and occupier actiVIty are evident m each of the SlA's m which LLDC has residual proJects Mamtammg Momentum The flat economic conditions contmue to be the maJor mfluence on the operational context for Liverpool VIsion The City still faces significant structural economic challenges and remams a natiOnal pnonty for economic regeneratiOn Unemployment and worklessness remam at unacceptably high levels and the development mdustry remams flat With occupier mterest low Dunng these exceptiOnally difficult economiC conditiOns and maJor change m natiOnal and regional pohc1es, mst1tuttons and public fundmg for economic regeneration, Vtston delivered some Important pnonttes, atmmg to contmue the momentum of m vestment and bus mess growth m the ctty Workmg With the pnvate sector, Universities and the City Council m 2010/11, VIsion helped Liverpool to extend Its quahty physical environment for Busmess and Culture, to put m tram longer terms plans to reahse the city's mnovat10n and technology opportunities and - crucially - to support bus mess m creatmg the Jobs and wealth upon which prospenty and wellbemg depend As the city's Economic Development Company, we have responded to the new and far from easy condiiions ahead by rev1ewmg our role with the City Council and makmg essential organisatiOnal changes which will enable VISion to contmue to serve and support bus mess The company has undertaken a particular shift m focus to promote the City's Improved viSitor and busmess offer to the world The particular challenges and achievements m 20 I 0/1 I set out by Strategic Ambitions have been Strategic Amblfwn I Create a City wlfh an outstandmg quality of place for bus mess W1thm the hmitations of considerably reduced pubhc fundmg and contmumg depressed development market, some momentum has been mamtamed m the City Centre - particularly with the toppmg out of Phase 3 of the St Paul's Development - and m the mam busmess Gateway areas, especially the Edge Lane West highways upgrade Strategic Amblfwn 2 realise the potentw/ of North Liverpool With Liverpool City Council, Sefton MBC, the Homes and Communities Agency, Community and Pnvate Sector Partners foundations for the economic regeneratiOn of North Liverpool and South Sefton have been established m the form of a long term VISion and ambition, set out m a Strategic RegeneratiOn Framework and three year delivery plan Government has been engaged as partner m the transformatiOn of this Important part of the city region On the ground, with our partners m Sefton, through the StepClever Local Enterpnse and Growth lmtiative we have supported new and ex1stmg busmesses to thnve and to revive the neighbourhood economy Strategic Ambllwn 3 Enable L1verpool to become the number 1 culture and VISitor destmatwn City outside London Liverpool VIsion helped to add to the City's culture and VISitor economy portfolio by supportmg and facihtatmg new cultural assets most notably the Liverpool Museum, helpmg to secure the redevelopment of the Everyman Page] Liverpool Vision Limited DIRECTORS' REPORT Theatre and the completion ofthe transformed Waterfront through the Mann Island mixed use development Facilitated by VISIOn, the InitiatiOn of the Liverpool Plan by a pnvate I public sector partnership will brmg together transformatiOnal programmes, events and acttvtttes and pooled resources for a stgmficant boost m marketmg Liverpool's offer m 2011 and beyond Strategic Ambllwn 4 Support Ltverpoo/'s transformatiOn mto a sustamabie, low carbon economy With the University of Liverpool, the Chamber of Commerce and Groundwork, we supported an Important knowledge transfer prOJeCt, the end product of which are key directions to be translated mto action m 2011/12 to realise the opportunities of a sustamable, low carbon economy In North Liverpool, with Partners Liverpool VISIOn has supported proposals to create a low Carbon Busmess Hub by the Eldonian Group Ltd Strategic Ambllwn 5 fnendlmess Make Liverpool a beacon for entrepreneurship, busmess growth and busmess Busmesses are the lifeblood of the city In 2010/11 VIsion's activities helped to generate 775 new busmesses, I ,671 JObs and safeguarded a further 657 JObs With Partners, Liverpool VISIOn has also helped to deliver the maugural "Your Big Year" global entrepreneurship competition, m partnership with L1verpool-based entrepreneur Chns Amold, which attracted some 45,000 entrants from 168 countries In addition, Liverpool VIsion led a successful bid to secure the Global Entrepreneurship Congress, to be held m Liverpool m 20 I 2, which Will raise the profile of entrepreneurship and of Ltverpool as an enterpnsmg ctty Strategzc Ambllwn 6 Enable Lrverpool to realise 1/s potentwl as an mternatwnal City of science, creatiVIty and Innovation The foundations for a step change m Liverpool's already s1gmficant mnovauon and knowledge economy were put m place dunng the year, With VIsiOn's contnbutmg to the City regiOn Knowledge Economy Plan and the completion of an mvestment framework to enhance Liverpool's Knowledge Quarter We also contmued vital support for high value knowledge sectors, pnnc1pally Creative and Digital busmess through ACME and the Liverpool Life Sciences Network Strategic Amblllon 7 Establish Liverpool as top mternatwnal and natwnal mvestment locatwn With dynamic trade, mvestment, knowledge and tounsm relatwnsh1ps The Liverpool Pavilion at the 20 I 0 World Expo m Shanghai raised the city's national and mtemat10nal mvestment and trade profile and enabled busmess and public sponsors to forge new relationships and contacts with Chmese busmess and mvestors 770,000 VISitors came to see the Liverpool showcase The economic benefits are estimated at up to 47 5m over the next 10 years through mcreased numbers of tounsts and students, exports and foreign direct mvestment 12% of sponsors secured sales or orders durmg the Expo and 70% expected sales m the future Also m the mtemallonal arena, Liverpool Software City attracted some 200 mdustry attendees, helpmg busmesses find fundmg, share Ideas and network Sound City attracted 35,000 music lovers and 1,700 busmess delegates from 23 countries, showcasmg talented new artists and technicians and helpmg to secure two maJor deals for Ltverpool mustc compames Strategic Ambllwn 8 Support Liverpool's dnve to become a c1ty of skilled and talented people and of economic opportumty for all Liverpool VIsiOn contmued to support the skills needs of the City's busmesses through an enhanced skills brokerage service With partners For the Immediate future we will work with natiOnal and local partners to understand and plan for the changmg skills needs ofbusmess The company's orgamsatwnal arrangements have contmued to benefit from the encouragement and support of the Audit and HR Committees and our active Staff Consultative Committee In the year all staff partiCipated m Page4 Liverpool Vision Limited DIRECTORS' REPORT an organosattonal development programme Ltverpool Vtston has responded qutckly to the new operatmg condlltons to make necessary effictenctes and to reorganose for dehvenng a dtfficult challenge, wtth reduced resources m the years ahead The consequence of the constderable reducuon m fundmg has been a commensurate reductiOn m the staff structure, whtch was achteved through a voluntary redundancy scheme The number of employees was reduced by some 30% and 17 employees left the company on a managed basts at the end of2010/ll and the first half of 2011/12 FUTURE DEVELOPMENTS The economtc chmate wtll contmue to be dtfficult and uncertam for some ttme ahead across the world and m the UK Ltverpool's economtc and phystcal renatssance of the last decade, dnven by the Ctty Counctl's leadershtp and dehvery, wtth a