Registration number:
trading as
(A company limited by guarantee)
for the Year Ended 31 March 2025
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Income Statement |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Company Information
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Directors |
Dr D M J Wilkes A Shaw Dr L O Hazelden N T Phimister Dr C Tattam Dr S K Harris (Peace) F J Evans (McIntyre) |
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Company secretary |
C V Walker-Harrison |
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Registered office |
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Auditors |
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Strategic Report for the Year Ended 31 March 2025
The directors present their strategic report for the year ended 31 March 2025.
Fair review of the business
Since April 1, 2022, Knowledge Transfer Network Limited (KTN) has been part of Innovate UK, itself part of UK Research and Innovation (UKRI). We have now adopted the name Innovate UK Business Connect externally.
Innovate UK Business Connect (IUKBC) exists to connect innovators with new partners and new opportunities, helping to accelerate ambitious ideas into real-world solutions. Our core network is comprised mostly of small medium enterprises (businesses) with diverse connections also spanning government, research and the third sector. Understanding this connectivity, across both the UK and globally, allows us to navigate partners, clients and communities through the complex landscape of research, development and innovation to catalyse diverse connections for positive change. Our vision is to create networks of innovators so powerful their ideas will change the world.
Business Review
In 2023 Innovate UK Business Connect was designated to the Department for Science, Innovation and Technology (DSIT) with its corporate member (owner) being UK Research and Innovation (UKRI). UKRI appoints a Member Representative (Innovate UK Executive Chair - ex officio), who in turn, appoints the CEO or Managing Director and Directors of the Company. Innovate UK and Innovate UK Business Connect have built strategic coherence between the two organisations, stemming from the Innovate UK Plan for Action and delivering against jointly created Innovate UK Business Connect Work Programme 2023-25.
Jon Kingsbury served as interim CEO until 27 January 2025 when Richard Hutchins joined as Managing Director. Richard stepped down on 9 July 2025 and Frances Evans (McIntyre) was appointed as Interim Managing Director.
Key Performance Indicators
During the period ending March 2025, IUKBC exceeded its 2024-25 Work Programme annual targets. The basis of our valuable business connections is through our introductions which build into collaborations with valuable outcomes.
These KPIs include (performance against targets and % performance in brackets): 6,765 Introductions (target 4,200, 161%), 1,600 Collaborations (target 1,200, 133%), 1,021 Outcomes (target 1,100, 93%), and including £267 million of total economic value supported (vs £300 million target, 89%).
Annual Highlights
For period ending March 2025, IUKBC delivered on our 2024-25 annual targets. Through our innovation network, we create cross-sector introductions which build into collaborations with tangible outcomes for innovative businesses, projects and society.
Innovate UK Business Connect delivers these outcomes through a variety of projects and programmes across innovative sectors, and through identifying and investing in emerging networks across the UK.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Strategic Report for the Year Ended 31 March 2025
1. Knowledge Transfer Partnerships
During 2024-25, IUKBC supported five Knowledge Transfer Partnerships (KTP) competitions which brought in 329 new projects. KTPs are funded by Innovate UK (IUK) and facilitated by IUKBC and tailored to specific requirements of individual partnerships. These partnerships address specific needs, through the placement of highly qualified graduates, innovative solutions, new technologies and expertise over a period of 12-36 months.
During 2024-25 a total of 894 projects were supported, placing 916 associates, working with 779 business partners and 153 knowledge bases (universities, colleges, institutes, Catapults).
IUKBC also runs the Africa Agriculture Knowledge Transfer Partnership (International) which builds international partnerships and supports UN development goals, partnering 37 projects with UK and international knowledge base working with international partners.
The Innovate UK KTP Awards 2024 showcased the very best in cutting-edge innovation, where academic excellence and business expertise have converged to solve business and real-world challenges.
2. Net Zero and Sustainable Industries
In 2024-25, IUKBC delivered programmes of activity that focused on convening innovative businesses and stakeholders in ‘Net Zero’, identifying and sharing insights and opportunities, enabling collaboration that has led to investment and business growth. The Net Zero Living Annual Event 2025 hosted over 400 innovative business owners, investors and stakeholders, and focused on accelerating business innovation through Solutions Exchange and curated connections.
