united kingdom accreditation service annual report and … annual... · 2020. 11. 4. ·...

Annual Report and Financial Statementsfor the year ended 31 March 2015

United Kingdom Accreditation Service

2 UKAS – A company limited by guarantee

United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Company Information

Company information

Directors

Registered Number

Registered Office

Independent Auditors

Lord Lindsay, Chairman

Paul Stennett, Chief Executive

Sir Duncan Nichol, Non-Executive Director

Sir Paul Judge, Non-Executive Director

Dame Suzi Leather, Non-Executive Director

Professor Michael Mainelli, Non-Executive Director

Georgia Alsop, Finance Director

Jeffrey Ruddle, Operations Director*

Lorraine Turner, Business Development Director*

*appointed 8 October 2014

03076190

Accreditation House 21-47 High Street FelthamMiddlesex TW13 4UN

Feltons1 The Green Richmond SurreyTW9 1PL

3UKAS – A company limited by guarantee

United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Contents

Contents

Page

UKAS Group Performance at a glance 4

Overview of our strategy for 2015-16 and beyond 5

Chairman’s Report 6

Chief Executive’s Report 7

Finance Director’s Review 10

Group strategic report 11

Directors' report 12

Independent auditors' report 13

Consolidated statement of comprehensive income 14

Consolidated balance sheet 15

Company balance sheet 16

Consolidated statement of changes in equity 17

Company statement of changes in equity 19

Consolidated Statement of cash flows 21

Notes to the financial statements 22


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | UKAS Group Performance at a glance

UKAS Group Performance at a glance

Financial highlights:

Financial summary for 2014/15

(£m) (£m)2014/15 2013/14

Turnover 26.0 23.4

Cost of Sales 15.6 15.2

Gross Profit 10.4 8.3

Administrative expenses 8.3 7.5

Operating Profit 2.1 0.7

Profit after taxation 1.5 0.4

Business highlights:

� Awarded accreditation in new areas including Asset Management certification, social care homeinspection, the Forensic Science Regulators Code, Nuclear inspection, and the MCERTS scheme expanded to include radio-analytical testing of environmental and waste waters.

� Granted the first ISO 15189 accreditations as part of the transition of medical laboratories from CPA to UKAS.

� Launched a pilot for the development of more affordable accreditation for small businesses.

� UKAS accreditation for Medical laboratories, ISAS and IQIPS recognised by CQC as a source of information to support hospital inspections.

� Awarded the first IQIPS accreditations in gastro-intestinal physiology and vascular disciplines.

� Defined the UKAS transition process for accreditation of certification to ISO 9001:2015.

� Joint policy agreement on UKAS Healthcare accreditation signed between the Department of Health and BIS.

22,104Assessment days delivered

3,061Number of UKAS accreditations held

3,233Total number of UKASaccredited customers

992Number of extensions to scope

granted this year

40Number of leads and enquiries

for developing new accreditation schemes

429Number of

new customers

5,947Number of subscribers to UKAS

online newsletters

22,884Number of times that video

promotional material has beenviewed in last 12 months

20Number of new accreditation benefits case studies generated

in the last 12 months

137Number of articles and releasespublished in the trade press

226,146Numbers of promotional

brochures downloaded fromukas.com

89%Average level of customer

satisfaction.Up from 85% in 2012/13


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Overview of our strategy for 2015-16 and beyond

Overview of our strategy for 2015-16 and beyond

By 2018 we aim to develop into an even more flexible organisation with the capability to meet the evergrowing demand for accreditation and to exceed the expectations of our customers and stakeholders bydelivering accreditation services to the highest quality and technical standards.

Our key strategic actions, many of which are already under way, include:

� Be recognised as an employer of choice� Resource appropriately to provide a sound foundation for existing and future growth

� Embrace a culture of innovation that drives service improvements and operational efficiency

People Develop, recruit and retain staff toallow UKAS to deliver worldclass, highquality accreditation services

� Focus on ‘Right First Time’ to deliver greateroperational efficiency and value for money

� Adopt technology to optimise our open and collaborative working relationships with customers and stakeholders

� Extend the reach and effectiveness of our stakeholder engagement programme

� Deliver best in class customer service supported by innovative accreditation products

Customers and stakeholders

To become more open, transparentand collaborative with our customers& stakeholders.

� Implement a technology savvy strategy to support continual improvements in service and productivity, including implementing a customer portal

� Implement flexible assessment tools including the use of technology to supportfewer on-site assessments

Core Business Develop new and improved assessment tools and facilities to deliver world class, high quality accreditation services.

� Full transition of all CPA customers to UKAS accreditation to ISO 15189 by 2018

� Continue to promote the value of accreditation especially for SMEs

� Implement new accreditation products focused on small businesses

� Develop our growth strategy for new sectors and design marketing campaigns to support this

Business Development

To grow the business through increasing our existing market penetration and improving the accessibility of accreditation for newmarkets.


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 |

UKAS has achieved another encouraging performance over the last year. There hasbeen a continued increase in the number of organisations coming forward to be accredited for the first time alongside existing customers seeking to extend the scopeof their current accreditation. The volume of business has therefore grown across awide range of sectors. A more detailed summary is set out in the accompanyingChief Executive’s Report and the Financial Review.

As ever, an important driver of new accreditation business remains the increasingrecognition by Government and the Public Sector as a whole of the role that accreditation can play in the effective delivery of policy, regulatory and public interestobjectives. Discussions have continued with a wide range of departments and agencies and a number of projects for the introduction of accreditation in support of Government policy have been progressed in areas such as cyber security, data privacy and identity protection. Briefing on future opportunities for accreditationwas provided to the policy teams of each of the major political parties in the lead upto the General Election to ensure that we were well-placed to support the new Government regardless of the result.

Development projects exploring possible new areas of accreditation remain numerousand diverse, ranging from road traffic safety management and nuclear new build torail regulation, biomethane, the Woodland Carbon Code, clinical service certification,medical physics and medical forensics. These last projects illustrate UKAS’s increasingrole in the healthcare arena and I am delighted that this year saw the first UKAS accreditation of a care home inspection scheme.

I should pay tribute to all UKAS staff. It is because of their skills and commitmentthat UKAS has been able to increase existing business whilst at the same time developing and delivering new areas of accreditation. The leadership provided byPaul Stennett and the senior management team deserves especial mention, as doesthe valuable input and advice that we gain throughout the year from the Policy Advisory Forum and Council, and our various technical committees. We also remain indebted to the key role played by officials in our sponsor department, the Department for Business, Innovation and Skills (BIS).