maJOr contnbutton from Ltverpool Vtston, provtdes robust foundatiOns for reahsmg the ctty's excepttonal potenttal Ltverpool Vtston, as a pnvate - pubhc collaboratiOn, wtll be central to the partnerships wtth busmess and Government whtch will promote the city as a centre of mvestment, culture, creattvtty and growth We have re-organosed for the key busmess-facmg regeneratiOn acttvtlles whtch the City Counctl has pnonttsed for dehvery- together wtth the culture and vtsttor economy functtons whtch are such an tmportant feature of Ltverpool's dtstmcttve offer For 2011/12 our mtsston remams to create a world class ctty for busmess and culture The work of the Board wtll contmue to focus upon the estabhshed "Strategtc Ambtllons", wtth acttons set out m a Busmess Plan for 2011/12-2013/14 LLDC wtll contmue to focus Its anentton on completmg a hmlled number of extstmg contracts, new phystcal development actiVIty bemg the responstbthty of Ltverpool Ctty Counctl KEY PERFORMANCE INDICATORS Liverpool Vaswn's core purpose ts to dnve Liverpool's economy m the directiOn of faster and more sustamable growth At a htgh level we measure our successes agamst absolute and comparattve figures of JOb growth, busmess creat10n and surv1val, Improvements m productiVIty and growth and m the more act1ve engagement of mmonty groups and our more dtsadvantaged communottes Dunng 20 I 0/11 contmumg flat economtc condtttons have contmued to dnve these measures m the wrong directiOn We measure our dtrect tmpact through the outputs generated from the enterpnse, busmess support and development proJects m whtch the company ts mvolved In the development market, the JObs and commerctal outputs generated dunng 20 I 0/11 were affected adversely by the recess ton and by a stgnoficant reductiOn m the level ofpubhc fundmg avatlable to support mfrastructure and development prOJects Enterpnse and (m parttcular) Busmess Support programmes were stmtlarly affected, the focus of those programmes has contmued to shtft from growth and expanston to helpmg bus messes to survtve The key performance mdtcators for LLDC are defined m the agreements related to the hmtted number of dtrectly funded proJects RISKS AND UNCERTAINTIES In 20 I 0/11 NWDA and HCA confirmed that they were no longer able to provtde operattonal fundmg beyond March 2011 Through the year the company demonstrated tts abthty to manage a stgnoficant reducuon m tts operattonal fundmg The company contmues to manage the fundmg nsk by undertakmg ngorous revtews of proJect costs and fundmg, mamtammg tts dehvery performance, constdermg ways to dtverstfy tls fundmg base, workmg closely wllh fundmg partners on monotormg and evaluatton to mamtam confidence m our abthty to 'dehver' and by postltonmg proposed projects to take advantage of new fundmg mechanosms such as the Page5 , Liverpool Vision Limited DIRECTORS" REPORT Reg10nal Growth Fund and European JESSICA programme Liverpool C1ty Council IS now the sole operational funder of Liverpool V1s1on and the Company w1ll become a wholly owned subs1d1ary of L1verpool C1ty Counc1l The C1ty Council IS under contmumg, severe financial pressure and wh1lst the promotiOn of economic development and local employment are h1gh pnont1es, VJSJon must contmue to present a robust case for fundmg to support the achievement of a sustamable economtc future for the C1ty The Board are also very consctous that, despite the recessiOn, Ltverpool IS m a stronger pos1tton now than for decades to promote the C1ty as m mvestment location Opportumt1es such as the Global Entrepreneurship Congress are therefore of cruc1al Importance Liverpool must hve up to expectatiOns generated at the Shanghai World Expo and m the support for maJor proJects Failure would represent a s1gmficant reputatwnal nsk for the City and for the company The profile ofnsk management w1thm V1s1on has been mamtamed followmg the work of the Aud1t Comm1ttee A corporate nsk reg1ster IS presented to the Board on a regular bas1s The overall approach follows established good practiCe focusmg attentiOn on 1dent1fymg nsks, evaluatmg nsks, managmg nsks and momtormg and rev1ew Particular attention IS bemg pa1d to the nsk associated w1th the loss of capable and expenenced staff m key pos1t10ns LLDC has mamtamed a nsk reg1ster, followmg the transfer of staff to Liverpool V1s10n The key nsk hes m the managed completiOn of LLDC ex1stmg proJects With m budget FINANCING The Operatmg costs of the company were met pnmanly through contnbutwns by Liverpool C1ty Council under a Serv1ces Agreement, With add1t10nal grant fundmg contnbutJOns from the Northwest Development Agency and the Homes and CommumtJes Agency under a Fundmg Agreement POST BALANCE SHEET EVENTS Followmg the year end, the Northwest Development Agency (NWDA) and the Homes and Commumt1es Agency (HCA) res1gned as members of L1verpool V1s1on The Company's only member IS Liverpool City Counc1l The representatives of NWDA and HCA have also res1gned the1r pos1t1ons on the Boards of both Liverpool V1s1on and L1verpool Land Development Company DIRECTORS The who have held office durmg the penod are as follows MD Parker Cllr J Anderson Cllr W J Bradley S J Broomhead D G Bundred J Kehoe Perkmson J H Kelly S1r T P Leahy D A McLaughlm Cllr M J Storey Cllr P Brant J Corner T Slack P Lakm A E WJlson (Cha1r) (res1gned 24 May 2011) (res1gned 3 December 20 I 0) (res1gned 8 September 2011) (res1gned 2 June 20 I 0) (appomted 2 June 2010) (res1gned 24 May 2011) (appomted 24 March 2011) (res1gned 8 September 2011) Page6 Liverpool Vision Limited DIRECTORS' REPORT EMPLOYEE INVOLVEMENT The Company ts committed to mvolvmg tls employees m the busmess and provtdmg the opportunity to contnbute lnformatton ts shared and vtews sought through a number of feedback mechanisms mcludmg regular meetmgs between the Company and the employee elected Staff Consultative Commtttee where mformatton ts provtded and vtews exchanged on key matters hkely to affect the workforce Ltverpool Vtston ts commttted to ensurmg equahty of opportunity and values the dtfferences that a dtverse workforce bnngs to the orgamsatton RecrUitment, trammg and promotion are solely on the basts of busmess needs and the abthty of each mdtvtdual to meet the JOb requtrements POLITICAL AND CHARITABLE CONTRIBUTIONS The Company made no pohttcal or chantable contrtbuttons dunng the penod AUDIT INFORMATION The dtrectors who were m office on the date of approval of these financtal statements have confirmed that, as far as they are aware, there ts no relevant audtt mformatton of whtch the audttors are unaware Each of the dtrectors have confirmed that they have taken all the steps that they ought to have taken as dtrectors m order to make themselves aware of any relevant audtt mformatton and to estabhsh that tl has been communicated to the audttor AUDITORS Baker Ttlly UK Audtt LLP were appomted m 2009 on a three year term as audttors of the Ltverpool Vtston Group That term has ended and a tender exerctse wtll be undertaken to appomt audttors for the next three years MD Parker Chatr of the Board 25 November 2011 Page 7 Liverpool Vision Limited DIRECTORS' RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS The dorectors are responsoble for preparmg the Dorectors' Report and the financoal statements m accordance woth applicable law and regulatoons Company law reqmres the dorectors to prepare group and company financoal statements for each financoal year The dorectors have elected under company law to prepare group financoal statements m accordance woth lntematoonal Fmancoal Reportmg Standards ("!FRS") as adopted by the European Umon ("EU") and have elected under company law to prepare the company financoal statements m accordance woth