The IUKBC Capital to Climate investor engagement series, which also focused on Net Zero opportunities for growth, connected a group of over 80 targeted investors with climate-tech innovators. IUKBC worked with these investors and innovators to better understand barriers such as planning, regulation and finance, and ways to address these barriers collectively.
Our work in accelerating innovation for economic growth through net zero, continues through this work and our Cross Government Climate Hub, Innovation Exchange and Investor-readiness support.
3. Global
In 2024-25, IUKBC delivered six Global Expert Missions (GEM) in five countries across Innovate UK and Government priority sector areas including Cyber and Civil Security, Future Telecoms and Agri-Tech. Through roundtable meetings and workshops, the GEM team facilitated meetings and conversation between experts from UK businesses with senior government officials and C-level stakeholders in the target countries. Insight reports from these GEMs are now being used to shape IUK and HMG bilateral business innovation activity.
IUKBC also delivered the programme’s first innovation inward visit from Japan on Cyber Security in May 2024, following on from the Japan Cyber GEM in March 2023. The visit enabled the UK to showcase its cyber capabilities and innovation and strengthen UK-Japan cooperation in Cyber Security. The visit garnered high profile support from the Embassy of Japan.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Strategic Report for the Year Ended 31 March 2025
4. Digital & Creative
Our AI for Services Programme connected leading accountancy firms with innovative tech startups, creating a strengthened pipeline for future R&D collaborations.
In addition to this, IUKBC provided strategic guidance and support for investor partnerships, as part of the DCMS funded Create Growth Programme, including companies like Jeco, who went on to receive grant funding and private investment from The Games Angels, catalysing the growth of world-leading low-carbon video games software tools.
IUKBC continues to deliver CyberASAP, the longest running government initiative in cybersecurity. The programme supports the commercialisation of academic research, building a pipeline of innovative products and services for the sector. Support for programme alumni continues and shows that this collective has gone on to attract over £40 million in post-programme funding - strengthening the resilience and diversity of the national cybersecurity ecosystem.
Through the Innovate UK Immersive Tech Network, IUKBC delivered flagship initiatives including the Immersive Tech Awards and XR Hack London - connecting top XR talent with industry through internships, awards, and the UK’s largest XR hackathon, while expanding access through new showcases and educator recognition to strengthen the UK’s immersive ecosystem.
5. Health & AgriFood
IUKBC has been working with Innovate UK and the Office for Life Sciences (OLS) and in partnership with Eli Lilly and Company, to deliver events that bring together key partners, decision makers and innovators across the weight management sector to explore innovative new ways of delivering weight management services. This work is already accelerating opportunities for those supply chain businesses in this growing sector.
IUKBC’s AgriFood Innovation Showcase 2025, brought together hundreds of participants from across the food supply chain, including farmers, processors, retailers, and academia, to explore innovations for a sustainable food system. The event has already led to new collaborations between businesses, two signed MoUs, and one pilot trial.
6. Defence & Security
IUKBC have successfully orchestrated a series of high-impact innovation exchanges for the UK's security and defence community (working with partners including HMGCC, SIS, GCHQ, DSTL & Turing Institute), connecting them with solution providers across various Technology Readiness Levels (TRLs). IUKBC had responsibility for the coordination challenges with challenge holders, executing targeted campaigns using our extensive database, gathering, and evaluating responses from solution providers, and actively participating in pitch events for IUKBC selected organisations.
This initiative not only provided immediate financial support but also paved the way for future long-term contracts with challenge holders.
7. Conclusion
In 2024-25, IUKBC has demonstrated its role as a vital catalyst for innovation, growth and collaboration across the UK and beyond. From creating opportunities in Net Zero, Health, AgriFood, Defence and Digital, to building international partnerships and accelerating commercialisation, our programmes continue to deliver tangible outcomes for innovative businesses, academia, investors and wider society.
Through our networks, knowledge, and convening power, we connect ideas with investment, talent with opportunity with impact.
Looking ahead, we will continue to strengthen our position as the UK’s innovation network - driving inclusive, sustainable and globally competitive growth, while supporting Innovate UK’s mission to ensure the UK remains one of the best places in the world to innovate.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Strategic Report for the Year Ended 31 March 2025
Financial key performance indicators
Our business planning and financial management requires us to balance resource against grant income to deliver high quality results against objectives. Grant funded activities have been managed with the set budget.