I believe that UKAS is well-positioned to address the opportunities and the inevitablechallenges that lie ahead.

Lord Jamie LindsayChairman

Chairman’s Report



The Business year from April 2014 to March 2015 was a year of continued deliveryand improvement for UKAS, with good progress being made against our annual business plan objectives and the five-year strategic plan launched in 2013.

UKAS recorded turnover of £26 million driven by growth across most business areaswith 22,104 days of assessment completed this year, a record for UKAS.

This growth in UKAS’ business was fuelled by much hard work by UKAS’ employees inall areas of the business and I am pleased to report that staff productivity measuresincreased once again this year.

During the business year some 25 new employees were recruited, the majority ofthem joining Operations in the role of Assessment Managers. A number of these recruitments were to replace retirements which occurred during the year.

Filling vacancies whether to replace retiring employees or to keep pace with businessgrowth continues to be a challenge and it was clear that competition for high calibrescientists, engineers and technologists has increased in the employment marketplace, making the recruitment task more difficult and time consuming.

Accordingly, UKAS has reviewed and revised its recruitment strategy to take accountof changes in the recruitment market place. Five years ago UKAS conducted most ofits recruitment campaigns through specialist trade publications, however today, mostof our advertising of vacancies is through on-line media, not least our own website“careers page” which is showing an increased volume of traffic. Although too early tomake definitive measurements, the new recruitment approach does seem to be having a positive effect and further enhancements are planned in the coming year.

The start of the business year saw the launch of a new pricing scheme aimed at simplifying the UKAS price tariff with the aim of reducing the number of invoices tocustomers. The new pricing structure (which was designed by taking account offeedback from our Policy Advisory Forum Members) has been positively received andhas enabled customers to have a better oversight and understanding of the costs of accreditation.

This year was another busy year for Ron Gainsford, the Chair of our Policy AdvisoryForum (PAF), whose support and guidance is greatly appreciated. Our various stakeholder groups, be they the Technical Advisory Committees, the Policy AdvisoryCommittee and Forum, and PAF Healthcare sub-group, Chaired by Professor AdrianNewland, all play a valuable role in offering guidance to UKAS. In this year’s PAF,hosted at the BIS offices in March 2015, PAF Members were able to use an interactivefeedback process using laptops stationed in the meeting. This “real-time” feedbackduring the course of the meeting permitted a much higher level of participation for

Chief Executive’s Report



all those attending, which in turn provided UKAS with more detailed comment andguidance on its future plans.

Of particular note at this particular PAF was a presentation by Professor Michael Mainellione of the UKAS non-executive Directors, who highlighted the need for and interestin the development of voluntary standards in the finance sector.

One of our key strategic goals is to improve customer service and in line with this Jeff Ruddle, UKAS Operations Director, used the PAF to launch the UKAS plan to restructure the way the business works operationally with the goal of reorganisingour sections around the requirements of our customers rather than the current system.

As at the end of this business year, UKAS has completed a consultation with its employees who will be affected by the restructuring change and detailed informationhas also been sent to all UKAS customers outlining how the new system will operatein their specific area. This major strategic change to the way UKAS operates will takeuntil the end of the coming business year to fully implement and will present one ofthe major challenges in 2015-16.

The business year saw the start of assessments to ISO 15189 in October 2013, thestandard which will be used to replace the CPA standard currently used by medicallaboratories. Implementing the new standard has required detailed training of ourAssessment Managers and our many Peer Assessors. It has also increased the rigourof the assessment and I hope, increased the value that medical laboratories feel theyreceive from a UKAS visit.

Above all, the assessment of medical laboratories to this new standard was a corepart of the recommendations made in NHS England report “Improving Quality inPathology” by Dr Ian Barnes, published in early 2014. I am pleased to report that thefirst medical laboratories were accredited to this standard in July 2014. We expectthat all CPA medical laboratories in the UK will be accredited to ISO 15189 by 2018.

Finally, 2014/15 was a busy year in our Development section. Continuing the trend ofrecent years, there has been a growing interest in healthcare accreditation with anew project scheme launched for the accreditation of inspections and reviews ofhealthcare pathways and for the certification of dental services. UKAS also grantedaccreditation to the first adult care home inspection body. In addition to developmentsin the healthcare sector, UKAS continues to work on a very diverse range of developmentactivities. Currently the team has 38 active projects and a further 40 live enquiries.Projects that have commenced in this last year included accreditation for the certification of asset management systems and the development of accreditationspecifically aimed at very small conformity assessment bodies which is currentlybeing piloted with fairground inspection bodies.

Chief Executive’s Report continued



Chief Executive’s Report continued

Outlook for 2015/16

Our projections indicate that the prospects for business growth are good and thanksto the hard work and commitment of all our employees, we are on track to makegood progress in all the key areas of our five year strategic plan.

As UKAS enters business year 2015/16, its 21st year of existence, we face four keyareas of challenge and uncertainty:

� Office Premises: We have a lease option to relocate to new premises which isunder investigation. Relocation of the office, if it does proceed, will require careful coordination to prevent it becoming a distraction to core business activities.

� Operations Restructure: the critical implementation phase will commence in 2015/16, with the major changes coming into force around September 2015.

� Standards Transitions: UKAS has to prepare and implement a series of transitions to new standards, amongst them ISO IEC 17020, ISO IEC 17065, ISO 9001, and ISO 14001. All of this work has to be completed against tight deadlines.

� General Election: New Governments and their policies can significantly impact the role of accreditation in areas such as “better regulation”. UKAS will aim to engage with the new Government after the General Election in order to maintain and build upon the high level of awareness already achieved with Departments and Regulators.

While we recognise that UKAS has much to do in 2015/16, our strong foundationsgive us confidence in our business prospects and ability to achieve our strategic objectives in the coming three years left of the current plan. Despite the four keyareas of challenge and uncertainty outlined above, I am confident that UKAS willmake good progress in all areas of our published business plan.

Paul Stennett MBEChief Executive



Financial Director’s Review

The UKAS Group achieved strong profitability during the year ending 31 March 2015while investing in the development of new areas of accreditation and the strengthening of its infrastructure. I am pleased to report that this year the Groupopted to become an early adopter of Financial Reporting Standard 102 and the comparative results have also been adjusted to reflect this.

