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Annual Report and Financial Statementsfor the year ended 31 March 2019

United Kingdom Accreditation Service

2 UKAS – A company limited by guarantee

United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Company Information

Company information

Directors

Registered number

Registered office

Independent auditors

Lord Lindsay

Paul Stennett (resigned 31 August 2018)

Matthew Gantley (appointed 16 October 2018)

Sir Duncan Nichol

Professor Michael Mainelli

Georgia Alsop

Jeffrey Ruddle

Lorraine Turner

Sarah Veale

Jeffrey Llewellyn

Professor Adrian Newland

03076190

2 Pine Trees

Chertsey Lane

Staines Upon Thames

Middlesex

TW18 3HR

Feltons1 The Green Richmond SurreyTW9 1PL

3UKAS – A company limited by guarantee

United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Contents

Contents

Page

Performance at a glance 4

Chairman’s report 5

Chief Executive’s report 6

Financial review 9

Group strategic report 10

Directors’ report 12

Overview of our strategy 14

Independent auditors’ report 17

Consolidated statement of comprehensive income 20

Consolidated balance sheet 21

Company balance sheet 22

Consolidated statement of changes in equity 23

Company statement of changes in equity 25

Consolidated statement of cash flows 27

Notes to the financial statements 28

United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Performance at a glance

Performance at a glance

Financial highlights:

Financial summary for 2018/19

(£m) (£m)

2018/19 2017/18

Turnover 33.3 30.4

Cost of Sales 20.5 20.4

Gross Profit 12.8 10.0

Administrative expenses 10.0 9.0

Operating Profit 2.9 1.0

Profit after taxation 2.4 0.9

Business highlights:

� Matt Gantley appointed as the new CEO for UKAS on 16th October 2018

� UKAS continues to work closely with all relevant UK government departments to ensure that the importance of the continuing mutual recognition of accredited conformity assessment is factored into all future trade deals with the EU and beyond.

� The Hackitt Review report acknowledges that accreditation has a key role to play in assuring the competence across many, if not all, of the disciplines involved and UKAS is in close contact with MHCLG, the steering group and many of the working groups to ensure that the benefits and use of accreditation are fully understood

� UK’s first Grant of Accreditation for Certification of Anti-Bribery Management Systems

� UKAS granted accreditation to the 60th customer for the IQIPS programme.

� Customer webinar launched to help provide an understanding of the ISO/IEC 17025:2017 transition process

30,830Assessment days

delivered

3,221Number of

accreditations held

2,682Number of

accredited customers

400,000searches for an

accredited organisation

738delegates attended UKAS

courses

1,545Number of ETSapplications

115New customers

10,636Followers onsocial media

40Net promoter score

(as of Aug 19)


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Chairman’s report

Chairman’s report 2019


It has been another busy and record-breaking year for UKAS.

We have continued to grow and develop our long-established involvement in areas such as environmentalmanagement, diagnostic services in hospitals, food safety and forensics.

Other important activities this year have included our work with MHCLG and partners in following upon Dame Judith Hackitt’s Review of Building Regulations following the Grenfell tragedy. UKAS has beenan active member of many of the working groups and the Competence Steering Group, which hasidentified accreditation as being part of the solution to improving the competence of those involvedin the design, approval, construction and maintenance of buildings.

UKAS has also become involved in newer areas – such as the voluntary sector, green finance, drones,data protection, cybersecurity, private parking and halal food – and our development pipeline is asbusy as ever with numerous projects exploring diverse opportunities where accreditation could play animportant role in providing assurance and confidence.

Probably our most important new focus, and one that is likely to remain so for the foreseeable future,is on the emerging digital, data-driven and automated technologies that some refer to as the FourthIndustrial Revolution. The internet of things and artificial intelligence are just two aspects of this innovative and fast-moving space. The Government has asked UKAS, BSI and NPL – as the three pillarsof the UK’s National Quality Infrastructure – to formulate a collective vision on the role that standardsunderpinned by accreditation could play in an agile, responsive and innovative regulatory frameworkthat is fit-for-purpose for the Fourth Industrial Revolution.

Brexit of course continues to be high on the agenda in our ever-important relationship with Governmentand we value the regular and constructive discussions with Ministers and officials in the Departmentsfor Business, Energy and Industrial Strategy, Exiting the EU and International Trade.

Accreditation will be a key component of the UK’s future trading arrangements and UKAS will continueto play a leading and influential role in the European and international accreditation arenas. We alsoremain committed to our current programme of supporting the development of overseas accreditationbodies and providing assistance to the growth of national and regional quality infrastructures elsewherein the world.

I am delighted that the succession from Paul Stennett to Matt Gantley as Chief Executive has gonesmoothly and successfully. The contribution that Matt has already made in building on Paul’s legacy isample proof of the track-record that he earned for delivering productivity and sustained growth duringhis 20 years’ experience in the conformity assessment sector.

Finally, on behalf of the Board, I should express thanks to all our staff, and to our Members and otherstakeholders for their valuable input to the Policy Advisory Forum and Council, our technical committeesand other governance mechanisms. I must also express especial thanks to the advice and support thatwe receive from our sponsor department, the Department for Business, Energy and Industrial Strategy.

Lord Jamie LindsayChairman


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Chief Executive’s report

Chief Executive’s report

In my first year as Chief Executive, I am pleased to report that 2018/19 marked a successful year forUKAS, as we drove forward improvements in operational performance and longer-term strategic development. Growth in core schemes was matched with productivity gains that delivered improvedprofitability, presenting the opportunity to reinvest in long-term service improvement. Our focus wasalso directed to improving customer service, maintaining the highest technical integrity as well as raising the profile and influence of UKAS with Government and Stakeholders.

To ensure longer-term success and sustainability we have set out a clear strategic vision with eightstrategic priorities. We have established clear objectives and balanced score card KPIs to keep track ofperformance over the coming years and to ensure we balance the need for efficiency and effectivenesswith our broader public service remit. With the establishment of a new dedicated Strategic DevelopmentDirector we have the tools to ensure progressive delivery of our goals and major change initiatives.

