Registered number:
04236236
SCANSOURCE EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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SCANSOURCE EUROPE LIMITED
COMPANY INFORMATION
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J Moorefield
(appointed
12 November 2020
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N Bridgland
(resigned
12 November 2020
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G Lyons
(resigned
12 November 2020
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M Magan
(appointed
12 November 2020
, resigned
17 September 2021
)
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M Van Rijn
(resigned
12 November 2020
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Statutory Auditor, Chartered Accountants
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SCANSOURCE EUROPE LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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SCANSOURCE EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The principal activity of the company during the year was acting as an intermediate parent undertaking for the European operations.
The company acts as an intermediate parent undertaking for the European operations and does not otherwise trade on its own account.
As part of the continuing group corporate simplification and restructuring exercise the following events occurred during the year:
• On 13th December 2019 a loan of £1,607,726 payable to the immediate parent company, Scansource Europe BV, was forgiven.
• On 29th January 2020 a subsidiary company, Scansource Communications Ltd, declared a dividend of £26,071,100 that was offset against a loan payable to that company of the same amount.
• On 6th of May 2020 Scansource Communications Ltd declared a dividend in specie to its parent company, Scansource Europe Ltd amounting to £5,251,486 being the value of all of its remaining assets, consisting only of debts due from other group companies.
• On 04th of May Scansource GB&NI Ltd declared a dividend in specie to its parent company, Scansource Europe Ltd amounting to £4,234,138 being the value of all of its remaining assets, consisting only of debts due from other group companies.
• On 10th of March 20 Scansource Ltd declared a dividend in specie to its parent company, Scansource Europe Ltd amounting to £187,879 being the value of all of its remaining assets, consisting only of debts due from other group companies.
Because the Company has ceased to trade post year end and the Director intends to voluntarily dissolve the Company in the next twelve months, the financial statements have been prepared on basis other than that of a going concern which involves writing down all the assets to recoverable amounts.
The directors have considered the realisable value of the company’s investments in its subsidiaries and have determined that a provision for impairment of £75,094,612 should be made to reflect net asset values because the subsidiaries have ceased to trade post year end and will be liquidated. The directors assesment is made based upon the amount expected to be realised during liquidation proceedings.
As part of the preparation for liquidation proceedings the Directors have assessed the recoverability of the company's intercompany debts and concluded that a provision for £1,678,378 should be made against the amounts owed by a subsidiary company.
Since the year end the company's subsidiaries have ceased to trade and will be wound up along with Scansource Europe Limited.
Principal risks and uncertainties
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Due to the nature of the business, there are no material risks or uncertainties which require disclosure. The company monitors its cash flows and management ensure, by the availability of intercompany funding with flexible repayment terms that sufficient cash is available to meet obligations as they fall due. The company also monitors the performance of its subsidiaries and considers the effect of that performance on investment impairment reviews. Since the company does not trade, neither Brexit or Covid-19 have any direct effect on the company but both may have some effect on the trading activities of its subsidiaries and consequently on the value of the company's investment in those subsidiaries up until the date of cessation of trade.
Page 1
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SCANSOURCE EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
Brexit
Scansource Europe Limited is a non trading holding company so the impact of Brexit is relatively limited on this entity. However, the effect on the trading subsidiaries of Scansource Europe Limited has been considered.
Following group restructuring during the previous year, group sales into the UK are all made via Scansource UK Ltd, operating in the UK. Sales outside of the UK are all made via other Scansource entities, operating from Belgium and France so cross border sales are very limited. Scansource UK Ltd does however continue to mostly purchase goods from outside the UK, so the outcome of the future trade negotiations with both EU and non-EU countries will affect these commercial arrangements. However, since the Company is part of the ScanSource European group, the directors have seen the continuation of the Company’s supply chain to the UK within the realities of a post-Brexit environment. The company, until cessation, was solely focused on the UK market and has closed its warehouse in Thatcham, moving its inventory to a much larger warehouse in Southampton which is operated by a third party, allowing much larger volumes to be stored and shipped to the UK market. The directors are therefore confident that the Company took the necessary steps to reposition itself to trade successfully in the UK market post-Brexit.
