|
Registered number:
FOR THE YEAR ENDED 30 JUNE 2026
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
COMPANY INFORMATION
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
CONTENTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2026
The Directors present their Strategic Report together with the audited financial statements for the year ended 30 June 2026.
OCLC (UK) Limited is a wholly owned subsidiary of OCLC EMEA BV, which operates out of the Netherlands as the European division of OCLC Inc, based in Dublin, Ohio, USA. OCLC (UK) Limited operates primarily in the UK and Ireland but also has a branch operation in Australia.
The principal activities of the Company revolve around the supply of IT solutions to the library industry, including but not limited to public, academic, national and health related libraries. The customer base serviced from the UK is spread across Europe, Australasia and the United States of America. Both Product Management and Software development functions continue to be co-ordinated globally but with UK resource heavily engaged in these key activities. More locally focused resource includes Sales, Operations and Support Functions engaged in meeting the requirements of library customers with the regions served. OCLC (UK) Limited continues to deliver to its customers from 2 offices in Sheffield, United Kingdom and Melbourne, Australia.
Currently OCLC serves the market with a mix of products and services for the library community. This can range from a locally hosted management system for the library through to the provision of metadata and discovery solutions for the library professional and patron. Increasingly there is a demand for the streamlining of content and service provision and typically that is being delivered via cloud based solutions. This requires OCLC to provide hardware and facilities to deliver such services via its own data centres which are strategically positioned throughout the world. OCLC is rapidly moving emphasis towards this approach as demand increases from libraries. The basis of OCLC's offering is typically on an annual subscriptions basis with professional service offerings packaged around that, as required by the customer depending on individuals requirements.
From an investment perspective, the OCLC global enterprise remains committed to future product development with continued heavy investment in developing software for libraries throughout the year. These activities remain fully harmonised with OCLC's global efforts to help libraries in their use of information technology. The UK operations play a key role in this activity with the Sheffield office being a key hub for OCLC globally in its latest software development efforts. The UK based operations are fully supportive of, and actively engaged in, supporting OCLC's global mission to provide libraries worldwide with the tools to meet the requirements of the end users. OCLC (UK) Limited supports the wider OCLC enterprise with more than 30 software developers and product managers engaged in the continued development of OCLC's suite of offerings for the library community. The latest software products are being successfully delivered into the UK and European market with a strong pipeline to build revenue growth in the coming year.
Page 1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2026
The Statement of Comprehensive Income shows a stability of revenues at £6.8m (2025 - £6.8m). A strategic decision was made to terminate older products to enable OCLC to focus on development and market growth of priority products leading to a migration of revenue within the business.
The overall healthy position of the business cash wise has been increased with the year end cash balance of £2.6m compared to £2.5m in the prior year. Cash generation is of course heavily dependent on the timing of subscription and annual support renewals. The Balance Sheet of the business shows net assets of £1.3m (2025 - net assets of £1.7m). The underlying operating profitability of the business, as set out in the Key Performance Indicators section, has been impacted in recent years by the product mix shifting in favour of global platform services which attract inter-company royalties. In the past few years the business has been striving towards revenue growth and appropriate cost management, noting that the sales of OCLC's global platform attract a transfer fee payable to the ultimate parent company. The underlying revenue mix has shifted towards solutions delivery in lieu of traditional product sales and the business has a clearly defined strategy moving forward to successfully target suitable libraries for OCLC's range of library solutions. The Company is aligned with OCLC's global vision of assisting libraries to manage their organisation effectively and reduce their unit costs. In line with this there continues to be significant expenditure in the UK (which is recharged to the ultimate parent company) on supporting OCLC's global activities in the areas of product management and software development, although this investment in reducing as the latest generation product approaches a stable market position.
The Directors are of the opinion that the following factors allow for the performance, position and development of the business to be measured effectively:
It can be seen that revenue is stable compared to the position at the year ended 2025, reflecting the continued strong performance of CloudLibrary supporting the reduction in revenue by legacy products. Operating margin has slightly increased as a result of this and due to sensible cost management. The revenues generated in the UK through sales of parent company products attract a significant transfer fee to OCLC Inc. and as such the operating margin remains heavily influenced by this. The level of expenditure incurred on OCLC global strategic investments remains significant and consistent.
