Caseware UK (AP4) 2023.0.135 2023.0.135 2024-07-31Gareth Scargill Gareth Scargill Ms H M Smith2024-07-31981100 - Combined facilities support activitiesfalsefalsefalse2023-08-01false10 11099539 2023-08-01 2024-07-31 11099539 2022-08-01 2023-07-31 11099539 2024-07-31 11099539 2023-07-31 11099539 c:CompanySecretary1 2023-08-01 2024-07-31 11099539 c:Director1 2023-08-01 2024-07-31 11099539 c:Director2 2023-08-01 2024-07-31 11099539 c:Director3 2023-08-01 2024-07-31 11099539 c:Director3 2024-07-31 11099539 c:Director4 2023-08-01 2024-07-31 11099539 c:Director4 2024-07-31 11099539 c:RegisteredOffice 2023-08-01 2024-07-31 11099539 d:PlantMachinery 2023-08-01 2024-07-31 11099539 d:FurnitureFittings 2023-08-01 2024-07-31 11099539 d:FurnitureFittings 2024-07-31 11099539 d:FurnitureFittings 2023-07-31 11099539 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 11099539 d:OfficeEquipment 2023-08-01 2024-07-31 11099539 d:OfficeEquipment 2024-07-31 11099539 d:OfficeEquipment 2023-07-31 11099539 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 11099539 d:OtherPropertyPlantEquipment 2023-08-01 2024-07-31 11099539 d:OtherPropertyPlantEquipment 2024-07-31 11099539 d:OtherPropertyPlantEquipment 2023-07-31 11099539 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 11099539 d:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 11099539 d:CurrentFinancialInstruments 2024-07-31 11099539 d:CurrentFinancialInstruments 2023-07-31 11099539 d:Non-currentFinancialInstruments 2024-07-31 11099539 d:Non-currentFinancialInstruments 2023-07-31 11099539 d:CurrentFinancialInstruments d:WithinOneYear 2024-07-31 11099539 d:CurrentFinancialInstruments d:WithinOneYear 2023-07-31 11099539 d:Non-currentFinancialInstruments d:AfterOneYear 2024-07-31 11099539 d:Non-currentFinancialInstruments d:AfterOneYear 2023-07-31 11099539 d:ReportableOperatingSegment1 2023-08-01 2024-07-31 11099539 d:ReportableOperatingSegment1 2022-08-01 2023-07-31 11099539 d:UKTax 2023-08-01 2024-07-31 11099539 d:UKTax 2022-08-01 2023-07-31 11099539 d:ShareCapital 2024-07-31 11099539 d:ShareCapital 2023-07-31 11099539 d:RetainedEarningsAccumulatedLosses 2023-08-01 2024-07-31 11099539 d:RetainedEarningsAccumulatedLosses 2024-07-31 11099539 d:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 11099539 d:RetainedEarningsAccumulatedLosses 2023-07-31 11099539 d:RetainedEarningsAccumulatedLosses 2022-08-01 11099539 c:OrdinaryShareClass1 2023-08-01 2024-07-31 11099539 c:OrdinaryShareClass1 2024-07-31 11099539 c:OrdinaryShareClass1 2023-07-31 11099539 c:FRS102 2023-08-01 2024-07-31 11099539 c:Audited 2023-08-01 2024-07-31 11099539 c:FullAccounts 2023-08-01 2024-07-31 11099539 c:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 11099539 d:WithinOneYear 2024-07-31 11099539 d:WithinOneYear 2023-07-31 11099539 d:BetweenOneFiveYears 2024-07-31 11099539 d:BetweenOneFiveYears 2023-07-31 11099539 d:MoreThanFiveYears 2024-07-31 11099539 d:MoreThanFiveYears 2023-07-31 11099539 d:HirePurchaseContracts d:WithinOneYear 2024-07-31 11099539 d:HirePurchaseContracts d:WithinOneYear 2023-07-31 11099539 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-07-31 11099539 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-07-31 11099539 2 2023-08-01 2024-07-31 11099539 e:PoundSterling 2023-08-01 2024-07-31 iso4217:GBP xbrli:shares xbrli:pure

