Registered number:
07685830
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2021
(A Company Limited by Guarantee)
COMPANY INFORMATION
Directors
Mrs CJ Green (Chair)
(appointed
21 April 2020
)
Mr D Field
(resigned
23 September 2020
)
Mr D Ellesmere
Mrs C Cullens
Mr J Griffiths
Mr M Hicks
Mr P Joyner
Mr D Keen
Mr S Chapman-Allen
Mr S Oliver
Mrs C Peasgood
Mr A Proctor
Mr J Reynolds
Mrs S Ruddock
Mr A Waters
Ms J Wheeler
Dr T Whitley
Mrs K Atkinson
(appointed
1 October 2020
)
Prof H Langton
Mrs L Rix (resigned 21 April 2020)
Registered number
07685830
Registered office
Mills & Reeve LLP
1 St James Court
Whitefriars
Norwich
Norfolk
NR3 1RU
Independent auditors
Price Bailey LLP
Chartered Accountants
&
Statutory Auditors
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR
(A Company Limited by Guarantee)
CONTENTS
Page
Group Strategic Report 1 - 4
Directors' Report 5 - 6
Independent Auditors' Report 7 - 10
Consolidated Statement of Comprehensive Income 11 - 12
Consolidated Balance Sheet 12
Company Balance Sheet 13
Consolidated Statement of Cash Flows 14
Analysis of Net Debt 15
Notes to the Financial Statements 16 - 35
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2021
Introduction
New Anglia Local Enterprise Partnership Ltd (LEP), is a company bringing together business, local authority and
education leaders, collaborating to grow the area’s economy, create jobs and improve productivity.
Aims and Objectives
The core goal of the LEP is to drive business growth and enterprise to support inclusive growth across Norfolk
and Suffolk.
During the period, it has continued to invest in key projects and provide support to the region's businesses.
In the past year, the LEP team has delivered a number of workstreams to support the regional and national
Covid-19 response and recovery work.
More details of this are outlined in the ‘Political and economic climate’ section of this report.
Since the launch of the Economic Strategy for Norfolk and Suffolk in autumn 2017, the focus has been on
delivering on its ambitions and key themes for local growth: Our Offer to the World, Driving Inclusion and Skills
and Driving Business Growth and Productivity. The region’s draft Local Industrial Strategy, published in autumn
2019, outlines ambitions to deliver growth and become the UK’s Clean Growth Region.
One of the ways to deliver and facilitate growth is through the Growth Deal programme, totalling £290million
since 2014. The funding supports projects and programmes that will boost skills, drive innovation, provide
targeted business support and improve transport and infrastructure. In summer 2020, the LEP was awarded
£32.1m through the Government’s Getting Building Fund to further support local growth.
Core programmes and projects
The LEP launched its Business Resilience and Recovery Scheme in April 2020. The fund has already awarded
more than £5.2m to 134 businesses across the region, supporting short-term projects and longer-term
diversifications for businesses during and recovering from the Covid-19 crisis.
A number of the LEP’s Growth Deal projects will launch in the coming months. The digi-tech campuses at City
College Norwich and Suffolk New College will both be home to students from September 2021 and the
University of East Anglia’s Institute of Productivity is also set to open in the summer. Construction work has
recently started on the Lowestoft flood risk management works which will protect infrastructure, homes and
businesses in the town.
The New Anglia LEP Enterprise Zones continue to attract new companies and support new jobs. A new office
facility has been constructed on the Norwich Research Park Enterprise Zone site, officially opened in summer
2020.
The LEP's business support programmes and flagship Growth Hub continue to offer free and impartial advice,
helping hundreds of firms to grow, develop and innovate.
The LEP’s Growing Business Fund, Small Grant Scheme and Growth Through Innovation Funds continue to
fund business growth projects across our region.
The LEP’s industry councils for agri-food, ICT/digital and all energy are bringing together business leaders to
structure work to develop our key sectors.
Page 1
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Performance and financial overview
LEP projects are monitored against a series of key performance indicators (KPIs). These include performance
against spend and the delivery of agreed outputs. Each programme reports against KPIs in a performance report
which can be found on the LEP’s website.
The LEP’s internal KPIs cover finances and performance against the LEP’s delivery plan. KPIs include financial
and output performance against annual targets for our key projects including Growth Deal, Enterprise Zone and
Growth Programme.
Each year the LEP is subject to an Annual Performance Review (APR) by Government which assesses LEP
performance across three themes of Governance, Delivery and Strategic impact. The performance assessment
for the 2020/21 APR confirmed the LEP had met the requirements for each of the three themes. Key indicators
that were met include LEP compliance against the Local Assurance Framework, publishing a governance
assurance statement on the status of governance and transparency, operating effective programme
management arrangements to deliver planned outputs and co-ordinating the economic response to the Covid
pandemic through the Economic Recovery Restart plan.
Each member of the LEP team has their own individual objectives which form part of the LEP’s overall delivery
plan. The LEP’s Working Well initiative continues to support the team’s health and wellbeing.
The surplus for the financial year has increased significantly from £428k to £19,457k. This is due to receipt of
additional Government monies during the year and a reduction in spend as a result of delays on some large
infrastructure projects. The majority of funds are committed to projects but are not yet claimed. The expectation
for next year is that the LEP will incur a deficit as projects draw down remaining funds.
The LEP’s reserves also increased in this financial year. This is largely due to Getting Building Fund monies
received from Government and which are committed to specific projects but not yet spent. This funding will be
made available to those projects during the next financial year as they progress. The LEP is also carrying
forward funds (£1.5m) which will support the associated costs of running the Growth Deal programme as
remaining projects proceed to completion.
The LEP has been awarded a total of £290million by Government to deliver the Growth Deal over a six-year
period. The funding profile varies from year to year. 2020-21 was the last year of this programme and our
allocation was £47.4million (2020: 24.7million).
We recently received our final 2021-22 Getting Building Fund allocation from Government (£16.05m) after
demonstrating sufficient progress as part of the APR.
The majority of the LEP's funding is secured from Government, both core funding and project funding. Other
funding is secured from the European Union, from business rates generated on the LEP’s Enterprise Zone sites
and through contributions from local authority partners.
Principal risks
A principal risk is the Government withholding this funding in full or in part, which has materialised in the case of
two other LEPs in previous years. New Anglia LEP mitigates this risk by ensuring all funding is utilised in
compliance with Government rules and its governance and processes are "best in class".
