Company registration number 08461738 (England and Wales)
ARCHROMA UK, LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
ARCHROMA UK, LTD
COMPANY INFORMATION
Directors
Mr G Smith
Mr C Auer
(Appointed 1 August 2023)
Secretary
Intertrust (UK) Limited
Company number
08461738
Registered office
1 Bartholomew Lane
London
EC2N 2AX
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
ARCHROMA UK, LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 30
ARCHROMA UK, LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 September 2023.
The company was incorporated on 26 March 2013, for the purpose of acquiring the trade and assets of Clariant Distribution UK Limited and Clariant Production UK Limited.
On August 9, 2022, Huntsman International LLC, a US based limited liability company (“Huntsman”), was entered into an Equity and Asset purchase agreement with the Archroma Group ("the Group"). Archroma UK Ltd ("the Company") was affected by an asset deal subsequent to the closing of this agreement. As a result of the asset deal the Company inherited personnel and personnel liabilities amounting to £37,519. The purchase price was $2,161,257.
Principle activity
The principal activity of the company continued to be that of distribution of chemical dyes.
Business model
The Group is organised into three business units, textiles, paper and emulsions, with the Company focusing mainly on the paper, textile, wood treatment industry but more of a push into new markets such as optical brightening agents (OBA) detergents, cosmetics and leather.
The sales process is supported by a high level of technical support, provided on both a local and global level. Customers are therefore willing to accept higher prices due to the service level that the company provides.
Business review and results
The results of the Company show a loss after taxation of £577,127 (2022: profit after taxation of £982,250). The net assets of the Company at the period end were £1,279,712 (2022: £1,856,839).
Key performance indicators
The Company is measured on three key performance indicators:
These three parameters tell us how we are performing as a company and across the group.
In 2023 increased inflation rates and increased interest rates have reduced shopping and consumption throughout the markets. This led to a downturn in sales this year by 15.2% to £18,070k when compared to the prior period. This is mainly due to reduction in volume of 10-20% in our business units. Gross margin also decreased to £3,597k meaning 18.3% of sales (2022: £4,724k meaning 22.6% of sales). Net working capital has been reduced by £2,448k to a defecit of (£981k). This was affected by a major decrease in inventories.
ARCHROMA UK, LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Principal risks and uncertainties
As the Company provides sales and marketing services to Group companies, it must adapt to operating changes in those companies to ensure it provides the appropriate level of service.
The markets that we operate in can be very competitive for suppliers and customers. The continual improvement process that we operate as a supplier across the Group enables us to provide our customers with the tools to help keep them and us in profitable business.
Mandatory principles in Safety, Health and the Environment (“SHE”) are laid down in the groups SHE guidelines which form an integral part of business process and strategic planning.
Overall, the impact on the company of the UK's exit from the European Union (EU), has not been as detrimental as expected even the foreign exchange expense remained stable. The Company will continue to trade as now and plan to recover from the downturn in second quarter of fiscal year 2024.
Future developments
For the foreseeable future the Company will continue to provide sales and marketing services to group companies, recharged at a margin. Efforts of cost controls have been implemented successfully and we expect the Company continuing to trade with a gross profit in 2023 and beyond.
The paper market in the UK in tissue sectors has remained rather resilient, while graphic paper is seeing a hit from the current recession and decreasing demand in newsprints.
The textile market is slowing down in the UK for few months now, mostly affected is fashion and apparel market. Despite seeing tendency to slight recovery in some markets (automotive), the demand is expected to remain on level of fiscal year 2023.
The group is investing a lot of R & D time in developing chemicals for both of the growing industries, e.g. the development of bio based products to replace water based Acrylics. This is a major initiative for us with markets moving away from plastics to other materials such as paper and wood.
There is a continued improvement on high end textile products, and we have redirected our products based on this.
The Company will invest time into developing new markets for our products and also report back opportunities of new products that could suit our portfolio. Main areas we are concentrating on are the wood and formulator sectors.
Mr G Smith
Director
9 February 2024
ARCHROMA UK, LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activity of the company continued to be that of distribution of chemical dyes.
Results and dividends
The results for the year are set out on page 8.