I FRS as adopted by the EU The financoal statements are requored by law and !FRS adopted by the E U to present faorly the financoal posotoon of the group and the company and the financoal performance of the group The Compames Act 2006 provodes m relation to such financoal statements that references m the relevant part of that Act to financoal statements govmg a true and faor voew are references to theor achoevmg a faor presentatoon Under company law the dorectors must not approve the financoal statements unless they are satosfied that they gove a true and faor voew of the state ofaffaors of the group and the company and of the profit or loss of the group for that penod In prepanng the group and company financoal statements, the dorectors are requored to a select suotable accountmg pohcoes and then apply them consostently, b make JUdgements and accountmg estimates that are reasonable and prudent, c state whether they have been prepared m accordance woth !FRS as adopted by the EU, d prepare the financoal statements on the gomg concern basos unless ot os mappropnate to presume that the group and the company woll contmue m busmess The dorectors are responsoble for keepmg adequate accountmg records that are sufficoent to show and explam the group's and the company's transactoons and dosclose woth reasonable accuracy at any tome the financoal posotoon of the group and the company and enable them to ensure that the financoal statements comply woth the Compames Act 2006 They are also responsoble for safeguardmg the assets of the group and the company and hence for takmg reasonable steps for the preventoon and detectoon of fraud and other orregulantoes Page8 , Liverpool Vision Limited INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIVERPOOL VISION LIMITED We have audtted the group and parent company financtal statements ("the financtal statements") on pages 11 to 35 The financtal reportmg framework that has been apphed m thetr preparation ts applicable law and lnternatwnal Fmanctal Reportmg Standards (IFRSs) as adopted by the European Umon and, as regards the parent company financtal statements, as apphed m accordance wtth the provtstons of the Compantes Act 2006 Thts report ts made solely to the company's members, as a body, m accordance wtth Chapter 3 of Part 16 of the Compames Act 2006 Our audtt work has been undertaken so that we mtght state to the company's members those matters we are reqmred to state to them m an audttor's report and for no other purpose To the fullest extent permttted by law, we do not accept or assume responstbthty to anyone other than the company and the company's members as a body, for our audtt work, for thts report, or for the opmtons we have formed Respective responsibilities of d1rectors and aud1tor As more fully explamed m the Dtrectors' Responstbthttes Statement set out on page 8, the dtrectors are responsible for the preparatton of the financtal statements and for bemg sattsfied that they gtve a true and fatr vtew Our responstbthty ts to audtt and express an opm10n on the financtal statements m accordance wtth applicable law and International Standards on Audttmg (UK and Ireland) Those standards reqmre us to comply wtth the Audttmg Practtces Board's (APB's) Ethtcal Standards for Audttors Scope of the audit of the financial statements A descnptton of the scope of an audtt of financtal statements ts provtded on the APB's webstte at www frc org uk!apb/scope/pnvate cfm Opinion on financ1al statements In our opmton the financtal statements gtve a true and fatr v1ew of the state of the group's and the parent's affatrs as at 3 I March 20 11 and of the group's result for the year then ended, the group financtal statements have been properly prepared m accordance wtth IFRSs as adopted by the European U m on, the parent financtal statements have been properly prepared m accordance wtth IFRSs as adopted by the European Umon and as apphed m accordance w1th the Compames Act 2006, and the financtal statements have been prepared m accordance wtth the requtrements of the Compames Act 2006 Opmion on other matter prescribed by the Companies Act 2006 In our opm10n the mformatwn gtven m the Dtrectors' Report for the financtal year for whtch the financtal statements are prepared ts conststent wtth the financtal statements Matters on which we are reqmred to report by exception We have nothmg to report m respect of the followmg matters where the Compames Act 2006 reqmres us to report to you tf, m our optmon adequate accountmg records have not been kept by the parent company, or returns adequate for our audtt have not been recetved from branches not vtstted by us, or the parent company financtal statements are not m agreement wtth the accountmg records and returns, or certam dtsclosures of dtrectors' remuneration spectfied by law are not made, or we have not rece1ved all the mformatwn and explanations we requtre for our audtt Page9 Liverpool Vision Limited INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIVERPOOL VISION LIMITED Mr Andrew Baker (Semor Statutory Auditor) For and on behalf of BAKER TILL Y UK AUDIT LLP, Statutory Auditor Chartered Accountants No I Old Hall Street Liverpool L3 9SX ~ ~ l w 2011 Page 10 Liverpool Vision Limited CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2011 REVENUE- Programme mcome Programme expenditure PROGRAMME SURPLUS/(DEFICIT) REVENUE- Operatmg mcome Operatmg expenditure OPERATING SURPLUS AVAILABLE FOR PROGRAMMES SURPLUS FROM OPERATIONS Fmance mcome F mance costs TOTAL SURPLUS BEFORE TAX Income tax expense SURPLUS FOR THE FINANCIAL YEAR Other comprehensive mcome Actuanal gam/(loss) on pensiOn scheme TOTAL COMPREHENSIVE INCOME/(DEFICIT) FOR THE YEAR Note 3 3 4 6 7 4 8 14 2011 000 4,919 (4,818) 101 5,213 (4,721) 492 593 14 (24) 583 (2) 581 667 1,248 2010 000 6,372 (7,475) (I, I 03) 5,229 (3.460) I,769 666 10 ( II 0) 566 (2) 564 (813) (249) Page 11 Liverpool Vision Limited CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION At 31 March 2011 Group Group Company Company Note 2011 2010 2011 2010 000 000 000 000 000 000 000 ASSETS NON-CURRENT ASSETS Property, plant and equtpment 10 67 67 TOTAL NON-CURRENT 67 67 ASSETS CURRENT ASSETS Trade and other recetvables 11 677 2,340 988 2,258 Cash and cash eqmvalents 3,054 2,713 2,458 1,576 TOTAL CURRENT ASSETS 3,731 5,053 3,446 TOTAL ASSETS 3,798 5,053 3,513 LIABILITIES CURRENT LIABILITIES Trade and other payables 12 (1,619) (3,108) (I,334) (2,036) Current tax habthttes (3) (2) (3) TOTAL CURRENT LIABILITIES (1,622) (3,110) (1,337) NON-CURRENT LIABILITIES Rettrement benefit obhgatwns 14 (563) (I ,678) (563) (1,678) ProviSIOns 15 (100) (100) TOTAL NON-CURRENT LIABILITIES (663) (1,678) (663) TOTAL LIABILITIES (2,285) (4,788) (2,000) NET ASSETS 1,513 265 I ,513 EQUITY Retamed eammgs 1,513 265 1,513 ~ ents on pages 11 to 35 were approved by the Board of directors and authonsed for M DParker Chamnan er 2011 and were stgned on its behalf by Company Number 6580889 Page 12 000 3,834 3,834 (2,036) (1,678) (3,714) 120 120 ,. Liverpool Vision Limited CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN EQUITY For the year ended 31 March 2011 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY At start of the year Total comprehensive mcomel(deficit) for the year At end of the year Retamed earnmgs Retamed eammgs 2011 000 265 1,248 1,513 Retamed eammgs 2010 000 514 (249) 265 The retamed eammgs reserve mcludes the mcome I (deficit) ariSing from the Statement of Comprehensive Income and the actuanal gam I (loss) on the pension scheme COMPANY STATEMENT OF CHANGES IN EQUITY At start of the year Total comprehensive mcomel(deficit) for the year At end of the year Retamed earnmgs Retamed eammgs 2011 