In its annual review with Government in January 2021, the LEP was considered to have met Government
requirements on Governance, Strategic Impact and Funding Delivery.
Political and economic climate
The Covid-19 pandemic continues to pose a significant threat to our economy. New Anglia LEP is at the forefront
of work to ensure local businesses have access to the support and advice they need. Working with the Norfolk
and Suffolk Resilience Forums, the LEP team has been supporting business support and recovery projects.
Page 2
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
This has included advisers speaking directly to business owners to helping protect our key sectors, sharing
intelligence with Government, helping Public Health Teams roll out rapid business testing and developing
business support scripts for partners.
A significant volume of LEP resource and time has been redirected towards supporting the local and national
COVID-19 response.
The LEP and partners launched the Norfolk and Suffolk Economic Recovery Restart Plan in summer 2020
(available online at newanglia.co.uk/covid-economic-recovery) and work is now under way on the rebuild plan.
The UK’s new trade deal with the EU has caused some short-term supply chain and logistics issues for local
businesses and the LEP is working hard to ensure our sectors and local businesses can benefit from
opportunities in international trade over the coming years.
A review of LEPs was announced in the budget. The focus will be on business support, innovation, skills, net
zero, inward investment and trade and the LEP’s wider strategic influence. The review will also look at LEP
structures. The end date for the review is unclear however it is anticipated that a new operating model will be in
place, at least in part, by financial year 2022/23.
Environmental reporting
New Anglia LEP is not required to complete environmental reporting as its energy consumption is less than
40,000kWh. However the organisation has an active Clean Growth working group, bringing together staff to look
at priority actions around reducing the LEP’s carbon footprint. This has included reducing printing, introducing a
cycle to work scheme and work with our pension provider to ensure our investments are made in sustainable
projects. This fits within the LEP’s commitment to delivering clean growth for the region and the establishment of
its new Clean Growth Task Force.
New Anglia Capital Ltd
New Anglia Capital Ltd (NAC) is a wholly owned subsidiary of New Anglia Local Enterprise Partnership.
New Anglia LEP has established a co-investment fund to be managed by NAC to make risk-capital co-
investments alongside entrepreneurs in high growth-potential companies based in Norfolk and Suffolk.
The principle aims of NAC include:
Establishing a network of business entrepreneurs and angel investors to provide a pool of risk-capital and
business finance that can support start-ups, innovative business ideas and high growth companies.
Identifying and providing a pipeline of investment opportunities for risk-capital investment, co-investing with
angel investors and entrepreneurs that meet the company criteria, including creating new jobs.
Investment opportunities should also promote the wider objectives of New Anglia LEP e.g. support for
sectors including engineering, life sciences, agri-tech, health, energy, ICT and digital tech.
Risks to New Anglia Capital include identifying and maintaining an effective level of investors in the region and
the risk of failure of individual companies in which NAC has an equity share.
Page 3
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Directors' statement of compliance with duty to promote the success of the Group
Section 172(1) Statement
New Anglia Local Enterprise Partnership works with businesses, local authority partners and education
institutions to drive growth and enterprise in Norfolk and Suffolk. The LEP is transforming the economy by
securing funds from government to help businesses grow, through the delivery of ambitious programmes to
ensure that businesses have the funding, support, skills, and infrastructure needed to flourish.
Members of New Anglia LEP’s Board operate with the aim of ensuring that the organisation maintains its
reputation for high standards of business conduct and good governance. The Board considers and understands
the long-term effect of its decisions on the regional business community, our stakeholders and employees.
The LEP’s aims and objectives are set out in its current Delivery Plan. The Non-Executive Director Agreement
outlines the high standards of ethical and professional conduct expected of Board members in ensuring that the
LEP’s values and obligations to stakeholders – our public sector partners, local businesses, further and higher
education partners and Government - are met. It states that Board members will provide entrepreneurial
leadership within a framework of prudent and effective controls which enable risk to be assessed and managed.
The Standards of Conduct Policy sets out the principles by which Board members and employees are expected
to adhere to the highest standards of governance and propriety. It uses the Nolan Principles as the core of the
code of conduct, following the guidelines established by the Committee on Standards in Public Life, which
provides independent advice to the prime minister on standards of conduct of holders of all public office. We
hold monthly board meetings, regular meetings of our sub boards, committees and sector groups and weekly
updates for our employees.
The LEP’s Local Assurance Framework sets out how its Board is formed and governed, how decisions are made
and how programmes are funded and managed. The Assurance Framework also provides the Government with
assurance that the LEP is operating correctly.
As well as investing in capital and revenue projects across the region, the LEP supports local procurement
where possible. The LEP has committed to reducing its carbon footprint, by reducing printing, encouraging fewer
car journeys / car sharing and implementing agile working for its staff.
Further information about the LEP’s governance, including details of its Board members, can be found on the
LEP website at www.newanglia.co.uk
This report was approved by the board on and signed on its behalf.
...............................
Mrs CJ Green (Chair)
Dire
ctor
C J Green (Aug 11, 2021, 1:31pm)
Page 4
11 August 2021
(A Company Limited by Guarantee)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2021
The
directors
present
their
report and the
financial statements
for the
year
ended
31 March 2021
.
Directors' responsibilities statement
The
directors
are
responsible for preparing the
Group Strategic Report, the Directors' Report and the
consolidated
financial statements
in accordance with
applicable law and regulations
.
Company law
requires
the
directors
to prepare
financial statements
for each financial
year
. Under that law the
directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting
Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company
law the directors must not approve the financial statements unless they are satisfied that they give
a true and fair
view of the state of affairs of the
Company and the Group
and of the
surplus or deficit
of the
Group
for that
period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies for the Group's financial statements and then apply them consistently;
make
judgments
and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Group will continue in business.
The
directors
are
responsible for keeping
adequate
accounting records that are sufficient to show and explain
the Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Company and the Group
and to enable
them
to ensure that the
financial statements
comply with the Companies
Act 2006
.
They are
also responsible for safeguarding the assets of the
Company and the Group
and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The
surplus
for the
year
, after taxation, amounted to
£
19,457,421
(2020:
£
428,464
)
.