Covid-19
Whilst the COVID-19 pandemic has presented challenging market conditions during the year under review the company has ceased to trade post year end and will be wound up and as a result COVID-19 will have very little impact on the business.
Directors' statement of compliance with duty to promote the success of the Company
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The Directors of the Company take seriously The Companies Act requirements of Section 172 to promote the success of the Company, the Directors have regard to the interests of the shareholders and employees as well as the wider community. Initatives such as work to ensure compliance with anti-slavery legislation, following GDPR requirements to protect the information of employees, suppliers and customers. Welfare inititives for staff and a push for reclycling wherever possible are just some examples. Post year end the Company has ceased to trade. Further details are given in the Directors' Report.
This report was approved by the board
and signed on its behalf.
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J Moorefield
Director
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Page 2
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SCANSOURCE EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2020
The directors present their report and the financial statements for the year ended 30 June 2020.
The directors anticipate the company to be wound up within the next 12 months and as such the accounts have been prepared on basis other than going concern.
Directors' responsibilities statement
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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:
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select suitable accounting policies for the Company's financial statements and then apply them consistently;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 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.
The loss for the year, after taxation, amounted to £
39,420,661
(2019 -
profit
£
NIL
)
.
No dividends were paid in 2020 or 2019.
The directors who served during the year were:
N Bridgland
(resigned
12 November 2020
)
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G Lyons
(resigned
12 November 2020
)
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M Magan
(appointed
12 November 2020
, resigned
17 September 2021
)
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M Van Rijn
(resigned
12 November 2020
)
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In August 2019, ScanSource Inc., the ultimate parent company of ScanSource Europe Ltd, announced its intent to divest the device business in Europe, of which the Company is a part. The company, was sold on 12 November 2020 and has subsequently ceased to trade. As part of an exercise to wind up the ScanSource Europe Group, the company is part of a process to restructure intra group arrangements and balances.
Page 3
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SCANSOURCE EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
Engagement with suppliers, customers and others
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The directors are mindful of their statutory duty to act in the way they each consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, as set out in our 172(1) statement in the Strategic Report.
During the year the Company continued to engage with its suppliers, customers and other relevant stakeholders in an appropriate manner.
Greenhouse gas emissions, energy consumption and energy efficiency action
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The Company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is below 40,000kWh.
Financial risk management and objectives
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In accordance with S414C (11) of the Companies Act 2006 the directors have opted to include this information in the Strategic Report.
Disclosure of information to auditors
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Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
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so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
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the director 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's auditors are aware of that information.
Post balance sheet events
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Post year end the company's subsidiaries have ceased to trade and will be wound up along with Scansource Europe Limited. See 'Future Developments' above for further details.
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 and signed on its behalf.
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J Moorefield
Director
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Page 4
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SCANSOURCE EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCANSOURCE EUROPE LIMITED
We were engaged to audit the financial statements of ScanSource Europe Limited (the ‘Company’) for the year ended 30 June 2020, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and notes to the financial statements, 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).
We do not express an opinion on the accompanying financial statements of the Company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
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Investments in subsidiary companies
In respect of the investments in subsidiary companies, which has a carrying value in the statement of financial position of £31.3m as at 30 June 2020, we were unable to obtain sufficient appropriate audit evidence concerning the recoverable amount. Any adjustments required to this balance would also impact administrative expenses in the Statement of comprehensive income. Due to the cessation of trade post year end and the intention of the Directors to voluntarily dissolve the Company in the next twelve months, adequate accounting records were not maintained with respect to how the investments in subsidiary companies would be recovered, given that the net asset balances of such subsidiary companies could not be readily determined. Consequently, we were unable to determine whether any adjustments to these amounts were necessary.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Emphasis of matter – basis of preparation of the financial statements
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We draw attention to Note 2.4 to the financial statements, which describes the basis of preparation of the financial statements. As described in that note, the Company has ceased to trade post year end and the Directors intend to voluntarily dissolve the Company in the next twelve months. Accordingly, the financial statements have been prepared on a basis other than that of going concern which involves writing down all the assets to recoverable amounts. Although this report is a disclaimer of opinion on the financial statements, it is not modified in respect of this matter.