Company Registration Number 11099539























NEXUS LEEDS LIMITED





AUDITED FINANCIAL STATEMENTS





FOR THE YEAR ENDED 31 JULY 2024

























 
NEXUS LEEDS LIMITED
 

COMPANY INFORMATION


Directors
Dr Martin Stow 
Gareth Scargill 
Susan Allen (resigned 28 November 2023)
Jenifer Wilson (appointed 25 September 2024)




Company secretary
Helana Smith



Registered number
11099539



Registered office
Nexus Discovery Way
University of Leeds

Leeds

LS2 3AA




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditor

Third Floor

10 South Parade

Leeds

LS1 5QS





 
NEXUS LEEDS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Income and Retained Earnings
10
Statement of Financial Position
11
Notes to the Audited Financial Statements
12 - 24


 
NEXUS LEEDS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Introduction
 
The Directors present their Strategic Report for Nexus Leeds Limited (the "Company") for the year ended 31 July 2024.

Business review
 
The principal activity of the private limited company during the year was the provision of meeting facilities, event space, and serviced and co-working office accommodation, enabling industry to engage with the research expertise, capabilities, and infrastructure of the University of Leeds. The Company is a fully owned subsidiary of the University of Leeds.
Turnover for the year was £2,485,911 (2023: £2,296,457). The increase in turnover reflects price increases resulting from a combination of the recent high-inflation environment along with a change in commercial focus towards demand- and market-led pricing across all product types.
The profit for the year, before taxation, was £135,608 (2023: £3,933). The increased profit is a result of continued stabilisation of energy prices, efficient expenditure controls, and both inflation- and market-driven sales price increases to align with Leeds City Centre commercial market rates for high-quality serviced office and lab space.

Principal risks and uncertainties
 
The Company monitors the risks and uncertainties facing its business and actively seeks to mitigate these risks through strong processes and procedures. These have been established across the key areas of the business to ensure that any potential risks are managed in a controlled manner and in accordance with the policies set by the Board.
The market for the provision of serviced office accommodation remains competitive. The Company manages the risk of losing business to competitors by the provision of value-added services to customers, including the provision of high-quality facilities that assist in the facilitation of links to the University of Leeds to enhance research and innovation.
The Company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by day-to-day control procedures to ensure that trade debtors are adhering to their contractual payment terms.
The success of the business is dependent on the wider economy and business confidence. In particular, the costs are affected by recent global events which have impacted the energy prices for the Company. An economic downturn and further uncertainty will have an impact on the results achieved by the Company. In response to this risk, senior management keeps abreast of economic conditions and will modify the marketing and pricing strategies to reflect changes in market conditions should this prove necessary.

Page 1

 
NEXUS LEEDS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Financial key performance indicators
 
                                                                                                                         2024          2023
                                                                                                                            £                £
    Current ratio                                                                                                  0.60           0.40
    Debtor days (external)                                                                                    10              12
    Adjusted Current Ratio                                                                                  1.80           1.30
The current ratio and debtor days have remained broadly consistent with the prior year. While the current ratio remains below 1, this ratio is artificially deflated by a straight-line rent charge accrual of £1,271,044 which reflects potential future increases in rental income, payments for which will only fall due as and when those increases in rental income are realised. Removing this accrual from the current ratio calculation results in a ratio of 1.8 (2023: 1.3), which more accurately represents the Company’s ability to settle its short-term liabilities. Debtor days have improved during the year as a result of tightened internal processes.
The Directors also measure the success of the business using non-financial key performance indicators, including occupancy rates, number of members, facilitation of access to research funding, and enabling the creation of new jobs for students and graduates.
Occupancy has remained stable throughout the year, starting the year at 82% and ending the year at 82%, with attrition of existing resident members throughout the year being balanced by new resident members joining the community. Despite occupancy remaining flat, revenues from residents increased due to market-led pricing for new members and renewals.
Our community of both resident and non-resident members also grew throughout this period, from 120 members at the end of 2023, to over 130 at the end of 2024.
Nexus also continues to enable its members to access new collaborative research funding and create new jobs, with many members employing graduates from the University of Leeds, including providing internship and placement opportunities during their studies.