Directors
The
directors
who served during the
year
were:
Mrs CJ Green (Chair)
(appointed
21 April 2020
)
Mr D Field
(resigned
23 September 2020
)
Mr D Ellesmere
Mrs C Cullens
Mr J Griffiths
Mr M Hicks
Mr P Joyner
Mr D Keen
Mr S Chapman-Allen
Mr S Oliver
Mrs C Peasgood
Mr A Proctor
Mr J Reynolds
Mrs S Ruddock
Mr A Waters
Ms J Wheeler
Dr T Whitley
Page 5
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
Mrs K Atkinson (appointed 1 October 2020)
Prof H Langton
Mrs L Rix (resigned 21 April 2020)
Future developments
Since being established ten years ago, LEPs have been responsible for delivering economic growth in the
regions.
Now ten years in, Government is carrying out a review of LEPs to make sure that they have a clear mandate for
supporting and representing businesses. Ministers want to build on the strategic influencing role of LEPs and
ensure business leaders have a clear focus and line of involvement.
The strategic role of LEPs includes providing place-based economic expertise and insight to help deliver the
Government’s Plan for Growth at a local level, designing and delivering interventions to support local sectors and
industries and delivering tailored business support.
The LEP Review started in April and will cover the function, form and geographies of LEPs and
recommendations will be put to ministers in July before summer recess.
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
so far as the director is aware, there is no relevant audit information of which the Company and the
Group's auditors are unaware, and
the director has taken all the steps that ought to have been taken as a director in order to be aware of any
relevant audit information and to establish that the Company and the Group's auditors are aware of that
information.
Auditors
The auditors, Price Bailey LLP, will be proposed for
Companies Act 2006.
reappointment in accordance with section 485 of the
and signed on its behalf.
This report was approved by the board on
Mrs CJ Green (Chair)
Director
C J Green (Aug 11, 2021, 1:31pm)
Page 6
11 August 2021
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED
Opinion
We
have audited the
financial statements
of
New Anglia Local Enterprise Partnership Limited (the 'parent
Company') and its subsidiaries (the 'Group')
for the
year
ended
31 March 2021
, which comprise
the Group
Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash
Flows
and the related notes, including a summary of significant accounting policies
.
The financial reporting
framework that has been applied in their preparation is applicable law
and United Kingdom Accounting
Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK
and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In
our
opinion
the financial statements
:
give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March
2021 and of the Group's surplus for the
year
then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We
conducted
our
audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law.
Our
responsibilities under those standards are further described in the
Auditors'
responsibilities for the audit
of the
financial statements
section of
our
report.
We
are
independent of the
Group
in accordance with the ethical
requirements that are relevant to
our
audit of the
financial statements
in the United Kingdom, including the
Financial Reporting Council's Ethical Standard
and
we
have fulfilled
our
other ethical responsibilities in
accordance with these requirements.
We
believe that the audit evidence
we
have obtained is sufficient and
appropriate to provide a basis for
our
opinion.
Conclusions relating to going concern
In auditing the financial statements,
we
have concluded that the
directors'
use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Based on the work
we
have performed,
we
have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the
Group's or the parent Company's
ability to continue as a going concern for a period of at least twelve months from when the financial statements
are authorised for issue.
Our
responsibilities and the responsibilities of the
directors
with respect to going concern are described in the
relevant sections of this report.
Page 7
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED (CONTINUED)
Other information
The other information comprises the information included in the
Annual Report
other than the financial
statements and
our
Auditors' Report
thereon. The
directors
are
responsible for the other information contained
within the
Annual Report
.
Our
opinion on the financial statements does not cover the other information and
,
except to the extent otherwise explicitly stated in our report,
we
do not express any form of assurance conclusion
thereon.
Our
responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or
our
knowledge obtained in the course of the
audit, or otherwise appears to be materially misstated. If
we
identify such material inconsistencies or apparent
material misstatements,
we
are
required to determine whether this gives rise to a material misstatement in the
financial statements themselves. If, based on the work
we
have performed,
we
conclude that there is a material
misstatement of this other information,
we
are
required to report that fact.
We
have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In
our
opinion, based on the work undertaken in the course of the audit:
the information given in the Group Strategic Report and the Directors' Report for the financial
year
for
which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable
legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
Group and the parent Company
and its environment
obtained in the course of the audit,
we
have not identified material misstatements in the
Group Strategic Report
or the Directors' Report
.
We
have nothing to report in respect of the following matters in relation to which
the Companies Act 2006
requires
us
to report to you if, in
our
opinion:
adequate accounting records have not been kept by the parent Company, or returns adequate for
our
audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we
have not received all the information and explanations
we
require for
our
audit.
Responsibilities of directors
As explained more fully in the
Directors' Responsibilities Statement
set out on page
5
, the
directors
are
responsible for the preparation of the
financial statements
and for being satisfied that they give a true and fair
view, and for such internal control as the
directors
determine
is necessary to enable the preparation of
financial
statements
that are free from material misstatement, whether due to fraud or error.
In preparing the
financial statements
, the
directors
are
responsible for assessing the
Group's and the parent
Company
's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the
directors
either
intend
to liquidate the
Group or the
parent Company
or to cease operations, or have no realistic alternative but to do so.
Page 8
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our
objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free
from material misstatement, whether due to fraud or error, and to issue an
Auditors' Report
that includes
our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
Group financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations.
We
design procedures
in line with
our
responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which
our
procedures are capable of detecting irregularities, including fraud is
detailed below:
Management override: We reviewed systems and procedures to identify potential areas of management
override risk. In particular, we carried out testing of journal entries and other adjustments for
appropriateness, and evaluating the business rationale of significant transactions to identify large or unusual
transactions. We reviewed key authorisation procedures and decision making processes for any unusual or
one-off transactions.
We also reviewed minutes of Director meetings, agreeing the financial statement disclosures to underlying
supporting documentation, and made enquiries of management including those responsible for the key
regulations. We have reviewed the procedures in place for reporting of issues arising to the Board.
We reviewed a sample of grant and administrative expenditure to ensure costs are correctly allocated within
the Statement of Comprehensive Income and reflects valid expenditure approved by the board
Because of the inherent limitations of an audit, there is a risk that
we
will not detect all irregularities, including
those leading to a material misstatement in the
financial statements
or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the
financial statements
, as
we
will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of
our
responsibilities for the audit of the
financial statements
is located on the Financial
Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of
our
Auditors' Report
.
Page 9
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED (CONTINUED)
Use of our report
This report is made solely to the
Company
's
members, as a body,
in accordance with Chapter 3 of Part 16 of the
Companies Act 2006
.