Opinions on other matters prescribed by the Companies Act 2006
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Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
• the information given in the 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 Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matter on which we are required to report under the Companies Act 2006
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Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Strategic report or the Directors’ report.
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SCANSOURCE EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCANSOURCE EUROPE LIMITED (CONTINUED)
Matters on which we are required to report by exception
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Arising from the limitation of our work described in the basis for disclaimer of opinion section of our report:
• we were unable to determine whether adequate accounting records have been kept; and
• we have not obtained all the information and explanations which are necessary for the purposes of our audit.
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:
• 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 Directors’ remuneration specified by law are not made.
Responsibilities of directors for the financial statements
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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.
Auditors' responsibilities for the audit of the financial statements
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Our responsibility is to conduct an audit of the Company’s financial statements in accordance with International Standards on Auditing and to issue an auditor’s report. However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on those financial statements.
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.
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SCANSOURCE EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCANSOURCE EUROPE LIMITED (CONTINUED)
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.
Amrish Shah BSc FCA
(Senior Statutory Auditor)
for and on behalf of
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
First Floor, One Valpy
20 Valpy Street
Reading
RG1 1AR
28 March 2022
Page 7
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SCANSOURCE EUROPE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
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Exceptional administrative expenses
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Income from fixed assets investments
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(Loss)/profit for the financial year
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There was no other comprehensive income for 2020 (2019:£
NIL).
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The notes on pages 11 to 18 form part of these financial statements.
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Page 8
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SCANSOURCE EUROPE LIMITED
REGISTERED NUMBER:
04236236
BALANCE SHEET
AS AT
30 JUNE 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
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J Moorefield
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The notes on pages 11 to 18 form part of these financial statements.
Page 9
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SCANSOURCE EUROPE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2020
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Shares issued during the year
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The notes on pages 11 to 18 form part of these financial statements.
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Page 10
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The company is privately held and limited by shares. The company is incorporated in England. The registered office of the Company is 1 Callaghan Square, Cardiff, South Glamorgan, CF10 5BT The Directors expect the Company to be wound-up over the forthcoming year.
2.
Accounting policies
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Basis of preparation of financial statements
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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
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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's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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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":
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the requirements of Section 7 Statement of Cash Flows;
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the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
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the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of ScanSource Inc, as at 30 June 2020 and these financial statements may be obtained from ScanSource Inc, Greenville, South Carolina, US.
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Exemption from preparing consolidated financial statements
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The
Company
is a parent
company
that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of
non-EEA state
and is therefore exempt from the requirement to prepare consolidated financial statements under
section 401 of the Companies Act 2006
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Because the Company has ceased to trade post year end and the Directors intend to voluntarily dissolve the Company in the next twelve months, the financial statements have been prepared on a basis other than that of a going concern which involves writing down all the assets to recoverable amounts. The financial statements do not include any provision for the future costs of terminating the business of the company except to the extent that such costs were committed at the balance sheet date. In the opinion of the Director no further adjustments are required to the carrying value of the assets.
Page 11
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.
Accounting policies (continued)
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Foreign currency translation
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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 fair value are measured using the exchange rate when fair value was determined.
Tax is recognised in profit or loss 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 balance sheet date in the countries where the Company operates and generates income.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Investments in subsidiaries are measured at cost less accumulated impairment.
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.
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.
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 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,
Page 12
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.
Accounting policies (continued)
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Financial instruments (continued)
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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 in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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 balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Preparation of the financial statements requires management to make significant judgement and estimates.
