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
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
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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
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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
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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
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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)
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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
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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