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Company registration number: 03056186
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FOR THE 13 MONTHS ENDED
31 DECEMBER 2020
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COMPANY INFORMATION
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J A Courtney (resigned 21 September 2022)
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J R Darfler (appointed 27 September 2021)
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Fourth Floor Abbots House
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CONTENTS
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Statement of Financial Position
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Notes to the Financial Statements
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PUREFLO LIMITED
REGISTERED NUMBER:03056186
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 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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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Allotted, fully paid up share capital
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Capital redemption reserve
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PUREFLO LIMITED
REGISTERED NUMBER:03056186
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2020
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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J R Darfler
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The notes on pages 3 to 9 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
Pureflo Limited is a private company limited by shares, registered in England and Wales. The address of the Company's registered office is given on the Company Information page. This address of the company's principal place of business is: Pureflo, c/o Zip Distribution Centre, Unit 1A Alpha Delta House, Dereham, NR19 1JG.
The reporting period is 13 months from 1 December 2019 to 31 December 2020, this is to align with the group's accounting reference date and is therefore not entirely comparable.
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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company has obtained a support from the group in respect of meeting its short term liabilities as they fall due.
Culligan ownership brings significant financial and operational resources to Pureflo to secure its success and management believes the company is well placed to deliver the expectations of the new ultimate owners BDT Capital Partners.
Therefore, the directors believe that it is appropriate to consider the company to be a going concern.
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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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the 13 months comprises current and deferred tax. 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 reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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The average monthly number of employees, including directors, during the 13 months was 4 (2019 - 3).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
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At 1 December 2019 (unaudited)
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At 1 December 2019 (unaudited)
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Charge for the 13 months on owned assets
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At 30 November 2019 (unaudited)
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Amounts owed by group undertakings
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Amounts owed by associated undertakings
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Prepayments and accrued income
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE 13 MONTHS ENDED 31 DECEMBER 2020
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Related party transactions
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Included within other debtors is a loan balance due from the Director of £nil (2019: £159,224).
Included within amounts owed by associated undertakings is an amount of £nil (2019: £400,000) due from a related company. This is a related party as it is under common ownership with Pureflo Limited.
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The Company is a member of a group. The parent of the smallest group which prepares consolidated financial statements of which the Company is a member is AI Aqua S.a.r.l, a Company registered in Luxembourg. The Company's registered office address is 2-4 rue Beck, L-1222 Luxembourg, R.C.S. Luxembourg B209.698.
During the year ended 31 December 2020, Advent International GPE VIII Limited Partnership were the ultimate controlling party by virtue of their control of AI Aqua (Luxembourg) S.ar.l.
Since the year end, the ultimate controlling party has changed to BDT Capital Partners LLC by virtue of their control of AI Aqua (Luxembourg) S.ar.l.
The auditors' report on the financial statements for the 13 months ended 31 December 2020 was qualified.
The qualification in the audit report was as follows:
Disclaimer of opinion
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.
We were not appointed as auditors of the company until after 31 December 2020 and thus did not observe the counting of physical inventories at the beginning or end of the year. We were unable to satisfy ourselves by alternative means concerning:
∙Inventory quantities held at 30 November 2019 and 31 December 2020, which are included within the statement of financial position at £85,869 and £202,038, respectively.
∙Following the acquisition of the company by the AI Aqua (Luxembourg) S.a.r.l. group, management have been unable to access accounting records for the following balances held within the financial statements for the period ended 31 December 2020:
- Turnover - £1,714,770
- Cost of sales - £1,009,250
- Administrative expenditure - £981,440
- Fixed assets - £166,167
- Stock - £202,038
- Trade creditors - £130,337
As a result of these matters, we were unable to determine whether any adjustments might have been necessary in respect of recorded or unrecorded transactions of balances held within the financial statements.
The audit report was signed on 26 September 2022 by Tom Woods ACA (Senior Statutory Auditor) on behalf of Menzies LLP.
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