Principal risks and uncertainties
Innovate UK Business Connect faces a number of principal risks that could impact its ability to deliver effectively for stakeholders. These include:
• Risk of insufficient resourcing to meet project demand
• Potential challenges in securing project-based funding to cover core overheads
• Changes in Government policy in research and innovation prompting changes in programme priorities
• Inflationary pressures affecting the affordability of project delivery
• Use of fixed-term and agency staff may create risks around organisational cohesion, perceptions of turnover, and the retention of specialist knowledge
To mitigate these risks, Innovate UK Business Connect maintains a flexible resourcing model supported by strong project planning ensuring the right capabilities are in place to meet project demand and any policy changes in the innovation landscape. The organisation continues to invest in strong relationships across Innovate UK, UKRI, DSIT, government, academia and industry, and demonstrates its value through a consistent track record of high-quality project delivery. Robust forecasting and improved systems and processes help manage inflationary pressures, while an increasingly positive and inclusive culture ensures all staff feel respected, engaged, and aligned. Consistent onboarding and clear knowledge-management practices further support continuity and safeguard expertise across the organisation.
Non-financial and sustainability information
Energy and carbon report
The company has taken advantage of the exemption to not disclose its own energy and carbon information as it qualifies as a low energy user.
Approved by the
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors' of the company
The directors, who held office during the year, were as follows:
The following directors were appointed after the year end:
Principal activity
The principal activity of the company is the promotion of innovation within the UK.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK adopted International Financial Reporting Standards (IFRSs). 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 and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK adopted International Financial Reporting Standards (IFRSs) have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Directors' Report for the Year Ended 31 March 2025
Approved by the
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Independent Auditor's Report to the Members of Knowledge Transfer Network Limited
Opinion
We have audited the financial statements of Knowledge Transfer Network Limited (the 'company') for the year ended 31 March 2025, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Financial Reporting Standards (IFRSs).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with UK adopted IFRSs; 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 auditor 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 UK, including the FRC’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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Independent Auditor's Report to the Members of Knowledge Transfer Network Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page -1], 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.
Auditor 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 auditor’s 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Independent Auditor's Report to the Members of Knowledge Transfer Network Limited
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. As such, we have considered:
• the nature of the industry and sector, control environment and business performance including the company's remuneration policies, bonus levels, and performance targets;
• the company's own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;
• any matters we identified having reviewed the company's policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed amongst the audit engagement team.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, tax legislation and regulations concerning importing and exporting to and from the UK.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Independent Auditor's Report to the Members of Knowledge Transfer Network Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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.
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For and on behalf of
2 Old Bath Road
Berkshire
RG14 1QL
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Income Statement for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
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Revenue |
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Administrative expenses |
( |
( |
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Operating profit |
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Finance income |
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Finance costs |
( |
( |
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Net finance (cost)/income |
( |
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Profit before tax |
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Income tax expense |
( |
( |
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Profit for the year |
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The above results were derived from continuing operations.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Statement of Comprehensive Income for the Year Ended 31 March 2025
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2025 |
2024 |
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Profit for the year |
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Total comprehensive income for the year |
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
(Registration number: 08705643)
Statement of Financial Position as at 31 March 2025
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Note |
2025 |
2024 |
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Assets |
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Non-current assets |
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Property, plant and equipment |
- |
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Right of use assets |
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Investments in subsidiaries |
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Current assets |
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Trade and other receivables |
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Cash and cash equivalents |
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Total assets |
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Equity and liabilities |
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Equity |
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Retained earnings |
(3,474,263) |
(3,359,666) |
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Non-current liabilities |
|||
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Lease liabilities |
( |
( |
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Deferred income |
( |
( |
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Deferred tax liabilities |
( |
( |
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( |
( |
||
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Current liabilities |
|||
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Lease liabilities |
( |
( |
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Trade and other payables |
( |
( |
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Income tax liability |
( |
( |
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Deferred income |
( |
( |
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( |
( |
||
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Total liabilities |
( |
( |
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Total equity and liabilities |
( |
( |
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Approved by the
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Statement of Changes in Equity for the Year Ended 31 March 2025
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Retained earnings |
Total |
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At 1 April 2023 |
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Profit for the period |
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Total comprehensive income |
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At 31 March 2024 |
3,359,666 |
3,359,666 |
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Retained earnings |
Total |
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At 1 April 2024 |
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Profit for the period |
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Total comprehensive income |
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At 31 March 2025 |
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Statement of Cash Flows for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Depreciation on right of use assets |
377,673 |
285,399 |
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Foreign exchange loss/(gain) |
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( |
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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
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Working capital adjustments |
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Decrease in trade and other receivables |
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Decrease in trade and other payables |
( |
( |
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Decrease in deferred income, including government grants |
( |
( |
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Cash generated from operations |
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( |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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( |
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Cash flows from investing activities |
|||
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Interest received |
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Proceeds from sale of property plant and equipment |
- |
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Payments made on leased assets during the year |
(365,273) |
(268,683) |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Interest expense on leases |
( |
( |
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Foreign exchange gains or losses |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at 1 April |
2,977,572 |
9,512,001 |
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Cash and cash equivalents at 31 March |
4,513,478 |
2,977,572 |
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Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
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General information |
The company is a private company limited by guarantee, incorporated and domiciled in England and Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £Nil towards the assets of the company in the event of liquidation.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Statement of compliance
The company financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("UK adopted IFRSs").