Our
audit work has been undertaken so that
we
might state to the
Company
's
members
those matters
we
are
required to state to them in an
Auditors' Report
and for no other purpose. To the fullest
extent permitted by law,
we
do not accept or assume responsibility to anyone other than the
Company
and the
Company
's
members, as a body,
for
our
audit work, for this report, or for the opinions
we
have formed.
Aaron Widdows ACA FCCA
(Senior Statutory Auditor)
for and on behalf of
Price Bailey LLP
Chartered Accountants
Statutory Auditors
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR
Date:
Page 10
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
Page 11
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
Designated
Project Operational
Funding Activity Total Total
2021 2021 Note 2021 2020
£ £ £ £
Operational income - 2,464,465 2,464,465 2,104,990
Grant and project income 66,782,519 - 66,782,519 28,029,415
_________ _________ _________ _________
66,782,519 2,464,465 4 69,246,984 30,134,405
Grants issued (44,796,810) - (44,796,810) (25,932,402)
Impairment of investments - - - -
_________ _________ _________ _________
Gross surplus 21,985,709 2,464,465 24,450,174 4,202,003
Administrative expenses (3,146,870) (2,265,052) (5,411,922) (4,248,934)
_________ _________ _________ _________
Operating surplus 18,838,839 199,413 5 19,038,252 (46,931)
Interest receivable 293,986 196,098 8 490,084 552,794
Net finance costs - (4,000) 16 (4,000) (5,000)
_________ _________ _________ _________
Surplus on ordinary activities
before taxation 19,132,825 391,511 19,524,336 500,863
Taxation (66,763) (152) 9 (66,915) (72,399)
_________ _________ _________ _________
Surplus for the financial year 19,066,062 391,359 19,457,421 428,464
Actuarial (loss) / gain on defined
benefit pension scheme - (275,000) 16 (275,000) 88,000
_________ _________ _________ _________
Total Comprehensive Income
for the year 19,066,062 116,359 19,182,421 516,464
Retained earnings at the
start of the year 54,141,259 611,317 15 54,752,576 54,236,112
_________ _________ _________ _________
Retained earnings at the
end of the year 73,207,321 727,676 73,934,997 54,752,576
All of the activities of the group are classed as continuing.
The notes on pages 16 to 35 form part of these financial statements.
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2021
2021
£
2020
£Note
Fixed assets
Tangible assets
Investments
10
11
28,735
12,528,137
48,026
12,034,642
12,556,872 12,082,668
Current assets
Debtors: amounts falling due within one year
Cash at bank and in hand
12 4,053,067
58,864,011
3,502,305
40,004,253
62,917,078 43,506,558
Creditors: amounts falling due within one
year 13 (1,051,953) (676,650)
Net current assets 61,865,125 42,829,908
Total assets less current liabilities
Provisions for liabilities
74,421,997 54,912,576
Net assets excluding pension liability
Pension liability
74,421,997
(487,000)
54,912,576
(160,000)
Net assets 73,934,997 54,752,576
Capital and reserves
Other reserves
Retained earnings
Equity attributable to owners of the
parent Company
72,720,321
1,214,676
53,981,259
771,317
73,934,997 54,752,576
73,934,997 54,752,576
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
.
Mrs CJ Green (Chair)
Dire
ctor
C J Green (Aug 11, 2021, 1:31pm)
Date: 11 August 2021
The notes on pages 16 to 35 form part of these financial statements.
Page 12
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
REGISTERED NUMBER: 07685830
COMPANY BALANCE SHEET
AS AT 31 MARCH 2021
2021
£
2020
£Note
Fixed assets
Tangible assets
Investments
10
11
28,735
9,785,506
48,026
9,788,409
9,814,241 9,836,435
Current assets
Debtors: amounts falling due within one year
Cash at bank and in hand
12 6,765,640
58,864,011
5,720,119
40,004,253
65,629,651 45,724,372
Creditors: amounts falling due within one
year 13 (1,046,703) (673,039)
Net current assets 64,582,948 45,051,333
Total assets less current liabilities 74,397,189 54,887,768
Net assets excluding pension liability
Pension liability
74,397,189
(487,000)
54,887,768
(160,000)
Net assets 73,910,189 54,727,768
Capital and reserves
Other reserves
Retained earnings brought forward
Surplus for the year
Other changes in retained earnings
72,720,321 53,956,451
771,316
19,457,421
(19,038,870)
678,119
428,464
(335,266)
Retained earnings carried forward 1,189,868 771,317
73,910,189 54,727,768
Director
The notes on pages 16 to 35 form part of these financial statements.
Page 13
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
................................
Mrs CJ Green (Chair)
21 Jul 2021
C J Green (Aug 11, 2021, 1:31pm)
11 August 2021
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
2021
2020
£
£
Cash flows from operating activities
Surplus for the financial year
19,457,421
428,464
Adjustments for:
Depreciation of tangible assets
25,188
24,291
Loss on disposal of tangible assets
-
1,103
Interest received
(496,110)
(646,964)
Taxation charge
66,915
72,399
(Increase) in debtors
(167,678)
(448,304)
Increase/(decrease) in creditors
381,119
(25,119)
Increase in net pension (assets) / liabilities
52,000
75,000
Corporation tax paid
(72,732)
(56,057)
Net cash generated from operating activities
19,246,123
(575,187)
Cash flows from investing activities
Purchase of tangible fixed assets
(5,897)
(28,081)
Associates loans repaid
3,617,883
2,312,683
Purchase of unlisted and other investments
(4,111,378)
(339,400)
Interest received
107,000
94,175
Associates interest received
6,027
69,170
Income from investments
-
25,000
Net cash from investing activities
(386,365)
2,133,547
Net increase in cash and cash equivalents
18,859,758
1,558,360
Cash and cash equivalents at beginning of year
40,004,253
38,445,893
Cash and cash equivalents at the end of year
58,864,011
40,004,253
Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand
58,864,011
40,004,253
58,864,011 40,004,253
The notes on
pages 16 to 35
form part of these
financial statements
.
Page 14
(A Company Limited by Guarantee)
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2021
At 1 April
2020
Cash flows
At 31 March
2021
£
£
£
Cash at bank and in hand
40,004,253
18,859,758
58,864,011
40,004,253 18,859,758 58,864,011
The notes on
pages 16 to 35
form part of these
financial statements
.