As reported in previous years, the software requirements in the library and information industry continue to shift towards hosted services rather than locally installed systems, as well as using the web to enable libraries to manage their information effectively. OCLC (UK) Limited, as an integral component in the OCLC global strategy, has positioned itself well to respond to this change in market dynamics. The demand for host services continues to shift revenue streams from one off license to recurrent and there continues to be some challenges around the funding model for public libraries in the UK although OCLC (UK) Limited has customers across the different market segments including academic, special and corporate libraries.
The Company carries no commercial or third party debt and hence has no interest rate exposure.
Page 2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2026
There is an expectation that libraries of all types will continue to move towards more efficient workflows and practices in their use of software and that cloud based solutions will become more popular, not least because of the shared metadata and discoverability enhancement that this approach can bring. OCLC continues to be a valued partner for libraries worldwide in their mission to enhance access to the world's information in the most seamless and efficient fashion. This remains the core of OCLC's mission and purpose and close collaboration and support of the library community remains the guiding principle of the global co-operative. The UK operation remains a key focus for OCLC and growth potential exists with the markets currently served.
In August 2025, as part of a global strategic restructure, OCLC (UK) Ltd reduced headcount across it’s operation by 8 employees. This was to prepare for a low to medium risk to several major contracts across OCLC’s global business.
This report was approved by the board and signed on its behalf.
Page 3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2026
The Directors present their report and the financial statements for the year ended 30 June 2026.
The profit for the year, after taxation, amounted to £253,436 (2025 - £337,052).
During the year the Company paid dividends totalling £595,600 (2025 - £Nil).
The Directors who served during the year were:
Existence of branches of the company outside of the United Kingdom
The Company has a branch office located in Australia.
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report.
The Company is operationally interdependent with sister companies within the wider OCLC Group and has access to financial support from the ultimate parent. The Group has considerable financial resources, including a significant investment portfolio that serves as an endowment and which provides funding annually to support group operations and strategic initiatives. The returns obtained from this are as a matter of course subject to changes in the economic environment. The Directors have received written confirmation from the Company’s ultimate parent company that the ultimate parent will provide the operational support required to enable the Company to continue to trade as a going concern for a period of at least 12 months from the date of approval of the financial statements. Plans for financial year 2027 include continued support of OCLC's global initiatives. The 2027 planning process has factored in the challenges faced in the market due to current economic and inflationary pressures, and as such the control of expenses in line with the expected revenue levels has been a key consideration. The business continues to execute a focused country plan for the UK and Ireland region which provides a strategic and operational direction for growth of business in these regions. This is notably geared towards growth in the UK academic market to complement existing strengths in the UK region. After making enquiries, the Directors have reviewed the financial position of the Company, including consideration of the strength of the wider group of companies in differing economic environments and the consequential impact of this upon trading and financing. Following their review, the Directors have a reasonable expectation that the Company has the required resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
OCLC (UK) Limited recognises the importance of its environmental responsibilities and considers its impact on the environment, although this is relatively limited due to the nature of its operations. However, the Company has an environmental policy which is designed to minimise the Company's impact on the environment, including appropriate disposal of office waste, recycling and energy consumption.
Page 4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2026
The board remains committed to the Group's ongoing programme of software development to maintain current product leadership positions and meet the requirements of the expanding market at home and overseas.
Details of the numbers of employees and related costs can be found in note 7 to the financial statements.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.
Page 5
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2026
This report was approved by the board and signed on its behalf.
Page 6
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OCLC (UK) LIMITED
We have audited the financial statements of OCLC (UK) Limited (the 'Company') for the year ended 30 June 2026, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including 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 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.