Review of 2018/19 and Outlook for 2019/2020

My career in the Conformity Assessment sector has equipped me with a deep appreciation of thevalue of Accreditation to deliver confidence in the products and services we depend upon in businessand as consumers. Through Mutual Recognition Agreements, Accreditation underpins internationaltrade and ensures that for increasingly complex supply chains “tested once and accepted everywhere”minimises disruption whilst assuring quality and safety. Accreditation augments the role of Government andRegulators across a broad spectrum of fields including healthcare, building safety and environmentalprotection. It is therefore vital that UKAS works to promote the value of accredited testing, inspectionand certification. In the last year we have undertaken an ambitious Marketing and Stakeholder Engagement programme and going forward our strategy points toward further investment into ourprofile and influence. To this end, we have recruited a Commercial Director and an External Affairs Director, as well as commissioning external research on the value and impact of accreditation. This willsupport greater understanding and adoption of Accreditation nationally and globally.

Under the sponsorship and guidance of the Department for Business, Energy and Industrial Strategy(BEIS), UKAS is appointed the UK’s sole National Accreditation Body (NAB). This provides us with themandate to make certain that accredited Conformity Assessment maintains the highest levels of integrity, competence and consistency. Feedback from our stakeholder and customer surveys continues to highlight the strength of the UKAS brand in the UK and in key growth economies, such asthe Middle East, China, India and Japan. This reflects the high quality and reach of the UK’s conformityassessment sector. To help promote and differentiate accredited certification in the UK and abroad, inthe last year we have established the foundations of projects including a new Certificate VerificationDatabase and improved social media engagement.

Our NAB remit requires us to deliver our services to the highest technical standards whist being self-financing, cost-efficient and customer-centric. As such, we have established a new customer service feedback system and have set a high net promoter score benchmark (50), which on currenttrends will be achieved by early 2020. Across our schemes, clients refer to the competence and professionalism of our Assessors, and we have now established Service Excellence Plans to ensure thatall aspects of our services reach a high standard.



Furthermore, UKAS continues to set a high benchmark in terms of the level and quality of stakeholderengagement. In keeping with prior years, we have received vital technical input and strategic insightfrom stakeholders on our Technical Advisory Committees, Policy Advisory Committee and the annualPolicy Advisory Forum. We are very grateful for the calibre of expertise that we draw upon which helpsto ensure we are focused on emerging trends and best practice across our range of services. On aglobal level, we have continued to remain an active contributor to the development of internationalaccreditation through our membership of EA, IAF and ILAC. Moreover, we have supported several keyglobal institutions such as ISO, WADA, World Bank and Unido throughout the year with research andcommittee work. Going forward our commitment to international engagement remains strong andwe are committed to retaining our status as a world leader in accreditation and our membership position in EA post-Brexit.

Accreditation is also part of the UK’s National Quality Infrastructure (NQI). Together with BSI, NPL andNMRO, we have strengthened our collaboration to help promote the importance of standards, accreditedconformity assessment and metrology to support trade and the delivery of Government Policy. For example, we are supporting BSI with the delivery of the Commonwealth Standards Network programme(a DFID Funded programme to improve the quality infrastructure of developing Commonwealth nations).Recognising our collective NQI role, UKAS has been invited by Government to play a proactive part in thedevelopment of standards and regulation to meet the challenges of the ‘Fourth Industrial Revolution’.

The impact and application of the ‘Fourth Industrial Revolution’ to our daily lives and work has becomeincreasingly clear and vital. We have started to actively monitor technological advancements includingAI, the Internet of Things (IoT), drones, cybersecurity and blockchain for their implications to accreditedconformity assessment. Moreover, the publication of ISO/IEC 17029 in 2019 presents a major development in accreditation and its application for the validation and verification of data and claims,which are critical to delivering trust and confidence in new digital economies. We have also continuedto invest in our own core IT systems including the delivery of a new ERP System (completed August2019), a Customer Portal and a digital reporting system. These investments will improve productivityand our interface with clients.

To match the increasingly uncertain nature of our business environment, in 2018/19 we have augmentedour Risk Management process to identify and mitigate risk at the earliest opportunity. The impact ofBrexit and future trade deals remain the most significant risk to UKAS. We have remained close to BEIS,DIT and other key departments to advise on technical matters relating to Conformity Assessment andNotified Body Accreditation. We have been proactive in communicating with customers impacted byexiting the EU and have supported their application for accreditation with EU NABs. At the point of exiting the EU, UKAS is ready to effectively roll out the proposed UK Conformity Assessment Mark ifnecessary.

As a professional services firm with over 265 staff (and over 700 external Technical Assessors), talentdevelopment and employee engagement are crucial to our success. In October 2018, we conductedour largest ever staff engagement study including leadership/management effectiveness, individualand team performance, learning and development and reward/recognition. The study demonstratedthat we have a loyal and committed workforce, but also highlighted that we can improve our inductionprocess, reward and recognition and overall performance-management skills. We have developed a newframework for delivering a “Culture by Design” which builds upon our PRIDE values (Professionalism,



Chief Executive’s report continued

Responsibility, Innovation, Delivery and Excellence) and our new staff-driven Behavioural Commitment(Collaborative, Constructive and Consistent) to include stronger emphasis on leadership skills, teammotivation and both a collective and individual learning mindset.

2018/19 was a very busy period for new service development, with over 40 live developments for newareas of accreditation. Our development team has been actively engaged with a broad spectrum ofStakeholders to develop schemes such as Building Information Modelling (BIM), Point of Care Testing,Biobanks, NCVO Trusted Charity Standard and Sexual Assault Referral Centres. Our team is also activelydeveloping schemes relating to digital security, GDPR, Blockchain (DLT), AI and drone technology. Wehave also dedicated our best technical expertise and resource to support the Competence SteeringGroups resulting from the Independent Review of Building Regulations and Fire Safety after the GrenfellTower fire. We will continue to prioritise this vital work and form close partnerships within the Construction Industry to ensure the competence of personnel involved with High Risk Residential Building (HRRBs). Going forward, we are confident that this range of projects will provide a long-termplatform for the evolution of accreditation in the long-term as a tool to deliver confidence.

