ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED - Company Information

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Registered number: 07022266 (England and Wales)

PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

COMPANY INFORMATION

Directors	I M S Downie
	E M Kalawski
	M A Sigler


Company secretary	E M Kalawski


Registered number	07022266


Registered office	100 New Bridge Street
	London
	England
	EC4V 6JA


Independent auditors	ZEDRA Corporate Reporting Services (UK) Limited


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 - 21


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The director's present their Strategic Report for Platinum Equity Advisors International (UK) Limited ("the Company") for the year ended 31 December 2021.

Introduction

Platinum Equity (the "Group"), of which the Company is an affiliate, is an opportunistic, value-oriented investor which seeks to acquire businesses with significant operational upside. The Group’s principal strategy is to acquire businesses at an attractive price and then apply disciplined operational improvements that create value, to generate attractive returns for its investors by leveraging its in-house portfolio operations group of 40 people. The Group also looks for downside protection in its investments through a mixture of target company characteristics and the ability to return capital quickly post acquisition. Additionally, the Group leverages its operational capabilities to create value in its platform investments through the effective integration of one or multiple add-on acquisitions.
Platinum Equity Advisors, LLC, the ultimate parent company (the “Advisor”), is registered as an investment advisor with the U.S. Securities and Exchange Commission. The Advisor is focused solely on managing certain investment vehicles affiliated with the Group.
The Company is registered as an investment advisor with the United Kingdom’s Financial Conduct Authority (reference number: 593191). This entity is an indirect wholly owned subsidiary of the Advisor and provides sales, marketing and administrative support to the Advisor.

Business review

Total employee count totaled 31 at the beginning of 2021 and throughout, to 31 December 2021. As of 1 March 2022, the Company headcount is 32 and is anticipated to increase to 35 by 31 December 2022.
The Company currently resides at 5 Hanover Square, London. This lease expires 15 June 2024.

In consideration for services performed, the Company is reimbursed by the Advisor for all necessary and reasonable operating costs incurred by the Company, including without limitation, employee salaries, travel expenses, professional fees and indirect costs, plus an additional 10% of the total costs aforementioned.
Due to the growth of the Company, recurring operating expenses increased by £6.4m from 2020 to 2021. The primary driver of this increase has been compensation expense in line with the labour market’s wage growth.

Market overview and future developments

With the widespread availability of the Covid-19 vaccine, the Company observed an increase in turnover and business operations in 2021. The Company anticipates continued growth in 2022.
The impact of Brexit is continuously being monitored and assessed by the Company and Platinum. Given the aforementioned factors, the Company does not anticipate Brexit will have material negative impact on its ability to continue normal operations.
While the general environment for investment buyouts continues to be competitive, given the large quantity of cash relative to a more limited opportunity set, the Platinum group has been able to find and execute attractive investments that fit its investment approach. Looking forward, Platinum has a strong pipeline of attractive opportunities thanks to its large, proactive and experienced business development group which focuses exclusively on deal origination.
Since inception, the Platinum group has been able to create value in both rising and falling economic cycles. Recently, a greater degree of political and economic uncertainty in the United States and Western Europe, combined with tighter availability of debt capital, has created conditions that will fit the Platinum strategy.

Page 1


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Principal risks and uncertainties

Foreign Currency
The Advisor's funds are denominated in U.S. dollars. From time to time, the group may engage in foreign currency hedging depending on the facts and circumstances of a particular investment. Platinum does not engage in foreign currency hedging in its funds as a primary investment and the Company itself does not engage in such hedging.

Risk management

Investment risks are monitored primarily by the Group's investment committee (which is comprised of CEO Tom Gores and several of the Group's other partners), informed by financial and operational due diligence.
The Group's risk is monitored by the CEO, CFO, General Counsel and other executives with leadership responsibility at the firm.

Financial key performance indicators

Due to the cost plus nature of the Company, there are no specific financial key performance indicators relevant to its operations.

