Company registration number 03141672 (England and Wales)
ALTRA INDUSTRIAL MOTION UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ALTRA INDUSTRIAL MOTION UK LIMITED
COMPANY INFORMATION
Directors
Ms Susan Lewis
(Appointed 12 May 2023)
Mr Patrick Cannon
(Appointed 12 May 2023)
Company number
03141672
Registered office
C/O Twiflex Limited
317-319 Ampthill Road
Bedford
United Kingdom
MK42 9RD
Auditor
Azets Audit Services
6th Floor, Bank House
8 Cherry Street
Birmingham
United Kingdom
B2 5AL
ALTRA INDUSTRIAL MOTION UK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Notes to the financial statements
10 - 16
ALTRA INDUSTRIAL MOTION UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company is that of an intermediate holding company within the Altra Industrial Motion UK Holding Limited Group.
Results and dividends
The profit for the year, before taxation, amounted to £5,254,000 (2021 - £7,309,000).
Total dividends of £5,233,000 (2021 - £7,955,000) were paid to all shareholders during the year. The directors do not recommend the payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G Deegan
(Resigned 12 May 2023)
Mr T Patriacca
(Resigned 12 May 2023)
Ms Susan Lewis
(Appointed 12 May 2023)
Mr Patrick Cannon
(Appointed 12 May 2023)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Post reporting date events
As at 27 March 2023, the Company became part of a consolidation group of a new ultimate parent company. The parent company of the entire group is now Regal Rexnord Corporation, with its registered seat in 111 W Michigan Street, Milwaukee, WI 53203, USA.
Prior to 27 March 2023, The Company's ultimate parent company was Altra Industrial Motion Corp, a company incorporated in the United States of America.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going concern
The directors have assessed the liquidity of the company of at least 12 months from the date of approval of these financial statements. As a holding company, the company has very few cash transactions and as such, combined with expected rental income to be received along with the ongoing strong performance of it's subsidiaries, the directors are confident that the company can meet it's liabilities as they fall due, and as such have prepared the accounts on the going concern basis.
On 27 March 2023, the Company became part of a consolidation group of a new ultimate parent company. The parent company of the entire group is now Regal Rexnord Corporation. Prior to 27 March 2023, the Company's ultimate parent company was Altra Industrial Motion Corp.The change in ownership is not expected to have any impact upon the going concern status of the company for at least a period of 12 months from the approval date of the financial statements.
ALTRA INDUSTRIAL MOTION UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr Patrick Cannon
Director
19 December 2023
ALTRA INDUSTRIAL MOTION UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements and:
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
ALTRA INDUSTRIAL MOTION UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALTRA INDUSTRIAL MOTION UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Altra Industrial Motion UK Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its 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.
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 UK, including the FRC’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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
ALTRA INDUSTRIAL MOTION UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALTRA INDUSTRIAL MOTION UK LIMITED
- 5 -
Matters on which we are required to report by exception
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 directors' report. 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
ALTRA INDUSTRIAL MOTION UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALTRA INDUSTRIAL MOTION UK LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Ben Sheldon ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
20 December 2023
Chartered Accountants
Statutory Auditor
6th Floor, Bank House
8 Cherry Street
Birmingham
United Kingdom
B2 5AL
ALTRA INDUSTRIAL MOTION UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£'000
£'000
Administrative expenses
(50)
(67)
Other operating income
70
1,248
Operating profit
20
1,181
Interest receivable and similar income
4
5,234
6,128
Profit before taxation
5,254
7,309
Tax on profit
(12)
253
Profit for the financial year
5,242
7,562
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ALTRA INDUSTRIAL MOTION UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
5
445
462
Investments
6
16,531
16,531
16,976
16,993
Current assets
Debtors
8
189
203
Cash at bank and in hand
73
22
262
225
Creditors: amounts falling due within one year
9
(122)
(111)
Net current assets
140
114
Net assets
17,116
17,107
Capital and reserves
Called up share capital
10
Capital contribution reserve
11
10,786
10,786
Profit and loss reserves
11
6,330
6,321
Total equity
17,116
17,107
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 December 2023 and are signed on its behalf by:
Mr Patrick Cannon
Director
Company Registration No. 03141672
ALTRA INDUSTRIAL MOTION UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Capital contribution reserve
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 January 2021
10,786
6,714
17,500
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
7,562
7,562
Interim dividends
-
(7,955)
(7,955)
Balance at 31 December 2021
10,786
6,321
17,107
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
5,242
5,242
Interim dividends
-
(5,233)
(5,233)
Balance at 31 December 2022
10,786
6,330
17,116
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information
Altra Industrial Motion UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Twiflex Limited, 317-319 Ampthil Road, Bedford, United Kingdom, MK42 9RD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Altra Industrial Motion Corp. These consolidated financial statements are available from its registered office 300 Granite Street, Suite 201, Braintree, MA 02184, USA.