Summary of material accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The financial statements have been prepared in accordance with adopted IFRS's, IFRIC Interpretations and the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention. The financial statements are also prepared on a going concern basis.
The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements are disclosed in note 3.
The IFRS primary financial statements are presented in accordance with IAS 1 - 'Presentation of Financial Statements'.
The financial statements are presented in pounds sterling, the functional currency of KTN. Transactions denominated in a foreign currency are translated into sterling at the rate of exchange on the date of each transaction. In preparing the financial statements, monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at the reporting date. All translation differences of monetary assets and liabilities are included in net expenditure for the year.
Exemption from preparing group accounts
The financial statements contain information about Knowledge Transfer Network Limited as an individual company and do not contain consolidated financial information as the parent of a group.
The company is exempt under section of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, United Kingdom Research & Innovation (UKRI), an executive non-departmental public body established by the United Kingdon Parliament.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
Revenue recognition
Recognition
Revenue
Revenue relates to commercial and other income from activities and events which are not funded by grant income. It is recognised as revenue as and when the relevant activity or event takes place. Amounts that have been invoiced but the relevant activity or event has not taken place are included in deferred income.
Grant income
Income from grants is recognised when there is reasonable assurance the entity will comply with the conditions attached to the grant and recognised to the extent of the expenditure incurred in the period. Grants received in advance of the associated conditions being met are recognised as deferred income. Grants meeting the associated conditions but not received are recognised as accrued income.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Property, plant and equipment
Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Leasehold improvements |
3 years straight line |
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Leasehold property |
Over the lease term |
Investments
Investments are classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and other short-term highly liquid investments which are readily
convertible to known amounts of cash, are subject to insignificant risk of changes in value, and have an original maturity of three months or less. Any bank overdraft amounts without the right of offset are included within trade payables and other liabilities.
Trade receivables
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.
Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. In line with IFRS 9, the simplified approach has been adopted and a provision for the impairment of trade receivables will be recognised at an amount equal to expected lifetime credit losses.
Trade payables
Trade and other payables are recognised in the period in which related money, goods or services are received or when a legally enforceable claim against KTN is established, or when the corresponding assets or expenses are recognised.
Leases
Definition
A lease is a contract, or a part of a contract, that conveys the right to use an asset or a physically distinct part of an asset (“the underlying asset”) for a period of time in exchange for consideration. Further, the contract must convey the right to the company to control the asset or a physically distinct portion thereof. A contract is deemed to convey the right to control the underlying asset if, throughout the period of use, the company has the right to:
· Obtain substantially all the economic benefits from the use of the underlying asset, and;
· Direct the use of the underlying asset (e.g. direct how and for what purpose the asset is used)
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
Initial recognition and measurement
The company initially recognises a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term.
The lease liability is measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments, purchase options at exercise price (where payment is reasonably certain), expected amount of residual value guarantees, termination option penalties (where payment is considered reasonably certain) and variable lease payments that depend on an index or rate.