Future developments

Over the next financial year, the Directors and team will continue to focus on enhancing the Nexus core proposition, increasing membership levels and maximising revenue from activities such as the hiring of events, conferencing and meeting room spaces. As the resident occupancy level is now strong, a focus on optimising the space within the Nexus building is a high priority, as is identifying potential expansion options to enable future growth. The Directors will also focus on attracting, designing and delivering SME accelerator and educational programmes, aimed at delivering income and future member pipeline growth.

Going concern

The Directors have reviewed the financial health of the Company considering the ongoing global events. Stable occupancy levels accompanied by continued market-led rental, non-residential memberships, and event space price increases have resulted in increased income and profit this year, and the pipeline is strong for new members to come into the community, and interest in renting Nexus as an event space shows signs of continued growth. Management regularly reviews forecast information and manages costs carefully to maintain the profitable position that has been achieved in recent years.
Forecasts show growth in profit in the next few years as income growth continues. The University, as the parent undertaking, has provided a letter of support to the Company signalling the University's willingness to provide the necessary financial support to allow it to meet its liabilities as they fall due in the normal course of business if required. The Directors have considered the financial strength of the University and are satisfied that the University has sufficient available funds to provide this support as needed.
On this basis, the Directors believe that the Company has sufficient funds to meet its commitments for the foreseeable future, being at least 12 months from the date of signing. As a result, the accounts continue to be prepared on a going-concern basis. 

Page 2

 
NEXUS LEEDS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024


This report was approved by the Board and signed on its behalf. 25 February 2025



................................................
Dr Martin Stow
Director
Date:

................................................
Ms H M Smith
Company Secretary
Date:

Page 3

 
NEXUS LEEDS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024

The Directors present their report and the financial statements for the year ended 31 July 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable laws 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements 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 Company 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The Directors who served during the year were:

Dr Martin Stow 
Gareth Scargill 
Susan Allen (resigned 28 November 2023)

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'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's auditors are aware of that information.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 4

 
NEXUS LEEDS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

This report was approved by the Board and signed on its behalf.
 





................................................
Dr Martin Stow
Director
................................................
Ms H M Smith
Company Secretary


Date: 25 February 2025
Date: 25 February 2025

Page 5

 
NEXUS LEEDS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXUS LEEDS LIMITED
 

Opinion


We have audited the financial statements of Nexus Leeds Limited (the 'Company') for the year ended 31 July 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 July 2024 and of its profit 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 Company 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 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.


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 ReportOur 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.


Page 6

 
NEXUS LEEDS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXUS LEEDS LIMITED (CONTINUED)


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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
NEXUS LEEDS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXUS LEEDS 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 financial statements.
 

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.

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:

We obtained an understanding of laws and regulations that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.

We enquired of the Directors, reviewed correspondence with HMRC and reviewed Directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Directors have in place to ensure compliance.

We gained an understanding of the controls that the Directors have in place to prevent and detect fraud. We enquired of the Directors about any incidences of fraud that had taken place during the accounting period.

The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition.

We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.

We enquired of the Directors and relevant third-party advisors about actual and potential litigation and claims.

We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.

In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non- detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non- compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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 8

 
NEXUS LEEDS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEXUS LEEDS 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 2006Our 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.