In terms of financial performance, Consolidated Turnover for the business grew by 9% in 2018/19 to£33.3M, ahead of budget. This was driven by a 4% overall increase in the delivery of assessment daysto 30,830 days, from 29,725 last year. Growth in assessment days was positive across core areas of thebusiness including Healthcare Services, which was lifted through the final transition assessments of clients,from the former CPA standard to ISO15189 accreditation. The activities of CPA have now ceased, andall Health and Social Care Services are under the direct remit of UKAS Accreditation. This is testamentto the hard work of our Assessment Team, clients and Clinical Stakeholders during this critical transition.

Gross Profitability also increased to 39% from 33% in 2017/18. This was delivered largely through improved assessor utilisation and productivity. Profit increased to £2.4M from £0.9M in 2017/18.

Going forward, with a strong development pipeline, increased focus on forward planning and a robustcommercial process we are set to deliver a minimum average growth of 5% annually over the nextthree years. In 2019/20, total days delivered are projected to grow to 33,360 compared to 30,830days in 2018/19 resulting in an 8% growth rate. This projected growth is supported by additional daysbeing delivered for the ISO 17025 transition, medical laboratory assessments and an improved processfor witnessed assessments for inspection and certification bodies.

As a closing note, I would like to express my thanks to Paul Stennett for his mentorship and advice inmy early months. During his time as CEO, UKAS became a global leader in Accreditation. Over thecoming years, we will cement this position and ensure that UKAS continues to be recognised as amajor partner for Government and Regulators as well as being acclaimed for its technical excellence,agile service development and pragmatic customer centric approach in this rapidly evolving world.

Matt GantleyChief Executive


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Financial review

Financial review

During 2019 the UKAS group performed well, delivering 30,830 assessment days to customers, resulting in 4% business growth year on year which was largely attributable to increased surveillance inHealthcare, following the transition of Medical Laboratories to the relevant international standard. Year on year business growth was boosted by a healthy stream of extensions to scope from existingcustomers and increased levels of witnessed assessments relating to certification and inspection bodyactivities.

Group turnover for the year ending 31 March 2019 increased to £33.3m compared to £30.4m in theprevious year, a year on year increase of 9%.

Group profit after tax of £2.4m for the year ending 31 March 2019 was 166% higher year on year dueto the previous year results adversely impacted by pension liability adjustments, as measured under accounting standard FRS102. Gross profit margin of 38.5% returned to the longer-term trend for thebusiness having dropped to 32.9% in the previous year, reflecting increases in productivity across allbusiness areas, support and field staff.

The Group continued to contain underlying costs whilst also investing in important infrastructure projects such as a new enterprise wide cloud-based business system which was implemented in August 2019. The development of a customer and contractor portal is also under way and implementation is now expected early in 2020.

Profit and loss reserves of £13,247k are positive and include a £1,483k long term pension asset, relating to the company’s defined benefit pension scheme, which was fully funded, even on a prudent basis, at the last actuarial valuation as at 31 March 2018. The Group aims to hold threemonths turnover as reserves and as at 31 March 2019 the Group exceeded this target.

The Group’s liquidity position as at 31 March 2019 remained strong with its current asset ratio retainedat a healthy 2.7.

UKAS, along with other companies with 250 and more employees, was required to report its gendergap in April 2019, reflecting a snap shot of the position as at 4 April 2018. UKAS reported a 11.8% gender median gap in favour of men compared to a 11.7% gap recorded on average by all the companies that were required to report. UKAS has a lower gender gap compared to the main sectorsthat it recruits from, namely the Professional & Scientific and Construction sectors which have, on average, a median gender gap of 18% and 26% respectively. At UKAS, women make up 40% of themiddle to director level jobs and 88% of administrative support roles and this is the main reason forthe gender pay gap. Diversity and gender parity will remain a key aim at UKAS.

Georgia AlsopFinance and Corporate Services Director

United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Group strategic report

Group strategic report for the year ended 31 March 2019

Introduction

The principal activity of the Group in the year under review was that of being the sole national accreditation body recognised by government to assess, against internationally agreed standards, organisations that provide certification, testing, inspection and calibration services.

The Group is a non-profit-distributing private company, limited by guarantee. The Group is independentof Government but is appointed as a national accreditation body by Accreditation Regulations 2009 (SI No 3155/ 2009) and the EU Regulation (EC) 765/2008 and operates under a Memorandum of Understanding with the Government through the Secretary of State for Business, Energy and IndustrialStrategy (BEIS). UKAS is licensed by BEIS to use and confer the national accreditation symbols (formerlynational accreditation marks) which symbolise Government recognition of the accreditation process.

Business review

The results for the group are set out on page 20. These financial statements reflect the trading activities and results of both United Kingdom Accreditation Service (UKAS) and Clinical Pathology Accreditation (UK) Limited (CPA).

The Group expects to continue to grow in most areas of the business, with work in forensic laboratoriesand the health sector, in areas such as physiological diagnostics, spearheading this growth. Our focus remains on ensuring that we continue to create the capability to respond to the ever increasing demand for accreditation schemes by a wide range of sectors and to that end, we plan to continue toinvest in the development of our infrastructure and people.

Principal risks and uncertainties

The Directors have applied judgements, based on expert advice, in relation to assessing the position ofthe Defined Benefit Pension Scheme. There are no other matters concerning financial risk which arematerial for the assessment of the assets, liabilities, financial position and profit or loss of the company.

Financial key performance indicators

The integrated group has achieved an operating profit of £2,890,625 (2018: £1,022,595) and a groupgross margin of 38.5% (2018: 32.9%).

The financial performance this year was positive and the group continues to be profitable. In monetaryterms turnover was up 9.44%. The group’s balance sheet continues to show a healthy current ratio of current assets to short term creditors of 2.66 times (2018: 2.77 times).



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Group strategic report

Group strategic report for the year ended 31 March 2019 continued

Other key performance indicators

The group continues to report internally on a series of Key Performance Indicators such as the numberof days of assessment delivered, the number of customers visited and the efficiency and effectivenessof the service. In addition to this, the company constantly surveys its customer base to ensure that thequality of service is maintained at the highest levels. The year to March 2019, the company delivered30,830 (2018: 29,725) days of accreditation, including CPA. The directors attribute this continuedgrowth to the effects the company’s ongoing campaign to raise the awareness of the benefits of accreditation within government and amongst consumers.