The right-of-use asset is initially measured at the amount of the lease liability, adjusted for lease prepayments, lease incentives received, the company’s initial direct costs (e.g., commissions) and an estimate of restoration, removal and dismantling costs.
Subsequent measurement
After the commencement date, the company measures the lease liability by:
(a) Increasing the carrying amount to reflect interest on the lease liability;
(b) Reducing the carrying amount to reflect the lease payments made; and
(c) Re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in substance fixed lease payments or on the occurrence of other specific events.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. Interest charges are [presented separately as non-operating /included in finance cost] in the income statement, unless the costs are included in the carrying amount of another asset applying other applicable standards. Variable lease payments not included in the measurement of the lease liability, are included in operating expenses in the period in which the event or condition that triggers them arises.
The related right-of-use asset is accounted for using the Cost model in IAS 16 and depreciated and charged in accordance with the depreciation requirements of IAS 16 Property, Plant and Equipment as disclosed in the accounting policy for Property, plant and equipment. Adjustments are made to the carrying value of the right of use asset where the lease liability is re-measured in accordance with the above. Right of use assets are tested for impairment in accordance with IAS 36 Impairment of assets as disclosed in the accounting policy in impairment.
Short term and low value leases
The company has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases).
The company has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is of low value.
Lease payments on short term and low value leases are accounted for on a straight line bases over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the income statement.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
Financial instruments
Initial recognition
A financial asset or financial liability is measured initially at fair value plus, for an item not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue.
A financial asset is derecognised when the contractual rights to receive future cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
A financial liability is derecognised when its contractual obligations are discharged, cancelled or expired.
|
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future and are based on management's best knowledge of the relevant facts and circumstances. However, the resulting accounting estimates will, by definition, seldom equal the related actual results. Information on such judgements and estimations is contained in the accounting policies and / or notes to the financial statements and the key areas are summarised below:
Grant accruals and prepayments
Financial statements include a grant accrual for each project where it has been determined that there is an unclaimed amount at the year-end that is due to participants. Invoices are issued quarterly in accordance with the original grant profile.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Rendering of services |
|
|
|
Grant income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Depreciation on right of use assets - property |
377,673 |
285,399 |
|
Foreign exchange losses/(gains) |
|
( |
|
Expense on short term leases (over one month) |
|
|
|
Expense on low value leases |
|
|
|
Finance income and costs |
|
2025 |
2024 |
|
|
Finance income |
||
|
Bank interest |
|
|
|
Finance costs |
||
|
Foreign exchange (losses)/gains |
( |
|
|
Interest expense on leases - Property |
(27,738) |
(17,102) |
|
Total finance costs |
( |
( |
|
Net finance (costs)/income |
( |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Directors |
|
|
|
Employees |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Income tax |
Tax charged/(credited) in the income statement
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of temporary differences |
( |
( |
|
Tax expense in the income statement |
|
|
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase from effect of capital allowances depreciation |
|
|
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
|
Other tax effects for reconciliation between accounting profit and tax income |
( |
( |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
Net deferred tax |
|
Accelerated tax depreciation |
- |
|
|
|
- |
|
|
|
2024 |
Asset |
Liability |
Net deferred tax |
|
Accelerated tax depreciation |
- |
|
|
|
- |
|
|
Deferred tax movement during the year:
|
At 1 April 2024 |
Recognised in income |
At |
|
|
Accelerated tax depreciation |
|
( |
|
|
|
( |
|
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Property, plant and equipment |
|
Short-term leasehold property |
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
|||
|
At 1 April 2023 |
|
|
|
|
Disposals |
( |
( |
( |
|
At 31 March 2024 |
|
- |
|
|
At 1 April 2024 |
|
- |
|
|
At 31 March 2025 |
|
- |
|
|
Depreciation |
|||
|
At 1 April 2023 |
|
|
|
|
Charge for year |
|
- |
|
|
Eliminated on disposal |
( |
( |
( |
|
At 31 March 2024 |