The items in the financial statements where these judgements and estimates have been made include:
Investment impairment
The combined cost of the investments in subsidiary companies amounts to £106,430,774. The directors have considered the realisable value of the company’s investments in its subsidiaries and have determined that a provision for impairment of £75,094,612 should be made to reflect net asset values because the subsidiaries have ceased to trade post year end and will be liquidated. The directors assesment is made based upon the amount expected to be realised during liquidation proceedings, having regard to the anticipated minimum net asset position of its principal subsidiary undertaking ScanSource Europe SPRL.
Intercompany recoverability
Management are confident that all outstanding intercompany debts, other than those provided for in these financial statements, will be collected. The directors judgment is made based upon the settlement of all group related balances post year end as part of a wider European group restructuring program. As part of this consideration a provision of £1,678,378 has been made against the company's intercompany debtors.
Page 13
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Audit fees of £26,700 (2019: £15,295) for this company are included in fees paid and borne by Scansource UK Limited. There are no non audit fees payable to the auditors.
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The Company has no employees other than the directors, who did not receive any remuneration (2019 -
£NIL).
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Income from shares in group undertakings
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Taxation on profit on ordinary activities
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Page 14
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
7.
Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than
(2019 - the same as)
the standard rate of corporation tax in the UK of
19
%
(2019 -
19
%)
. The differences are explained below:
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(Loss)/profit on ordinary activities before tax
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(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)
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Non-tax deductible amortisation of goodwill and impairment
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Dividends from UK companies
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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Impairment of investment in subsidiaries
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Waiver of intercompany debt
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Provision against intercompany debt
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During the year a loan of £1,607,726 payable to the immediate parent company was forgiven.
The Directors assessment of the impairment charge is based upon the realisable value of the investments in the subsidiaries now that they have ceased to trade and will be wound up.
Provision has been made for the amount of intercompany debts not expected to be recovered during the winding up of the group.
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Page 15
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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Speciality IT distribution
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Speciality IT distribution
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ScanSource Video Communications SARL*
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Video Communications equipment distribution
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ScanSource GB & NI Limited
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ScanSource Communications Limited
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ScanSource Video Communications EuropeLimited
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Video Corporation Limited*
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ScanSource Video Communications GmbH*
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* denotes indirect holding.
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Page 16
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Amounts owed by group undertakings
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Amounts owed by group undertakings are repayable on demand and non interest bearing.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Financial assets measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets and liabilities measured at amortised cost comprise amounts due to and from group undertakings. Amounts wholly repayable within one year are initially and subsequently, at the undiscounted amount of the cash, expected to be paid or received. Debt instruments that are payable in greater than one year are measured initially at fair value and subsequently at amortised cost.
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Allotted, called up and fully paid
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5
(2019 -
5
)
Ordinary
shares of £
1.00
each
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Each ordinary share carries one voting right. The shareholder can authorise dividends up to the value of
distributable retained earnings.
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Page 17
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SCANSOURCE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Share premium account
Share premium is the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account
Profit and loss account includes all current and prior period retained profits and losses.
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Related party transactions
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At the year end the company is a wholly owned subsidiary of ScanSource Inc, the group financial statements of which are publicly available. The company has taken advantage of the exemption afforded by FRS 102 'Section 33 Related Party Disclosures' and not disclosed transactions or balances with other entities that are wholly owned by ScanSource Inc.
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Post balance sheet events
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In August 2019, ScanSource Inc., the ultimate parent company of ScanSource Europe Ltd, announced its intent to divest the device business in Europe, of which the Company is a part. The company, was sold on 12 November 2020 and has subsequently ceased to trade. As part of an exercise to wind up the ScanSource Europe Group, the company is part of a process to restructure intra group arrangements and balances.
Scansource Europe CV, a limited liability partnership registered in the Netherlands, is the immediate parent undertaking.
In the directors’ opinion the company’s ultimate parent undertaking and controlling party and both the smallest and largest group of which the company is a member and for which group financial statements are prepared, is ScanSource Inc, which is incorporated in the United States of America. Copies of its group financial statements are available from ScanSource Inc, Greenville, South Carolina, US and online at www.scansource.com.
On 12 November 2020, the ultimate parent undertaking became SSE Services Holdings LLC incorporated in the United States of America.
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