Huw Nicholls (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditor
Third Floor
10 South Parade
Leeds
LS1 5QS

25 February 2025
Page 9

 
NEXUS LEEDS LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
Note
£
£

  

Turnover
 4 
2,485,911
2,296,457

Gross profit
  
2,485,911
2,296,457

Administrative expenses
  
(2,358,793)
(2,296,911)

Operating profit/(loss)
 5 
127,118
(454)

Interest receivable
 9 
10,042
6,592

Interest payable
 10 
(1,552)
(2,205)

Profit before tax
  
135,608
3,933

Tax credit for the year
 11 
18,948
137,675

Profit after tax
  
154,556
141,608

  

  

Retained losses at the beginning of the year
  
(2,818,856)
(2,960,464)

Profit for the year
  
154,556
141,608

Retained losses at the end of the year
  
(2,664,300)
(2,818,856)
The notes on pages 12 to 24 form part of these financial statements.
All the activities of the Company are from continuing operations.

Page 10

 
NEXUS LEEDS LIMITED
REGISTERED NUMBER: 11099539

STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
70,963
48,357

  
70,963
48,357

Current assets
  

Debtors: amounts falling due after more than one year
 13 
1,416,720
1,583,376

Debtors: amounts falling due within one year
 13 
429,035
308,439

Cash at bank
  
720,189
526,656

  
2,565,944
2,418,471

Creditors: amounts falling due within one year
 14 
(1,895,456)
(1,873,631)

Net current assets
  
 
 
670,488
 
 
544,840

Total assets less current liabilities
  
741,451
593,197

Creditors: amounts falling due after more than one year
 15 
(5,750)
(12,052)

  

Net assets
  
735,701
581,145


Capital and reserves
  

Called up share capital 
 18 
3,400,001
3,400,001

Profit and loss account
  
(2,664,300)
(2,818,856)

  
735,701
581,145


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf by: 




................................................
Dr Martin Stow
Director

Date: 25 February 2025

The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1.


General information

Nexus Leeds Limited is a private company limited by shares, registered in England and Wales. The address of the registered office is Nexus Discovery Way, University of Leeds, Leeds, England, LS2 3AA.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

 
2.2

Going concern

The Directors have reviewed the financial health of the Company considering the ongoing global events. Stable occupancy levels accompanied by continued market-led rental, non-residential memberships and event space price increases have resulted in increased income and profit this year, and the pipeline is strong for new members to come into the community, and interest in renting Nexus as an event space shows signs of continued growth. Management regularly reviews forecast information and manages costs carefully to maintain the profitable position that has been achieved in recent years.
Forecasts show growth in profit in the next few years as income growth continues. The University, as the parent undertaking, has provided a letter of support to the Company signalling the University's willingness to provide the necessary financial support to allow it to meet its liabilities as they fall due in the normal course of business if required. The Directors have considered the financial strength of the University and are satisfied that the University has sufficient available funds to provide this support as needed.
On this basis, the Directors believe that the Company has sufficient funds to meet its commitments for the foreseeable future, being at least 12 months from the date of signing. As a result, the accounts continue to be prepared on a going-concern basis.

Page 12

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.3

Revenue recognition

The turnover shown in the Statement of Income and Retained Earnings represents rent and other income receivable in the year, exclusive of Value Added Tax. Turnover is recognised when services have been provided to a third party.
Income from government grants is recognised when the Company has entitlements to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

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

Rendering of services

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

 
2.4

Operating leases: the Company as lessor

Lease income is recognised in profit or loss on a straight-line basis over the lease term. The aggregate cost of lease incentives is recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense.

 
2.5

Operating leases: the Company as lessee

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives, including the lease premium, is recognised as a reduction to expense over the lease term, on a straight-line basis.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

 
2.10

Tangible assets

Tangible 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.

Page 14

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.10
Tangible assets (continued)

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:

Furniture, Fixtures & Fittings
-
20%
straight-line
Equipment
-
33%
straight-line
Leased Assets
-
20%
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.