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

M A Sigler

Director

Date: 26 April 2022

Page 2


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements for the year ended 31 December 2021. As permitted by s414c (11) of the Companies Act 2006 certain information that is required to be included in the Director's Report has otherwise been provided in the Strategic Report.

Principal activity

The principal activity of Platinum Equity Advisors International (UK) Limited ("the Company") is that of providing sales, marketing and administrative support to the ultimate parent company, Platinum Equity Advisors, LLC.

Directors

The directors who served during the year were:

I M S Downie

E M Kalawski

M A Sigler

Directors' responsibilities statement

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

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

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

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙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.

Results and dividends

The profit for the year, after taxation, amounted to £1,938,105 (2020 - £1,422,817).

The directors have not proposed a dividend for the current year (2020: £Nil).

Page 3

PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Disclosure of information to auditors

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

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙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

There have been no significant events affecting the Company since the year end as detailed in note 16.

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

M A Sigler

Director

Date: 26 April 2022

Page 4


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

Opinion

We have audited the financial statements of Platinum Equity Advisors International (UK) Limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

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.

Page 5

PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, 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.

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 set out on page 3, 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.

Page 6

PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED (CONTINUED)

Auditors' 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 Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

∙the responsible individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge;

∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006 and taxation legislation;

∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙tested journal entries to identify unusual transactions;

∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

∙investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙enquiring of management as to actual and potential litigation and claims; and

∙reviewing correspondence with HMRC, the Company’s legal advisors and the Financial Conduct Authority
("FCA").

Page 7

PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED (CONTINUED)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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 Auditors' 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.

Dominic King ACA (Senior Statutory Auditor)

for and on behalf of

ZEDRA Corporate Reporting Services (UK) Limited

Chartered Accountants and Statutory Auditors
New Penderel House

4th Floor

283 - 288 High Holborn

London

United Kingdom

WC1V 7HP

26 April 2022

Page 8


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2021

	2021	2020
Note	£	£


Turnover	4	27,665,927	20,602,400
Gross profit		27,665,927	20,602,400
Administrative expenses		(25,150,844)	(18,725,222)
Operating profit	5	2,515,083	1,877,178
Interest receivable		3,041	-
Interest payable		-	(4,234)
Profit before tax		2,518,124	1,872,944
Tax on profit	8	(580,019)	(450,127)
Profit for the financial year		1,938,105	1,422,817

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 13 to 21 form part of these financial statements.

Page 9


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED REGISTERED NUMBER:07022266

BALANCE SHEET

AS AT 31 DECEMBER 2021

		2021		2020
Note		£		£

Fixed assets
Tangible assets	9		780,671		1,178,003
			780,671		1,178,003
Current assets
Debtors: amounts falling due within one year	10	12,718,098		14,035,130
Bank and cash balances		5,822,382		1,651,845
		18,540,480		15,686,975
Creditors: amounts falling due within one year	11	(9,398,968)		(8,747,822)
Net current assets			9,141,512		6,939,153
Total assets less current liabilities			9,922,183		8,117,156
Provisions for liabilities
Provisions	13	(160,000)		(293,078)
			(160,000)		(293,078)
Net assets			9,762,183		7,824,078

Capital and reserves
Called up share capital	100,000	100,000
Profit and loss account	9,662,183	7,724,078
	9,762,183	7,824,078

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

M A Sigler

Director

Date: 26 April 2022

The notes on pages 13 to 21 form part of these financial statements.

Page 10


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2020 (as previously stated)	100,000	6,114,401	6,214,401
Prior year adjustment	-	186,860	186,860
At 1 January 2020 (as restated)	100,000	6,301,261	6,401,261
Comprehensive income for the year
Profit for the year	-	1,422,817	1,422,817

At 1 January 2021	100,000	7,724,078	7,824,078
Comprehensive income for the year
Profit for the year	-	1,938,105	1,938,105
At 31 December 2021	100,000	9,662,183	9,762,183

The notes on pages 13 to 21 form part of these financial statements.

