CCL_STRESSING_INTERNATION - Accounts

The directors present the strategic report for the year ended 31 December 2022.

The following report reflects the size and shareholding structure of the Company, the Company being a sub-holding of a larger group with the ultimate holding company as its major shareholder. Reports to shareholders are prepared at the ultimate holding level and therefore a summary is offered to meet the requirements of the Companies Act 2006. The ultimate holding structure is in the process of reorganization, this will not change the ultimate owners and how the company operates.

Business Model

CCL operates across a diverse geographic area covering the American, European, Gulf, African and Middle East regions. Our model operates by owning subsidiaries in key countries to service the wider region. The group operates a vertically integrated strategy to supply its own material, engineering services and workforce on the projects it undertakes.

The operational head office is based in the UK and offers service and support to local subsidiaries with associated financing.

The group primarily work with a construction environment offering specialist engineering and construction techniques. The primary services offered by the company are Post-Tensioning, Structural Strengthening, Geotechnical services, and Precast Technology. The group are moving into new techniques, due to confidentiality these will not be disclosed in the report.

Strategy and Market Overview

The strategy of the group is to increase its strength through the diversification of services and geographical areas. Strategy is agreed and reviewed by the Ultimate shareholders in an annual AGM and monitored by board representatives on bi-annual meetings.

The strategy of the group the Group is to increase global reach through the existing structure, there are no expected acquisitions within a three year time period. The strategy is to concentrate sales at our current rate with focus on increased profitability with reduced working capital.

Losses for the year are due to material price increases, write off of historical investments and provision for loss making contacts within our U.S. subsidiary. Markets have recovered and stabilised following the early shocks of 2022 with a trend of price stability.

The company remains very strong financially with low debt and excess cash for ongoing investments. The group work bank is in line with 2023 budget expectations.

Risk review forms part of all Board meetings that are held bi-annually and executive meeting held quarterly. Risk is analysed into discreet areas such as Geo Political, Financial, Supply Chain, Internal control, Interest and Exchange rates. The largest risk for the group is exchange rates and geo-political risk, this is mitigated by expansion into new regions to balance the portfolio. Exchange risk is managed mainly by balancing payments and receipts and taking options on large investments.

Risk is monitored monthly in procurement and exchange rates risk, increased diligence in this area reflects the increased volatility in markets. Additional contract controls have been added in the year to measure price volatility on long terms contracts.

The financial position cannot be viewed as a single entity and must be viewed within the group context. CCL Stressing International will report a loss of £0.6m, this is due to a £2.3m write off of historic investments. The write of does not have any impact on operational cashflow.

No major organisational changes happened in the year, the parent company is currently being relocated from Lebanon which will be completed on the course of 2023.

The group will continue investing heavily in R&D with a view to increasing Patents for products and techniques. No major capital expenditure is expected, acquisitions will be based on opportunity and funded by internal reserves. The group has filed several patents for new products and techniques which we expect to bring to market in 2023, these were delayed due to testing and approval issues in 2022.

No dividend payments are planned.

Key performance measures are recorded through operating subsidiaries and at group level, their inclusion in this report has no relevance. The key performance measures used within the group are as follows; Working Capital as a % turnover, Return on Shareholders’ Funds, Profit after Tax, Current Ratio, Acid Ratio, Cash Ratio. All measures are checked for trend and against best practice. In order to mitigate risks a diversified portfolio is maintained, with Sales and Profits measured by region and service offering.

The group takes seriously its commitment to all stakeholders and this is based on our core ‘PRIMA’ principles.

We regularly update all our polices and brief staff on the following areas.

Anti-Money Laundering – Our policies are reviewed each year and training for key staff takes place.

Modern Slavery – Key staff are trained, and policies reviewed on an annual basis.

Health and Safety – keeping our staff safe is our top priority and this is monitored through our ISO accredited combined Health and Safety, Quality and Environmental system.

Policies regarding equal opportunity and disability are reviewed on annual basis. Our places of work are checked to meet disability legislation and our working practices reviewed regarding equal opportunity. The group is also mindful of mental health and have trained staff to assist employees with their overall wellbeing.

Our Employees

We encourage all our employees to develop their careers by supporting them both financially and professionally to achieve their career goals. Employees are aware of group news through our quarterly newsletter and are briefed by managers on specific company issues. Employees are engaged through one-to-one meetings with managers and are actively involved in new ideas and projects. Team talks are held for Health and Safety awareness and changes in policies are communicated via our ‘in house’ policy approval system for comment.

Bonus and incentive schemes are in place for employees to encourage the meeting of individual company objectives that assist in achieving the group targets.