000 120 1,393 I ,513 Retamed eammgs 2010 000 514 (394) 120 The retamed eammgs reserve mcludes the mcome I (deficit) ansmg from the Statement of Comprehensive Income and the actuanal gam I (loss) on the pension scheme Page 13 Liverpool Vision Limited CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2011 2011 2010 000 000 000 000 Cash flows from operating activities Surplus before taxallon 583 566 Adjustments for Fmance mcome (14) (10) F mance costs 24 110 Decrease m trade and other receivables 1,663 98 Decrease m trade and other payables (I ,489) (I ,408) Deprec1at1on on property, plant and eqmpment 33 Increase m rellrement benefit obhgat10n (472) (150) Cash used in operations 328 (794) Income taxes pa1d (I) (16) NET CASH GENERATED FROM/(USED IN) 327 (810) OPERATING ACTIVITIES Cash flows from investmg act1v1t1es Fmance mcome recetved 14 10 NET CASH GENERATED FROM INVESTING 14 10 ACTIVITIES Net mcrease/(decrease) m cash and cash eqmvalents 341 (800) Cash and cash eqmvalents at start of penod 2,713 3,513 CASH AND CASH EQUIVALENTS AT END OF 3,054 2,713 YEAR Page 14 Liverpool Vision Limited COMPANY STATEMENT OF CASH FLOWS For the year ended 31 March 20 11 Cash flows from operating activities Surplus before taxation Adjustments for Fmance mcome Fmance costs Decrease/(mcrease) m trade and other receivables (Decrease )/mcrease m trade and other payables Depreciation on property, plant and equipment Increase m retirement benefit obligatiOn Cash generated from operations Income taxes paid NET CASH GENERATED FROM OPERATING ACTIVITIES Cash flows from investing activities Fmance mcome rece1ved NET CASH GENERATED FROM INVESTING ACTIVITIES Net mcrease m cash and cash equivalents Cash and cash equivalents at start of year CASH AND CASH EQUIVALENTS AT END OF YEAR 2011 000 729 (13) 24 1,270 (702) 33 (472) 869 13 2010 000 000 000 421 (8) 110 (378) 206 (150) 201 (18) 869 183 8 13 8 882 191 1,576 1,385 2,458 1,576 Page 15 Liverpool Vision Limited GROUP FINANCIAL STATEMENTS ACCOUNTING POLICIES GENERAL INFORMATION Liverpool V1s1on L1mited IS a company llm1ted by guarantee mcorporated and dom1clled m England & Wales (reg1strat10n number 06580889) The company's reg1stered office address is g1ven on page I The pnnc1pal actiVIty of the group and company IS to promote and facilitate economic development and regeneratiOn m Liverpool BASIS OF ACCOUNTING The financ1al statements have been prepared m accordance w1th Internatwnal Fmanc1al Reportmg Standards and IFRIC mterpretatwns as endorsed by the EU (''IFRS") and the requ1rements of the Compames Act applicable to compames under I FRS The financ1al statements have been prepared on the h1stoncal cost bas1s except as d1sclosed m the accountmg pollc1es set out below The accountmg pollc1es set out below have, unless otherw1se stated, been applied consistently to the financ1al statements The md1v1dual financml statements for each group company are presented m the currency of the pnmary econom1c environment m wh1ch 1t operates (1ts functwnal currency) For the purpose of the consolidated financ1al statements, the results and financ1al posit1on of each group company are expressed m pounds sterlmg, wh1ch IS the functwnal currency of the company, and the presentatwnal currency for the consolidated financ1al statements GOING CONCERN Liverpool V1s10n has worked w1th Liverpool City Council to restructure and meet the challenge of reduced mcome from 1ts sole operatwnal funder The company has the support and confidence of L1verpool C1ty Council and 1ts mcome and expenditure pos1t1on 1s stable for 2011112 The pos1t10n for 2012/13 IS ant1c1pated to be deterrnmed m January 2012 L1verpool VISion has, however, demonstrated 1ts ab1llty to manage 1ts mcome pos111on and any llab111t1es or obllgatwns can be met from ex1stmg reserves Accordmgly, the accounts have been prepared on a gomg-concem bas1s COMPANY STATEMENT OF COMPREHENSIVE INCOME The company has taken advantage of sectiOn 408( I) of the Compames Act 2006 not to publish 1ts own Statement of Comprehensive Income The company's result for the year was a surplus of I ,393,000 (20 I 0 Deficit 394,000) BASIS OF CONSOLIDATION The consolidated financ1al statements of the group mcorporate the financ1al statements of the company and entitles controlled by the company (1ts subs1d1arles) made up to 31 March each year
Subsld1ar1es are entitles over wh1ch the group has the power to govern the financtal and operatmg pollc1es to obtam economtc benefits from the1r acltvtltes Substd1anes are fully consolidated from the effecttve date of acqmsttwn or up to the effecttve date of d1sposal, as appropnate Liverpool Vtston Ltmtted IS the sole member of L1verpool Land Development Company Ltmtted ("LLDC") a company llmtted by guarantee havmg no share capttal LLDC has been consolidated mto the financ1al statements Ltverpool Vts1on became the sole member on 30 Apnl 2008 at no cost Page 16 Liverpool Vision Limited GROUP FINANCIAL STATEMENTS ACCOUNTING POLICIES Where necessary, adJustments are made to the financial statements of substdmnes to bnng the accountmg pohctes used mto hne wtth those used by other members of the group All mtra-group transactions, balances, and unreahsed gams on transactiOns between group compames are ehmmated on consolidatiOn Unreahsed losses are also ehmmated unless the transactiOn provtdes evidence of an tmpatrment of the asset transferred REVENUE RECOGNITION & GOVERNMENT GRANTS Revenue IS measured at the fatr value of the constderatwn received or receivable and represents amounts for services provided by the group excludmg mter-company transactiOns and Value Added Tax Programme zncome The group recognises programme mcome m the Statement of Comprehensive Income as the assocmted costs are mcurred Unspent programme mcome received m advance IS deferred until the associated costs have been mcurred Certam costs are classified as programme costs, but are funded out of operatmg mcome, so programme mcome does not always equal programme costs Operatmg mcome Operatmg mcome IS credited m the penod m whtch It IS received OPERATING SEGMENTS I FRS 8 provtdes segmental mforrnatton for the group on the basts of mforrnatton reported mternally to the chtef operatmg dectston maker for decision makmg purposes The group considers that the role of chtef operatmg dectston maker IS performed by the Liverpool Vtston Limited's board of directors FUNCTIONAL CURRENCY The presentatwnal and functwnal currency of the group and company IS pounds sterling() FINANCE INCOME Fmance mcome relates to mterest earned on cash and cash eqmvalents Interest mcome IS accrued on a ltme basts, by reference to the pnnctpal outstandmg and at the effective mterest rate applicable FINANCE COSTS Fmance costs relate to mterest on the defined benefit pensiOn habtlittes less the expected return on the defined benefit pensiOn assets TAXATION Taxation expense mcludes the amount of current mcome tax payable and the charge for the year m respect of deferred taxatiOn The mcome tax payable IS based on an esttmatton of the amount due on the taxable profit for the year Taxable profit IS dtfferent from profit before tax as reported m the statement of comprehensive mcome because 11 excludes Items of mcome or expenditure whtch are not taxable or deductible m the year as a result of etther the nature of the Item or the fact that 11 IS taxable or deductible m another penod The company's habthty for current tax IS calculated by usmg tax rates that have been enacted or substanuvely enacted by the balance sheet date Deferred tax IS accounted for on the basts of temporary dtfferences ansmg from the differences between the tax base and accountmg base of assets and habthttes Deferred tax IS recogmsed