Edison Investment Research Ltd.

Edison Investment Research Ltd.

Frankfurt am Main

Jahresabschluss zum Geschäftsjahr vom 01.07.2017 bis zum 30.06.2018

Registered number: 04794244

COMPANY INFORMATION

CONTENTS

STRATEGIC REPORT FOR THE YEAR ENDED 30 JUNE 2018

The Directors present their strategic report together with the audited financial statements for the year ended 30 June 2018.

Principal activities

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and Asia Pacific. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read, by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. We are retained by over 300 clients that are listed on in excess of 40 stock markets throughout the world.

We currently employ over 76 staff, comprising in excess of 65 equity research analysts and investment professionals with specific sector and market experience.

Strategy

Edison is strongly positioned to capitalise on the relationships, intellectual capital and market insight developed through research coverage of more than 300 companies. Our content is consumed by investors on a global basis across all pools of capital, from institutional fund managers to retail investors.

This knowledge of companies, markets and global capital is increasingly applied to create a strong value proposition for clients through the services offered by our brands: Edison Investment Research and Edison Advisors.

Edison Investment Research - our market leading research brand produces digital content freely available to all investors and unencumbered by MiFID II. We have in excess of 300 retained research clients listed in more than 40 countries.

Edison Advisors - builds on our. research knowledge base to provide consulting services (due diligence, valuation and M&A support) investor relations and investor marketing activities. During the current financial year the Group continued to invest in our full service investor relations capabilities across Europe and the USA.

The Company’s strategy is to invest and build our competitive position in response to changes to the global regulatory landscape created by MiFID II and the continued decline of sell side research. In recent years there has been a 50% decline in sell side analyst coverage and over 40% of listed stocks have no analyst coverage (World Federation of Exchanges).

A key success criteria for the Company over the next 3 years is to increase significantly the average revenue per client (ARPU).

Performance Review

The net cash position for the Company at the Year End was at £1.3m, an increase of £0.7m to the previous year (2017: £596K).

The Company’s revenues for the year were £9.23m with Edison Advisors revenues at £1.69m and Edison Investment Research retained revenues at £7.54m.

The Company's revenues increased by 5.56% for the year to £9.23m (2017: £8.74m). Renewal rates of the existing client base have increased and it has been a strong year for new client contracts.

Cost of sales for the year came in at £5.38m, an 18.31% increase when compared with the previous year (2017: £4.55m).

The Company recorded a profit before Interest, Tax, Depreciation and Amortisation (EBITDA) of £0.16m (2017: -£0.09m). This is after paying bonuses of £0.36m (2017: 0.34m).

A fundamental objective of thé company over medium term is to strengthen the balance sheet.

Management of risks

Financial Monitoring

The Group’s financial performance is measured against annual budgets. The operational performance of each division and region is also monitored against budgets and Key Performance Indicators. The following KPI's are used: client numbers; average revenue per client; annualised contract value (ACV) of retained clients, EBITDA and EBITDA Margin.

Client Risk

We are not heavily exposed to the loss of a single client. However we operate in certain sectors (Oils, Mining, Healthcare) where a company’s financial stability is impacted by a single event (failure of a drug trial, oil drilling results etc.) This results in a bad debt risk and the risk of contract termination due to non-controllable factors. We are working hard to improve our exposure to bad debts.

Competitive Environment

We operate in a regulated market. There are a number of service providers offering similar or competing products. However we are building stronger relationships with our client base and investing heavily in areas where our proposition is unique.

IT Systems

We have invested heavily in IT systems over the past two years and this investment will continue in the near term. Our IT strategy is to host key systems in the cloud with providers maintaining full tier one data centres and DR solutions.

Brexit Risk

The Groups operations in Germany are structured as a branch of the UK trading subsidiary. The Group is also regulated under a FCA ‘passport’ arrangement in Germany and provides services throughout continental Europe from its UK and German operations. In addition to the wider economic uncertainty Brexit brings, specific risk emerges in respect of this passport arrangement and the ongoing publication of research in continental Europe. To overcome the specific risk the Group is evaluating the option of becoming regulated in Germany.