Group turnover for the year ending 31 March 2015 increased to £26.0m comparedto £23.4m in the previous year. The year on year increase of 10.9% in turnover is attributed to an increase in accreditation days which grew to 22,104 from 20,811 inthe previous year and additional income from commercial training. Growth wasachieved in a number of areas but it was largely attributable to increased activity inthe area of forensics and certification.

Group profit after tax of £1,484k for the year ending 31 March 2015 was higher thanthe profit of £444k achieved in the previous year. The increase in profitability is partlyattributable to increased focus on cost management and increased productivity as aresult of process improvements.

Profit and loss reserves of £2.9m are positive, even after absorbing the negative£4.9m FRS102 adjustment relating to the Group’s long term pension obligation. TheGroup aims to hold three months turnover as a reserve (excluding pension accountingadjustments) and as at 31 March 2015 achieved its target of £6.5m.

The Group’s liquidity position as at 31 March 2015 remained strong, achieving ahealthy current asset ratio of 3.7, compared to 2.7 in the previous year.

Going forward, the company will continue to focus on improving productivity and oncost containment through efficiencies and this will require continued investment inits people and infrastructure. To that end, work is already underway to upgrade ourbusiness system and upgrade our premises. Our strong liquidity position is key to enabling us to realise our plans.

Georgia AlsopDirector of Finance


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Group Strategic Report

Group Strategic Reportfor the year ended 31 March 2015

IntroductionThe principal activity of the Group in the year under reviewwas that of being the sole national accreditation bodyrecognised by government to assess, against internationallyagreed standards, organisations that provide certification,testing, inspection and calibration services.

The Group is a non-profit-distributing private company, limited by guarantee. The Group is independent of Government but is appointed as a national accreditationbody by Accreditation Regulations 2009 (SI No 3155/2009)and the EU Regulation (EC) 765/2008 and operates under aMemorandum of Understanding with the Governmentthrough the Secretary of State for Business, Innovation andSkills (BIS). UKAS is licensed by BIS to use and confer the national accreditation symbols (formerly national accreditation marks) which symbolise Government recognition of the accreditation process.

Business ReviewThe results for the group are set out on page 6. These financial statements reflect the trading activities and resultsof both United Kingdom Accreditation Service (UKAS) andClinical Pathology Accreditation (UK) Limited (CPA).

The Group expects to continue to grow in most areas ofthe business, with work in forensic laboratories and thehealth sector, in areas such as physiological diagnostics,spearheading this growth. Our focus remains on ensuringthat we continue to create the capability to respond to theever increasing demand for accreditation schemes by awide range of sectors and to that end, we plan to continueto invest in the development of our infrastructure and people.

Principal risks and uncertaintiesThe Directors have applied judgements, based on expertadvice, in relation to assessing the position of the DefinedBenefit Pension Scheme. There are no other matters concerning financial risk which are material for the assessment of the assets, liabilities,financial position andprofit or loss of the company.

Financial key performance indicatorsThe integrated group has achieved an operating profit of£2,080,499 (2014: £816,659) and a group gross margin of42% (2014: 36%).

The financial performance this year was positive and thegroup continues to be profitable. In monetary termsturnover was up 10.9%. The group’s balance sheet continues to show a healthy current ratio of current assetsto short term creditors of 3.7 times (2014: 2.7 times).

Other key performance indicatorsThe group continues to report internally on a series of KeyPerformance Indicators such as the number of days of assessment delivered, the number of customers visited andthe efficiency and effectiveness of the service. In additionto this, the company constantly surveys its customer baseto ensure that the quality of service is maintained at thehighest levels. The year to March 2015, the company delivered 22,104 (2014:20,811) days of accreditation including CPA. The directors attribute this continued growthto the effects the company’s ongoing campaign to raisethe awareness of the benefits of accreditation within government and amongst consumers.

This report was approved by the board on

and signed on its behalf



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Directors’ Report

Directors’ Reportfor the year ended 31 March 2015

The directors are responsible for preparing the Groupstrategic report, the Directors' report and the financialstatements in accordance with applicable law and regulations.

Company law requires the directors to prepare financialstatements for each financial year. Under that law the directors have elected to prepare the financial statementsin accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicablein the UK and Republic of Ireland'. Under company law thedirectors must not approve the financial statements unlessthey are satisfied that they give a true and fair view of thestate of affairs of the company and the group and of theprofit or loss of the group for that period. In preparingthese financial statements, the directors are required to:� select suitable accounting policies and then apply them

consistently;� make judgments and accounting estimates that are

reasonable and prudent;� 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 explainthe company's transactions and disclose with reasonableaccuracy at any time the financial position of the companyand the group and enable them to ensure that the financialstatements comply with the Companies Act 2006. They arealso responsible for safeguarding the assets of the companyand the group and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

Results and dividends proposedThe profit for the year, after taxation, amounted to£1,484,460 (2014 – £444,517).

As the company is non-profit distributing, the Directors' donot propose a dividend (2014: Nil).

DirectorsThe directors who served during the year were:Lord Lindsay, ChairmanPaul Stennett, Chief ExecutiveSir Duncan Nichol, Non-Executive DirectorSir Paul Judge, Non-Executive DirectorDame Suzi Leather, Non-Executive DirectorProfessor Michael Mainelli, Non-Executive DirectorGeorgia Alsop, Finance DirectorJeffrey Ruddle, Operations Director*Lorraine Turner, Business Development Director**appointed 8 October 2014

Future developmentsDuring the coming year we will continue to progress thetransition of Clinical Pathology Accreditation customers toUKAS accreditation, under ISO15189, the international standard for medical laboratories. To that end, we are putting significant effort in expanding and training our assessor resource. A key strategic priority will be the reorganisation of our Operations teams with a view to improving our capability to meet the needs of all our customers.

Other strategic activities this year include a continuingfocus on internal business process Improvement, a plannedupgrade of our business system and pilot studies to assessthe feasibility of the development of affordable accreditation for small businesses.

Disclosure of information to AuditorsEach of the persons who are directors at the time when thisDirectors' report is approved has confirmed that:� so far as the directors are aware, there is no relevant

audit information of which the company and the group's auditors are unaware, and

� the directors have taken all the necessary steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware ofthat information.