for all taxable temporary differences, except to the extent where 11 anses from the mttml recogmtton of an asset or habthty m a transaction that IS not a bus mess combmatwn Deferred tax assets are recogmsed only to the extent that It IS probable that future taxable profits wtll be available agamst whtch temporary differences can be utthsed Page 17 Liverpool Vision Limited GROUP FINANCIAL STATEMENTS ACCOUNTING POLICIES TAXATION (contmued) Deferred tax IS charged or credited to the statement of comprehensive mcome, except when 11 relates to 1tems charged or cred1ted d1rectly to eqmty, m wh1ch case 1t is dealt w1th w1thm eqmty It IS calculated at the tax rates that are expected to apply to the penod when the asset IS reahsed or the hab1 hty IS settled SURPLUS FOR THE FINANCIAL PERIOD Any surplus generated IS carr1ed forward m retamed earnmgs to be used towards ach1evmg the strategic ambitiOns PROPERTY PLANT AND EQUIPMENT Liverpool V1s1on was mcorporated m 2008 and the ongmal property lease was entered mto, pnor to 1ts mcorporatwn, by L1verpool C1ty Counc1l who also pa1d for the property Improvements The Company IS, however, responsible for dllap1datwns upon ex1t and has created, for the first t1me, a prov1s10n for the1r cap1tahsatwn and deprec1at10n Deprec1at10n 1s charged stra1ght I me over 3 years to a break clause FINANCIAL INSTRUMENTS Classification of financJalmstruments Fmanc1al mstruments are class1fied as financ1al assets, financ1al habll1t1es or eqmty mstruments Recognition and valuatiOn of financJal assets Cash and equ1valents Cash and cash eqmvalents compnse cash m hand and cash deposits wh1ch are read1ly convertible to a known amount of cash w1thm three months Trade receivables Trade receivables are classified as loans and receivables and are imt1ally recogmsed at fa1r value They are subsequently measured at the1r amortised cost usmg the effecllve mterest method as reduced by allowances for 1mpa1rment when there IS obJeCtive ev1dence of 1mpa1rrnent A prov1s1on for 1mpa1rrnent 1s established when the carrymg value of the rece1vable exceeds the present value of the future cash flow discounted usmg the ongmal effect1ve mterest rate The carrymg value of the receivable IS reduced through the use of an allowance account and any 1mpa1rment loss IS recogmsed m the Statement of Comprehensive Income The group does not charge mterest on outstandmg receiVable balances Investments Investments m subs1d1ar1es are stated at cost less any prov1s1on for 1mpa1rrnent Any 1mpa1rment losses are recogmsed m profit or loss m the penod they occur Recognition and valuation of financial liabilities Fmanc1al hab1ht1es are class1fied accordmg to the substance of the contractual arrangements entered mto Trade payables Trade payables are m1t1ally recogmsed at fa1r value and are subsequently measured at amort1sed cost usmg the effecllve mterest method Page 18 ' Liverpool Vision Limited GROUP FINANCIAL STATEMENTS ACCOUNTING POLICIES RETIREMENT BENEFITS Defined benefit schemes The liability recogmsed m the balance sheet m respect of defined benefit pension plans IS the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adJustments for unrecogmsed past-service costs The defined benefit obligatiOn IS calculated annually by mdependent actuanes usmg the proJected umt credit method The present value of the defined benefit obligation IS determmed by d1scountmg the estimated future cash outflows usmg mterest rates of high- quality corporate bonds that are denommated m the currency m which the benefits will be paid, and that have terms to matunty approx1matmg to the terms of the related pension liability Actuarial gams and losses ar1smg from expenence adJustments and changes m actuanal assumptiOns are charged or credited to equity m the Statement of Comprehensive Income (SOCI) m the penod m which they anse Past-service costs are recognised Immediately m mcome, unless the changes to the pension plan are conditiOnal on the employees rema1mng m service for a specified penod of lime (the vestmg penod) In this case, the past-service costs are amortised on a straight-hoe basis over the vestmg penod Gams and losses on curtailments/settlements are recogmsed when the curtailment/settlement occurs PROVISIONS AND DILAPIDA TIONS ProviSions are recogmsed when the group has a present obligatiOn as a result of a past event which It IS probable will result m an outflow of economic benefits that can be reliably estimated Where the effect of the lime value of money IS matenal, the proviSion IS based on the present value of future outflows, discounted at the pre-tax discount rate that reflects the nsks specific to the liability Dunng 20 I 0/2011 the company moved with m the Capital Bwlding to offices some 20% smaller Liverpool VISion Limited entered mto the lease, with Liverpool City Council actmg as guarantor This differed from the ongmal lease which was entered mto by Liverpool City Council pnor to the mcorporatwn of the company The company IS now responsible for diiapidatwns upon surrender or expiry of the lease so a proviSIOn has been made for this and amortisatiOn IS charged over three years to a break-clause No decision has been made to surrender the lease at this time STANDARDS ISSUED BUT NOT YET EFFECTIVE ADOPTION OF INTERNATIONAL ACCOUNTING STANDARDS Amendments to published standards effective for the year ended 31 March 2011 There are no amendments which were effective m the year ended 31 March 2011 which are relevant to the group or company Standards adopted early by the group The group has not adopted any standards or InterpretatiOns early m either the current or the precedmg financial year Page 19 Liverpool Vision Limited GROUP FINANCIAL STATEMENTS ACCOUNTING POLICIES STANDARDS ISSUED BUT NOT YET EFFECTIVE (contmued) Standards, amendments and interpretations effective in 2011 but not relevant I FRS I f1rst-t1me adopt1on of I FRS (Rev1sed 2008) I FRS 3 Busmess Combmat1ons (Rev1sed 2008) Second phase of the busmess combmatlons proJect undertaken JOmtly With the f ASB IAS 27 Consolidated and Separate fmanc1al Statements (Rev1sed 2008) IAS 28 Investments m Assocoates and IAS 31 Investments m Jomt Ventures Amendment to IAS 39- Ellg1ble Hedged Items Amendments to I FRS 2 -Group Cash-settled Share-based Payment Transactions The amendments also mcorporate gmdance prev1ously mcluded m IFRIC 8 Scope of I FRS 2 and IFRIC 11 - I FRS 2- Group and Treasury Share Transactions and hence these Interpretations have been Withdrawn !FRS I f1rst-t1me adopt1on of I FRS - Add1t1onal Exemptoons for f1rst-t1me Adopters Amends I FRS I as rev1sed m November 2008 Amendment to IAS 32 fmanc1al Instruments Presentation- Class1ficatoon of R1ghts Issues IFRIC 17 D1stnbutoons of Non-cash Assets to Owners IFRIC 18 Transfers of Assets to Customers Improvements proJect May 08 o I FRS 5 Non-current Assets held for Sale and D1scontmued Operatoons Improvements proJect Apnl 09 o I FRS 2 Share-based payment o IAS 38 Intangible Assets o IFRIC 9 Reassessment of Embedded Denvatlves o IFRIC 16 Hedges of a Net Investment m a fore1gn Operation o I FRS 5 Non-current Assets Held for Sale and D1scontmued Operat1ons o I FRS 8 Operatmg Segments o IAS I Presentatoon of fmancoal Statements o IAS 7 Statement of Cash flows and I FRS 6 Exploration for and Evaluation of Monera) Resources o IAS 17 Leases o IAS 18 Revenue o IAS 36 lmpa1rrnent of Assets o IAS 39 Fmanc1al Instruments Recogmt1on and Measurement Improvements proJect May 20 I 0 o I FRS I f1rst-t1me Adopt1on of International fmanc1al Reportmg Standards o I FRS 3 Busmess Combmat1ons o !FRS 7 fmanc1al Instruments Disclosures o IAS I Presentatoon of fmanc1al Statements o IAS 27 Consolidated and Separate fmanc1al Statements