Our environmental goals are monitored through our ISO accredited Environmental system. We encourage all our companies to do more through paperless systems, virtual conferencing and reducing travel by home working. Construction has a part to play in a more sustainable future. CCL through its R&D are looking at products and techniques to reduce our carbon footprint.

Our products received ‘EPD’ status in 2021, further products were submitted for approval in 2022. The EPD will assist in tracking our carbon reporting in the future

Clients and Suppliers

CCL is a specialised group that relies on close engagement with clients and suppliers. Client relationships are developed over many years with customers who share our Ethos on quality, health and Safety and professional conduct. We place ourselves as a market leader on Health and Safety and using technology within the construction environment, we never aim to be price driven. A company in construction relies on strong supplier relationships that cross borders and can meet our quality expectations. Our supply chain is very complex and relies on long standing relationships with select suppliers. Our suppliers are paid within agreed payment terms as they are vital to sustaining the quality of our services. Key suppliers are audited on a regular basis and involved in improvement projects and product development.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2022.

The principal activity continues to be that of a management company providing head office function support for subsidiaries.

The results for the year are set out on page 10.

No ordinary interim dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

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

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of CCL Stressing International Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss 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 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.

Other information

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.

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 remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• 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;

• 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.

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 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.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

CCL Stressing International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 8 Millennium Drive, Holbeck, Leeds, LS11 5BP.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies are set out below.

On the grounds that the company's results are consolidated into its parent, as disclosed in note 19, the company has taken advantage of certain exemptions conferred by section 1.11 of FRS 102 as follows:

• Exemption from presenting a statement of cash flows as a primary note to the financial statements;

• Exemption from disclosing details of its financial instruments;

• Exemption from disclosing key management personnel remuneration.

The financial statements present information about the company as an individual undertaking and not about its group.

CCL Stressing International Limited is a subsidiary of DH Holding SAL and its results are included in the consolidated financial statements of DH Holding SAL, the registered office of which is Derviche Haddad Building, NDU Street, Zouk Mosbeh, Keserwan, Lebanon.

The directors have considered all factors, including in the wider economy as part of their assessment of going concern and deem that the going concern assumption is appropriate.true

Revenue is recognised at the fair value of the consideration received or receivable for management charges and consultancy provided to group companies, and is shown net of VAT and other sales related taxes.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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:

Assets under construction are transferred to the appropriate asset category once completed and ready for use, at which point they are depreciated over their useful economic life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset 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 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.

Cash and cash equivalents are basic financial assets and 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. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred 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.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Investments are reviewed for signs of impairment, such as loss making investments that are not expected to turn around into being profit making, or investments which no longer fit in the global strategy of the group.

Identification and calculation of the impairment requires judgements to be made based on a number of factors including projected profits and future plans of the subsidiaries.

An analysis of the company's revenue is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Investment income includes the following:

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

Bank loans and overdrafts are secured by a fixed and floating charge over all assets of the company, and through multilateral cross company guarantees detailed below.

The intercompany loan is from the parent company DH Holding SAL, with interest payable at 5% above base rate. There is no fixed date for repayment.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

All shares rank pari passu.

The company is party to a multilateral guarantee given to its bankers as disclosed in note 18. The total contingent liability of the company relating to bank indebtedness at the year end date amounted to £nil (2021 - £nil). As no default had occurred on any of the debt, no liability arises.

During the year the company entered into the following transactions with related parties:

During the year the company also received £nil (2021 - £nil) in respect of corporation tax group relief from entities over which the entity has control, joint control or significant influence.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company is party to an unlimited multilateral guarantee given to its bankers by the company, CCL Stressing Systems Limited, DHCCL Limited (BVI) and DH Holding SAL.

Details of outstanding balances owed by or to related companies as at the year end are given in note 11, note 15 and note 16.

The company's immediate and ultimate parent company and ultimate controlling party is DH Holding SAL, a company incorporated in Lebanon. The consolidated accounts of the group, into which the company is consolidated, can be obtained from its registered office of Derviche Haddad Building, NDU Street, Zouk Mosbeh, Keserwan, Lebanon.

Details of the company's subsidiaries at 31 December 2022 are as follows:

(1) This company has a controlling interest (85%) in CCL Scandanavia AS, the parent company which has a controlling interest (55%) of these companies. Treatment is therefore to recognise investments as subsidiaries as this company has an overall controlling influence.

(2) These companies are 100% controlled through management agreements, with treatment being to recognise the investment as a subsidiary.

(3) This company owns 49% of the shares, and the ultimate parent company DH Holding SAL holds an additional 2% of shares, meaning the group controls this investment, with treatment being to recognise the investment as a subsidiary.

A list of all subsidiary registered office addresses is available from https://www.cclint.com/locations

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2021 - 1).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.