AuditorsUnder section 487(2) of the Companies Act 2006, Feltonswill be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on

and signed on its behalf



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Independent Auditors’ Report

Independent Auditors’ Reportto the members of United Kingdom Accreditation service

We have audited the financial statements of United KingdomAccreditation Service for the year ended 31 March 2015, setout on page 40. The financial reporting framework that hasbeen applied in their preparation is applicable law andUnited Kingdom Accounting Standards (United KingdomGenerally Accepted Accounting Practice), including FinancialReporting Standard 102 ‘The Financial Reporting Standardapplicable in the UK and Republic of Ireland'.

This report is made solely to the company's members, as abody, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertakenso that we might state to the company's members thosematters 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 responsibilityto anyone other than the company and the company'smembers as a body, for our audit work, for this report, orfor the opinions we have formed.

Respective responsibilities of Directors and AuditorsAs explained more fully in the Directors' responsibilitiesstatement, the directors are responsible for the preparationof the financial statements and for being satisfied that theygive a true and fair view. Our responsibility is to audit andexpress an opinion on the financial statements in accordancewith applicable law and International Standards on Auditing(UK and Ireland). Those standards require us to comply withthe Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amountsand disclosures in the financial statements sufficient to givereasonable assurance that the financial statements are freefrom material misstatement, whether caused by fraud or error.This includes an assessment of: whether the accountingpolicies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness ofsignificant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, theknowledge acquired by us in the course of performing theaudit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements� give a true and fair view of the state of the group's and

the parent company's affairs as at 31 March 2015 and ofthe group's profit for the year then ended;

� have been properly prepared in accordance with UnitedKingdom Generally Accepted Accounting Practice; andhave been prepared in accordance with the requirementsof the Companies Act 2006.

Opinion on other matters prescribed by theCompanies Act 2006In our opinion the information given in the Annual reportfor the financial year for which the financial statements areprepared is consistent with the financial statements.

Matters on which we are required to reportby exceptionWe have nothing to report in respect of the following mat-ters where the Companies Act 2006 requires us to report toyou 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.

Dave Alesbury (Senior statutory auditor)

for and on behalf ofFeltons

1 The Green Richmond SurreyTW9 1PLDate:


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Incomefor the year ended 31 March 2015

Note

Turnover 3

Cost of sales

Gross profit

Administrative expenses

Operating profit

Interest receivable and similar income

Other finance costs

Profit on ordinary activities before taxation

Taxation on profit on ordinary activities

Profit for the financial year

Other comprehensive income for the year

Actuarial gains on defined benefit pension scheme

Movement of deferred tax relating to pension deficit

Other comprehensive income for the year

Total comprehensive income for the year

Profit for the year attributable to:

Owners of the parent company

Total comprehensive income attributable to:

Owners of the parent company

2015

£

26,000,542

(15,610,524)

10,390,018

(8,309,519)

2,080,499

1,219

(128,000)

1,953,718

(469,258)

1,484,460

(2,219,000)

403,350

(1,815,650)

(331,190)

1,484,460

1,484,460

(331,190)

(331,190)

As restated

2014

£

23,453,166

(15,167,995)

8,285,171

(7,468,512)

816,659

35,772

(187,000)

665,431

(220,914)

444,517

1,510,000

(202,750)

1,307,250

1,751,767

444,517

444,517

1,751,767

1,751,767

The notes on pages 21 to 37 form part of these financial statements.


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Consolidated Balance Sheet

Consolidated Balance Sheetas at 31 March 2015

Note

Fixed assets

Intangible assets 11

Tangible assets 13

Current assets

Debtors: Amounts falling due within one year

Cash at bank and in hand

Creditors: Amounts falling due within one year 17

Net current assets

Provisions for liabilities 18

Net assets excluding pension liability

Pension liability

Net assets

Capital and reserves

Other reserve

Profit and loss account

Equity attributable to owners of the parent company

The financial statements were approved and authorised for issue by the

board and were signed on its behalf on

Lord Lindsay Paul Stennett MBE

Chairman Chief Executive

2015

£

–

229,224

229,224

7,936,548

(320,000)

7,845,772

(4,909,000)

2,936,772

–

2,936,772

2,936,772

2,936,772

5,518,293

7,033,107

12,551,400

(4,614,852)

As restated

2014

£

369,934

290,514

660,448

5,809,389

(69,875)

6,399,962

(3,132,000)

3,267,962

300,406

2,967,556

3,267,962

3,267,962

5,312,814

3,782,066

9,094,880

(3,285,491)




United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 |United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Company Balance Sheet

Company Balance Sheetas at 31 March 2015

Note

Fixed assets

Tangible assets 13

Investments

Current assets

Debtors: Amounts falling due within one year


Creditors: Amounts falling due within one year 17

Net current assets

Provisions for liabilities 18

Defined benefit pension scheme liability

Net assets


Other reserves


The financial statements were approved and authorised for issue by the

board and were signed on its behalf on

Lord Lindsay Paul Stennett MBE

Chairman Chief Executive

2015

£

229,224

715,098

944,322

3,816,381

(320,000)

(4,909,000)

(468,297)

–

(468,297)

(468,297)

5,195,104

5,133,622

10,328,726

(6,512,345)

As restated

2014

£

290,514

715,098

1,005,612

2,337,891

(69,875)

(3,132,000)

141,628

300,406

(158,778)

141,628

5,732,237

2,646,635

8,378,872

(6,040,981)


United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Consolidated Statement of Changes in Equity

Consolidated Statement of Changes in Equityas at 31 March 2015

At 1 April 2014 (as previously stated)

Prior year adjustment

At 1 April 2014 (as restated)

Profit for the year

Actuarial losses on pension scheme

Transfer to/from profit and loss account

At 31 March 2015

Retainedearnings

£

3,171,598

(204,042)

2,967,556

1,484,460

4,452,016

(1,815,650)

2,636,366

300,406

2,936,772

Other reserve

£

300,406

–

300,406

–

300,406

–

300,406

(300,406)

–

Total equity

£

3,472,004

(204,042)

3,267,962

1,484,460

4,752,422

(1,815,650)

2,936,772

–

2,936,772

Equity attributableto ownersof parentcompany

£

3,472,004

(204,042)

3,267,962

1,484,460

4,752,422

(1,815,650)

2,936,772

–

2,936,772



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Consolidated Statement of Changes in Equity

Consolidated Statement of Changes in Equityas at 31 March 2014




Profit for the year

Actuarial gains on pension scheme

At 31 March 2014

Retainedearnings

£

1,315,789

(100,000)

1,215,789

444,517

1,660,306

1,307,250

2,967,556

Other reserve

£

300,406

–

300,406

–

300,406

–

300,406

Total equity

£

1,616,195

(100,000)

1,516,195

444,517

1,960,712

1,307,250

3,267,962

Equity attributableto ownersof parentcompany

£

1,616,195

(100,000)

1,516,195

444,517

1,960,712

1,307,250

3,267,962



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Company Statement of Changes in Equity

Company Statement of Changes in Equityas at 31 March 2015



At 1 April 2014

Profit for the year

Actuarial losses on pension scheme

Transfer to/from profit and loss account

At 31 March 2015

.