This report was approved by the board on 16th July 2019 and signed on its behalf.



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Directors’ report

The directors present their report and the financial statements for the year ended 31 March 2019.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and theconsolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under thatlaw the directors have elected to prepare the financial statements in accordance with applicable lawand United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice),including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK andRepublic 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 andthe Group and of the profit or loss of the Group for that period.

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

� select suitable accounting policies for the Group's financial statements and then apply them consistently;

� make judgments and accounting estimates that are reasonable and prudent;

� prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show andexplain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statementscomply with the Companies Act 2006. They are also responsible for safeguarding the assets of theCompany and the Group and hence for taking reasonable steps for the prevention and detection offraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,357,277 (2018 - £866,102).

As the company is non-profit distributing, the Directors do not propose a dividend (2018: £Nil).

Directors’ report for the year ended 31 March 2019



The directors who served during the year were:

Lord LindsayPaul Stennett (resigned 31 August 2018) Matthew Gantley (appointed 16 October 2018) Sir Duncan NicholProfessor Michael MainelliGeorgia Alsop Jeffrey Ruddle Lorraine Turner Sarah Veale Jeffrey LlewellynProfessor Adrian Newland

Future developments and overview of our strategy: 2019 to 2021

Over the period from 2019 to 2021, UKAS plans to continue to be outward looking, safeguarding its independence and technical rigour whilst at the same time increasing its profile and influence, promoting service innovation using technology and developing its talented people to deliver sustainablegrowth and balanced long- term performance.

More specifically, UKAS plans are shown on the next two pages:


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Overview of our strategy

Following an extensive consultation and strategic review exercise, conducted during 2018, we have established our Strategic Plan for the business which is broken down into eight strategic priorities (illustrated below). Our strategic plan has a three-year horizon and will be reviewed and revised on anannual basis, continually looking toward a three-year outlook.

Our eight strategic priorities are:

� Benchmarking � To be outward looking and actively engaged in activities that enable us to compare our policy and performance against the best in class, be that with a financial operational, technical, customer service or quality perspective; to ultimately improve the service we deliver to stakeholders and customers. � Innovation and Technology � To enable a culture of innovation and technology adoption that allows us to improve our consistency and productivity and places UKAS at the forefront of assessment and accreditation services. � Agile Service Development � To develop new innovative accreditation services, simplify standards transitions and evolve our core processes to ensure they are responsive to a rapidly changing environment whilst ensuring they provide long-term public benefit, stakeholder value and sustainable financial return. � Profile and Influence � To maintain and enhance UKAS’s reputation both nationally and internationally thereby ensuring we can effectively influence accreditation issues that affect; ourselves, our customers and our stakeholders.

Overview of our strategy: 2019 to 2021


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Overview of our strategy

� Sustainable Growth � Targeted and focused commercial growth for UK and International Accreditation Services, Training and Advisory and Service Development. � Financial Stability and Productivity � To deliver prudent financial performance which supports continued investment in our services to ensure they are efficient, effective and deliver broad stakeholder value, whilst maintaining our integrity and technical capability as a world class accreditation body. � Quality and Technical Excellence � Maintain and enhance UKAS’s quality and technical systems to support the delivery of a world class accreditation service. � Talent Development � Foster a culture that encourages continuous learning, collaboration and growth and align our workforce to the strategic aims and values of the business and develop the talent and technical excellence, capable of delivering a world class accreditation service.

The strategic review which has allowed UKAS to arrive at these eight strategic priorities has consideredmany factors including, amongst other factors: feedback from our staff, customers and stakeholders;comparison of UKAS services with our peers and competitors; the environment in which UKAS and accreditation operates and the risks currently present to the business. This has allowed us to identifyour key strengths and those areas in need of improvement. Our strategy to deliver world leading accreditation services is therefore centred on making the most of our key strengths and addressingthe areas in need of improvement.

In the short to medium term a focus of the strategy is to improve and enhance the delivery of UKAS’sassessment services, modernising several of our services and improving our digital and online offeringsto our customers and stakeholders. Highlights of this area of the strategy include:

� Delivery of a customer and assessor portal; � Flexible training options supported by online delivery; � A risk-based approach to assessments; � Technology to improve assessment efficiency and support remote assessments and � An online database of certificates issued by UKAS Accredited CABs

Also, in the short term the current uncertainty around BREXIT presents a need for UKAS to maintainour profile and influence both at home – with UK Government and stakeholders and internationally –with the wider international accreditation community. We feel that this is vital to ensuring that UKAS accreditation continues to provide value to our customers and stakeholders. Our strategy will help toensure that UKAS has the right resources focused in the rights areas to ensure that we maintain andbuild upon our UK and International profile and influence.

The outlook for accreditation looks promising as the demand for accreditation continues to grow anddiversify. Therefore, it is essential that UKAS maintains the right resources and structure to allow us todeliver on the expectations of many new customers and stakeholders. Within our strategy are objectivesand actions that will ensure we have those resources and that our structure evolves to meet the needsof delivering a world class accreditation service.

In summary our strategy is challenging and exciting and presents a clear roadmap to allow our world classreputation for delivering technical excellence to be supported by world class delivery of our services.



Directors’ report for the year ended 31 March 2019 continued

Employee involvement

UKAS values employee engagement and aims to share information with its employees on all matters of concern to them. Accordingly, appropriate steps are taken to ensure that employees or their representatives are aware of the financial and economic factors affecting the Company’s performanceon a quarterly basis and are encouraged generally to be involved in the Company’s overall performance.

UKAS is an equal opportunities employer and is committed to supporting the personal developmentof staff irrespective of gender, sexual orientation, ethnicity or disability, provided they have the abilitiesto perform the tasks required with or without training, and is ready to provide retraining where necessaryin cases when disability arises during employment with the Company. The gender pay gap is reportedon and monitored in accordance with legislative requirements.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

� so far as the directors is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and � the directors has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, Feltons, 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.