|
- |
|
|
At 1 April 2024 |
|
- |
|
|
Charge for the year |
|
- |
|
|
At 31 March 2025 |
|
- |
|
|
Carrying amount |
|||
|
At 31 March 2025 |
- |
- |
- |
|
At 31 March 2024 |
|
- |
|
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Right of use assets |
|
Property |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2023 |
|
|
|
Additions |
|
|
|
At 31 March 2024 |
|
|
|
At 1 April 2024 |
|
|
|
Additions |
|
|
|
At 31 March 2025 |
|
|
|
Depreciation |
||
|
At 1 April 2023 |
|
|
|
Charge for year |
|
|
|
At 31 March 2024 |
|
|
|
At 1 April 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
|
|
|
At 31 March 2024 |
|
|
|
Investments |
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2023 |
|
|
At 31 March 2024 |
|
|
At 1 April 2024 |
|
|
At 31 March 2025 |
|
|
Carrying amount |
|
|
At 31 March 2025 |
|
|
At 31 March 2024 |
|
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
Details of the subsidiaries as at 31 March 2025 are as follows:
|
Name of subsidiary |
Principal activity |
Registered office |
Proportion of ownership interest and voting rights held |
2024 |
|
|
Dormant |
England and Wales |
|
|
* indicates direct investment of the company
|
Trade and other receivables |
|
Current |
2025 |
2024 |
|
Trade receivables |
|
|
|
Prepayments & accrued income |
|
|
|
Other receivables |
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Leases |
Lease liabilities maturity analysis
A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:
|
2025 |
2024 |
|
|
Less than one year |
|
|
|
2 years |
|
|
|
3 years |
|
|
|
4 years |
|
|
|
Total lease liabilities (undiscounted) |
|
|
Total cash outflows related to leases
Total cash outflows related to leases are presented in the table below:
|
Payment |
2025 |
2024 |
|
Right of use assets |
393,000 |
305,946 |
|
Interest |
27,700 |
17,100 |
|
Low value leases |
1,000 |
6,500 |
|
Short term leases |
3,000 |
150,855 |
|
Total cash outflow |
424,700 |
480,401 |
|
Trade and other payables |
|
2025 |
2024 |
|
|
Trade payables |
|
|
|
Accrued expenses |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
- |
|
|
Other payables |
|
- |
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £1,191,813 (2024 - £1,186,799).
Contributions totalling £Nil (2024 - £(
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Financial risk review |
IFRS 7, Financial Instruments: Disclosures, requires disclosure of the role which financial instruments have had during the period in creating or changing the risks KTN faces in undertaking its activities. Specifically: (a) the significance of financial instruments affecting financial position and performance; and (b) the nature and extent of risks arising from financial instruments to which it is exposed. Due to the largely non-trading nature of its activities and the way it is financed, KTN is not exposed to the degree of financial risk faced by businesses. Moreover, financial instruments play a limited role in creating or changing risk on its operational activities.
Receivables and creditor risk
Financial assets and liabilities are held at fair value. The fair value of KTN's financial assets and liabilities are equivalent to the carrying amount unless stated above. KTN has limited powers to borrow or invest funds; financial assets and liabilities are generated by day-to-day operational activities and are not held to change the risks facing in undertaking its activities.
Liquidity risk
KTN net revenue resource requirements are largely funded by the grant-in-aid from UKRI. The capital expenditure is also financed through the grant-in-aid. KTN is therefore not exposed to significant liquidity risks.
|
Foreign exchange risk |
Foreign currency risk arises when KTN enter into transactions denominated in a currency other than the functional currency.
|
Interest rate risk |
KTN has a low level of exposure to interest rate fluctuations; it does not actively seek to invest cash in money markets. Any excess funds held outside of the Government Banking Systems banking framework, and which could attract interest, are maintained in low level current accounting arrangements, as part of its banking arrangements with Barclays Bank PLC.
|
Related party transactions |
During the period to 31 March 2025 the company received grants from its parent company of £35,593,458 (2024: £29,570,992). As at the year end the total due to KTN from UKRI was £24,961 (2024: £2,453,503).
The accounts are also required to disclose transactions with those who are key management personnel as per IAS 24 'related parties'. This is taken to be those members of staff who include the Executive Directors and all KTN Board Members. During the year, no transactions with key management were entered into.
During the year KTN did not enter into any new awards or contracts funded by KTN where KTN board members are the principal investigator and made no payments in respect of funded awards of contacts to institutions where Executive Directors, Board members or their close family members were employed in the year.
Knowledge Transfer Network Limited
trading as Innovate UK Business Connect
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Parent and ultimate parent undertaking |
The ultimate controlling party is