Other reserve

£

300,406

–

300,406

–

300,406

–

300,406

(300,406)

–

Total equity

£

282,087

(140,459)

141,628

1,205,725

1,347,353

(1,815,650)

(468,297)

–

(468,297)

Retainedearnings

£

(18,319)

(140,459)

(158,778)

1,205,725

1,046,947

(1,815,650)

768,703

300,406

(468,297)



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Company Statement of Changes in Equity

Company Statement of Changes in Equityas at 31 March 2014




Loss for the year

At 31 March 2014

Actuarial gains on pension scheme

At 31 March 2014

Other reserve

£

300,406

–

300,406

–

300,406

–

300,406

Total equity

£

(573,717)

(100,000)

673,717

(491,905)

(1,165,622)

1,307,250

141,628

Retainedearnings

£

(874,123)

(100,000)

(974,123)

(491,905)

(1,466,028)

1,307,250

(158,778)



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flowsfor the year ended 31 March 2015

Cash flows from operating activities

Profit for the financial year

Adjustments for:

Amortisation of intangibles

Depreciation of tangibles

Impairments of fixed assets

Loss on disposal of tangibles

Increase in debtors

Increase in creditors

Increase in provisions

Increase in net pension assets/liabs

Corporation tax

Net cash generated from operating activities

Cash flows from investing activities

Purchase of tangible fixed assets

Sale of tangible fixed assets

Net cash from investing activities

Cash flows from financing activities

Interest received

Interest paid

Net cash used in financing activities

Cash and cash equivalents at beginning of year

Cash and cash equivalents at the end of year


Bank overdrafts

2015

£

2,080,499

92,484

167,839

277,450

–

105,054

1,013,615

250,125

(570,000)

(73,884)

3,343,182

(101,789)

(4,759)

(106,548)

1,219

–

1,219

3,782,066

7,019,919

7,033,107

(13,188)

7,019,919

As restated

2014

£

753,076

92,484

409,265

–

37,371

73,613

882,306

–

(225,000)

(446,876)

1,576,239

(286,512)

(29,793)

(316,305)

35,772

–

35,772

2,486,360

3,782,066

3,782,066

–

3,782,066



United Kingdom Accreditation Service | Annual Report and Financial Statements 2015 | Notes to the Financial Statements

1. ACCOUNTING POLICIES

1.1 Basis of preparation of Financial StatementsThe financial statements have been prepared under the historical costs convention and in accordance with FRS 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland.

FRS 102 is mandatory for accounting periods beginning on or after 1 January 2015, but may be applied early to periods ending on or after 31 December 2012. United Kingdom Accreditation Service has taken the option to apply the standard early in the preparation of these financial statements.

Information of the impact first-time adoption of FRS 102 is given in note 25.

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 judgement in applying the company's accounting policies (see note 2).

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:� Only one reconciliation of the number of shares outstanding at the beginning and end of the year has been presented as

the reconciliations for the group and the parent company would be identical;� No Statement of cash flows has been presented for the parent company;� Disclosures in respect of the parent company's financial instruments have not been presented as equivalent disclosures

have been provided in respect of the group as a whole; and� No disclosures have been given for the aggregate remuneration of the key management personnel of the parent

company as their remuneration is included in the totals for the group as a whole.

The following principal accounting policies have been applied:

1.2 Basis of consolidationThe consolidated financial statements present the results of group and its own subsidiaries ("the group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

1.3 Going concernThe financial statements are prepared on a going concern basis.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result, they continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 RevenueRevenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue canbe reliably measured. Revenue is measured as the fair value of the consideration received, excluding discounts, rebates, valueadded tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of servicesRevenue from a contract to provide services is recognised in the period in which the services are provided in accordance withthe stage of completion of the contract when all of the following conditions are satisfied:� the amount of revenue can be measured reliably;� it is probable that the group will receive the consideration due under the contract;� the stage of completion of the contract at the end of the reporting period can be measured reliably, and;� the costs incurred and the costs to complete the contract can be measured reliably.

Notes to the Financial Statementsfor the year ended 31 March 2015



1.5 Intangible assets

GoodwillThe Directors consider that the goodwill arising from the purchase of the Clinical Pathology Accreditation (UK) Ltd ("CPA") is impaired as a result of the expected transition of CPA customers to UKAS, following their adoption of the InternationalStandard for Medical Laboratories.

The estimated useful lives range as follows:

Goodwill – 5 years from April 2013.The goodwill was subsequently considered to be impaired as explained in note 11.

1.6 Tangible fixed assetsTangible fixed assets are stated at historical cost less accumulated depreciation and any 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.

The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost isincurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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. The estimated useful lives range as follows:

Depreciation is provided on the following bases:

Long-term leasehold property – 10% on cost Plant and machinery – 25% straight lineMotor vehicles – 33% on costsFixtures and fittings – between 10% and 20% on cost Computer software & equipment – 33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or ifthere 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 within 'other operating income' in the statement of comprehensive income.

1.7 Operating leases: LesseeRentals paid under operating leases are charged to the profit or loss on a straight line basis over the period of the lease.

1.8 Impairment of fixed assets and goodwillAssets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is anyindication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of theasset (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 reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

1.9 Valuation of investmentsInvestments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.



Investments in unlisted company shares, which have been classified as fixed asset investments as the group intends to hold them on a continuing basis are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Investments in listed company shares, which have been classified as current asset investments, are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

1.10 DebtorsShort term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

1.11 Cash and cash equivalentsCash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months or less from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

1.12 Financial statementsThe group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out- right short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted ata market rate of interest for a similar debt instrument.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:

i) At fair value with changes recognised in the Profit and loss account if the shares are publicly traded or their fair value can otherwise be measured reliably;

ii) At cost less impairment for all other investments.

