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Registered number: 09174489
CORNERSTONE RESEARCH UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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CORNERSTONE RESEARCH UK LIMITED
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COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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CORNERSTONE RESEARCH UK LIMITED
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CONTENTS
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Independent Auditor's Report
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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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Notes to the Financial Statements
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CORNERSTONE RESEARCH UK LIMITED
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present the Strategic Report for the year ended 31 December 2025.
Company background and principal activities
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Cornerstone Research, U.K. (CRUK) is a wholly owned subsidiary of Cornerstone Research, Inc. (CR). CR is an international economics consulting firm, with more than 1,000 employees across 9 offices in North America and Europe. For over 35 years, CR has provided economic and financial analysis, litigation support, and expert testimony related services to clients and their counsel. CRUK, located in London, employs over 70 professionals.
Our CRUK operations cover multiple practice areas, including competition, mergers, finance, international arbitration, and general business disputes. CRUK’s clients span multiple industries including banking, technology, manufacturing, insurance, and transportation, among others. In these areas, we bring our core expertise in economics, finance, accounting, statistics, and data science to bear on legal issues such as collective actions, merits, and assessing quantum of damages, as well as regulatory proceedings and merger-related matters.
Our CRUK professionals have specialised skills and expertise in economics, finance, accounting, valuation, data analytics, transaction analysis, and quantum determination. CRUK professionals often work on client teams that include professionals across CR’s geographic footprint. We have supported and provided expert testimony in disputes across a variety of venues.
2025 was a period of growth for CRUK. Turnover increased from $35,434,772 in 2024 to $49,746,184 in 2025, representing a 40% annual growth. CRUK’s key strategic priorities in 2025 included:
•Expanding our headcount of professionals to meet the demands of our clients.
•Executing our client projects efficiently and effectively, with a core focus on the quality of our work.
•Expanding our London office and team of support staff to accommodate our growth.
•Assisting CR with launching operations in Belgium.
Key Performance Indicators (“KPI”)
CRUK assesses its performance by evaluating turnover, pre-tax income, headcount and net assets growth.
Looking forward, we have a positive outlook for CRUK. Our key strategic priorities for 2026 include:
•Maintain our relationships with key clients and law firms.
•Continue expanding our network of testifying experts.
•Continue to work seamlessly with professionals in North America and Belgium as needed to meet client demands.
•Successfully recruit additional qualified professionals to join our growing firm.
•Retain our talented group of consulting professionals and support staff.
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CORNERSTONE RESEARCH UK LIMITED
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal risks and challenges
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Competition risk: The market for the consulting services we provide and the market for the specialised professionals we employ remains highly competitive. We manage these risks by recruiting, training and developing our team of professionals and providing attractive compensation packages for our people. Our highly qualified case teams provide valuable and relevant consulting services to our clients.
Liquidity risk: CRUK works closely with CR to manage its cash and liquidity needs. Through profitable operations and ongoing financial support from CR, the company has sufficient liquid resources to meet the operating needs of the business. Financial operations and balances are reviewed and monitored by firm leadership throughout the year.
Credit risk: Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. Historical payment habits and client-specific considerations are included in our analysis. Balances with debtors are reviewed and monitored by firm leadership throughout the year.
In conclusion, 2025 was a successful year for CRUK, due to the collective efforts of our outstanding team of consulting professionals and support staff. Focusing on expertise, collaboration, and quality, we continued our successful expansion in the UK market.
This report was approved by the board and signed on its behalf.
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CORNERSTONE RESEARCH UK LIMITED
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The principal activity of the company is providing law firms with consulting services and economic research regarding issues encountered in litigation and regulatory proceedings.
The profit for the year, after taxation, amounted to $1,447,630 (2024: $2,720,636).
The directors did not recommend the payment of a dividend in the year (2024: $Nil).
The directors who served during the year, and up to the date of signing this report, were:
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A Aganin (appointed 1 January 2025)
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Directors' Responsibilities Statement
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The directors are responsible for preparing the Strategic Report, the Directors' 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law, including FRS 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 and profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; 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.
Qualifying third party indemnity provisions
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There are no qualifying third party indemnity provisions to disclose.