Future Developments

We will continue to invest in our employees, resources, geographical footprint and infrastructure. While 2018 was a further year of investment, we believe we are now positioned for long term, sustainable growth in. revenues and profits.

This report was approved by the board on 8 February 2019 and signed oh its behalf.

DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2018

The directors present their report and the financial statements for the year ended 30 June 2018.

Results and dividends

The profit for the year, after taxation, amounted to £340,133 (2017 - loss £434,476).

Directors

The directors who served during the year were:

Directors' responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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

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

Matters covered in the strategic report

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out the company's Strategic report information required by schedule 7 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review.

Disclosure of information to auditor

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

Post balance sheet events

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

Auditor

The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 February 2019 and signed on its behalf.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDISON INVESTMENT RESEARCH LIMITED

Opinion

We have audited the financial statements of Edison Investment Research Limited for the year ended 30 June 2018, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Who we are reporting to

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Conclusions relating to going concern

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

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 Auditor's 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 assurance conclusion 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 with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matter on which we are required to report by the Companies Act 2006

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors for the financial statements

As explained more fully in the Directors' responsibilities statement on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018

There were no recognised gains and losses for 2018 or 2017 other than those included in the statement of comprehensive income.

The notes on pages 13 to 30 form part of these financial-statements.

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Date: 18 February 2019

The notes on pages 13 to 30 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018

The notes on pages 13 to 30 form part of these financial statements.

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

The notes on pages 13 to 30 form part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

1. General information

Edison Investment Research Limited is a limited liability company incorporated in England and Wales. The registered office address is 280 High Holborn, London, WC1V 7EE.

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

The company is itself a subsidiary company and is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

The following principal accounting policies have been applied:

2.2 Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

2.3 Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

2.4 Revenue

Turnover comprises revenue recognised by the company in respect of investment research and other associated services supplied during the year, exclusive of Value Added Tax.

Research income is recognised on a straight line basis over the term of the contract. Advance payments by customers are recorded as deferred income. Revenue on ad hoc services is recognised once the services have been delivered and the entity the entity has earned the right to consideration.

2.5 Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.6 Tangible fixed assets

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

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

2.7 Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.

2.8 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.

2.9 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.

2.10 Financial instruments

The company 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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.11 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.

2.12 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. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value 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 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 Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.

2.13 Finance costs

Finance costs are charged to the Statement of comprehensive income 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.

2.14 Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

2.15 Operating leases: the company as lessee

Rentals paid under operating leases are charged to the 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.

The company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 July 2016 to continue to be charged over the period to the first market rent review rather than the term of the lease.

2.16 Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

2.17 Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

2.18 Borrowing costs

All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.

2.19 Provisions for liabilities

Provisions are made where an event has taken place that gives the company 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 Statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position 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 Statement of financial position.

2.20 Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the 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 by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

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 for them 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 reporting date.

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

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Bad Debt Provision

The company’s policy is to provide for all client debt that is older than 120 days unless specific information exists, or is made available, to indicate that the debt will be recovered in full. Such information considered in this process includes any temporary circumstance delaying client payment; client payment plans that are being adhered to; bank confirmation of full or partial payment; or the existence of a future event that will lead to full settlement of the clients account. This policy is based on an analysis of the company’s historical bad debt exposure. Specific client risks are also taken into consideration. The policy is subject to review on a regular basis and will be amended if it is considered not to provide a fair and accurate reflection of the risk.

Deferred Income

Revenue is recorded in the profit and loss account on a straight line basis over the duration of a contract. Our standard contracts run over a period of 12 months, therefore revenues accrue to the profit and loss account evenly over this period. The difference between amounts billed and revenue recognized is recorded in deferred income.

In reviewing this policy, the company has considered the underlying structure of our client contracts and the recoverability of monies due under them. Our client contracts do not include payment milestones and payments terms are not structured in a manner that relates to delivery of specific reports or publication. Our services are designed to support our client consistently throughout the contract period.

