DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 July 2025
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Statement of directors’ responsibilities |
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Independent auditor’s report to the members of UOL Services Ltd |
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Statement of changes in equity |
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Notes to the financial statements |
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ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Mr S Parkes (resigned 31 March 2025) |
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The directors present their report and financial statements of the company for the year ending 31 July 2025. The company is entitled to, and has adopted, certain exemptions in relation to disclosure requirements regarding a business review under section 417(a) of the Companies Act 2006.
The Company’s principal activity during the period was the supply of non-academic professional service and support staff to the University of Lincoln. There are no changes to the company’s activities anticipated for the foreseeable future.
The directors of the company during the year ended 31 July 2025 and up to the date of signing the financial statements are set out below:
Mr S Parkes (resigned 31 March 2025)
Political and charitable donations
The Company made no political donations nor incurred any political expenditure during the year (year ending 31 July 2024: £nil).
The Company made a charitable donation of £794,884 to the University of Lincoln during the year (year ending 31 July 2024: £901,157).
At the balance sheet date, the company had net assets of £236,012. The company is dependent on the continued financial support of its parent company, the University of Lincoln, to enable it to continue its operational activities. The University of Lincoln has indicated its willingness to continue to provide the necessary financial support to the company for the foreseeable future and for at least a period of 12 months from the date of approval of these financial statements. The University has provided the company a Deed of Support, which is legally binding, to provide ongoing certainty to this commitment. The financial statements have therefore been prepared on a going concern basis.
The average full time equivalent staff numbers is 579 (2024: 616). Staff costs in the year were £25,166,598 (year ending 31 July 2024: £25,237,660).
Disclosure of information to the auditor
Each of the persons who is a director at the date of approval of this report confirms that:
so far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware,
the directors have taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
KPMG LLP were appointed as auditor of the company on 29 July 2022.
Approved by the Board and signed on its behalf by:
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Statement of directors’ responsibilities in respect of the Directors’ report and the financial statements
The directors are responsible for preparing 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), 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 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 then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The directors present their strategic report of the company for the year ending 31 July 2025.
The Company’s principal activity during the year was the supply of non-academic professional service and support staff to the University of Lincoln.
Business review and Future Prospects
The Board believes that the financial statements present a fair, balanced and understandable summary of the company’s position and provides the information necessary to assess the company's performance. The company has continued to provide an important service to its ultimate parent, the University of Lincoln.
The company is dependent on the continued financial support of the University of Lincoln to enable it to continue its operational activities. The University of Lincoln has indicated its willingness to continue to provide the necessary financial support to the company for the foreseeable future. The University has provided the company a Deed of Support, which is legally binding, to provide ongoing certainty to this commitment
The directors expect that the present level of activity will be at least sustained in the foreseeable future and the company will continue as a going concern.
Key Performance indicators
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Turnover per staff employed £ |
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Principal risks and uncertainties
There are no significant risks or uncertainties facing the company.
The Strategic Report was approved by the Board of Directors and sign on its behalf:
INDEPENDENT AUDITOR’S REPORT TO
THE MEMBERS OF UOL SERVICES LIMITED
We have audited the financial statements of UoL Services Limited (“the Company”) for the year ended 31 July 2025 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and related notes, including the accounting policies in note 1.
In our opinion the financial statements:
give a true and fair view of the state of the Company’s affairs as at 31 July 2025 and of its profit for the year then ended;
have been properly prepared in accordance with UK accounting standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
; and
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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.
Fraud and breaches of laws and regulations - ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
Enquiring of directors and inspection of policy documentation as to the Company’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
Reading Board meeting minutes.
Using analytical procedures to identify any unusual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk that management may be in a position to make inappropriate accounting entries.
INDEPENDENT AUDITOR’S REPORT TO
THE MEMBERS OF UOL SERVICES LIMITED
On this audit we did not identify a fraud risk related to revenue recognition due to the non-complex revenue recognition criteria, which limits the opportunity to fraudulently manipulate revenue.
We did not identify any additional fraud risks.
In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the company-wide fraud risk management controls.
We also performed procedures including:
Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included unexpected postings to revenue accounts.
Identifying and responding to risks of material misstatement related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and management (as required by auditing standards), and from inspection of the company’s regulatory and legal correspondence and discussed with the directors and management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Whilst the company is subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
The directors are responsible for the directors’ report. Our opinion on the financial statements does not cover that report and we do not express an audit opinion thereon.
Our responsibility is to read the directors’ report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
we have not identified material misstatements in the directors’ report;
in our opinion the information given in that report for the financial year is consistent with the financial statements; and
in our opinion that report has been prepared in accordance with the Companies Act 2006.
INDEPENDENT AUDITOR’S REPORT TO
THE MEMBERS OF UOL SERVICES LIMITED
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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.
We have nothing to report in these respects.
Directors’ responsibilities
As explained more fully in their statement set out on page 4, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities.
The purpose of our audit work and to whom we owe our responsibilities
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.
Mark Dawson (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
FOR THE YEAR ENDED 31 JULY 2025
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Profit for the financial year attributable to the equity shareholders of the Company |
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All amounts relate to continuing operations.
The notes on pages 12 to 16 form part of these Financial Statements
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Equity shareholder's funds |
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The financial statements have been prepared in accordance with the provisions of FRS 102.