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 Profit and loss account.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interestrate determined under the contract.

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, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting 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.



1.13 CreditorsShort 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 cost effective method.

1.14 Finance costsFinance costs are charged to the Profit and loss account over the term of the debt using the effective interest rate method sothat the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.15 Pensions

Defined contribution pension planThe Company's subsidiary operates a Defined contribution plan for external assessors who are paid through the payroll and for, in 2014 for the employees of the Clinical Pathology Accreditation (UK) Ltd, its wholly owned subsidiary.

Defined benefit pension planThe company operates a defined benefit plan for certain employees and from 2014 this includes the Clinical Pathology Accreditation (UK) Ltd employees who are now employed directly by UKAS. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including 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 reporting date less the fair value of plan assets at the reporting date.

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 company'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; andb) 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'.

1.16 Holiday pay accrualA liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance sheet date.

1.17 Interest incomeInterest income is recognised in the Profit and loss account using the effective interest method.

1.18 ProvisionsProvisions 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 Profit and loss account in the year that the authority 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.

1.19 Current and deferred taxationThe tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company and the group operate and generate income.

Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:� The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the

reversal of deferred tax liabilities or other future taxable profits;� Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met;

and� Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and

the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

1.20 Amount recoverable under contractsAmounts recoverable under contracts relates to contracted services performed but not invoiced at the balance sheet date. As the services are complete at the balance sheet date amounts recoverable under contracts is stated at the recoverable amount invoiced post year end.

2. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The directors have applied judgements in assessing the recoverability of trade debtors and the Defined Benefit Pension Scheme obligations and to the best of their knowledge and belief, the accounts reflect a true and fair picture of the amounts of debtors that are recoverable and the Defined Benefit Scheme obligations.

3. ANALYSIS OF TURNOVER

Analysis of turnover by country of destination:

United Kingdom

Rest of Europe

Rest of the world

2015

£

23,131,470

205,238

2,663,834

26,000,542

2014

£

20,822,857

476,435

2,153,874

23,453,166



4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Depreciation of tangible fixed assets

Amortisation of intangible assets, including goodwill

Impairment of intangible assets

Fees payable to the company's auditor and its associates for the audit of the company's

annual accounts

Defined contribution pension cost

Defined benefit pension cost

5. AUDITORS' REMUNERATION

Fees payable to the group’s auditor and its associates for the audit of the company’s

annual accounts

6. EMPLOYEES

Staff costs, including directors' remuneration, were as follows:

Wages and salaries

Social security costs

Cost of defined benefit scheme

Cost of defined contribution scheme

The average monthly number of employees, including the directors, during the year was as follows:

Office management staff

Technical staff

2015

£

167,839

92,484

277,450

13,000

–

876,038

2015

£

13,000

2015

£

9,788,131

918,843

876,038

–

11,583,012

2015

No.

81

135

216

2014

£

409,265

92,484

–

20,000

12,764

892,784

2014

£

20,000

2014

£

9,044,023

975,927

892,784

12,764

10,925,498

2014

No.

78

128

206



7. DIRECTORS' REMUNERATION

Directors' emoluments

During the year retirement benefits were accruing to 4 directors (2014 – 2) in respect of defined benefit pension schemes.

The highest paid director received remuneration of £195,117 (2014 – £190,905).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2014 – £NIL).

The value of the company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £26,239 (2014 – £25,599).

The total accrued pension provision of the highest paid director at 31 March 2015 amounted to £24,610 (2014 – £22,268).

The amount of the accrued lump sum in respect of the highest paid director at 31 March 2015 amounted to £NIL (2014 – £NIL).

2015

£

605,876

2015

£

1,219

1,219

2015

£

128,000

2015

£

376,438

–

376,438

92,820

92,820

469,258

2014

£

431,863

2014

£

35,772

35,772

2014

£

187,000

2014

£

196,092

(8,068)

188,024

32,890

32,890

220,914

8. INTEREST RECEIVABLE

Other interest receivable

9. OTHER FINANCE COSTS

Net interest on net defined benefit liability

10. TAXATION

UK corporation tax

Current tax on profits for the year

Adjustments in respect of previous periods

Foreign tax

Total current tax

Deferred tax

Origination and reversal of timing differences

Total deferred tax

Taxation on profit on ordinary activities



10. TAXATION continued

Factors affecting tax charge for the yearThe tax assessed for the year is lower than (2014 – higher than) the standard rate of corporation tax in the UK of 21% (2014 – 23%).The differences are explained below:

Profit on ordinary activities before tax

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK

of 21% (2014 – 23%)

Effects of:

Non-tax deductible amortisation of goodwill and impairment

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment

Capital allowances for year in excess of depreciation

Adjustments to tax charge in respect of prior periods

Other timing differences leading to an increase (decrease) in taxation

Changes in provisions leading to an increase (decrease) in the tax charge

FRS102 pension scheme adjustments

Current tax charge for the year

11. INTANGIBLE ASSETS

Group

Cost

At 1 April 2014

At 31 March 2015

Amortisation

At 1 April 2014

Charge for the year

Impairment charge

At 31 March 2015

Net book value

At 31 March 2015

At 31 March 2014

2015

£

1,953,718

410,281

78,150

(267)

11,984

–

(1,394)

–

(122,316)

376,438

2014

£

665,431

153,049

–

15,997

13,221

(8,067)

(1,366)

23,930

(8,740)

188,024

Goodwill

£

578,022

578,022

208,088

92,484

277,450

(578,022)

–

369,934

The customers of the subsidiary, Clinical Pathology Accreditation (UK) Ltd company are in the process of transitioning to ISO15189,the international standard for medical laboratories. The transition process is expected to be completed by the end of the financialyear 2018 and customers are applying to become accredited by the United Kingdom Accreditation Service Ltd (the parent) (UKAS).Accordingly, the goodwill with a net book value of £277,450 relating to Clinical Pathology Accreditation (UK) Ltd was considered tobe impaired at the year end and has been fully written off.