On 27 March 2023, the Company became part of a consolidation group of a new ultimate parent company. The parent company of the entire group is now Regal Rexnord Corporation, with its registered seat in 111 W Michigan Street, Milwaukee, WI 53203, USA and for the period ended 31 December 2023, the company's results will be consolidated into the financial statements of Regal Rexnord Corporation.
The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
The directors have assessed the liquidity of the company of at least 12 months from the date of approval of these financial statements. As a holding company, the company has very few cash transactions and as such, combined with expected rental income to be received along with the ongoing strong performance of it's subsidiaries, the directors are confident that the company can meet it's liabilities as they fall due, and as such have prepared the accounts on the going concern basis.
On 27 March 2023, the Company became part of a consolidation group of a new ultimate parent company. The parent company of the entire group is now Regal Rexnord Corporation. Prior to 27 March 2023, the Company's ultimate parent company was Altra Industrial Motion Corp.The change in ownership is not expected to have any impact upon the going concern status of the company for at least a period of 12 months from the approval date of the financial statements.
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
3% per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash includes cash in hand.
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investments in subsidiaries
The investments in subsidiaries are assessed at each reporting date to determine whether there is any indication the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use.
3
Employees
The Company has no employees other than the directors, who did not receive any remuneration (2021 - £Nil).
4
Interest receivable and similar income
2022
2021
£'000
£'000
Interest receivable and similar income includes the following:
Income from shares in group undertakings
5,234
6,128
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
5
Tangible fixed assets
Land and buildings
£'000
Cost
At 1 January 2022 and 31 December 2022
750
Depreciation and impairment
At 1 January 2022
288
Depreciation charged in the year
17
At 31 December 2022
305
Carrying amount
At 31 December 2022
445
At 31 December 2021
462
6
Fixed asset investments
2022
2021
£'000
£'000
Shares in group undertakings and participating interests
16,531
16,531
7
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Matrix International Limited
England
Ordinary
100.00
-
Twiflex Limited
England
Ordinary
100.00
-
Huco Engineering Industries Limited
England
Ordinary
100.00
-
Bibby Transmission Limited
England
Ordinary
100.00
-
Bauer Gear Motor Limited
England
Ordinary
100.00
-
Altra Industrial Motion South Africa Propreitary Limited
South Africa
Ordinary
-
100.00
Rathi Turboflex Pvt. Limited
India
Ordinary
-
50.00
Matrix International GmbH
Germany
Ordinary
-
100.00
All of the above subsidiaries are trading companies, except for Matrix International GmbH and Altra Industrial Motion South Africa Propreitary Limited which are non-trading.
The principal activity of all the above trading companies is the design, manufacture and supply of industrial brakes, couplings and clutches for a variety of industrial motion applications.
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
8
Debtors
2022
2021
Amounts falling due within one year:
£'000
£'000
Corporation tax recoverable
73
67
Deferred tax asset
116
136
189
203
9
Creditors: amounts falling due within one year
2022
2021
£'000
£'000
Trade creditors
6
Amounts owed to group undertakings
95
90
Taxation and social security
3
3
Other creditors
18
18
122
111
Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
10
Called up share capital
2022
2021
1 Ordinary Share of £1.00
1
1
11
Reserves
Capital contribution reserve
Represents cumulative contributions of capital by company shareholders.
Profit and loss account
Includes all cumulative and prior period retained profits and losses.
12
Contingent liabilities
The Company's assets are used as security for the Group's banking facilities. The bank has a fixed and floating charge over all assets of the company. At 31 December 2022 the net borrowings of the group and company were £Nil (2020: £Nil).
13
Events after the reporting date
As at 27 March 2023, the Company became part of a consolidation group of a new ultimate parent company. The parent company of the entire group is now now Regal Rexnord Corporation, with its registered seat in 111 W Michigan Street, Milwaukee, WI 53203, USA.
Prior to 27 March 2023, The Company's ultimate parent company was Altra Industrial Motion Corp, a company incorporated in the United States of America.
ALTRA INDUSTRIAL MOTION UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
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14
Parent company
As of 27 March 2023, the ultimate parent company of the entire group is now now Regal Rexnord Corporation, with its registered seat in 111 W Michigan Street, Milwaukee, WI 53203, USA.
Prior to 27 March 2023, The Company's ultimate parent company was Altra Industrial Motion Corp, a company incorporated in the United States of America and the 31 December 2022 financial statements of the company are consolidated in the financial statements of Altra Industrial Motion Corp. These consolidated financial statements are available from its registered office 300 Granite Street, Suite 201, Braintree, MA 02184, USA for the year ended 31 December 2022.
The company's immediate parent company is Altra Industrial Motion UK Holding Limited, a company registered in England and Wales.
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