Date: 16th July 2019


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Independent auditors’ report

Opinion

We have audited the financial statements of United Kingdom Accreditation Service (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2019, which comprise theGroup Statement of comprehensive income, the Group and Company Balance sheets, the GroupStatement of cash flows, the Group and Company Statement of changes in equity and the relatednotes, including a summary of significant accounting policies. The financial reporting framework thathas 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 andRepublic 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 Group's and of the parent Company's affairs as at 31 March 2019 and of the Group's profit for the year then ended; � have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and � have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) andapplicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent ofthe Group in accordance with the ethical requirements that are relevant to our audit of the financialstatements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and wehave fulfilled our other ethical responsibilities in accordance with these requirements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) requireus to report to you where:

� the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or � the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Independent auditors’ report to the Members of United Kingdom Accreditation Service



Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assuranceconclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we concludethat there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

� the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in theGroup strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act2006 requires us to report to you if, in our opinion:

� adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or � the parent Company financial statements are not in agreement with the accounting records and returns; or � certain disclosures of directors' remuneration specified by law are not made; or � we have not received all the information and explanations we require for our audit.



Responsibilities of directors

As explained more fully in the Directors' responsibilities statement on page 12, the directors are responsiblefor the preparation of the financial statements and for being satisfied that they give a true and fairview, and for such internal control as the directors determine is necessary to enable the preparation offinancial 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 Group's and the parentCompany's ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless the directors either intend to liquidatethe Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an Auditors' reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with ISAs (UK) will always detect a material misstatement whenit exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the economic decisions of users takenon the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on theFinancial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This descriptionforms part of our Auditors' report.

Use of our report

This report is made solely to the Company's Members as a body, in accordance with Chapter 3 of Part16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to theCompany's Members those matters we are required to state to them in an Auditors' report and for noother purpose. To the fullest extent permitted by law, we do not accept or assume responsibility toanyone other than the Company and the Company's Members as a body, for our audit work, for thisreport, or for the opinions we have formed.

Dave Alesbury (Senior statutory auditor) for and on behalf of

Feltons1 The Green Richmond Surrey TW9 1PLDate: 16th September 2019


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Consolidated statement of comprehensive income

Consolidated statement of comprehensive incomefor the year ended 31 March 2019

Note

Turnover 4

Cost of sales

Gross profit

Administrative expenses

Operating profit 5

Interest receivable and similar income 9

Other finance income/(cost)

Profit before taxation

Tax on profit

Profit for the financial year

Actuarial gains on defined benefit pension scheme

Movement of deferred tax relating to pension deficit

Other comprehensive income for the year

Total comprehensive income for the year

Profit for the year attributable to:

Owners of the parent Company

Total comprehensive income for the year attributable to:

Owners of the parent Company

2019

£

33,346,444

(20,495,348)

12,851,096

(9,960,471)

2,890,625

39,293

(28,000)

2,901,918

(544,641)

2,357,277

4,022,000

(764,180)

3,257,820

5,615,097

2,357,277

2,357,277

5,615,097

5,615,097

2018

£

30,470,212

(20,435,509)

10,034,703

(9,012,108)

1,022,595

19,741

(24,000)

1,018,336

(152,234)

866,102

95,000

(18,050)

76,950

943,052

866,102

866,102

943,052

943,052

The notes on pages 28 to 43 form part of these financial statements.



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Consolidated balance sheet

Consolidated balance sheetas at 31 March 2019

NoteFixed assets

Tangible assets 12

Current assets

Debtors: amounts falling due within one year 14

Cash at bank and in hand 15

Creditors: amounts falling due within one year 16

Net current assets

Total assets less current liabilities

Provisions for liabilities

Deferred taxation 18

Other provisions 19

Net assets excluding pension liability/asset

Pension asset/(liability)

Net assets

Capital and reserves

Profit and loss account 20

Equity attributable to owners of the parent company

The financial statements were approved and authorised for issue by the

board and were signed on its behalf by:

2019

£

1,748,190

1,748,190

10,447,148

12,195,338

(431,410)

11,763,928

1,483,000

13,246,928

13,246,928

13,246,928

13,246,928

2018

£

1,363,088

1,363,088

8,544,743

9,907,831

(150,000)

9,757,831

(2,126,000)

7,631,831

7,631,831

7,631,831

7,631,831

6,537,812

6,825,202

13,363,014

(4,818,271)

–

(150,000)

7,698,845

9,041,247

16,740,092

(6,292,944)

(281,410)

(150,000)

Georgia AlsopFinance and CorporateServices Director




United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Company balance sheet

Company balance sheetas at 31 March 2019

NoteFixed assets

Tangible assets 12

Investments 13

Current assets

Debtors: amounts falling due within one year 14

Cash at bank and in hand 15

Creditors: amounts falling due within one year 16

Net current assets

Total assets less current liabilities

Provisions for liabilities

Deferred taxation 18

Other provisions 19

Net assets excluding pension liability/asset

Pension asset/(liability)

Net assets

Capital and reserves

Profit and loss account brought forward

Profit for the year

Other changes in the profit and loss account

Profit and loss account carried forward

The financial statements were approved and authorised for issue by the

board and were signed on its behalf on

2019

£

1,748,190

715,098

2,463,288

5,242,256

7,705,544

(431,410)

7,274,134

1,483,000

8,757,134

8,757,134

8,757,134

7,712,762

8,849,722

16,562,484

(11,320,228)

(281,410)

(150,000)

3,200,149

2,299,165

3,257,820

2018

£

1,363,088

715,098

2,078,186

3,397,963

5,476,149

(150,000)

5,326,149

(2,126,000)

3,200,149

3,200,149

3,200,149

6,563,595

6,517,595

13,081,190

(9,683,227)

_

(150,000)

2,233,771

889,428

76,950

Georgia AlsopDirector

Matthew GantleyDirector



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Consolidated statement of changes in equity

Consolidated statement of changes in equityfor the year ended 31 March 2019

At 1 April 2018

Comprehensive income for the year

Profit for the year

Actuarial gains on pension scheme



Total transactions with owners

At 31 March 2019

.