12. PARENT COMPANY PROFIT FOR THE YEAR

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. The profit after tax of the parent company for the year was £1,205,726 (2014 – loss £491,905).

13. TANGIBLE FIXED ASSETS

Long-termleaseholdproperty

£

252,130

–

–

252,130

247,648

2,013

–

249,661

2,469

4,482

Motor vehicles

£

33,185

–

–

33,185

9,216

10,385

–

19,601

13,584

23,969

Fixturesand

fittings

£

451,885

38,110

(44,495)

445,500

456,660

18,825

(20,736)

454,749

(9,929)

(4,776)

Computerequipment

£

570,913

63,679

–

634,592

399,650

85,055

–

484,707

149,887

171,263

Software &Licencing

£

1,028,744

–

–

1,028,7444

933,168

51,561

(28,518)

956,211

72,533

95,576

Total

£

2,336,857

101,789

(44,495)

2,394,151

2,046,342

167,839

(49,254)

2,164,927

229,224

290,514

Group

Cost or valuation

At 1 April 2014

Additions

Disposals

At 31 March 2015

Depreciation

At 1 April 2014

Charge owned for the period

Disposals

At 31 March 2015

Net book value

At 31 March 2015

At 31 March 2014

Cost or valuation

At 1 April 2014

Additions

Disposals

At 31 March 2015

Depreciation

At 1 April 2014


Disposals

At 31 March 2015

Net book value

At 31 March 2015

At 31 March 2014



13. TANGIBLE FIXED ASSETS continued

Long-termleaseholdproperty

£

252,130

–

–

252,130

247,648

2,013

–

249,661

2,469

4,482

Motor vehicles

£

33,185

–

–

33,185

9,216

10,385

–

19,601

13,584

23,969

Fixturesand

fittings

£

451,885

38,110

(44,495)

445,500

456,660

18,825

(20,736)

454,749

(9,929)

(4,776)

Computerequipment

£

570,913

63,679

–

634,592

399,650

85,055

–

484,707

149,887

171,263

Software &Licencing

£

1,028,744

–

–

1,028,744

933,168

51,561

(28,518)

956,211

72,533

95,576

Total

£

2,336,857

101,789

(44,495)

2,394,151

2,046,342

167,839

(49,254)

2,164,927

229,224

290,514

Company

Cost or valuation

At 1 April 2014

Additions

Disposals

At 31 March 2015

Depreciation

At 1 April 2014


Disposals

At 31 March 2015

Net book value

At 31 March 2015

At 31 March 2014

Cost or valuation

At 1 April 2014

Additions

Disposals

At 31 March 2015

Depreciation

At 1 April 2014


Disposals

At 31 March 2015

Net book value

At 31 March 2015

At 31 March 2014



14. FIXED ASSET INVESTMENTS

Country of incorporation

England & Wales

Class ofshares

Ordinary

Holding

100%

Investmentsin subsidiarycompanies

£

715,098

715,098

–

715,098

715,098

Subsidiary undertakings

The following were subsidiary undertakings of the company:

Name

Clinical Pathology Accreditation (UK) Limited

Name

Clinical Pathology Accreditation (UK) Limited

Company

Cost or valuation

At 1 April 2014

At 31 March 2015

Impairment

At 31 March 2015

Net book value

At 31 March 2015

At 31 March 2014

Company number

02675095

The company's subsidiary Clinical Pathology (Accreditation) Limited is exempt from the requirements of the Companies Act 2006relating to the audit of individual accounts by virtue of s479A of the Act.



15. DEBTORS

Group2015

£

3,209,975

–

247,894

245,158

784,376

1,030,890

5,518,293

Group2014

£

3,023,636

–

290,535

236,045

1,042,239

720,360

5,312,815

Company2015

£

2,657,070

390,718

86,892

245,158

784,376

1,030,890

5,195,104

Company2014

£

2,627,817

910,086

153,805

277,930

1,042,239

720,360

5,732,237

Due within one year

Trade debtors

Amounts owed by group companies

Other debtors

Prepayments and accrued income

Amounts recoverable on long term contracts

Deferred taxation

16. CASH AND CASH EQUIVALENTS

Group2015

£

7,033,107

(13,188)

7,019,919

Group2014

£

3,782,066

–

3,782,066

Company2015

£

5,133,622

(13,188)

5,120,434

Company2014

£

2,646,635

–

2,646,635


Less: bank overdrafts

17. CREDITORS: Amounts falling due within one year

Group2015

£

13,188

533,446

–

378,646

1,050,378

35,000

2,604,193

4,614,851

Group2014

£

–

634,920

–

76,092

614,016

157,135

1,803,331

3,285,494

Company2015

£

13,188

443,788

2,542,473

207,089

1,050,378

–

2,255,428

6,512,344

Company2014

£

–

637,245

3,038,274

–

653,575

–

1,711,889

6,040,983

Bank overdrafts

Trade creditors

Amounts owed to group undertakings

Corporation tax

Taxation and social security

Other creditors

Accruals and deferred income



18. PROVISIONS

Dilapidationprovision

£

69,875

250,125

320,000

Total

£

69,875

250,125

320,000

Dilapidationprovision

£

69,875

250,125

320,000

Total

£

69,875

250,125

320,000

Group

At 31 March 2015

Charged to the profit or loss

At 31 March 2015

Company

At 31 March 2015

Charged to the profit or loss

At 31 March 2015

19. RESERVES


Retained earnings represents accumulated comprehensive income for the year and prior periods plus any share based payments, adjustments and related tax credits and transfers from other reserves.

20. PRIOR YEAR ADJUSTMENT

The group adopted FRS102 with effect from 1 April 2013. The effect of this is explained in note 25.

21. PENSION COMMITMENTS

In 2004 the group operated a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £160,608 (2014 – £12,764). Contributions totalling £nil (2014 - £nil) were payable to the fund at the balance sheet date and are included in creditors.

The group operates a Defined benefit pension scheme and the details are as follows:

United Kingdom Accreditation Service operates a defined benefit scheme in the United Kingdom. The company sponsors the United Kingdom Accreditation Service pension scheme which is a defined benefit arrangement providing benefits on a career average salary basis. The last full actuarial valuation of this scheme was carried out by a qualified Independent actuary as at 31 March 2012 and the results of this have been updated on an approximate basis to 31 March 2015.