The accounts of UOL Services Limited (registered number 11035106) were approved by the Board of Directors and authorised for issue on 27 November 2025. They were signed on its behalf by:
The notes on pages 12 to 16 form part of these Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Total comprehensive income for the year |
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Surplus from the profit and loss account |
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Total comprehensive income for the year |
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Transactions with owners, recorded directly in equity |
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Total movements in equity |
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Balance as at 31 July 2024 |
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Total comprehensive income for the year |
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Surplus from the profit and loss account |
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Total comprehensive income for the year |
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Transactions with owners, recorded directly in equity |
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Total movements in equity |
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Balance as at 31 July 2025 |
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Share capital represents the nominal value of allotted and fully paid up ordinary share capital.
The profit and loss account represents cumulative profits or losses, net of gift aid paid.
The notes on pages 12 to 16 form part of these Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The following accounting policies have been applied consistently in the current period in dealing with items which are considered material in relation to the company’s financial statements.
General information and basis of accounting
UOL Services Limited (the “Company”) is a private company limited by shares and incorporated in the United Kingdom and domiciled in the UK.
These financial statements were prepared in accordance with Financial Reporting Standard 102
The Financial Reporting Standard
applicable in the UK and Republic of Ireland (“FRS 102”) as issued in March 2018. The presentation currency of these financial statements is pounds sterling.
The Company’s parent undertaking, the University of Lincoln, includes the Company in its consolidated financial statements. The consolidated financial statements of the University of Lincoln are available to the public and may be obtained from University of Lincoln, Brayford Pool, Lincoln, LN6 7TS. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:
Reconciliation of the number of shares outstanding from the beginning to end of the period,
Cash flow statement and related notes, and,
Key Management Personnel compensation.
As the consolidated financial statements of the University of Lincoln include the equivalent disclosures, the Company has also taken the exemptions under FRS 102 available in respect of the following disclosures:
The disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of the financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
Judgements made by the directors, in the application of these accounting policies that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 2.
The financial statements are prepared on the historical cost basis.
At the balance sheet date, the company had net assets of £236,012. The company is dependent on the continued financial support of its parent company, the University of Lincoln, to enable it to continue its operational activities. The University of Lincoln has indicated its willingness to continue to provide the necessary financial support to the company for the foreseeable future and for at least a period of 12 months from the date of approval of these financial statements. The University has provided the company a Deed of Support, which is legally binding, to provide ongoing certainty to this commitment. The financial statements have therefore been prepared on a going concern basis.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Accounting Policies (cont.)
Current taxes are based on the results shown in the financial statements and are calculated according to tax rates effective at the balance sheet date. Where possible all taxable profits of the company are paid under Gift Aid to the University of Lincoln subject to the company having sufficient reserves.
Where the payment of gift aid would result in the company reporting negative reserves, an apportionment is made between gift aid and an external tax liability.
The tax liability represents the sum of tax currently payable and is based on the taxable profit for the year after gift aid. The current liability for gift aid is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
The payment of taxation is deferred or accelerated because of timing differences between the treatment of certain items for accounting and taxation purposes. Full provision for deferred taxation is made under the liability method, on all timing differences that have arisen but not reversed by the balance sheet date.
Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.
Turnover represents the amounts, excluding value added tax and discounts, derived from the provision of services to customers and funding received from funders. Turnover on rendering of services and funding received is recognised when the service has been delivered and the company has performed its obligations under the relevant contract. Turnover arises wholly within the United Kingdom.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from their acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments.
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Accounting Policies (cont.)
Financial assets and liabilities are off-set and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Accounting estimates and judgements
In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets, liabilities, income and expenses.
The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are recoverability of debtors.
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Professional support staff services to the University of Lincoln |
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Profit before taxation as stated after charging: |
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Fees paid to the company’s auditor for audit services |
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The audit fee for the year was borne by the University of Lincoln, the body deemed by the directors to be the ultimate parent undertaking.
The average number of persons employed by the Company during the year, analysed by category was as follows:
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Professional support staff |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Staff numbers and costs (cont.)
The aggregate payroll costs of these persons were as follows:
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Staff restructuring costs |
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Directors' remuneration in the year amounted to £nil (2024: £nil).
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Total tax expense recognised in the profit and loss |
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UK corporation current tax charge on income for the |
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Origination and reversal of timing differences |
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Amounts falling due within one year: Accrued income |
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Amounts owed by the parent undertaking |
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Creditors: amounts falling due within one year
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Amounts owed to the parent undertaking |
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Other taxation and social security |
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Accruals and deferred income |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The company operates a defined contribution pension scheme. The total expense relating to the plan for the year was £1,859,838 (2024: £1,858,906).
The unpaid contributions at the year-end amounted to £151,546 (2024: £152,142).
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Allotted, called-up and fully paid: Ordinary shares of £1 each |
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The company is a wholly owned subsidiary of the University of Lincoln, a corporation set up in pursuance of the Education Reform Act 1988. The University of Lincoln is the ultimate holding company and is the only company in the group to prepare consolidated financial statements. Copies of the financial statements of the University of Lincoln may be obtained from the University of Lincoln, Brayford Pool, Lincoln, LN6 7TS.
Throughout the year the company has been controlled by the University of Lincoln.
Related party transactions
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Sales to University of Lincoln |
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Purchase from University of Lincoln |
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Gift aid paid to University of Lincoln |
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