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Finances

Abstract of the Accounts of the Trading Operations and the Delegates’ Property and Reserve Fund of Oxford University Press for the year ended 31 March 2016

The Delegates wish to observe that:

(a) the abstracts of Accounts are drawn from the full audited non-statutory accounts of the Trading Operations and the Delegates’ Property and Reserve Fund of the Press;

(b) with regard to the abstract of the combined Balance Sheet of the Trading Operations, the short-term cash position is substantially stronger at 31 March than at certain other times of the year;

(c) a proportion of earnings and cash balances arising in certain overseas countries is not available for use elsewhere;

(d) the Delegates’ Property and Reserve Fund was established during the year ended 31 March 1984 in order to distinguish more clearly the reserve investments of the Press from the assets and liabilities relating to the Trading Operations. The Fund holds and manages the properties of the Press together with the income arising therefrom. The main purpose of the Fund is to manage, in the short and medium term, the impact on the Press, and consequently on the University, of the realization of material economic and financial risks to the Press.

The audited non-statutory accounts of the Trading Operations and Delegates' Property and Reserve Fund of Oxford University Press can be obtained from Oxford University Press, Great Clarendon Street, Oxford, OX2 6DP.

 

 

The transition to reporting under FRS 102

The year ending 31 March 2016 is the first year that the Press has prepared its non-statutory accounts under FRS 102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland. In addition to some presentational reclassifications that do not affect surplus, the key changes are the translation of results into £ Sterling using average rather than closing period rates, a more restricted application of hedge accounting, a change in how pension scheme finance charges are calculated, and a new requirement to value occupied properties at ‘fair value’ (which were previously presented at historic cost). The latter affects only the DPRF. The Explanation of Transition to FRS 102 from Old UK GAAP, shows the effect of the transition on the previously reported 2014/15 non-statutory accounts (Profit and Loss account and Balance Sheet) and the 1st April 2014 Balance Sheet for both the Trading Operations and the Delegates’ Property and Reserve Fund.

Abstract of the Combined Balance Sheet of the Trading Operations as at 31 March 2016

2016 2015
£'m £'m £'m £'m
Fixed Assets
Tangible assets 22.4 22.1
Intangible fixed assets 83.9 81.8
Investments 0.5 0.5
106.8 104.4
Current Assets
Intangible assets - pre-publication 20.0 21.0
Stock and work-in-progress 73.2 77.3
Debtors 203.8 199.5
Current asset investments 174.2 153.4
Cash at bank and in hand 22.0 23.6
493.2 474.8
CURRENT LIABILITIES
Creditors: amounts falling due within one year (209.3) (208.3)
Taxation (12.8) (11.5)
Bank loans and overdrafts (8.0) (13.5)
(230.1) (233.3)
NET CURRENT ASSETS 263.1 241.5
TOTAL ASSETS LESS CURRENT LIABILITIES 369.9 345.9
Creditors: amounts falling due after more than one year (7.2) (6.0)
Provisions for liabilities (1.6) (1.9)
NET ASSETS EXCLUDING PENSION LIABILITY 361.1 338.0
PENSION LIABILITY (126.7) (135.8)
NET ASSETS 234.4 202.2
CAPITAL EMPLOYED
Accumulated fund 232.7 200.7
Minority interests 1.7 1.5
Total Fund 234.4 202.2

Abstract of the Combined Results of the Trading Operations for the year ended 31 March 2016

2016 2015
£'m £'m
TURNOVER 760.5 762.2
PROFIT BEFORE TAX 85.3 96.3
Taxation (10.1) (9.3)
PROFIT AFTER TAX 75.2 87.0
Profit attributable to minority interests (0.4) (1.5)
PROFIT FOR THE YEAR 74.8 85.5
The above results relate to continuing operations.