Page 15
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
1
.
General information
New Anglia Local Enterprise Partnership Limited is a private company limited by guarantee and is
incorporated in England. The address of the registered office is Mills & Reeve LLP, 1 St James Court,
Whitefriars, Norwich, Norfolk NR3 1RU. The address of the trading office is Centrum, Norwich Research
Park, Norwich, Norfolk, NR4 7UG. The nature of the company operations and its principal activities are set
out in the strategic report.
The only subsidiary within the Group is New Anglia Capital Ltd. This is included within the consolidation.
New Anglia Capital Ltd is a private company limited by guarantee and is incorporated in England. The
address of the registered and trading offices is the same as the parent company.
2
.
Accounting policies
2.1
Basis of preparation of financial statements
The
financial statements
have been prepared under the historical cost convention unless otherwise
specified within these accounting policies and in accordance with
Financial Reporting Standard 102,
the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the
Companies Act 2006
.
The financial statements are presented in Sterling, rounded to the nearest £1, which is the functional
currency of the Group.
The preparation of
financial statements
in compliance with FRS
102
requires the use of certain
critical accounting estimates. It also requires
Group
management to exercise
judgment
in applying
the
Group
's
accounting policies
(see note
3
).
The
Company
has taken advantage of the exemption allowed under
section 408 of the
Companies
Act 2006
and has not presented its own
Statement of Comprehensive Income
in these
financial
statements
.
Due to the nature of the Company's activities, the directors consider that it would be inappropriate to
present the Statement of Comprehensive Income in either of the standard formats recognised by the
Companies Act 2006. The format adopted has been selected as it presents the categories of income
and expenditure more accurately for readers of the financial statements.
The following principal
accounting policies
have been applied:
2.2
Basis of consolidation
The consolidated
financial statements
present the results of the
Company
and its own subsidiaries
("the
Group
") as if they form a single entity. Intercompany transactions and balances between group
companies are therefore eliminated in full.
Page 16
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2
.
Accounting policies (continued)
2.3
Revenue recognition
Income arising in the year is analysed into either Operational Activity or Designated Project Funding.
Operational Activity includes income received to cover the day to day core funding requirements of
the LEP such as administration costs and staff remuneration. It also includes income to fund certain
projects undertaken directly by the LEP. Designated Project Funding includes income received for
specific projects which are then distributed by the LEP to third parties. They are generally funds
provided by Government or other agencies. Costs directly attributable to designated projects are
charged against this income and shown as an expense. Where the LEP incurs costs which may be
partly attributable to Operational Activity and partly to designated projects then the Board allocate
such expenditure based on a fair and reasonable assessment of the time and cost expended on
each project.
Government grants are accounted for under the performance model as permitted by Financial
Reporting Standard 102. Government grants are recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured. Under the
performance model, income is recognised once performance-related conditions have been met by
New Anglia LEP. For 2021, as this is the final year of the Growth Deal funding, income has been
recognised in the financial year, but the expenditure against this grant income has not yet been
incurred, whether that be in relation to grant awards to third parties or the associated running costs.
In 2022 therefore, expenditure is expected to exceed income for both grant awards and running
costs, as the unspent 2021 income is drawn down on.
Other funding is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.
2.4
Operating leases: the Group as lessee
Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive
Income on a straight line basis over the lease term.
2.5
Interest income
Interest income is recognised in the Consolidated Statement of Comprehensive Income using the
effective interest method.
2.6
Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense
recognised as other comprehensive income or to an item recognised directly in equity is also
recognised in other comprehensive income or directly in equity respectively.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been
enacted or substantively enacted by the
balance sheet date
in the countries where the
Company and
the Group operate and generate income
.
The Company operates as a not-for-profit entity, and receives direct financial support from
constituent local authorities in addition to grants from Government. It does not carry out a trade for
tax purposes. As a result, the net surplus arising from these activities is non-trading and is exempt
from corporation tax. The Company is liable to corporation tax on bank interest and other investment
income.
Page 17
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2
.
Accounting policies (continued)
2.7
Pensions
Defined contribution pension plan
The
Group
operates a defined contribution plan for its employees. A defined contribution plan is a
pension plan under which the
Group
pays fixed contributions into a separate entity. Once the
contributions have been paid the
Group
has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive
Income when they fall due. Amounts not paid are shown in accruals as a liability in the
Balance
Sheet
. The assets of the plan are held separately from the
Group
in independently administered
funds.
Defined benefit pension plan
The
Group
operates a defined benefit plan for certain employees. A defined benefit plan defines the
pension benefit that the employee will receive on retirement, usually dependent upon several factors
including but not limited to age, length of service and remuneration. A defined benefit plan is a
pension plan that is not a defined contribution plan.
The liability recognised in the
Balance Sheet
in respect of the defined benefit plan is the present
value of the defined benefit obligation at the end of the
balance sheet date
less the fair value of plan
assets at the
balance sheet date
out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method.
Annually the
company engages independent actuaries to calculate the obligation.
The present value is determined
by discounting the estimated future payments using market yields on high quality corporate bonds
that are denominated in
sterling
and that have terms approximating to the estimated period of the
future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in
accordance with the
Group
's policy for similarly held assets. This includes the use of appropriate
valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to
other comprehensive income
. These amounts together with
the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of
net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where
included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a
'finance expense'.
Page 18
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2
.
Accounting policies (continued)
2.8
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated
depreciation and any accumulated impairment losses. Historical cost includes expenditure that is
directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their
estimated useful lives,
using the straight-line method
.
Depreciation is provided on the following basis:
Fixtures and fittings
-
16.67% straight line
Office equipment
-
20 - 33% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted
prospectively if appropriate, or if there is an indication of a significant change since the last reporting
date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount
and are recognised in profit or loss.
2.9
Impairment of fixed assets
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to
determine whether there is any indication that the assets are impaired. Where there is any indication
that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the
asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount
by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (CGUs).
Non-financial assets that have been previously impaired are reviewed at each balance sheet date to
assess whether there is any indication that the impairment losses recognised in prior periods may no
longer exist or may have decreased.
2.10
Valuation of investments
There are three types of investments included in the financial statements
Loans made to third parties measured at cost less accumulated impairment (company only).
Investments in joint capital projects alongside a public sector lead partner, measured at cost less
accumulated impairment (company only)
Investments in subsidiaries which are measured at cost less accumulated impairment.