o IAS 34 lntenm fmanc1al Reportmg o I FR IC 13 Customer Loyalty Programmes The d1rectors are of the op1mon that the application of these amendments has had no 1mpact on the financ1al statements of the group or company m e1ther the current or precedmg financial years Page20 Liverpool Vision Limited GROUP FINANCIAL STATEMENTS ACCOUNTING POLICIES STANDARDS ISSUED BUT NOT YET EFFECTIVE (contmued) Interpretations to existing standards and new standards that are not yet effective and have not been early adopted by the group At the date of authonsatwn of these financial statements the followmg Standards and InterpretatiOns which have not been adopted by the group m these financial statements were m tssue but not yet effecttve InterpretatiOns that are not predtcted to have an tmpact on the group. o IFRIC 19 Extmgutshmg Fmanctal Ltabthttes wtth Equtty Instruments' o IFRIC 14 "Amendment- Prepayments of a Mtmmum Fundmg Requtrement" Ltmited exemptton amendment to !FRS I "Ftrst-ttme Adoptton of Intematwnal Fmanctal Reportmg Standards" for first-time adapters of IFRSs IAS 24 Related Party Dtsclosures (revtsed)" "Dtsclosures-Transfers ofFmanctal Assets (Amendments to I FRS 7)" Amendment to I FRS I "Severe Hypennflatton and Removal of Ftxed Dates for Ftrst-ttme adapters" Amendment to IAS 12 'Deferred Tax Recovery of Underlymg Assets' Amendments to IAS I "PresentatiOn of Other Comprehenstve Income" I FRS 9 "Fmanctal Instruments" I FRS 10 "Consolidated Fmanctal Statements" I FRS 11 Jomt Arrangements I FRS 12 'Dtsclosure of Interests m Other Enttttes IAS 27 (amended 20II)"Separate Fmanctal Statements' IAS 28 (amended 2011) ''Interests m Assoctates and Jomt Ventures' !FRS 13 "Fatr Value Measurement" IAS 19 (revtsed) "Employee Benefits" 'I FRS for SMEs" The Dtrectors anttctpate that the adoptton of these Standards and InterpretatiOns m future penods wtll have no matenal tmpact on the financtal statements of the group and company Page 21 Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 2011 l. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT The group makes esllmates and assumptiOns concemmg the future The resultmg accountmg esllmates will, by defimt10n, seldom equal the related actual results The esllmates and assumptiOns that have a s1gmficant nsk of causmg a matenal adjustment to the carrymg amounts of assets and liabilities with m the next financial year are addressed below Penswn benefits The present value of the pension obligatiOn depends on a number of factors that are determmed on an actuanal bas1s usmg a number of assumptiOns The assumptiOns used m determmmg the net cost I (mcome) for pensions mclude the discount rate Any changes m these assumptiOns will Impact the carrymg amount of pensiOn obligatiOns The group determmes the appropnate discount rate at the end of each year This IS the mterest rate that should be used to determme the present value of esllmated future cash outflows expected to be required to settle the pensiOn obiigatwns In determmmg the appropnate discount rate, the group considers the mterest rates of high-quality corporate bonds that are denommated m the currency m wh1ch the benefits will be pa1d, and that have terms to matunty approx1matmg the terms of the related pensiOn liability Other key assumptions for pensiOn obligatiOns are based m part on current market conditions AdditiOnal mformat1on IS disclosed in note 14 Dllap1datwns provlSlon The Company has made an esllmate of the likely cost of diiapidatwns upon exit from Its leasehold offices This has been based on the costs of fit-out of the premises and has been calculated by semor officers to mclude any mflatwnary costs at exit 2. FINANCIAL RISK MANAGEMENT All financial Instruments held by the group and company. are classified as "Loans and Receivables" (trade and other receivables and cash and cash eqmvalents) and ''Fmancml Liabilities Measured at Amortised Cost" (trade and other payables) under !AS 39 'Fmanc1al Instruments Recogmt10n and Measurement' Financial risk factors The group's operatiOns expose It to a vanety of financial nsks The group has m place nsk management policies that seek to limit the adverse effects on the financml performance of the group by usmg various mstruments and techmques Risk management policies have been set by the Board and applied by the group (a) Liquidity nsk Liquidity nsk IS the nsk that the group will not be able to meet Its financial obligatiOns as they fall due The group's approach to managmg 1Iqmd1ty IS to ensure, as far as possible, that 11 has sufficient liquidity to meet Its liabilities as they fall due with surplus faci1111es to cope With any unexpected vanances m llmmg of cash flows The group mamtams an acllve and ongomg dialogue with Its partners to ensure 11 has sufficient funds to meet Its operallonal expense and programme costs The group believes 1t has sufficient cash facilities to meet Its operatiOnal commitments At the year end the group had noun-drawn committed facilities Page22 Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 2011 Liquidity risk {continued) All of the group's financial assets and financial habihlles fall due w1thm one year and all are denommated m Sterling{) {b) Foreign exchange risk The group does not trade m overseas countnes There are few transactiOns m foreign currencies and therefore the group's exposure to foreign exchange nsk IS considered to be low {c) Interest rate risk The group holds cash or cash eqmvalents with Its bank and whilst exposed to mterest rate nsk and the recessiOn it momtors and considers the nsk ofholdmg that cash Cash and cash eqmvalents are subject to floatmg rates of mterest Trade and other receivables and trade and other payables are non mterest bearmg Senslllvlly analys1s The group considers that mterest rates m the short to mediUm term will nse by up to 2 basis pomts above their current level An mterest rate mcrease of 2% would generate additiOnal annual mterest mcome of circa 49,000 based on year end cash reserves There would be an eqmvalent mcrease m eqmty {d) Credit r1sk The group's financial assets are bank balances and trade and other receivables which represent the group's maximum exposure to credit nsk m relation to financial assets The credit nsk on hqmd funds IS limited because the counterparties are banks with high credit ratmgs assigned by mternat10nal credit ratmg agencies The directors consider the carrymg amount of cash and cash eqmvalents approximates to their fair value The group's credit nsk IS pnmanly attnbutable to Its trade receivables Management have a credit pohcy m place and exposure to credit nsk IS momtored on an on-gomg basis Management believe the group has a wide trade receivable profile and therefore does not have any s1gmficant concentration of nsk The credit quality of trade receivables that are neither past due nor Impaired IS considered to be good Capital r1sk management The group's objectives when managmg capital are to safeguard the group's ab1hty to contmue as a gomg concern The group considers Its capital to mclude retamed earnmgs The group does not have any externally Imposed capital reqUirements Page 23 Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 2011 3. SEGMENTAL INFORMATION L1verpool V1s1on currently has one busmess segment dehvenng serv1ces towards the regeneration of the C1ty's phys1cal and econom1c transformation However, to 1dent1fy programme expenditure the d1rectors h1ghhght the d1stmct1on between programme and operatmg acllv1ty The programme actiVIty helps develop econom1c growth and recovery, wh1lst operations supports the dehvery of those serv1ces The Group's surplus of mcome over expenditure was denved from 11s prmc1pal act1v1t1es m the UK The