Holiday pay provisions

The accounts include a provision for accrued holidays under FRS 102. At the end of each accounting period an estimate of the value of outstanding holidays is made. This estimate assumes that holiday entitlement accrues evenly over the year. The value attributable to each employee’s unused holiday entitlement is calculated with direct reference to their salary and includes a provision for national insurance/employment taxes.

Assumptions used for share options scheme

In order to ascertain the profit and loss cost associated with Edison’s share option scheme the Black Scholes option pricing model is used. The key variables used in this calculation include:

4. Turnover

Analysis of turnover by country of destination:

Turnover is wholly attributable to the principal activity of the company.

5. Operating profit/(loss)

The operating profit/(loss) is stated after charging:

6. Auditor's remuneration

7. Employees

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

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

8. Directors' remuneration

During the year retirement benefits were accruing to 3 directors (2017 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £125,832 (2017 - £128,003).

9. Interest receivable

10. Interest payable and similar expenses

11. Taxation

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2017 - higher than) the standard rate of corporation tax in the UK of 19.00% (2017 - 19,75%). The differences are explained below:

12. Dividends

13. Intangible assets

14. Tangible fixed assets

15. Fixed asset investments

Subsidiary undertakings

The following were subsidiary undertakings of the company:

16. Debtors

As impairment loss of £293,716 (2017: £xxx) was recognised against trade debtors.

17. Cash and cash equivalents

18. Creditors: Amounts falling due within one year

19. Deferred taxation

The deferred taxation balance is made up as follows:

20. Provisions

21. Share capital

22. Share options

Edison Global Limited operates an EMI share option scheme available to employees (of its subsidiaries) meeting specific qualifying criteria. In the prior year the previous scheme was cancelled and replaced by a new scheme in which a total of 117,615 options were granted over B ordinary shares of £0.05p each. During the current year a further 3,850 options were issued and 16,225 options lapsed due to option holders ceasing their employment in their period. No options were exercised during the year. The exercise price of all of the options granted is £14.50 to be settled in cash.

The options may be exercised by an option holder upon the occurrence of an 'Exit Event’. The ‘Exit Event’ is defined as a disposal, listing or share sale or such other events as the directors may determine to be an 'Exit Event'.

The options have been issued in 4 tranches, each with specific vesting criteria. In order for any option to vest, the above noted 'Exit Event' has to occur.

In order to assess the fair value of the options issued in the period, the Black-Scholes Option Pricing Model was used. Within the model, the following input variables and assumptions were used :

The total expense recognised in the year was £76,953 in respect of the scheme (2017: £24,920).

23. Reserves

Share premium

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from this share premium.

Other reserves

Includes the share option reserve.

Profit and loss account

Includes all current and. prior period retained profits and losses.

24. Commitments under operating leases

At 30 June 2018 the company had future minimum lease payments under non-cancellable operating leases as follows:

25. Related party transactions

The company has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with group undertakings which are part of the 100% owned group.

Other related party transactions were as follows:

The Investor Relations Society

The Investor Relations Society is a related party as a result of common director, F C Thorne. At the year end there was a balance owing to the Investor Relations Society of £65 (2017:£65).

Gullane Consulting Limited

Gullane Consulting Limited is a related party as a result of a common director, S R McKenzie, with Edison Investment Research Limited’s ultimate parent undertaking Edison Global Limited. During the current year £14,400 was invoiced from Gullane Consulting Limited for non executive director’s fees and travel expenses which were subsequently recharged to Edison Global Limited. At the year end there was a balance owing to Gullane Consulting Limited of £1,200 (2017: £1,200).

Tom Teichman

Tom Teichman was appointed is a non-executive director of Edison Global Limited, the ultimate parent undertaking of Edison Investment Research Limited, on 9 May 2016. During the current year £16,700 was invoiced from Tom Teichman for non executive director’s fees and travel expenses which were subsequently recharged to Edison Global Limited.

26. Controlling party

The ultimate parent undertaking is Edison Global Limited. The only group of undertakings for which group financial statements are prepared is headed by Edison Global Limited, a company incorporated in England. Group financial statements of Edison Global Limited are available to the public from Companies House.