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CORNERSTONE RESEARCH UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors, in conjunction with the US parent entity Cornerstone Research Inc., have prepared forecasts on a group basis for a period from the date of the approval of these financial statements through June 2027 which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds through, in downside cases, funding from its immediate parent company, Cornerstone Research Inc., to meet its liabilities as they fall due for that period.
Those forecasts are dependent on Cornerstone Research Inc., providing additional financial support during that period. Cornerstone Research Inc. has indicated its intention to continue to make available such funds as are needed by the company for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue, although, at the date of the approval of these financial statements, they have no reason to believe it will not do so. The directors have assessed Cornerstone Research Inc.'s ability to support the UK entity if it was required and are satisfied that they would be able to provide this support based on the group forecasts prepared, and their expectations for the future financial performance of the group.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
There have been no significant events affecting the company since the reporting date.
Disclosure of information to auditor
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The directors confirm that:
∙so far as each director is aware, there is no relevant audit information of which the company's auditor is unaware; and
∙the directors have taken all the steps that they ought to have taken as directors 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 auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORNERSTONE RESEARCH UK LIMITED
We have audited the financial statements of Cornerstone Research UK Limited (the 'company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the 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 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 December 2025 and of its profit for the year then ended;
∙the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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's 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
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We are responsible for concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the directors' conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as such as inflationary increases, tariffs and the impact of ongoing global conflicts. We assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORNERSTONE RESEARCH UK LIMITED (CONTINUED)
Conclusions relating to going concern (continued)
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.
The other information comprises the information included in the Annual Report and financial statements, other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 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.
Opinions on other matters prescribed by the Companies Act 2006
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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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORNERSTONE RESEARCH UK LIMITED (CONTINUED)
Matter on which we are required to report under the Companies Act 2006
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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.
Matters on which we are required to report by exception
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.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORNERSTONE RESEARCH UK LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
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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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
∙We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud;
∙We corroborated the results of our enquiries to relevant supporting documentation;
∙The company is subject to many laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur: financial reporting legislation, tax legislation, anti-bribery legislation and employment law;
∙We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by meeting with management from relevant parts of the business to understand where management considered there was a susceptibility to fraud. This included the evaluation of the risk of management override of controls. Audit procedures performed by the engagement team included:
−evaluation of the programmes and controls established to address the risks related to irregularities and fraud;
−assessing any significant judgement or estimates within revenues or other areas of the financial statements;
−testing manual journal entries, in particular journal entries relating to management estimates and entries determined to be large or relating to unusual transactions;
−identifying and testing related party transactions.
∙These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CORNERSTONE RESEARCH UK LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements (continued)
∙The engagement lead assessed the appropriateness of the collective competence and capabilities of the engagement team including consideration of the engagement team's:
−understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation;
−knowledge of the industry in which the company operates; and
−understanding of the legal regulatory requirements specific to the company.
∙Team communications in respect of potential non-compliance with laws and regulations and fraud included the potential for fraud in revenue recognition through manipulation of accrued income from external customers.
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 Auditor's Report.
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.
Peter Gamson
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
21 April 2026
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CORNERSTONE RESEARCH UK LIMITED
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
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There was no other comprehensive income for 2025 (2024: $Nil).
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The notes on pages 15 to 30 form part of these financial statements.
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CORNERSTONE RESEARCH UK LIMITED
REGISTERED NUMBER:09174489
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
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Debtors: Due after more than one year
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Debtors: Due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 30 form part of these financial statements.
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CORNERSTONE RESEARCH UK LIMITED
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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Comprehensive income for the year
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Comprehensive income for the year
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CORNERSTONE RESEARCH UK LIMITED
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Allowance for doubtful debt
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Provision for credit losses
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Unrealised exchange differences
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(Increase) in debtors: due within one year
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Decrease/(increase) in debtors: due after more than one year
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Increase in creditors: amounts falling due within one year
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Increase in creditors: amounts falling due after more than one year
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Decrease - Long-term deposit
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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CORNERSTONE RESEARCH UK LIMITED
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STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Cash flows from financing activities
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Loans from group companies received
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Loans from group companies repaid
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 15 to 30 form part of these financial statements.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Cornerstone Research UK Limited is a private company limited by shares, incorporated in England and Wales. Its registered number is 09174489, and its registered head office is located at 5th Floor, 4 More London Riverside, London SE12 2AU.