No Ordinary dividends were paid in the current year (2022: £1,000,285).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D K Puddiphatt
(Resigned 1 August 2023)
Mr G Smith
Mr M P Zumstein
(Resigned 1 August 2023)
Mr C Auer
(Appointed 1 August 2023)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the reporting date.
Auditor
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
Mr G Smith
Mr C Auer
Director
Director
9 February 2024
16 February 2024
ARCHROMA UK, LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
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.
ARCHROMA UK, LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARCHROMA UK, LTD
- 5 -
Opinion
We have audited the financial statements of Archroma UK, Ltd (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 UK adopted international accounting standards.
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its loss for the year then ended;
have been properly prepared in accordance with UK adopted international accounting standards; 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 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.
ARCHROMA UK, LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCHROMA UK, LTD
- 6 -
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 strategic report or 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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
ARCHROMA UK, LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCHROMA UK, LTD
- 7 -
Extent to which the audit was capable of identifying 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; and
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
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.
Chris Butt (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
16 February 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
ARCHROMA UK, LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£000
£000
Revenue
4
18,071
20,875
Cost of sales
(15,969)
(16,152)
Gross profit
2,102
4,723
Other operating income
5
1,496
-
Distribution costs
(280)
(304)
Administrative expenses
(3,725)
(3,097)
Operating (loss)/profit
6
(407)
1,322
Investment revenues
10
21
8
Finance costs
11
(291)
(118)
(Loss)/profit before taxation
(677)
1,212
Income tax income/(expense)
12
100
(230)
(Loss)/profit and total comprehensive income for the year
(577)
982
The income statement has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income to note.
ARCHROMA UK, LTD
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£000
£000
Non-current assets
Goodwill
15
1,833
Intangible assets
15
212
282
Property, plant and equipment
14
114
216
Deferred tax asset
1
2,159
499
Current assets
Inventories
16
1,068
1,847
Trade and other receivables
17
4,085
3,702
Current tax recoverable
368
138
Cash and cash equivalents
312
892
5,833
6,579
Current liabilities
Trade and other payables
18
6,601
4,899
Current tax liabilities
111
Lease liabilities
19
101
100
6,702
5,110
Net current (liabilities)/assets
(869)
1,469
Non-current liabilities
Lease liabilities
19
10
111
Net assets
1,280
1,857
Equity
Called up share capital
20
Share premium account
773
773
Retained earnings
507
1,084
Total equity
1,280
1,857
The financial statements were approved by the board of directors and authorised for issue on 9 February 2024 and are signed on its behalf by:
Mr G Smith
Mr C Auer
Director
Director
Company registration number 08461738
ARCHROMA UK, LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
Share capital
Share premium account
Retained earnings
Total
Notes
£000
£000
£000
£000
Balance at 1 October 2021
-
773
1,102
1,875
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
982
982
Transactions with owners in their capacity as owners:
Dividends
13
-
-
(1,000)
(1,000)
Balance at 30 September 2022
773
1,084
1,857
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(577)
(577)
Balance at 30 September 2023
773
507
1,280
ARCHROMA UK, LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
2023
2022
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
1
1,871
1,768
Interest paid
(291)
(118)
Income taxes paid
(240)
(778)
Net cash inflow from operating activities
1,340
872
Investing activities
Purchase of intangible assets
(1,841)
(11)
Proceeds from disposal of property, plant and equipment
8
Interest received
21
8
Net cash (used in)/generated from investing activities
(1,820)
5
Financing activities
Payment of lease liabilities
(100)
(113)
Dividends paid
(1,000)
Net cash used in financing activities
(100)
(1,113)
Net decrease in cash and cash equivalents
(580)
(236)
Cash and cash equivalents at beginning of year
892
1,128
Cash and cash equivalents at end of year
312
892
ARCHROMA UK, LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
1
Cash generated from operations
2023
2022
£000
£000
(Loss)/profit before income tax from:
Continuing operations
(677)
1,322
(Loss)/profit for the year before income tax
(677)
1,322
Adjustments for:
Finance costs
291
-
Investment income
(21)
-
Amortisation and impairment of intangible assets
77
76
Depreciation and impairment of property, plant and equipment
104
106
Movements in working capital:
Decrease/(increase) in inventories
779
(501)
(Increase)/decrease in trade and other receivables
(384)
921
Increase/(decrease) in trade and other payables
1,702
(156)
Cash generated from operations
1,871
1,768
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2
Accounting policies
Company information
Archroma UK, Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1 Bartholomew Lane, London, EC2N 2AX. The company's principal activities and nature of its operations are disclosed in the directors' report.