21. PENSION COMMITMENTS continued

Reconciliation of present value of plan liabilities:

At the beginning of the year

Current service cost

Interest income

Actuarial gains/(losses)

Contributions

At the end of the year

Composition of plan liabilities:

Present value of pension plan liability

Total plan liabilities

Present value of plan liabilities

Net pension scheme liability

The amounts recognised in profit or loss are as follows:

Current service cost

Interest on obligation

Total

The fair value of the major categories of scheme assets are as follows:

Equity

Non-gilt bonds

Gilts

Property

Cash

Fair value of scheme assets

2015

£

(3,132,000)

(938,000)

(128,000)

(2,219,000)

1,508,000

(4,909,000)

2015

£

(4,909,000)

(4,909,000)

2015

£

(4,909,000)

(4,909,000)

2015

£

938,000

128,000

1,066,000

2015

£000

20,914

3,940

3,940

1,212

3,004

33,010

2014

£

(4,680,000)

(894,000)

(187,000)

1,510,000

1,119,000

(3,132,000)

2014

£

(3,132,000)

(3,132,000)

2014

£

(3,132,000)

(3,132,000)

2014

£

894,000

187,000

1,081,000

2014

£000

17,625

3,389

3,465

552

75

25,106



21. PENSION COMMITMENTS continued

Reconciliation of scheme assets and liabilities were as follows:

Opening fair value of scheme assets

Actuarial gains and (losses)

Interest income/expense

Contributions by employer

Contributions by scheme participants

Actuarial losses

Benefits paid

Discount rate at 31 March

Expected return on scheme assets at

Future pension increases

Rate of inflation – retail price index

Inflation – consumer price index

Amounts for the current and previous four periods are as follows:

Defined benefit pension schemes

2015Assets

£000

25,106

2,758

1,103

1,508

449

–

(614)

30,310

2015

3.30 %

3.30 %

3.25 %

3.30 %

2.30 %

2014Liabilities

£000

(28,238)

–

(1,231)

(938)

(449)

(4,977)

614

(35,219)

2014

4.30 %

6.20 %

3.55 %

3.60 %

2.60 %

The cumulative amount of actuarial gains and losses recognised in the Consolidated statement of other comprehensive incomewas £2,219,000 (2014 – £1,510,000 (gain)).

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

2015£000

(35,219)

30,310

(4,909)

(4,977)

2,271

2014£000

(28,238)

25,106

(3,132)

1,161

(117)

2013£000

(27,569)

22,889

(4,680)

(2,210)

1,831

2012£000

(23,727)

18,817

(4,910)

(3,040

(291)

2011£000

(19,320)

17,230

(2,090)

690

80

Defined benefit obligation

Scheme assets

Surplus

Experience adjustments on scheme liabilities

Experience adjustments on scheme assets



22. COMMITMENTS UNDER OPERATING LEASES

At 31 March 2015 the group and the company had annual commitments under non-cancellable operating leases as follows:

23. RELATED PARTY TRANSACTIONS

The accounts do not show details in respect of group transactions. The group is exempt from disclosure under Financial Reporting Standard 102 on the grounds that the group accounts are available.

24. CONTROLLING PARTY

Ultimate control is vested in the individual members and director as, being a company limited by guarantee, there are no shareholders.

Group2015

£

255,000

23,470

Group2014

£

–

277,967

Company2015

£

255,000

23,470

Company2014

£

–

277,967

Not later than 1 year

Later than 1 year and not later than 5 years



25. First time adoption of FRS 102

As previously

stated

2015

£

913,266

7,122,427

(2,625,623)

4,496,804

5,410,070

(3,793,875)

1,616,195

Effect of

transition

2015

£

–

720,360

(100,000)

620,360

620,360

(720,360)

(100,000)

FRS 102(as

restated)

2015

£

913,266

7,842,787

(2,725,623)

5,117,164

6,030,430

(4,514,235)

1,516,195

As previously

stated

2014

£

724,031

8,374,522

(3,145,034)

5,229,488

5,953,519

(2,481,515)

3,472,004

23,453,166

(15,063,953)

8,389,213

(7,468,512)

920,701

35,772

279,000

(303,944)

931,529

Effect of

transition

2014

£

(63,582)

720,360

(140,460)

579,900

516,318

(720,360)

(204,042)

–

(104,042)

(104,042)

–

(104,042)

–

(466,000)

83,030

(487,012)

FRS 102(as

restated)

2014

£

660,449

9,094,882

(3,285,494)

5,809,388

6,469,837

(3,201,875)

3,267,962

23,453,166

(15,167,995)

8,285,171

(7,468,512)

816,659

35,772

(187,000)

(220,914)

444,517

Group

Note

Fixed assets

Current assets

Creditors: amounts falling due within

one year

Net current assets

Total assets less current liabilities

Provisions for liabilities


Turnover

Cost of sales

Administrative expenses

Operating profit

Interest receivable and similar income

Other finance income

Taxation

Explanation of changes to previously reported profit and equity:

1 Holiday pay accrualFRS 102 requires short term employee benefits to be charged to the profit and loss account as the employee service is received. This has resulted in the company recognising a liability for holiday pay of £100,000 on transition to FRS 102. Previously, holiday pay accruals were not recognised and were charged to the profit and loss account as they were paid. In the year to 31 March 2014 an additional charge of £40,459 was recognised in the profit and loss account and the liability at 31 March 2014 was £140,459.

2 Defined benefit schemeUnder previous UK GAAP the company recognised an expected return on defined benefit plan assets in the profit and loss account. Under FRS 102 a net interest expense, based on the net defined benefit liability, is recognised in the profit and loss account. There has been no change in the defined benefit liability at either 1 April 2013 or 31 March 2014. The effect of the change has been to reduce the credit to the profit and loss account in the year to 31 March 2014 2014 by £466,000.

3 GoodwillThe goodwill or consolidation has been amortised over 5 years from 1 April 2013 in accordance with FRS 102. The effect of the change has been to increase the amortisation charge in the year to 31 March 2014 by £63,583.

Profit on ordinary activities after taxation and for the financial year

September 2015CPM XXXC

UKAS – A company limited by guarantee


www.ukas.com

United Kingdom Accreditation Service

21–47 High Street, Tel: +44 (0)20 8917 8400

Feltham, Fax: +44 (0)20 8917 8500

Middlesex www.ukas.com

TW13 4UN www.ukas.org

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