Abstract of the Combined Statement of Comprehensive Income of the Trading Operations for the year ended 31 March 2016

2016 2015
£'m £'m
PROFIT FOR THE YEAR 74.8 85.5
OTHER COMPREHENSIVE INCOME:
EFFECTIVE PORTION OF CHANGES IN FAIR VALUE OF CASH FLOW HEDGES (10.6) 1.7
ACTUARIAL LOSSES ON GROUP PENSION SCHEMES
Actuarial gain/(loss) arising during period 28.9 (63.4)
Return on scheme assets (less)/greater than discount rate (16.2) 28.8
CURRENCY TRANSLATION DIFFERENCES ON FOREIGN CURRENCY NET INVESTMENTS - 3.7
TOTAL OTHER COMPREHENSIVE INCOME 2.1 (29.2)
TOTAL RECOGNIZED COMPREHENSIVE INCOME RELATING TO THE YEAR 76.9 56.3

Abstract of the Combined Statement of Changes in Equity of the Trading Operations for the year ended 31 March 2016

Cash Flow Hedging Reserve Profit and Loss Account Total
£'m £'m £'m
BALANCE AT 1 APRIL 2014 3.1 287.2 290.3
TOTAL COMPREHENSIVE INCOME FOR THE YEAR:
PROFIT FOR THE YEAR - 85.5 85.5
OTHER COMPREHENSIVE INCOME 1.7 (30.9) (29.2)
TRANSFER TO DELEGATES' PROPERTY AND RESERVE FUND - (145.9) (145.9)
BALANCE AT 31 MARCH 2015 4.8 195.9 200.7
TOTAL COMPREHENSIVE INCOME FOR THE YEAR:
PROFIT FOR THE YEAR - 74.8 74.8
OTHER COMPREHENSIVE INCOME (10.6) 12.7 2.1
TRANSFER TO DELEGATES' PROPERTY AND RESERVE FUND - (44.9) (44.9)
BALANCE AT 31 MARCH 2016 (5.8) 238.5 232.7

Abstract of the Combined Balance Sheet of the Delegates’ Property and Reserve Fund as at 31 March 2016

2016 2015
Strategic Property Reserve Effective Operating Reserve Total Total
£'m £'m £'m £'m
FIXED ASSETS
Properties 167.5 84.4 252.3 233.8
Investments 5.0 25.2 30.2 40.1
172.5 110.0 282.5 273.9
CURRENT ASSETS
Debtors 0.2 0.1 0.3 0.2
Cash at bank and in hand 29.3 - 29.3 14.6
29.5 0.1 29.6 14.8
Creditors: amounts falling due within one year (6.6) (9.8) (16.4) (18.1)
NET CURRENT ASSETS/(LIABILITIES) 22.9 (9.7) 13.2 (3.3)
TOTAL ASSETS LESS CURRENT LIABILITIES 195.4 100.3 295.7 270.6
NET ASSETS 195.4 100.3 295.7 270.6
RECONCILIATION OF FUNDS
Opening balance 169.0 101.6 270.6 248.9
Net movement in funds 26.4 (1.3) 25.1 21.7
Closing balance 195.4 100.3 295.7 270.6

Abstract of the Combined Statement of Financial Activities of the Delegates’ Property and Reserve Fund for the year ended 31 March 2016

2016 2015
Strategic Property Reserve Effective Operating Reserve Total Total
£'m £'m £'m £'m
INCOMING RESOURCES FROM GENERATED FUNDS
Rental income from properties 14.8 3.0 17.8 17.7
Income from investments 0.2 0.1 0.3 0.4
Transfer from Trading Operations - 44.9 44.9 145.9
TOTAL INCOMING RESOURCES 15.0 48.0 63.0 164.0
EXPENDITURE
Costs of generating funds
Other resources expended (8.3) (0.9) (9.2) (9.1)
Expenditure on charitable activities
Transfer of funds to the rest of the University:
- Cash - (44.9) (44.9) (165.9)
- Benefits in kind (1.0) - (1.0) (0.9)
TOTAL EXPENDITURE (9.3) (45.8) (55.1) (175.9)
Gains on investment properties 9.7 6.1 15.8 27.8
NET INCOME 15.4 8.3 23.7 15.9
Transfer between funds 9.6 (9.6) - -
NET INCOMING/(OUTGOING) RESOURCES FOR THE YEAR 25.0 (1.3) 23.7 15.9
Currency translation differences on foreign currency net investments 1.4 - 1.4 5.8
NET MOVEMENT IN FUNDS 26.4 (1.3) 25.1 21.7
RECONCILIATION OF FUNDS
TOTAL FUNDS BROUGHT FORWARD 169.0 101.6 270.6 248.9
TOTAL FUNDS CARRIED FORWARD 195.4 100.3 295.7 270.6
The above results relate to continuing operations.