2.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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 on the historical cost basis, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
2.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
2.3
Going concern
Archroma UK were loss making in the year ending 30 September 2023, however ttruehey have since seen positive results. The Company has reasonable cash reserves and also benefits from the support of the Group parent. The majority of liabilities are owed to other Group companies, as such, the directors have, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 14 -
2.4
Revenue
Sale of goods
The company recognises revenue from the sale of goods on behalf of its parent company, acting as a sales branch in the UK. To determine whether to recognise this revenue, a five step process is followed:
1) Identifying the contract with the customer
2) Identifying the performance obligations
3) Determining the transaction price
4) Allocating the transaction price to the performance obligations
5) Recognising revenue when performance obligations are satisfied
Revenue is recognised on the gross basis as the UK purchases and resells the goods, and suffers the credit risk associated with the sale to the final customer. Revenue is recognised in line with the specific customer contract agreement either when the customer receives the goods or when the goods have been shipped.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
2.5
Goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.
The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.
2.6
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Technical Certificates 12 years straight line
Customer list 5 years straight line
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 15 -
2.7
Property, plant and equipment
Property, plant and equipment 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:
Leasehold land and buildings
Straight line over the lease term
Fixtures and fittings
9 years straight line
Plant and equipment
6 years straight line
Right of use assets
Over the period of the lease or between 5 - 10 years
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 recognised in the income statement.
2.8
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
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.
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.
2.9
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average principle and included expenditure incurred in acquiring the stock, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 16 -
2.10
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
2.11
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 17 -
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
2.12
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
2.13
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2.14
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 income statement 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.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.
2.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.17
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 19 -
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
Under IFRS 16, Leases are accounted for on the right of use model. The Income Statement presentation and expense recognition. At inception, the Company assesses whether a contract contains a lease. This assessment involves the exercise of judgement about whether the Company obtains substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct the use of the asset.
IFRS 16 permits lessees to elect not to apply the recognition requirements to short term leases and leases for which the underlying asset is of low value. The Company has elected not to recognise short term leases of less than one year at inception and low value leases which will continue to be reflected in the Income Statement. This will be the ongoing policy adopted by the Company. There are no right of use assets or lease liabilities recognised for these leases, and the expense is recognised in the Income Statement on a straight line basis.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses an incremental borrowing rate which is the rate of interest that the lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right‐of‐use asset in a similar economic environment.
The right‐of‐use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right‐of‐use assets are depreciated over the shorter period of lease term and useful life of the underlying asset and are now presented within property, plant and equipment.
The Company applies IAS 36 to determine whether a right‐of‐use asset is impaired and accounts for any identified impairment loss in line with the Company’s existing impairment accounting policy.
Under IFRS 16, the straight‐line operating lease expense, has been replaced with a depreciation charge for the right‐of‐use assets and interest expense on lease liabilities.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Accounting policies
(Continued)
- 20 -
2.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Non-monetary assets and liabilities are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value was determined. Gains and losses arising on translation are included in the income statement for the period.
3
Critical accounting estimates and judgements
The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
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 and in any future periods affected.
The key areas involving estimates and judgements are as follows;
Recoverability of trade receivables
Trade and other receivables are recognised at fair value, minus expected future losses. A provision for impairment of trade receivables is recognised based on lifetime expected losses using historic evidence and industry knowledge, but principally comprise balances where objective evidence exists that the amount will not be collectible. Such amounts are written down to their estimated recoverable amounts.
Valuation of the customer list intangible
The fair value of the customer list has been determined based on value-in-use calculations. These are based on 3 year management forecasts and cash flows. The key assumption used in these cash flows is revenue growth based on management's experience of the industry, product mix, latest market expectations and historic performance.
The forecast cash flows are discounted at a pre-tax discount rate of 12.9% calculated based on available market data and the discount rates of other comparable companies.
4
Revenue
2023
2022
£000
£000
Revenue analysed by class of business
Revenue from contracts with customers
18,071
20,875
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
4
Revenue
(Continued)
- 21 -
2023
2022
£000
£000
Revenue analysed by geographical market
United Kingdom
17,589
20,875
European Union
482
-
18,071
20,875
5
Other operating income
Other operating income relates to intercompany management fees charged for services rendered to other Companies within the Group.