Page 7
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OCLC (UK) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
Page 8
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OCLC (UK) LIMITED (CONTINUED)
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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual, potential or suspected litigation and claims, non-compliance with applicable laws and regulations and fraud;
∙Enquiry of entity staff in tax and compliance functions and internal advisors to identify any instances of non-compliance with laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
∙Discussions amongst engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
Page 9
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OCLC (UK) LIMITED (CONTINUED)
for and on behalf of MHA, Statutory Auditors
Leicester, United Kingdom
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
Page 10
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2026
Page 11
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
REGISTERED NUMBER: 00498573
BALANCE SHEET
AS AT 30 JUNE 2026
Page 12
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
REGISTERED NUMBER: 00498573
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2026
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 31 form part of these financial statements.
Page 13
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2026
Page 14
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
OCLC (UK) Limited (the "Company") is a private company limited by shares and is incorporated and domiciled in England and Wales under the Companies Act 2006. The principal activity of the Company is disclosed in the Strategic Report. The registered office of the Company is Citygate, 8 St. Mary's Gate, Sheffield, S1 4LW.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of OCLC Inc as at 30 June 2026 and these financial statements may be obtained from Kilgour PI, Dublin, Ohio 43017-3395.
Page 15
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report.
The Company is operationally interdependent with sister companies within the wider OCLC Group and has access to financial support from the ultimate parent. The Group has considerable financial resources, including a significant investment portfolio that serves as an endowment and which provides funding annually to support group operations and strategic initiatives. The returns obtained from this are as a matter of course subject to changes in the economic environment. The Directors have received written confirmation from the Company’s ultimate parent company that the ultimate parent will provide the operational support required to enable the Company to continue to trade as a going concern for a period of at least 12 months from the date of approval of the financial statements.
Plans for financial year 2027 include continued support of OCLC's global initiatives. The 2027 planning process has factored in the challenges faced in the market due to current economic and inflationary pressures, and as such the control of expenses in line with the expected revenue levels has been a key consideration. The business continues to execute a focused country plan for the UK and Ireland region which provides a strategic and operational direction for growth of business in these regions. This is notably geared towards growth in the UK academic market to complement existing strengths in the UK region.
After making enquiries, the Directors have reviewed the financial position of the Company, including consideration of the strength of the wider group of companies in differing economic environments and the consequential impact of this upon trading and financing. Following their review, the Directors have a reasonable expectation that the Company has the required resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Page 16
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The results of overseas branches are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Page 17
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
Page 18
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
Page 19
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
Estimates of useful economic life are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.
IP, concessions, patents, licenses and trademarks are included at cost and amortised in equal annual installments over a period of 7 years, which is their estimated useful economic life. Software is being amortised over a period of 2.5 years. Provision is made for any impairment. Amortisation is charged to administrative expenses.
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:
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.
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 Balance Sheet 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
Page 20
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
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 with 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 the Statement of Comprehensive Income.
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.
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 Statement of Comprehensive Income.
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.
Page 21
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
2.Accounting policies (continued)
Derecognition of financial instruments
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.
Page 22
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Impairment of tangible fixed assets Assets that are subject to depreciation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount, being the higher of fair value less costs to sell or value in use. (ii) Recoverability of trade debtors At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount of the receivable is reduced to its recoverable amount. The impairment loss is recognised immediately in the Statement of Comprehensive Income. (iii) Recognition of deferred tax assets A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. This relies on estimated future taxable profits for the Company.
Analysis of turnover by country of destination:
Page 23
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
Page 24
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
Page 25
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
There were no factors that may affect future tax charges.
Page 26
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
Page 27
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
Page 28
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
15.Debtors (continued)
Page 29
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension charge represents contributions payable by the Company to the fund and amounted to £309,835 (2025 - £311,511). Contributions totalling £60,834 (2025 - £54,674) were payable to the fund at the balance sheet date and are included in other creditors.
Page 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
OCLC (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2026
As at 30 June 2026, the immediate parent company was
The ultimate parent company and controlling party is
Copies of their consolidated financial statements can be obtained from the ultimate parent company's registered office, 6565 Kilgour PL, Dublin, Ohio 43017-3395.
Page 31
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||