Once an impairment loss has been identified for an asset measured at cost less impairment, its
amount is measured as the difference between the asset's carrying amount and the amount for which
the asset could be sold at the reporting date. This amount is then recognised in the Consolidated
Statement of Comprehensive Income.
Page 19
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2
.
Accounting policies (continued)
2.11
Debtors
Short term debtors are measured at transaction price, less any impairment.
2.12
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions and Suffolk County
Council which are repayable without penalty on notice of not more than 24 hours. Cash equivalents
are highly liquid investments that mature in no more than three months from the date of acquisition
and that are readily convertible to known amounts of cash with insignificant risk of change in value.
2.13
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank
loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at
amortised cost using the effective interest method.
2.14
Provisions for liabilities
Provisions are made where an event has taken place that gives the
Group
a legal or constructive
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate
can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in
the year that the
Group
becomes aware of the obligation, and are measured at the best estimate at
the
Balance Sheet
date of the expenditure required to settle the obligation, taking into account
relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the
Balance Sheet
.
2.15
Financial instruments
The
Group
only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an
impairment loss is recognised in the
Consolidated Statement of Comprehensive Income
.
For financial assets measured at cost less impairment, the impairment loss is measured as the
difference between an asset's carrying amount and best estimate of the recoverable amount, which is
an approximation of the amount that the
Group
would receive for the asset if it were to be sold at the
balance sheet date
.
Financial assets and liabilities are offset and the net amount reported in the
Balance Sheet
when
there is an enforceable right to set off the recognised amounts and there is an intention to settle on a
net basis or to realise the asset and settle the liability simultaneously.
Page 20
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
3
.
Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgments, estimates and
assumptions that affect the amounts reported. These estimates and judgments are continually reviewed
and are based on experience and other factors, including expectations of future events that are believed
to be reasonable under the circumstances.
Significant judgments
The judgments (apart from those involving estimations) that management has made in the process of
applying the entity's accounting policies and that have the most significant effect on the amounts
recognised in the financial statements are as follows:
Impairment of investments
At the end of each reporting period, the Group assess whether there is objective evidence of impairment
of any financial assets that are measured at cost or amortised cost. If there is objective evidence of
impairment, the entity shall recognise an impairment loss in the Consolidated Statement of
Comprehensive Income immediately (note 11).
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely
equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are as follows:
- Defined benefit pension scheme liability (note 16).
Defined benefit pension scheme
The liability recognised in the balance sheet in respect of the group's retirement benefit obligations
represents the liabilties of the group's defined benefit pension scheme after deduction of the fair value of
the related assets. The schemes' liabilties are derived by estimating the ultimate cost of benefits payable
by the scheme and reflecting the discounted value of the proportion accrued by the year end in the
balance sheet. In order to arrive at these estimates, a number of key financial and non-financial
assumptions are made by management, changes to which could have a material impact upon the net
deficit and also the net cost recognised in the profit and loss account. The principle assumptions relate to
the rate of inflation, mortality and the discount rate. The assumed rate of inflation is important because this
affects the rate at which salaries grow and therefore the size of the pension that employees receive upon
retirement. Over the longer term, rates of inflation can vary significantly.
The overall benefits payable by the scheme will also depend upon the length of time that members of the
schemes live for; the longer they remain alive, the higher the cost of the pension benefits to be met by the
scheme. Assumptions are made regarding the expected lifetime of the schemes' members, based upon
recent national experience. However, given the rates of advance in medical science, it is uncertain
whether these assumptions will prove to be accurate in practice.
The rate used to discount the resulting cash flows is equivalent to the market yield at the statement of
financial position date on UK government securities with a similar duration to the schemes liabilities. This
rate is potentially subject to significant variation. The net cost recognised in the profit and loss account is
also affected by the return on the schemes' assets. The impact of the pension estimates on the group’s
accounts can be seen in note 16.
Page 21
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
4
.
Income
Income arises from:
2021
2020
£
£
Grants
67,789,567
29,221,624
Enterprise Zone income
1,457,417
912,781
69,246,984 30,134,405
The above income is wholly attributable to the principal activity of the group which is undertaken in the
United Kingdom.
5
.
Operating surplus/(deficit)
The operating surplus/(deficit) is stated after charging:
2021
2020
£
£
Depreciation of tangible fixed assets
25,188
24,291
Other operating lease rentals 60,317 77,102
6
.
Auditors' remuneration
2021
2020
£
£
Fees payable to the Group's auditor and its associates for the audit of the
Group's annual financial statements 11,000 10,050
Fees payable to the Group's auditor and its associates in respect of:
Taxation compliance services
1,050
950
All other services
3,150
3,000
4,200 3,950
Page 22
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
7
.
Employees
Staff costs were as follows:
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
2,182,482
2,435,361
2,182,482
2,403,612
Social security costs
231,579
247,639
231,579
247,639
Cost of defined benefit scheme
48,000
70,000
48,000
70,000
Cost of defined contribution scheme
122,606
133,331
122,606
133,331
2,584,667 2,886,331 2,584,667 2,854,582
The directors do not receive any emoluments (2020: Nil).
The total remuneration payable in respect of 6 (2020: 8) key management personnel amounted to
£528,169 (2020: £582,625).
The average
monthly
number of
employees
during the
year
was as follows:
2021
2020
No.
No.
Leadership Team
6
7
Project Delivery Team
40
40
Administrative Team
6
6
52 53
8
.
Interest receivable
2021
2020
£
£
Bank and other interest receivable
6,027
69,170
Investment interest receivable
484,057
458,624
490,084 527,794
Page 23
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
9
.
Taxation
2021
2020
£
£
Corporation tax
Current tax on surplus for the year
66,915
72,731
Adjustments in respect of previous periods
-
(332)
Taxation on surplus on ordinary activities 66,915 72,399
Factors affecting tax charge for the year
The tax assessed for the
year
is
lower than
(2020 - lower than)
the standard rate of corporation tax
in the
UK of
19
%
(2020 -
19
%)
. The differences are explained below:
2021
2020
£
£
Surplus on ordinary activities before tax 19,524,336 500,863
Surplus on ordinary activities multiplied by standard rate of corporation tax
in the UK of 19% (2020 - 19%)
3,709,624
95,164
Effects of:
Adjustments to tax charge in respect of prior periods
-
(332)
Non-taxable income
(3,642,709)
(22,433)
Total tax charge for the year
66,915 72,399
Factors that may affect future tax charges
Changes to the UK corporation tax rates were substantively enacted as part of Budget 2021 (on 3 March
2021). This included an increase to the main rate to increase the rate from 19% to 25% from 1 April 2023.