6
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£000
£000
Depreciation of property, plant and equipment
104
106
Amortisation of intangible assets (included within administrative expenses)
77
76
Cost of inventories recognised as an expense
15,969
16,152
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Sales and marketing
8
9
Administrative
3
3
Technical support
5
5
Laboratory
1
1
Total
17
18
Their aggregate remuneration comprised:
2023
2022
£000
£000
Wages and salaries
1,150
1,141
Social security costs
141
137
Pension costs
126
113
1,417
1,391
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
8
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
29
19
9
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
102
114
Company pension contributions to defined contribution schemes
8
8
110
122
The number of directors for whom retirement benefits are accruing under money purchase schemes amounted to nil (2022 - 1).
10
Investment income
2023
2022
£000
£000
Interest income
Financial instruments measured at amortised cost:
Other interest income on financial assets
21
8
Income above relates to assets held at amortised cost, unless stated otherwise.
11
Finance costs
2023
2022
£000
£000
Interest on bank overdrafts and loans
279
109
Interest on lease liabilities
12
9
Total interest expense
291
118
12
Income tax expense
2023
2022
£000
£000
Current tax
UK corporation tax on profits for the current period
229
Adjustments in respect of prior periods
(101)
Total UK current tax
(101)
229
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
12
Income tax expense
2023
2022
£000
£000
(Continued)
- 23 -
Deferred tax
Origination and reversal of temporary differences
1
1
Total tax charge/(credit)
(100)
230
The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:
2023
2022
£000
£000
(Loss)/profit before taxation
(677)
1,212
Expected tax (credit)/charge based on a corporation tax rate of 22.00% (2022: 19.00%)
(149)
230
Effect of expenses not deductible in determining taxable profit
(1)
(2)
Income not taxable
5
7
Unutilised tax losses carried forward
135
Adjustment in respect of prior years
(111)
Under/(over) provided in prior years
20
Other
1
(5)
Taxation (credit)/charge for the year
(100)
230
The UK corporation tax rate was 19% until March and increased to 25% in April. The average UK corporation tax rate throughout the year was 22%.
13
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£000
£000
£000
£000
Ordinary
Interim dividend paid
-
10.00
-
1,000
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
14
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Right of use assets
Total
£000
£000
£000
£000
£000
Cost
At 1 October 2021
6
42
14
359
421
Additions
164
164
Disposals
(270)
(270)
At 30 September 2022
6
42
14
253
315
At 30 September 2023
6
42
14
253
315
Accumulated depreciation
At 1 October 2021
6
36
12
201
255
Charge for the year
4
2
100
106
Eliminated on disposal
(262)
(262)
At 30 September 2022
6
40
14
39
99
Charge for the year
1
103
104
At 30 September 2023
6
41
14
142
202
Carrying amount
At 30 September 2023
-
1
-
112
114
At 30 September 2022
-
2
-
214
216
Right-of-use assets
2023
2022
£000
£000
Net values at the year end
Property
82
164
Motor vehicles
30
50
112
214
Total additions in the year
-
164
Depreciation charge for the year
Property
82
78
Motor vehicles
21
22
103
100
Certain assets are under a pledge as part of a credit agreement with the ultimate owner.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
15
Intangible assets
Goodwill
Technical certificates
Customer List
Total
£000
£000
£000
£000
Cost
At 1 October 2021
66
350
416
Additions
-
11
-
11
At 30 September 2022
77
350
427
Additions
1,833
8
1,841
At 30 September 2023
1,833
84
350
2,267
Amortisation
At 1 October 2021
16
53
69
Charge for the year
6
70
76
At 30 September 2022
22
123
145
Charge for the year
7
70
77
At 30 September 2023
29
193
222
Carrying amount
At 30 September 2023
1,833
55
157
2,045
At 30 September 2022
55
227
282
At 30 September 2021
-
50
297
347
16
Inventories
2023
2022
£000
£000
Finished goods
1,068
1,847
Included in the inventory value above is a provision of £30,593 (2022: £37,938) in relation to slow moving items.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
17
Trade and other receivables
2023
2022
£000
£000
Trade receivables
2,611
2,468
Provision for bad and doubtful debts
(43)
(56)
2,568
2,412
Amount owed by parent undertaking
1,454
1,244
Amounts owed by fellow group undertakings
43
15
Other receivables
9
9
Prepayments
11
22
4,085
3,702
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
18
Trade and other payables
2023
2022
£000
£000
Trade payables
222
420
Amount owed to parent undertaking
4,048
2,308
Amounts owed to fellow group undertakings
1,703
1,344
Accruals
161
280
Social security and other taxation
467
547
6,601
4,899
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
18
Trade and other payables
(Continued)
- 27 -
Included within current liabilities are amounts owed to fellow group undertakings. These are considered trading balances, which are repayable on demand and do not attract interest.