2.Accounting policies
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Basis of preparation of financial statements
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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 judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The directors, in conjunction with the US parent entity Cornerstone Research Inc., have prepared forecasts on a group basis for a period from the date of the approval of these financial statements through June 2027 which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds through, in downside cases, funding from its immediate parent company, Cornerstone Research Inc., to meet its liabilities as they fall due for that period.
Those forecasts are dependent on Cornerstone Research Inc., providing additional financial support during that period. Cornerstone Research Inc. has indicated its intention to continue to make available such funds as are needed by the company for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue, although, at the date of the approval of these financial statements, they have no reason to believe it will not do so. The directors have assessed Cornerstone Research Inc.'s ability to support the UK entity if it was required and are satisfied that they would be able to provide this support based on the group forecasts prepared, and their expectations for the future financial performance of the group.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is USD and all values are rounded to the nearest dollar ($) except when otherwise stated.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Foreign currency translation (continued)
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Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is on a time and material basis, in line with the agreed customer contracts.
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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 the Statement of Comprehensive Income 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.
Interest income is recognised in profit or loss using the effective interest method.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Finance costs are charged to the Statement of Comprehensive Income 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.
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Current and deferred taxation
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The tax on profit for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except for a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity.
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.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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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 the Statement of Comprehensive Income.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its 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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due within the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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Share Equivalent Appreciation Rights
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The company grants appreciation rights (SEARs) to certain employees. The terms specify granted rights to receive compensation based on the increase in value of the group company’s stock. The rights are fully vested upon grant, mature over a period of ten years, and are settled over an extended period covering multiple years.
The company accounts for SEARs as another long-term employee benefit in accordance with FRS 102 s.28 Employee Benefits and recorded the present value of the benefit obligation at 31 December 2025.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect in the financial statements, when, and if, better information is obtained.
Critical judgements and estimates that management have made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognised in the financial statements relate to the following:
Estimates
The company operates an annual bonus plan for employees. An expense is recognised in the Statement of Comprehensive Income when the company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made. Further, the company pays officers bonuses based on the company’s performance, individual performances, and available funds. The actual allocation and final bonus amount calculation for the officers is completed in June of each year when the company has final distributable net income. At year end 31 December 2025 the company booked the best estimate available at this time for the officers’ bonus accrual to be paid out in 2026. The amount to be paid is not going to be finalised and approved by the board until summer of 2026, and as such, the bonus accrual contains a high level of estimation uncertainty.
The company grants appreciation rights (SEARs) to certain employees. The company accounts for the SEARs as another long-term employee benefit, as disclosed in Note 2.13, and records the liability at the present value of the benefit obligation at the reporting date. The valuation of the SEARs is dependent on a growth rate estimate. This estimate is considered a key source of estimation uncertainty; changes in the assumed growth rate could lead to a material adjustment to the recognised liability.
Judgements
In the process of preparing the financial statements, no significant judgements were applied.
The turnover and profit before tax are attributable to the principal activities of the company. An analysis of turnover is given below:
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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The operating profit is stated after charging/(crediting):
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Depreciation of tangible assets
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Other operating lease rentals
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During the year, the company obtained the following services from the company's auditor:
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Fees payable to the company's auditor in respect of:
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Audit of the financial statements of the company
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Taxation compliance services
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Preparation of financial statements
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Staff costs, including directors' remuneration, were as follows:
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
7.Employees (continued)
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The average monthly number of employees, including the directors, during the year was as follows:
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Key management personnel includes the directors. Total key management personnel compensation was $1,357,299 (2024: $760,038).
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The highest paid director received remuneration of $1,357,299 (2024: $760,038).
The director is a US employee. The $1,357,299 represents compensation allocated to the UK. He does not receive pension benefits from the UK given he is a US employee receiving US benefits.