The company will be taxed at a rate of 25% unless its profits are sufficiently low enough to qualify for a
lower rate of tax, the lowest rate being 19%.
Page 24
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
10
.
Tangible fixed assets
Group and Company
Fixtures and
fittings
Office
equipment
Total
£
£
£
Cost or valuation
At 1 April 2020
6,312
100,790
107,102
Additions
-
5,897
5,897
At 31 March 2021
6,312
106,687
112,999
Depreciation
At 1 April 2020
4,735
54,341
59,076
Charge for the year on owned assets
1,052
24,136
25,188
At 31 March 2021
5,787
78,477
84,264
Net book value
At 31 March 2021 525 28,210 28,735
At 31 March 2020 1,577 46,449 48,026
All of the Group's tangible fixed assets are held in the Parent company.
Page 25
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
11
.
Fixed asset investments
Group
Loans
Other
investments
Total
£
£
£
Cost or valuation
At 1 April 2020
10,288,409
2,366,233
12,654,642
Additions
5,228
4,106,150
4,111,378
Disposals
(3,617,883)
-
(3,617,883)
At 31 March 2021
6,675,754
6,472,383
13,148,137
Impairment
At 1 April 2020
500,000
120,000
620,000
At 31 March 2021
500,000
120,000
620,000
Net book value
At 31 March 2021 6,175,754 6,352,383 12,528,137
At 31 March 2020 9,788,409 2,246,233 12,034,642
Page 26
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
11
.
Fixed asset investments (continued)
Company
Loans
Other
investments
Total
£
£
£
Cost or valuation
At 1 April 2020
10,288,409
-
10,288,409
Additions
5,228
3,609,752
3,614,980
Disposals
(3,617,883)
-
(3,617,883)
At 31 March 2021
6,675,754
3,609,752
10,285,506
Impairment
At 1 April 2020
500,000
-
500,000
At 31 March 2021
500,000
-
500,000
Net book value
At 31 March 2021 6,175,754 3,609,752 9,785,506
At 31 March 2020 9,788,409 - 9,788,409
12
.
Debtors
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£
Trade debtors
790,792
650,179
790,792
650,179
Amounts owed by group undertakings
-
-
2,742,631
2,246,233
Other debtors
358,236
358,480
328,178
330,061
Prepayments and accrued income
2,904,039
2,493,646
2,904,039
2,493,646
4,053,067 3,502,305 6,765,640 5,720,119
Page 27
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
13
.
Creditors: Amounts falling due within one year
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£
Trade creditors
41,743
164,149
41,743
164,149
Corporation tax
66,915
72,731
66,915
72,731
Other taxation and social security
64,355
62,866
64,355
62,866
Other creditors
23,061
20,472
23,061
20,472
Accruals and deferred income
855,879
356,432
850,629
352,821
1,051,953 676,650 1,046,703 673,039
14
.
Financial instruments
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£
Financial assets
Financial assets measured at fair value
through profit or loss 75,445,215 55,484,605 72,552,975 53,209,953
Financial liabilities
Other financial liabilities measured at fair
value through profit or loss (263,332) (272,844) (258,082) (269,234)
Financial assets measured at amortised cost comprise equity investments, loans made, accrued
income, trade debtors, other debtors and cash at bank
Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.
Page 28
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
15
.
Reserves
Reserves represent amounts received and held for specific long term projects as follows:
Balance
brought
forward
Surplus /
(deficit) in
year
Balance
carried
forward
£
£
£
GROUP
Retained earnings
771,317
443,359
1,214,676
Growing Places Capital Infrastructure
22,777,324
494,281
23,271,605
Growth Deal
18,435,160
4,639,445
23,074,605
New Anglia Capital Fund
2,684,004
-
2,684,004
Growing Business Fund
2,652,117
(23,401)
2,628,716
Programmes Administration
2,405,381
444,746
2,850,126
Growing Places Other Capital Allocation
2,073,481
(82,025)
1,991,456
Enterprise Zone
1,469,302
594,495
2,063,797
Innovative Projects Fund
1,377,583
143,883
1,521,467
Projects Revenue Allocation
235,663
-
235,663
Capital Funds
24,808
-
24,808
Redundancy Reserve
12,309
-
12,309
Local Transport Body Reserves
(5,873)
-
(5,873)
Getting Building Fund
-
12,116,769
12,116,769
Business Resilience & Recovery Scheme
-
737,869
737,869
Defined Benefit Pension
(160,000)
(327,000)
(487,000)
54,752,576
19,182,421
73,934,997
Page 29
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
15
.
Reserves (continued)
Balance
brought
forward
Surplus /
(deficit) in
year
Balance
carried
forward
£
£
£
COMPANY
Retained earnings
771,317
443,359
1,214,676
Growing Places Capital Infrastructure
22,777,324
494,281
23,271,605
Growth Deal
18,435,160
4,639,445
23,074,605
New Anglia Capital Fund
2,684,004
-
2,684,004
Growing Business Fund
2,652,117
(23,401)
2,628,716
Programmes Administration
2,405,381
444,746
2,850,126
Growing Places Other Capital Allocation
2,073,481
(82,025)
1,991,456
Enterprise Zone
1,469,302
594,495
2,063,797
Innovative Projects Fund
1,377,583
143,883
1,521,467
Projects Revenue Allocation
235,663
-
235,663
Redundancy Reserve
12,309
-
12,309
Local Transport Body Reserves
(5,873)
-
(5,873)
Getting Building Fund
-
12,116,769
12,116,769
Business Resilience & Recovery Scheme
-
737,869
737,869
Defined Benefit Pension
(160,000)
(327,000)
(487,000)
54,727,768
19,182,421
73,910,189
Page 30
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
15
.
Reserves (continued)
The movement on Other Reserves is an overall surplus, this reflects grant income received in excess of
the grants distributed from grant reserves during the year.
The Growing Places Capital Infrastructure reserve and Growing Places Other Capital Allocation reserve
represent funding from HM Government for the purposes of providing financial support for Infrastructure
projects and other projects demonstrating significant regional or local economic benefit.