Page 11


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial year	1,938,105	1,422,817
Adjustments for:
Depreciation of tangible assets	399,134	394,571
Taxation charge	580,019	450,127
Decrease/(increase) in debtors	1,309,627	(6,547,610)
Increase in creditors	544,044	1,991,896
(Decrease) in provisions	(133,078)	(2,313,073)
Corporation tax (paid)	(465,512)	(924,503)
Net cash generated from operating activities	4,172,339	(5,525,775)

Cash flows from investing activities
Purchase of tangible fixed assets	(1,802)	(22,859)
Net cash from investing activities	(1,802)	(22,859)

Net increase/(decrease) in cash and cash equivalents	4,170,537	(5,548,634)
Cash and cash equivalents at beginning of year	1,651,845	7,200,479

Cash and cash equivalents at the end of the year	5,822,382	1,651,845

The notes on pages 13 to 21 form part of these financial statements.

Page 12


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1.	General information

Platinum Equity Advisors International (UK) Limited is a private company limited by shares and incorporated in England and Wales. The registered office is 100 New Bridge Street, London, England, EC4V 6JA.
The principal activity of the Company is that of providing sales, marketing and administrative support to the ultimate parent company, Platinum Equity Advisors, LLC.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

2.2

Going concern

The Company is in a net asset position of £9,762,183 primarily supported by £12,248,381 due from Platinum Equity Advisors, LLC., the ultimate parent company. This balance is due on demand and the directors have assessed that the ultimate parent company has sufficient capital available to repay this.
The Company has received written confirmation from its ultimate parent company that it will continue to provide financial support to the Company for a period of at least 12 months from the date of signing these financial statements. For these reasons, the directors continue to adopt the going concern basis in preparing these financial statements.

2.3

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rendering of services

Turnover is recognised on a cost plus 10% basis, in line with the intercompany service agreement with the parent company. Intercompany turnover is recognised when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the Company will receive the consideration due under the intercompany service agreement;

∙the costs incurred under the intercompany service agreement can be measured reliably.

Page 13


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Leasehold improvements	-	3 to 5 years
Fixtures and fittings	-	3 to 4 years
Computer equipment	-	4 years

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.

2.5

Debtors

Short term debtors are measured at transaction price, less any impairment. Amounts owed by group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.

2.6

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash held on deposit by service providers is included within bank and cash balances, as these amounts are highly liquid and repayable without penalty on notice of not more than 24 hours.

2.7

Creditors

Short term creditors are measured at the transaction price.

Page 14


PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.8

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. 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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

2.9

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

2.10

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.11

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet 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 Balance Sheet.

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PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.12

Current and deferred taxation

The tax expense for the year 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 balance sheet 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 Balance Sheet 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 balance sheet date.

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

The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities are addressed below.
Depreciation and residual values
The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that these are appropriate.
The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, management consider factors such as technological innovation, product life cycles and maintenance programs.
Dilapidation provision
The directors have reviewed the need for a provision in the accounts in respect of restoring premises held under an operating lease to a certain condition on vacation of the premises. The provision is provided on a monthly basis using management's judgement based on the current state of the property (see note 13).

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PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Intercompany sales	27,665,927	20,602,400
	27,665,927	20,602,400

All turnover arose within the United Kingdom.

Auditors' remuneration	12,750	11,850
Other operating lease rentals	1,014,713	1,041,233
Depreciation	399,134	394,571

6.	Employees
		2021	2020
		£	£

Wages and salaries	19,115,334	13,818,764
Social security costs	2,758,689	1,933,129
Cost of defined contribution scheme	262,985	274,589
	22,137,008	16,026,482

The average monthly number of employees during the year was 31 (2020 - 32).

7.	Directors' remuneration

The remuneration earned by directors in respect of the services performed in their capacity as directors of Platinum Equity Advisors International (UK) Limited was negligible and paid by other group entities.