Total equity

£

7,631,831

2,357,277

3,257,820

3,257,820

5,615,097

–

13,246,928

Profit andloss account

£

7,631,831

2,357,277

3,257,820

3,257,820

5,615,097

–

13,246,928



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Consolidated statement of changes in equity

Consolidated statement of changes in equityfor the year ended 31 March 2018

At 1 April 2017


Profit for the year




Total transactions with owners

At 31 March 2018

.

Total equity

£

6,688,779

866,102

76,950

76,950

943,052

–

7,631,831


£

6,688,779

866,102

76,950

76,950

943,052

–

7,631,831



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Company statement of changes in equity

Company statement of changes in equityfor the year ended 31 March 2019

At 1 April 2018


Profit for the year




At 31 March 2019

.

Total equity

£

3,200,149

2,299,165

3,257,820

3,257,820

5,556,985

8,757,134


£

3,200,149

2,299,165

3,257,820

3,257,820

5,556,985

8,757,134



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Company statement of changes in equity

Company statement of changes in equityfor the year ended 31 March 2018

At 1 April 2017


Profit for the year




At 31 March 2018

.

Total equity

£

2,233,771

889,428

76,950

76,950

966,378

3,200,149


£

2,233,771

889,428

76,950

76,950

966,378

3,200,149



United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Consolidated statement of cash flows

Consolidated statement of cash flowsfor the year ended 31 March 2019

Cash flows from operating activities

Profit for the financial year

Adjustments for:

Depreciation of tangible assets

Loss on disposal of tangible assets

Interest received

Taxation charge

(Increase)/decrease in debtors

Increase/(decrease) in creditors

Increase in net pension assets/liabilities

Corporation tax (paid)

Other finance income

Net cash generated from operating activities

Cash flows from investing activities

Purchase of tangible fixed assets

Sale of tangible fixed assets

Interest received

Net cash from investing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at the end of year

Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand

2019

£

2,357,277

277,710

(22,097)

(39,293)

544,641

(1,565,337)

1,070,430

385,000

(218,864)

28,000

2,817,467

(674,399)

33,684

39,293

(601,422)

2,216,045

6,825,202

9,041,247

9,041,247

9,041,247

2018

£

866,102

264,550

–

(19,741)

152,234

781,598

(61,369)

266,000

(149,116)

24,000

2,124,258

(595,661)

–

19,741

(575,920)

1,548,338

5,276,864

6,825,202

6,825,202

6,825,202


United Kingdom Accreditation Service | Annual Report and Financial Statements 2019 | Notes to the financial statements

Notes to the financial statementsfor the year ended 31 March 2019

1. General information

United Kingdom Accreditation Service is a company incorporated in the United Kingdom under the Companies Act. The companyis a private company limited by guarantee and is registered in England and Wales. The address of the registered office is shown onthe company information page.

The principal activity of the company and group is set out in the Strategic Report on pages 10 to 11.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The functional currency is considered to be pounds sterling.

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

� No Statement of cash flows has been presented for the parent company;

� Disclosures in respect of the parent company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and

� No disclosures have been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.

The following principal accounting policies have been applied:

2.2 Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3 Going concern

The financial statements are prepared on a going concern basis.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existencefor the foreseeable future. As a result, they continue to adopt the going concern basis of accounting in preparing the financial statements.



2.4 Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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 fairvalue 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 Consolidated statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidatedstatement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Consolidated statement of comprehensive income within 'other operating income'.

On consolidation, the results of overseas operations 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.

2.5 Revenue

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance withthe stage of completion of the contract when all of the following conditions are satisfied:

� the amount of revenue can be measured reliably;

� it is probable that the Group will receive the consideration due under the contract;

� the stage of completion of the contract at the end of the reporting period can be measured reliably; and

� the costs incurred and the costs to complete the contract can be measured reliably.

2.6 Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated 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.

2.7 Interest income

Interest income is recognised in the Profit and Loss account using the effective interest method.

2.8 Finance costsFinance costs are charged to the Profit and Loss account 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.



2.9 Pensions

Defined contribution pension scheme

The Company operates a Defined contribution plan for external assessors who are paid through the payroll.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that theemployee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:a) the increase in net pension benefit liability arising from employee service during the period; andb) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

2.10 Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted bythe balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet 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;

� Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

� Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 forthem 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 balance sheet date.



2.11 Amount recoverable under contracts

Amounts recoverable under contracts relates to contracted services performed but not invoiced at the balance sheet date. As the services are complete at the balance sheet date amounts recoverable under contracts is stated at the recoverable amount invoiced post year end.

2.12 Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulatedimpairment 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:

Leasehold property – over 15 yearsComputer equipment and & Licensing – 25% straight lineMotor vehicles – 33% straight lineFixtures and fittings – between 10% and 20% straight line

The assets under construction represent the cost of a new IT system. Depreciation will be charged on the assets once they are brought into use.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or ifthere 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 Consolidated statement of comprehensive income.

2.13 Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether thereis any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying valueof 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. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

2.14 Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

2.15 Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.



2.16 Cash and cash equivalents

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.17 Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.18 Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance sheet date.

2.19 Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Consolidated statement of comprehensive income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

2.20 Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

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 Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carryingamount 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 of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable rightto 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.



3. Judgments in applying accounting policies and key sources of estimation uncertainty

The directors have applied judgements in assessing the recoverability of trade debtors and the Defined Benefit Pension Scheme obligations and to the best of their knowledge and belief, the accounts reflect a true and fair picture of the amounts of debtors that are recoverable and the Defined Benefit Scheme obligations.

In applying the Group's accounting policies, the directors are required to make judgments, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgments, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgments, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision effects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Critical judgments in applying the Group's accounting policies

The critical judgments that the directors have made in the process of applying the Group's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

(i) Assessing indicators of impairmentIn assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(ii) Recoverability of receivablesIf necessary, the group establishes a provision for receivables that are estimated not to be recoverable. When assessing the recoverability the directors consider factors such as aging of receivables, past experience of recoverability, and the credit profileof an individual or groups of customers.