Projects Revenue Allocation is funding from the Growing Places fund set aside to fund a range of
economic development projects.
Growth Deal reserve is part of the LEP’s agreed Growth Deal programme from government and is
committed to specific projects. This funding will be advanced to those projects during the next financial
year. In addition, this includes £1.5m which supports the associated costs of running this programme.
New Anglia Capital Fund has been established by New Anglia LEP with repaid funding from its Growing
Places Fund. These funds are managed by its subsidiary company, New Anglia Capital and are co-
invested with private investors to support start-ups with innovative ideas in high growth companies.
The Growing Business Fund is a mechanism for providing financial support to businesses in Norfolk and
Suffolk. Spending decisions for the fund rest with a panel independent to the LEP. The reserve funding
has been allocated and will be used during the next financial year.
Programme Administration is part of the funding within Growing Places and Growth Deal to run the
programmes.
The Enterprise Zones consist of 16 identified sites and working with nine local authority partners
encourage businesses and inward investment to locate on the Enterprise Sites, encouraging innovation
and higher skilled jobs, target support to help small businesses to grow.
The Innovative Projects Fund is a revenue based fund and is generated from the LEP’s Enterprise Zones.
The fund will prioritise projects which accelerate the LEP's growth of ambition, themes, sectors and key
growth locations in the Economic Strategy.
The Redundancy Reserve relates to monies received from sponsoring authorities on the transfer of the
company's employees under Transfer of Undertakings Protection Employment regulations to fund any
potential future redundancy expenditure in respect of those employees.
Local Transport Body Income is funding allocated by HM Government to support the Norfolk and Suffolk
Local Transport Body.
The Getting Building Fund reserve represents funding from HM Government in respect of a portfolio of
projects in key sectors including tourism, food production, health and social care and energy. These
projects aim to deliver before 31 March 2022.
The Business Resilience and Recovery Scheme has been established by New Anglia LEP to provide
funding to support businesses in the New Anglia region in their longer term recovery from the coronavirus
pandemic.
The Defined Benefit Pension reserve represents the Group's net liability position in relation to its defined
benefit pension scheme as at the year end (see note 16).
Page 31
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
16
.
Pension commitments
The Group operates a Defined Contribution Pension scheme. The assets of the scheme are held
separately from the Group in an independently administered fund. The pension cost charge represents
contributions payable by the Group to the fund and amounted to £122,606 (2020: £133,331). Contributions
totalling £23,037 (2020: £20,449) were payable to the fund at the balance sheet date.
The
Group
operates a
Defined Benefit Pension Scheme
.
A full actuarial valuation of the defined benefit scheme was carried out at 31 March 2021 by a qualified
independent actuary. Contributions to the scheme are made by the group based on the advice of the
actuary, with the aim of making good the deficit over the remaining working life of the employees.
Contributions to the scheme are made by the Group based on the advice from the actuary with the aim of
making good the deficit over the remaining life.
Reconciliation of present value of plan liabilities:
2021
2020
£
£
Reconciliation of present value of plan liabilities
At the beginning of the year
160,000
173,000
Current service cost
48,000
55,000
Interest income
(21,000)
(23,000)
Interest cost
25,000
28,000
Actuarial gains/losses
275,000
(88,000)
Past service cost
-
15,000
At the end of the year
487,000 160,000
2021
2020
£
£
Present value of plan liabilities
(487,000)
(160,000)
Net pension scheme liability (487,000) (160,000)
Page 32
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
16
.
Pension commitments (continued)
The amounts recognised in profit or loss are as follows:
2021
2020
£
£
Current service cost
(48,000)
(55,000)
Interest on obligation
(25,000)
(28,000)
Interest income on plan assets
21,000
23,000
Past service cost
-
(15,000)
Total (52,000) (75,000)
Reconciliation of fair value of plan liabilities were as follows:
2021
2020
£
£
Opening defined benefit obligation
1,046,000
1,084,000
Current service cost
46,000
55,000
Opening difference on plan liabilities
-
3,000
Contributions by scheme participants
14,000
14,000
Actuarial gains and (losses)
471,000
(146,000)
Past service costs
-
8,000
Interest cost
25,000
28,000
Closing defined benefit obligation 1,602,000 1,046,000
Reconciliation of fair value of plan assets were as follows:
2021
2020
£
£
Opening fair value of scheme assets
886,000
911,000
Opening difference on plan assets
(2,000)
(4,000)
Interest income on plan assets
21,000
23,000
Actuarial gains and (losses)
180,000
(58,000)
Contributions by employer
16,000
14,000
Contributions by scheme participants
14,000
-
1,115,000 886,000
The cumulative amount of actuarial gains and losses recognised in the
Consolidated Statement of
Comprehensive Income
was
£
275,000
(2020 - £
88,000
)
.
Page 33
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
16
.
Pension commitments (continued)
The
Group
expects to contribute
£
NIL
to its
Defined Benefit Pension Scheme
in
2022
.
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
2021
2020
%
%
Discount rate
2.05
2.3
Future salary increases
3.5
2.5
Future pension increases
2.8
1.8
Mortality rates
- for a male aged 65 now
21.9
21.7
- at 65 for a male aged 45 now
23.2
22.8
- for a female aged 65 now
24.3
23.9
- at 65 for a female member aged 45 now
26.2 25.5
Major categories of plan assets as a percentage of total plan assets
2021
2020
Equity
50%
48%
Bonds
35%
36%
Property
12%
14%
Cash
3%
2%
Page 34
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
17
.
Commitments under operating leases
At
31 March 2021
the
Group and the Company
had future minimum lease payments due under non-
cancellable operating leases for each of the following periods:
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£
Not later than 1 year
23,425
38,976
23,425
38,976
Later than 1 year and not later than 5 years
-
16,666
-
16,666
23,425 55,642 23,425 55,642
18
.
Company status
The company is a private company limited by guarantee and consequently does not have share capital.
Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the
company in the event of liquidation.
19
.
Related party transactions
During the year, the company incurred rental costs from Ardencrest Limited, a company which is a wholly
owned subsidiary of East of England Co-Operative Society. Mr D Field (director and chair of NALEP to 23
September 2020) is the joint Chief Executive Officer of East of England Co-Operative Society Limited.
The total amount of costs incurred were £3,181 (2020: £17,883). At the year end NALEP owed
Ardencrest Limited £5,302 (2020: £nil) included in accruals.
Page 35