  
2.11

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimates where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

  
2.12

Finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

 
2.13

Cash and cash equivalents

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

 
2.14

Financial instruments

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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 15

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration to be paid or received, net of impairment.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 
Estimation Uncertainty

The Company has an unrecognised deferred tax asset of £445,526 (2023: £510,396) relating to unutilised tax losses. The Company has become profitable in recent years, and therefore unutilised tax losses are now being recognised to the extent that they a) offset against existing deferred tax liabilities as at the reporting date, and b) offset against profits that are expected to be generated no later than 12 months after the reporting date. Any future profits that are expected to be generated later than 12 months after the reporting date are deemed to be too uncertain, and as such no deferred tax asset is recognised in relation to them.
The Company recognises a straight-line charge for rent to the University of Leeds under an operating lease agreement for the Nexus building. As the rental charge is based on a percentage of turnover, the straight-line charge is calculated with reference to forecast turnover over the remaining period of the lease. As a result, the straight-line rent charge is higher than the actual amount paid as the Company has undergone growth since inception and expects growth to continue. An accrued expense of £1,271,044 (2023: £1,255,013) is reflected in the statement of  financial position to reflect the mismatch between rent paid and rent charged in the statement of income and retained earnings, but the actual amount to be paid as the lease term progresses could differ depending on the future performance of the Company.


Page 16

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Rendering of services
2,485,911
2,296,457

2,485,911
2,296,457


All turnover arose within the United Kingdom.


5.


Operating profit/(loss)

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

2024
2023
£
£

Depreciation of tangible assets
25,647
20,925

Disposals of tangible assets
452
-

Impairment of trade debtors
(1,686)
6,581

Operating lease rentals
563,264
617,216


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
7,280
6,937

Fees payable to the Company's auditors for the preparation of the Company's financial statements
850
-

Page 17

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

7.


Staff costs

The average number of persons employed by the Company during the year, including the Directors, amounted to:


        2024
        2023
            No.
            No.







Administrative staff
9
8



Management staff
1
1

10
9

The aggregate payroll costs incurred during the year, relating to the above, were:

2024
2023
£
£
Wages and salaries

327,198

290,560

Social security costs

33,391

23,279

Other pension costs

32,209

23,932

392,798

337,771



8.


Director's remuneration

The Director's aggregate remuneration in respect of qualifying services was:

2024
2023
£
£
Remuneration

115,607

55,716

Company contributions to defined contribution pension plans

12,445

6,650

128,052

62,366


One Director receives remuneration from the Company as an employee (2023: one Director). The Company was reimbursed £62,082 (2023: £31,033) by the ultimate parent company for the Directors remuneration noted above in exchange for services rendered to the University of Leeds.
There are no other key management personnel remunerated by the Company other than the Director that is noted above.
For the financial year ended 31 July 2023, the Company employed a director for only seven months.

Page 18

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

9.


Interest receivable

2024
2023
£
£


Bank interest
10,042
6,592

10,042
6,592


10.


Interest payable

2024
2023
£
£


Finance leases and hire purchase contracts
1,552
2,205

1,552
2,205


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
1,894


-
1,894


Total current tax
-
1,894

Deferred tax


Fixed asset timing differences
7,308
(6,291)

Short-term timing differences
(11,733)
(133,278)

Losses and other deductions
(14,523)
-

Total deferred tax
(18,948)
(139,569)


Tax (credit) for the year
(18,948)
(137,675)
Page 19

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
11.Taxation (continued)


Reconciliation of tax expense / (income)

The tax assessed for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25% (2023: 21.01%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
135,608
3,933


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 21.01%)
33,902
826

Effects of:


Expenses not deductible for tax purposes
249
(1,086)

Adjustment to tax charge in respect of previous periods
-
1,894

Fixed asset differences
1,770
18

Remeasurement of deferred tax for changes in tax rates
-
(46)

Movement in deferred tax not recognised
(54,869)
(139,281)

Total tax (credit) for the year
(18,948)
(137,675)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

12.


Tangible assets





Furniture, Fixtures & Fittings
Equipment
Leased Assets
Total

£
£
£
£



Cost or valuation


At 1 August 2023
138,931
35,110
-
174,041


Additions
11,071
37,634
-
48,705


Disposals
(460)
-
-
(460)


Transfers between classes
(91,038)
63,343
27,695
-



At 31 July 2024

58,504
136,087
27,695
222,286



Depreciation


At 1 August 2023
96,255
29,429
-
125,684


Charge for the year
7,264
12,844
5,539
25,647


Disposals
(8)
-
-
(8)


Transfers between classes
(61,762)
49,761
12,001
-



At 31 July 2024

41,749
92,034
17,540
151,323



Net book value



At 31 July 2024
16,755
44,053
10,155
70,963



At 31 July 2023
42,676
5,681
-
48,357



Page 21

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

13.