(iii) Determining residual value and useful economic lives of property, plant and equipmentThe group depreciate tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historicperformance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Pension and other post employment benefits

The cost of defined benefit pension plans and other post-employment medical benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pensionincreases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the interest rates of corporate bonds in the respective currency with at least AA rating, with extrapolated maturities corresponding to the expected duration of the defined benefit obligation. The underlying bonds are further reviewed for quality, and those having excessive credit spreads are removed from the population bonds on which the discount rate is based, on the basis that they do notrepresent high quality bonds. The mortality rate is based on publicly available mortality tables for the specific country. Future salary increases and pension increases are based on expected future inflation rates for the respective country



4. Turnover

Analysis of turnover by country of destination:

United Kingdom

Rest of Europe

Rest of the world

5. Operating profit

The operating profit is stated after charging:

Operating lease rentals – land & buildings

Depreciation of tangible fixed assets

Fees payable to the company's auditor and its associates for the audit of the company's annual accounts

Defined benefit pension cost

6. Auditors' remuneration

Fees payable to the Group's auditor and its associates for the audit of the Group's annual accounts

Other services relating to taxation

All other services

7. Employees

Staff costs, including directors' remuneration, were as follows:

Wages and salaries

Social security costs

Cost of defined benefit scheme

The average monthly number of employees, including the directors, during the year was as follows:

Office management staff

Technical staff

2019

£

29,248,992

332,771

3,764,681

33,346,444

2019

£

265,401

277,710

13,000

1,585,650

2019

£

13,000

1,500

5,000

Group

2019

£

12,115,183

1,368,020

1,970,650

15,453,853

2019

No.

84

172

256

2018

£

27,093,421

222,471

3,154,321

30,470,213

2018

£

265,401

264,551

13,000

1,818,149

2018

£

13,000

1,500

5,000

Group

2018

£

11,707,253

1,368,539

1,818,149

14,893,941

2018

No.

82

173

255



8. Directors' remuneration

Directors' emoluments

During the year retirement benefits were accruing to 4 directors (2018 – 3) in respect of defined benefit pension schemes.

The highest paid director received remuneration of £117,204 (2018 – £232,216).

The value of the company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £15,188 (2018 – £NIL).

The total accrued pension provision of the highest paid director at 31 March 2019 amounted to £5,779 (2018 - £26,988).

The amount of the accrued lump sum in respect of the highest paid director at 31 March 2019 amounted to £NIL (2018 – £NIL).

9. Interest receivable

Other interest receivable

10. Other finance income/(cost)

Net interest on net defined benefit liability

2018

£

730,060

2018

£

19,741

19,741

2018

£

(24,000)

(24,000)

2019

£

717,755

2019

£

39,293

39,293

2019

£

(28,000)

(28,000)



2019

£

623,111

–

623,111

623,111

(78,470)

(78,470)

544,641

2019

£

2,901,918

551,364

3,413

18,598

(4,895)

26

(23,865)

544,641

2018

£

223,708

(16,374)

207,334

207,334

(55,100)

(55,100)

152,234

2018

£

1,018,336

193,484

6,932

(6,842)

(16,374)

–

(24,966)

152,234

11. Taxation

Corporation tax

Current tax on profits for the year

Adjustments in respect of previous periods

Total current tax

Deferred tax

Origination and reversal of timing differences

Total deferred tax

Taxation on profit on ordinary activities

Factors affecting tax charge for the year

The tax assessed for both years is lower than (2018 – lower than) the standard rate of corporation tax

in the UK of 19% (2018 – 19%). The differences are explained below:

Profit on ordinary activities before tax

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2018 – 19%)

Effects of:

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment

Capital allowances for year in excess of depreciation

Adjustments to tax charge in respect of prior periods

Non-taxable income

Double taxation relief

Total tax charge for the year



12. Tangible fixed assets

Leaseholdproperty

£

732,528

–

–

732,528

155,444

73,252

–

228,696

503,832

577,084

Motor vehicles

£

39,180

–

(39,180)

–

22,765

4,828

(27,593)

–

–

16,415

Fixturesand

fittings

£

645,608

–

(489,070)

156,538

533,744

14,434

(489,070)

59,108

97,430

111,864

Computerequipment

£

1,837,523

81,271

(1,175,068)

743,726

1,545,249

185,196

(1,175,068)

555,377

188,349

292,274

Total

£

3,620,290

674,399

(1,703,318)

2,591,371

2,257,202

277,710

(1,691,731)

843,181

1,748,190

1,363,088

Group and Company

Cost or valuation

At 1 April 2018

Additions

Disposals

At 31 March 2019

Depreciation

At 1 April 2018

Charge for the year on owned assets

Disposals

At 31 March 2019

Net book value

At 31 March 2019

At 31 March 2018

Other fixedassets

£

365,451

593,128

–

958,579

–

–

–

–

958,579

365,451

All of the Group's tangible fixed assets are held in the Parent company

Company

Cost or valuation

At 1 April 2018

At 31 March 2019

Subsidiary undertaking

The following was a subsidiary undertaking of the Company:

Name

Clinical Pathology Accreditation (UK) Limited

13. Fixed asset investments

Investmentsin subsidiarycompanies

£

715,098

715,098

Registered office

2 Pine Trees,

Chertsey Lane,

Staines-upon-Thames,

Middlesex TW18 3HR

Holding

100%

Class of shares

Ordinary



14. Debtors

Group2019

£

5,047,687

–

126,929

700,893

1,823,336

–

7,698,845

Group2018

£

4,140,320

–

267,728

325,596

1,399,868

404,300

6,537,812

Company2019

£

5,061,673

–

126,860

700,893

1,823,336

–

7,712,762

Company2018

£

4,128,473

175,662

129,696

325,596

1,399,868

404,300

6,563,595

Trade debtors

Amounts owed by group undertakings

Other debtors

Prepayments and accrued income

Amounts recoverable on long term contracts

Deferred taxation

15. Cash and cash equivalents

Group2019

£

9,041,247

9,041,247

Group2018

£

6,825,202

6,825,202

Company2019

£

8,849,722

8,849,722

Company2018

£

6,517,595

6,517,595

Cash at bank and in hand

16. Creditors: Amounts falling due within one year

Group2019

£

817,220

–

627,955

1,447,788

48,500

3,351,481

6,292,944

Group2018

£

427,087

–

223,708

1,328,530

48,503

2,790,443

4,818,271

Company2019

£

816,808

5,145,961

614,673

1,447,788

48,500

3,246,498

11,320,228

Company2018

£

423,051

5,060,867

223,708

1,328,530

48,501

2,598,570

9,683,227

Trade creditors

Amounts owed to group undertakings

Corporation tax

Other taxation and social security

Other creditors

Accruals and deferred income



17. Financial instruments

Group2019

£

14,215,794

(3,339,289)