The amounts owed to parent undertakings represent loans and borrowings relating to a EUR 2.6m loan from SK Spice Holdings Sàrl, the ultimate parent company. And a new loan taken out in the year from Archroma Management GmbH of USD 1.8m.
Terms and debt repayment schedule:
The SK Spice Holdings Sàrl loan is due to mature on 30 June 2024. Interest is payable quarterly and annually fixed on the 3 months LIBOR rate plus a margin of 6% which is considered to be at arm’s length/market rate. As per the terms of the loan agreement the lender may request payment in full or part on demand.
The Archroma Management GmbH loan is due to mature on 28 February 2052. Interest is payable quarterly and annually fixed on the 3 months CME-SOFR rate plus a margin of 6% which is considered to be at arm’s length/market rate. As per the terms of the loan agreement the lender may request payment in full or part on demand.
Financial instruments
No assets or liabilities are held at fair value, other than the long term loan detailed above, and therefore analysis of a fair value hierarchy is not considered necessary.
Credit risk
Credit risk is the risk of financial loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables. As the majority of the receivables are intercompany the risk is considered low and therefore details about concentration of credit risk and quality of assets has not been provided. There is no impairment provision held against trade receivables.
Liquidity risk
Liquidity risk is the risk that the company will be unable to meet its financial obligations as they fall due. Due to the intergroup funding provided to the company this is not considered a significant risk. The EUR loan is payable on 30 June 2024.
Market risk – foreign currency risk
The company’s exposure to foreign currency risk is from the EUR loan and transactions with other group companies in Euros. Otherwise, revenues are denominated in GBP and the company largely operates in GBP, and therefore carries little foreign currency risk.
Capital management
The company manages its long term debt and equity through liaison with its ultimate parent company. There are no external capital requirements placed on the company.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 28 -
19
Lease liabilities
2023
2022
Maturity analysis
£000
£000
Within one year
111
119
In two to five years
15
125
Total undiscounted liabilities
126
244
Future finance charges and other adjustments
(15)
(33)
Lease liabilities in the financial statements
111
211
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2023
2022
£000
£000
Current liabilities
101
100
Non-current liabilities
10
111
111
211
2023
2022
Amounts recognised in profit or loss include the following:
£000
£000
Interest on lease liabilities
12
9
The fair value of the company's lease obligations is approximately equal to their carrying amount.
20
Share capital
2023
2022
£000
£000
Authorised
100 ordinary shares of £1 each
0.10
0.10
The company has 100 ordinary shares of £1 each in issue, rounded to £nil. The ordinary shares are non redeemable and hold full voting rights.
The capital contribution reserve of £773,000 arose in 2013 following a capital contribution from an immediate parent.
ARCHROMA UK, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
2023
2022
£000
£000
Short-term employee benefits
380
448
Post-employment benefits
25
22
405
470
Other transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2023
2022
2023
2022
£000
£000
£000
£000
Other related parties
1,496
1,310
405
518
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£000
£000
Parent company
2,277
2,308
Other related parties
3,474
1,344
5,751
3,652
The amounts due to the Parent company relate to an intercompany loan which is due to mature on 28 February 2052. Interest charged is fixed quarterly based on the 3 months EURIBOR rate.
Included in the amounts due to other related parties is an intercompany loan amounting to £1,770,876 which is due to mature on 30 June 2027. Interest charged is fixed quarterly based on the 3 months CME-SOFR Term rate.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£000
£000
Other related parties
89
94
Other information
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