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Other interest receivable
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Current tax on profits for the year
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Adjustment in respect of prior periods
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Origination and reversal of timing differences
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Adjustment in respect of prior periods
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of25% (2024:25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024: 25%)
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Expenses not deductible for tax purposes
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
For the current financial year the tax rate is 25%. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Charge for the year on owned assets
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Due after more than one year
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Prepayments and accrued income
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Amounts owed by group undertakings
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Amounts recoverable on long-term contracts
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Prepayments and accrued income
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Trade debtors are stated after provisions for impairment of $2,109,129 (2024: $Nil). The increase in provisions is due to a specific bad debt which arose during the current period. The process for reviewing
provisions remains unchanged in 2025.
Within other debtors is $1,347,000 pertaining to short-term loans payable to the company.
Amounts owed by group undertakings are non-interest bearing, unsecured and repayable on demand.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Creditors: amounts falling due within one year
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Other taxation and social security
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Amounts owed to group undertakings
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Incentive and other compensation payable
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Amounts owed to group undertakings are non-interest bearing, unsecured and repayable on demand.
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Creditors: amounts falling due after more than one year
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Incentive and other compensation payable
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The company had issued five promissory notes to three of its employees. Principal is due in full in 10 years after the date of issuance and the notes pay 10% interest per annum. The Other loans balance represents the present value of the promissory notes at 31 December 2025, and is comprised of the following:
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Issued September 26, 2024
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Amounts falling due within the next 10 years:
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Deferred tax charged in the Profit and Loss account for the period
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Adjustment in respect of prior periods
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Short-term timing differences
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The net deferred tax asset is estimated to reverse in 2026 by $341,719. This relates to the reduction in timing differences arising on capital allowances offset by the expected tax deductions arising in respect of employer's pension contributions and forgiven employee loans when the amounts are recognized in the future.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Allotted, called up and fully paid
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2 (2024: 2) Ordinary shares of $1.00 each
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There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
The company's capital and reserves are as follows:
Share capital
Represents the nominal value of shares that have been issued.
Profit and loss account
Includes all current & prior periods retained profits & losses.
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At the reporting date the company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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Capital commitments for 2024 relate to the outstanding payable for a UK office build. This occurred in December 2024.
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CORNERSTONE RESEARCH UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to $800,226 (2024: $525,136). Contributions liability totalling $16,398 (2024: $6,491) is payable to the fund at the reporting date and is included in creditors.
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Commitments under operating leases
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At the reporting date the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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In September 2025, the company entered into a new lease which will commence in May 2026.
The above amounts and timings are based on management's best estimate that they will remain as occupier for the full lease term.
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Share appreciation rights
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The company had granted share appreciation rights to three of its employees. The terms specify that the employees are granted rights to receive remuneration, equal to the value of the increase in the share price of the parent company, Cornerstone Research Inc. over a specified period.
These rights vest immediately, but mature over a predetermined period, after which they are settled over a similar period, which is expected to be multiple years.
During the year an expense of $1,875,891 (2024: $884,871) was recognised in respect of share appreciation rights.
The company accounts for the SEARs as another long-term employee benefit, as disclosed in Note 2.13, and records the liability at the present value of the benefit obligation at the reporting date. The liability arising in respect of the SEARs is presented within 'Creditors: amounts falling due after more than one year' on the Statement of Financial Position.
The valuation of the SEARs is dependent on a growth rate estimate. This estimate is considered a key source of estimation uncertainty; changes in the assumed growth rate could lead to a material adjustment to the recognised liability.
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CORNERSTONE RESEARCH UK LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
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Related party transactions
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In 2025, the company owed $3,177,027 in loan notes to three officers, up from $1,491,698 owed to three officers in 2024. These loans are subject to an annual interest rate of 10% and are set to mature in 2032, 2033, 2034, and 2035.
During the year ended 31 December 2025, revenues in the amount of 19,804,487 were derived from Cornerstone Research Inc., the parent of the company (2024: $20,188,879).
At year end 31 December 2025, the company had a payable to Cornerstone Research Belgium and Cornerstone Research, Inc. in the amount of $736,393 (2024: receivable of $561,838) and $6,884,220 (2024: $1,538,198), respectively.
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There have been no significant events affecting the company since the reporting date.
The ultimate parent of the company is Cornerstone Research Inc., a company incorporated in the United States of America. Cornerstone Research Inc. prepares consolidated accounts which include Cornerstone Research UK Limited. The registered address of Cornerstone Research Inc. is Two Embarcadero Center, 20th Floor, San Francisco, CA 94111-3922.
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