Sheila Oliver's Campaigning Website

NPS London Ltd

Contingent Liabilities -

Directors must reveal the existence of liabilities they consider likely to occur in the future - the event or circumstance may be uncertain and conditional but nevertheless warning must be given. Failure to do so would mislead investors, banks etc. At the moment the only matter described under this heading in the report is Value Added Tax. This situation is that the company is liable jointly and severally for the entire group liability in the event that it could not be met by fellow group members (unlikely, but the Board consider the uncertainty and the liklihood of occurence sufficient as to warrant the existence of risk).

However, especially in the building industry, there are many areas in which risks exist, for example the existence of poisons/toxic substances in building sites and, very commonplace today, the presence of asbestos in building materials and structures, often worse on demolition projects. Any connection between materials in design or in survey could be a risk area. Failure to disclose such possibilities is a breach of requirements of Standards in Accounting  for Liabilities and therefore misleading to investors, banks, creditors who depend on full disclosure.

Have the NPS London directors any knowledge of any possible circumstance which should be disclosed in any area?  Does the company carry insurance which could be called on in the event of any claim or has any such cover ever been refused?

NPS London No 06078945
Financial Statements Year to 31/1/12


All formal connections are in Norwich - registered office, auditors, bank, solicitors (Registered Office - 16 Central Drive, Norwich NR7 0HR).

Principal Activity - property consultants, services for design, surveying, project management.

Pre-tax profit £96,073 (last year £10,042) - stated before FRS 17 adjustments.  The directors consider this to be more realistic, but it is highly unlikely that the pensioners share their view! What's more realistic than the prospect of lower pensions!
Outlook "positive" - London Borough of Waltham Forest is a major customer and the authority has received more capital funding for the year.

The recent value of the pension obligations is £15,293,000 less the value of the scheme's assets £13,896,500

Pension Fund - employees are members of Norfolk Pension Fund. Values of Fund - only this year have the values been included in the accounts. Previously it must have been that assuption has been made that fund assets were more or less equal to the fund liabilities.

However, 2010 values updated at 2012 are

Liabilities                                          £15,293,000
Assets to meet these                           £13,896,000
Shortfall (loss) written off

The actuary made many assumptoms for  the future (always tricky as we know to our cost).  These included Retail Price Index, Consumer Price Index, future salaries, future pensions.

Contingent Liability
As a member of a group which is registered as a group it is jointly and severally liable for the whole group which liability stands at
£2,765,456 2012 (2011 - £2,114,040).

Finance is provided by NPS Property Consultants Ltd. Hence the ability to be regarded as a going concern. The parent guarantees to provide finance for one year from 05/07/2012 - the date of signing the accounts - maybe why the accounts are on time this year!

Major creditor is therefore NPS Property Consultants

2012                   £1,548,460
2011                    £1,547,034

£152,000 a year is paid to parent for management fees.
£51,000 (all interest cost) is paid to parent.

Question - How arms length are these NPS/Norse companies operating at?  Could it stand alone with accumulated losses of over £2 million and the pension liability?

NPS London Ltd

General Information

Ownership
Ultimate  Control Norfolk County Council (100%)

Norse  Group (100%) ultimate parent

NPS Property Consultants Ltd
80% A shares

NPS London Ltd (Minority shareholder 20% B shares London Borough of Waltham Forest)