Group2018

£

11,233,250

(2,652,859)

Group2019

£

(281,410)

(281,410)

Group2018

£

404,300

404,300

Company2019

£

14,038,255

(8,482,337)

Company2018

£

10,951,426

(7,620,300)

Financial assets

Financial assets that are debt instruments measured at amortised cost

Financial liabilities

Financial liabilities measured at amortised cost

Financial assets measured at amortised cost comprise bank balances, group balances, trade debtors and other debtors.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals and group balances.

18. Deferred taxation

Group

At beginning of year

Charged to profit or loss

At end of year

Company

At beginning of year

Charged to profit or loss

At end of year

Pension scheme

2019

£

404,300

(685,710)

(281,410)

2019

£

404,300

(685,710)

(281,410)

Company2019

£

(281,410)

(281,410)

2018

£

367,250

37,050

404,300

2018

£

367,250

37,050

404,300

Company2018

£

404,300

404,300



19. Provisions

Group

At 1 April 2018

At 31 March 2019

Company

At 1 April 2018

At 31 March 2019

Dilapidationprovision

£

150,000

150,000

Dilapidationprovision

£

150.000

150,000

Total

£

150,000

150,000

20. Reserves

Profit and loss accountRetained earnings represents accumulated comprehensive income for the year and prior periods plus any share based payments, adjustments and related tax credits and transfers from other reserves.

21. Company status

The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is

liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.

22. Parent Company Profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented

its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year

was £2,299,165 (2018 - £889,428).

23. Capital commitments

Group2019

£

150,000

150,000

Group2018

£

335,000

335,000

Company2019

£

150,000

150,000

Company2018

£

335,000

335,000

At 31 March 2019 the Group and Company had capital

commitments as follows:

Contracted for but not provided in these financial statements



24. Pension commitments

The Group operates a Defined benefit pension scheme and the details are as follows:

United Kingdom Accreditation Service operates a defined benefit scheme in the United Kingdom. The company sponsors the UnitedKingdom Accreditation Service pension scheme which is a defined benefit arrangement providing benefits on a career average salary basis. The last full actuarial valuation of this scheme was carried out by a qualified Independent actuary as at 31 March 2019.

Reconciliation of present value of plan liabilities:

Reconciliation of present value of plan liabilities

At the beginning of the year

Current service cost

Interest income

Actuarial gains/(losses)

Contributions

Benefits paid

Past service cost

At the end of the year

Reconciliation of present value of plan assets:

At the beginning of the year


Interest income

Actuarial gains/(losses)

Contributions

Benefits paid

At the end of the year

Composition of plan assets:

Equity

Non-gilt bonds

Gilts

Property

Cash

Total plan assets

2019

£

(46,251,000)

(1,929,000)

(1,235,000)

2,723,000

(567,000)

999,000

(46,000)

(46,306,000)

2019

£

44,125,000

1,590,000

1,207,000

1,299,000

567,000

(999,000)

47,789,000

2019

£

33,309,000

5,905,000

6,066,000

2,389,000

120,000

47,789,000

2018

£

(42,892,000)

(1,821,000)

(1,191,000)

(487,000)

(555,000)

695,000

–

(46,251,000)

2018

£

40,961,000

1,555,000

1,167,000

582,000

555,000

(695,000)

44,125,000

2018

£

30,912,000

5,558,000

5,561,000

1,977,000

117,000

44,125,000



24. Pension commitments continued

Composition of plan assets

Fair value of plan assets

Present value of plan liabilities

Net pension scheme asset/(liabilities)

The amounts recognised in profit or loss are as follows:


Interest on obligation

Total

The cumulative amount of actuarial gains and losses recognised in the Consolidated statement of comprehensive income was gain of £4,022,000 (2018 – gain of £95,000).

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

Discount rate

Expected return on scheme assets at

Future pension increases

Rate of inflation – retail price index

Inflation – consumer price index

Amounts for the current and previous period are as follows:

Defined benefit pension schemes

Defined benefit obligation

Scheme assets

Surplus/(Deficit)

2019

£

47,789,000

(46,306,000)

1,483,000

2019

£

1,975,000

28,000

2,003,000

2019

%

2.50

2.50

3.40

3.60

2.60

2019

£

(46,306,000)

47,789,000

1,483,000

2018

£

44,125,000

(46,251,000)

(2,126,000)

2018

£

1,821,000

24,000

1,845,000

2018

%

2.70

2.70

3.35

3.50

2.50

2018

£

(46,251,000)

44,125,000

(2,126,000)



25. Commitments under operating leases

At 31 March 2019 the Group and the Company had future minimum lease payments under non- cancellable operating leases as follows:

Group2019

£

375,260

1,329,537

2,070,127

3,774,924

Group2018

£

372,995

1,354,118

2,388,608

4,115,721

Company2019

£

375,260

1,329,537

2,070,127

3,774,924

Company2018

£

372,995

1,354,118

2,388,608

4,115,721

Not later than 1 year

Later than 1 year and not later than 5 years

Later than 5 years

26. Related party transactions

The group is exempt under Financial Reporting Standard 102 from disclosing related party transactions with the company's

subsidiary as it is wholly owned within the group.

27. Controlling party

Ultimate control is vested in the individual members and directors as, being a company limited by guarantee, there are no shareholders

UKAS – A company limited by guarantee

www.ukas.com

United Kingdom Accreditation Service

2 Pine Trees Tel: 01784 429 000

Chertsey Lane Email: [email protected]

Staines-upon-Thames

Middlesex TW18 3HR www.ukas.com

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