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PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Corporation tax
Current tax on profits for the year	308,610	450,127
Adjustments in respect of previous periods	271,409	-


	Taxation on profit on ordinary activities	580,019	450,127

Profit on ordinary activities before tax

2,518,124

1,872,944

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	478,444	355,859
Effects of:
Expenses not deductible for tax purposes	6,720	2,067
Depreciation for the year in excess of capital allowances	74,046	68,928
Adjustments to tax charge in respect of prior periods	271,409	35,503
Other timing differences	(311,980)	-
Other differences leading to an increase (decrease) in the tax charge	61,380	(12,230)
Total tax charge for the year	580,019	450,127

Factors that may affect future tax charges

On 24 May 2021, Finance Bill 2021 was substantively enacted. The result of this is that the main rate of corporation tax for the UK will increase to 25% from 1 April 2023.

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PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

9.	Tangible fixed assets

	Leasehold improvements	Fixtures and fittings	Computer equipment	Total
	£	£	£	£
Cost or valuation
At 1 January 2021	1,527,959	855,824	20,615	2,404,398
Additions	-	1,802	-	1,802
Disposals	(459,188)	(141,349)	-	(600,537)
At 31 December 2021	1,068,771	716,277	20,615	1,805,663
Depreciation
At 1 January 2021	793,450	425,016	7,929	1,226,395
Charge for the year on owned assets	232,843	161,137	5,154	399,134
Disposals	(459,188)	(141,349)	-	(600,537)
At 31 December 2021	567,105	444,804	13,083	1,024,992
Net book value
At 31 December 2021	501,666	271,473	7,532	780,671
At 31 December 2020	734,509	430,808	12,686	1,178,003

10.

Debtors

					2021	2020
					£	£


Amounts owed by group undertakings	12,248,381	13,494,338
Other debtors	156,426	100,998
Prepayments and accrued income	302,247	428,750
Deferred taxation	11,044	11,044
	12,718,098	14,035,130

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PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

11.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Corporation tax	107,102	-
Other taxation and social security	5,532,330	1,181,673
Accruals and deferred income	3,759,536	7,566,149
	9,398,968	8,747,822

12.	Financial instruments
		2021	2020
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	5,822,382	1,651,846
Financial assets that are debt instruments measured at amortised cost	12,248,381	13,494,338
	18,070,763	15,146,184

	Financial liabilities
	Financial liabilities measured at amortised cost	(3,759,536)	(7,566,149)

	Financial assets measured at fair value through profit or loss comprise cash and cash equivalents. Financial assets that are debt instruments measured at amortised cost comprise amounts owed by group undertakings.
	Financial liabilities measured at amortised cost comprise creditors where there is a contractual obligation to deliver cash.

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PLATINUM EQUITY ADVISORS INTERNATIONAL (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

13.	Provisions

	Dilapidation provision	Onerous lease provision	Total
	£	£	£

At 1 January 2021	220,000	73,078	293,078
Charged to profit or loss	(60,000)	(73,078)	(133,078)
At 31 December 2021	160,000	-	160,000

Dilapidation provision
This provision is for dilapidations in respect of properties held under operating leases. This provision uses management's judgement based on the current state of the properties. On the expiry of a lease in June 2021, a final dilapidations payment was settled and the associated provision released. The remaining provision is expected to be utilised on vacation of the current premises, the date of which for the purpose of the calculation is considered to be June 2024.
Onerous lease provision
This provision was in respect of one of the operating leases being considered to be onerous. On the expiry of this lease in June 2021, the provision had been released in full.

Not later than 1 year	858,173	858,173
Later than 1 year and not later than 5 years	1,270,572	2,109,674
	2,128,745	2,967,847

15.	Controlling party

Platinum Equity, LLC is the parent of the smallest group for which consolidated financial statements are drawn up of which the Company is a member. The registered office of the ultimate parent company is 360 North Crescent Drive, South Building, Beverly Hills, CA 90210, USA.

16.	Post balance sheet events

There were no adjusting or non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.

Page 21