surplus can be spit! by programmes and operations as follows Revenue Programme mcome Operatmg mcome Total revenue Surplus Programme surplus/(defic1t) Operatmg surplus Fmance mcome F mance costs Income tax expense Surplus after tax 2011 000 4,919 5,213 10,132 101 492 14 (24) (2) 581 2010 000 6,372 5,229 11,601 (I, I 03) 1,769 10 ( 110) (2) 564 There 1s deprec1at1on on leasehold Improvements of33k (2010 nol) m relat1on to the d11ap1dat1ons prov1s10n made m the year and cap1tahsed m non-current assets See note 15 for a descnpt1on of the prOVISIOn Statement of financtal posttton Programme mcome IS deterrnmed m accordance w1th grant agreements held w1th the funders wh1lst operatmg mcome IS rece1ved m accordance w1th revenue and serv1ces agreements held w1th the funders Expenditure spent m accordance w1th the programme mcome fundmg agreements IS classed as programme expenditure. Expenditure spent m accordance w1th the revenue fundmg agreement ts classed as operatmg expenditure Employee benefit expenses are mcluded m operatmg expenses MaJOr funders prov1dmg I 0% or more of revenue Funder I prov1ded 3,153,488 of programme mcome representmg 3 I I% of total revenue and 4,009.751 of operatmg mcome representmg 39 6% of total revenue Page24 Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 2011 4. SURPLUS BEFORE TAXATION Surplus before tax ts stated after chargmg/(credttmg) Fundmg from Government bodtes 2011 2010 000 000 (10,131) (11,601) Amounts payable to Baker Tilly UK Audit LLP and their associates in respect of both audit and non-audit services Audit servtces -statutory audtt of parent and consolidated accounts Other servtces - audtt of substdtartes, where such servtces are provided by Ttlly UK Audtt LLP or tts assoctates - Accountmg support servtces - CorporatiOn tax compliance servtces Ltabtiity Ltmttatton Agreement Baker 17 18 9 12 18 4 8 30 56 The company has not entered mto a IIabtltty IImttatton agreement for etther the current or precedmg year The followmg table analyses the nature of expenses Programme expenditure Staff costs (see note 5) Deprectatton Premtses costs Marketmg ProfessiOnal fees Other expenses All staff costs are mcluded m operatmg expenditure 2011 000 4,818 2,642 33 324 136 60 1,526 9,539 2010 000 7,475 2,732 218 309 84 117 10,935 Page 25 Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 3 I March 20 I I 5. DIRECTORS AND EMPLOYEES The directors d1d not receive any remuneration dunng the penod The average number of persons employed by the company dunng the penod, analysed by category, was as follows Corporate Services Development Investment and Enterpnse The aggregate payroll cost of employees was as follows Wages and salanes Social secunty costs Pension costs Total All staff costs are mcluded m operatmg expenditure RemuneratiOn of key management personnel The remuneratiOn of the key management personnel of the Group IS set out below m aggregate Short-term employee benefits Post-employment benefits 6. FINANCE INCOME Bank mterest 7. FINANCE COSTS Expected return on defined benefit scheme assets Interest on scheme habihlles 2011 Number 20 13 23 56 2011 000 2,174 190 278 2,642 2011 000 497 62 559 2010 Number 15 21 17 53 2010 000 2,238 199 295 2,732 2010 000 471 59 530 2011 2010 000 000 14 10 2011 2010 000 000 (521) 545 24 (367) 477 110 Page26 Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 3 I March 20 11 8. TAXATION Current tax UK- current year UK- adJustments m respect of pnor penods Deferred tax Ongmat10n and reversal of temporary d1fferences Income tax expense 2011 2010 000 000 3 (I) 2 2 2 2 2 The charge for the year can be reconciled to the surplus per the statement of comprehensive mcome as follows Surplus before tax Tax at the domestic mcome tax rate 21% (20 I 0 2 I%) Tax effects of Income not taxable Cap1tal allowances m excess of pnor penods Losses earned forward AdJustments m respect of pnor penods Consohdatwn adJustments Total tax charge 2011 2010 000 000 583 122 (151) (I) 32 2 566 119 (117) 2 Page 27
Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 3 I March 2011 9. SUBSIDIARY Liverpool Vtsion Limited is the sole member of Liverpool Land Development Company Limited ("LLDC") a company limited by guarantee havmg no share capital LLDC has been consolidated mto the financial statements Liverpool VIsiOn became the sole member on 30 Apnl 2008 at no cost The prmctpal activity of LLDC IS to deliver comprehensive phystcal and economic regeneration m the Speke Halewood, AtlantiC Gateway, Approach 580 and Eastern Approaches Strategic Investment Areas (SIAs) of Liverpool by creatmg new development Sites and premises and attractmg m vestment and JObs 10. PROPERTY, PLANT AND EQUIPMENT Group Cost At I Apnl 2009 At 31 March 2010 Additions At 31 March 2011 Accumulated deprecwtwn At 31 March 2009 At 31 March 2011 DepreciatiOn charge m year At 31 March 2011 Net Book Value At 31 March 2011 At 31 March 2010 At 3 I March 2009 ll. FINANCIAL ASSETS Current Trade and other receivables Cash and cash equivalents Maximum exposure to credit nsk Leasehold Improvements 000 100 100 33 33 67 Group Company 2011 2011 000 000 677 988 3,054 2,458 3.731 3,446 Group 2010 000 2,340 2,713 5,033 The directors are of the opmwn that there are no stgmficant concentrations ofcredtt riSk Company 2010 000 2,258 1,576 3,334 Page 28
Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 20 11 ll. FINANCIAL ASSETS (continued) 12, Trade and other receivables are as follows Group Company Group Company 2011 2011 2010 2010 000 000 000 000 Current Trade receivables 520 520 2,249 2,183 Amounts due from group undertakmgs 311 Other receivables 19 3 Prepayments and accrued mcome 157 157 72 72 677 988 2,340 2,258 The directors consider that the carrymg amount of trade and other receivables approximates to their fair value All trade and other receivables are denommated m sterlmg () The average credit penod taken on grant mcome IS 19 days (20 I 0 71 days) The group holds no collateral agamst receivables at the balance sheet date The followmg table provides analysis of trade and other receivables that were past due at 31 March, but not 1mpa1red The group believes that the balances are ultimately recoverable based on a review of past payment history and the current financial status of the customers Up to three months Up to six months 2011 000 520 16 536 2010 000 2,164 2,164 There are no s1gmficant credit nsks ansmg from financial assets that are neither past due nor Impaired Cash and cash eqmvalents of 3,054,000 (2010 2,713,000) compnse cash and short terrn deposits held by the group treasury functiOn The carrymg amount of these assets approximates to their fair value At 31 March 2011, 3,054,000 of cash was denommated m sterling (2010 2, 713,000) TRADE AND OTHER PAY ABLES Group Company Group Company 2011 2011 2010 2010 000 000 000 000 Current Trade payables 122 69 289 214 Amounts due to group undertakmgs 26 Other taxatiOn and social secunty 338 376 60 60 costs Other payables 36 36 198 224 Accruals and deferred mcome I, 123 853 2,561 1,512 1,619 1,334 3,108 2,036 Page29
Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 20 11 12. TRADE AND OTHER PA YABLES (continued) All payables are denommated m Sterling Trade and other payables pnnc1pally compnse amounts outstandmg for trade purchases and ongomg costs The average credit penod taken for trade purchases IS 5 days (20 I 0 9 days ) The directors consider that the carrymg amount of trade payables approximates to their fair value 13. BORROWING FACILITIES The Group has no bank borrowmg facilities 14. RETIREMENT BENEFITS Defined benefit plan Liverpool VIsion contnbutes to a pensmn scheme prov1dmg benefits based on final pensiOnable pay, contnbutmns being charged to the Statement of Comprehensive Income so as to spread the cost of the pensmns over employees' workmg hves with the company Liverpool VIsiOn was granted Admitted Body Status w1thm the Merseyside Pensmn Fund with effect from I May 2008 and the scheme for the company was operatiOnal from this date The contnbutmns to the Merseyside Pensmn Fund are deterrnmed by a qualified actuary on the basis of tnenmal valuatmns usmg the proJected umt method The disclosures as at 2011 are based on an actuarial valuatiOn as at 31 March 20 I 0 updated to 31 March 2011 Key assumptiOns used Discount rate Investment return on plan assets Rate of RP! mflat1on Rate of CPI mflatmn Expected rate of salary m creases Future pensiOn mcreases 2011 % 55 8 06 34 29 44 29 The average hfe expectancy for a pensmner retmng at 65 on the balance sheet date IS 2011 Years Male Female 214 24 I 2010 % 5.6 33 46 3.3 28 4 55 3 3 2010 Years 20 4 23 2 The average hfe expectancy for a pensmner retmng at 65, aged 45 at the balance sheet date M ~ e 228 213 Female 25 7 24 I The assumptions used by the actuary are the best estimates chosen from a range of possible actuanal assumptmns which, due to the t1mescale covered, may not necessanly be borne out m practice Page30 , . Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 20 11 14. RETIREMENT BENEFITS (continued) Amounts recogmsed wtthm operatmg surplus m the Statement of Comprehensive Income m respect of the defined benefit scheme are as follows Current servtce cost Past servtce (gam)/cost 2011 2010 000 000 348 (541) (193) 235 33 268 Amounts recogmsed wtthm finance (mcome)/costs m the Statement of Comprehensive Income m respect of the defined benefit scheme are as follows Interest cost Expected return on scheme assets 2011 000 545 (521) 24 2010 000 477 (367) 110 Ltverpool Ctty Counctl has gtven a Bond and lndemmty m order to meet the openmg defictt on penston scheme transferred to Ltverpool Vtston Ltmtted as and when tt crystalltses Movements m the present value of defined benefit obhgattons m the current penod were as follows 2011 000 At start of penod 9,710 Current servtce cost 348 Past servtce (gam) I cost (541) Interest cost 545 Actuartal (gams) /losses on habtltttes (88) Contnbuttons by plan parttctpants 140 Benefits I transfers patd {435) At end ofpenod 9,679 The past servtce gam m the year ts due to the effect of the change from usmg RPI to CPI Movements m the fatr value of scheme assets m the current penod were as follows 2010 000 6,661 235 33 477 2,422 143 (261) 9,710 2011 2010 At start of penod Expected return on scheme assets Actuanal gams Employer contnbut10ns Employee contnbuttons Benefits patd At end ofpenod The actual return on scheme assets was 64 7,000 000 000 8,032 521 579 279 140 (435) 9,116 5,756 367 1,609 418 143 (261) 8,032 Page 31
Liverpool Vision Limited NOTES TO THE GROUP FfNANCIAL STATEMENTS For the year ended 31 March 20 11 14. RETIREMENT BENEFITS (continued) The amount mcluded m the statement of financial position ansmg from the Group's obligatiOn m respect of defined benefit schemes IS as follows Fair value of scheme assets Present value of defined benefit obligatiOns Deficit m scheme Liability recogmsed m statement of financial position 2011 2010 000 000 9,116 (9,679) (563) (563) 8,032 (9,710) (1,678) (1,678) MaJor categones of plan assets as a percentage of fmr value of total plan assets and the expected rate of return at the reportmg date were as follows Fair % Expected Fair % Expected value of Return value of Return assets % assets % 000 000 2011 2011 2011 2010 2010 2010 Equity mstruments 5,533 61 75 5,108 64 75 Government bonds 975 11 44 972 12 45 Other bonds 611 7 5 I 530 6 52 Property 720 8 65 506 6 65 Cash /liqUidity 210 2 05 209 3 05 Other assets 1,067 11 75 707 9 75 9,116 100 8,032 100 The expected return on assets represents the allowance made, calculated at the start of the accountmg year for the anticipated mvestment return to be earned on the assets durmg the year Typically an mvestment return of about 6 5% (net of expenses) on the exiStmg assets IS antiCipated for accountmg purposes, although thiS can vary from year to year The five year hiStory of expenence adJUStments are as follows (thiS IS the third year of the company, thus only three years are shown) Present value of defined benefit obligatiOns Fair value of scheme assets Deficit m scheme Expenence adJustments on scheme liabilities Expenence adJustments on scheme assets 2011 000 (9,679) 9,116 (563) 125 579 2010 000 (9,710) 8,032 (I ,678) 1,609 2009 000 (6,661) 5,756 (905) (I ,905) The estimated amounts of contnbut10ns expected to be paid to the scheme durmg the financial penod endmg 3 I March 2012 IS 241 ,000 Page 32
i Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 20 11 15. PROVISIONS At I Apnl 2010 Addotoonal provosoon m the year At 31 March 2011 Current provosoon Non - current provosoon 2011 000 100 100 Dolapodatoons provisoon 000 100 100 2010 000 Durmg 2010/2011 the company moved wothm the Capotal Buoldmg to offices some 20% smaller Loverpool Vosoon Lomoted entered onto the lease, woth Loverpool Coty Councol actmg as guarantor Thos doffered from the ongmallease whoch was entered onto by Liverpool City Councol pnor to the mcorporatoon of the company The company os now responsoble for dolapodatoons upon surrender or expory of the lease so a provosoon has been made for thos, woth an estomate of the hkely cost of dolapodatoons upon exot from ots leasehold offices based on the costs of fit-out of the premoses and has been calculated by senoor officers to mclude any mflatoonary costs at exot Amortosatoon os charged over three years to a break-clause No decosoon has been made to surrender the lease at thos tome 16. SHARE CAPITAL The Company os hmoted by guarantee and has no share capotal Its sole Member os Loverpool Coty Councol 17. CAPITAL COMMITMENTS There were no capotal commotments at the end of the financoal penod (20 I 0 no!) 18. OPERATING LEASE ARRANGEMENTS 2011 2010 Land and Other Land and Other Buoldmgs Buoldmgs 000 000 000 000 Mono mum lease payments under operatmg leases recognosed as an expense m the 171 7 202 penod Page 33
Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 31 March 2G 11 18. OPERATING LEASE ARRANGEMENTS (continued) The mm1mum lease payments under non-cancellable operatmg lease rentals are m aggregate as follows Amounts due W1thm one year Between one and five years After five years 2011 Land and Buoldmgs 000 160 417 667 1,244 Other 000 7 19 26 2010 Land and Bu1ldmgs 000 127 577 667 1,371 Other 000 Operatmg lease payments represent rentals payable by the group for 1ts office properties, photocopier and pnnters The office property lease IS negotiated for a tenn of ten years and two months and there IS a rev1ew date after five years and two months 19 RELATED PARTY TRANSACTIONS Dunng the financ1al penod the company had the followmg transactions w1th related part1es as defined by lA S 24 'Related Party Disclosures' Related enllly Nature of Nature of 2011 20/0 re/atwnshtp transactwns Aggregate Net Aggregate Net value for amount value for amount financ1al owed to financ1al owed to perood the penod the company company 000 000 000 000 Liverpool Member Fundmg 7,163 164 7,903 615 C1ty Councol Rece1vable Northwest Member Fundmg 866 243 2,344 1,028 Reg1onal Receivable Development Agency Homes and Member Fundmg 429 543 Commumt1es Rece1vable Agency Apprecoatmg Common Purchases 11 5 People d1rector L1m1ted R1ver-D1g1tal Common Purchases 39 (UK) L1m1ted d1rector Page 34
.. . Liverpool Vision Limited NOTES TO THE GROUP FINANCIAL STATEMENTS For the year ended 3 I March 20 11 20. CONTROLLING PARTIES This company Is controlled by Liverpool City Council (''LCC"') Page35