Debtors

2024
2023
£
£

Debtors: amounts falling due within one year


Trade debtors
67,179
77,282

Amounts owed by group undertakings
140,480
51,577

Prepayments and accrued income
34,289
12,831

Lease premium prepayment
166,667
166,667

Other debtors
1,472
82

Deferred tax
18,948
-

429,035
308,439

2024
2023
£
£
Debtors: amounts falling due after more than one year
Lease premium prepayment

1,416,720

1,583,376

1,416,720

1,583,376


A lease premium of £2,500,000 was paid on inception of the building lease with the University of Leeds. This payment is released over the period of the lease and is classified as a prepayment due to the nature of the lease.
Amounts owed by group undertakings and undertakings in which the Company has a participating interest are non-interest bearing and repayable on demand.


14.


Creditors: amounts falling due within one year

As restated
2024
2023
£
£


Trade creditors
27,460
30,380

Amounts owed to group undertakings
1,471,686
1,504,384

Other taxation and social security
65,566
47,786

Obligations under finance leases and hire purchase contracts
6,302
5,648

Other creditors
185,950
159,112

Accruals and deferred income
138,492
126,321

1,895,456
1,873,631


Amounts owed to group undertakings and undertakings in which the Company has a participating interest are unsecured, non-interest bearing and repayable on demand.

Page 22

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

15.


Creditors: amounts falling due after more than one year

2024
2023
£
£

Obligations under finance leases and hire purchase contracts
5,750
12,052

5,750
12,052



16.


Finance leases and hire purchase contracts


Minimum lease payments under finance leases and hire purchase contracts fall due as follows:

2024
2023
£
£


Within one year
6,302
5,648

Between one and five years
5,750
12,052

12,052
17,700

Certain office and IT equipment are held under finance lease arrangements. Finance lease liabilities are unsecured and over a term of five years. The lease agreements generally include fixed lease payments and result in ownership at the end of the lease term.


17.


Deferred taxation

2024
2023
£
£



At the beginning of the year
-
-

Credited to profit or loss
18,948
-

At the end of the year
18,948
-

The deferred tax asset is made up as follows:

2024
2023
£
£



Fixed asset timing differences
(14,219)
(6,911)

Short term timing differences
(110,298)
(122,031)

Losses and other deductions
143,465
128,942

18,948
-

Page 23

 
NEXUS LEEDS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

18.


Called up share capital

2024
2023
£
£
Allotted, called up and fully paid



3,400,001 (2023: 3,400,001) Ordinary shares of £1.00 each
3,400,001
3,400,001


19.


Analysis of net debt





At 1 August 2023
Cash flows
Non-cash flows
At 31 July 2024
£

£

£

£

Cash at bank and in hand

526,656

193,533

-

720,189

Finance leases

(17,700)

(7,200)

1,552

(23,348)


508,956
186,333
1,552
696,841


20.


Commitments under operating leases

At 31 July 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than one year
404,234
460,552

Later than one year and not later than five years
1,618,043
1,838,431

Later than five years
1,817,391
2,524,225

3,839,668
4,823,208


21.


Related party transactions

The Company has taken advantage of the exemption available in FRS 102 section 33 to wholly owned subsidiaries not to disclose related party transactions with other group companies which are included in the consolidated financial statements of the ultimate parent entity, the University of Leeds.


22.


Controlling party

The ultimate controlling party, parent, and the only group into which the figures are consolidated, is the University of Leeds. These consolidated financial statements are available from the University of Leeds, Woodhouse Lane, Leeds, England, LS2 9JT, its registered address.


Page 24