Facet Filtration UK Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 01694836 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

FACET FILTRATION UK LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

C Bernert

L Perez Vazquez

REGISTERED OFFICE:

Offices F13-F15 Ty Cynon

Navigation Park

Abercynon

Mid Glamorgan

Glamorgan

CF45 4SN

REGISTERED NUMBER:

01694836 (England and Wales)

AUDITORS:

Dafferns LLP

Chartered Accountants

Statutory Auditor

One Eastwood

Harry Weston Road

Binley Business Park

Coventry

CV3 2UB

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

-

-

Investments

7

245,881

245,881

245,881

245,881

CURRENT ASSETS

Stocks

8

-

6,679

Debtors

9

2,244,813

2,251,435

2,244,813

2,258,114

CREDITORS

Amounts falling due within one year

10

573,257

716,939

NET CURRENT ASSETS

1,671,556

1,541,175

TOTAL ASSETS LESS CURRENT LIABILITIES

1,917,437

1,787,056

CAPITAL AND RESERVES

Called up share capital

11

100,000

100,000

Capital redemption reserve

12

800,000

800,000

Retained earnings

12

1,017,437

887,056

SHAREHOLDERS' FUNDS

1,917,437

1,787,056

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 September 2023 and were signed on its behalf by:

L Perez Vazquez - Director

1.	STATUTORY INFORMATION

Facet Filtration UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Facet Filtration UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Revenue recognition

Revenue is net of value added tax is recognised when product ownership and risk of loss have transferred to the customer or performance of services is complete and the company has no remaining obligations regarding the transaction. Estimated discounts, rebates and sales returns are recorded as a reduction of sales in the same period revenue is recognised. Shipping and handling costs are recorded as revenue when billed to customers. The related shipping and handling expenses are included in cost of sales. When it is estimated that a contract will result in a loss, the entire amount of the estimated loss is accrued.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are recognised at cost and subsequently measured under the historical cost model being cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes any direct expenditure incurred to bring the asset to its current location and condition necessary for the asset to work as intended by management.

Repairs and maintenance costs are charged to the income statement in the period in which they are incurred.

Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life.

Improvement to property

- over the life of the lease

Plant & machinery

- 10% - 33.3% on cost

Motor vehicles

- 20% on cost

Any gains and losses on the disposal of tangible fixed assets are recognised in the income statement in the year that the disposal takes place.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset in measured at the present value of the future receipts discounted at a market rate of interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Defined contribution scheme

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from the company in an independently administered fund. Contributions payable for the year are charged in the income statement.

Defined benefit pension scheme

The company also operates a defined benefit pension scheme. The fund is valued every three years by a professionally qualified independent actuary and is updated annually to comply with FRS 102. The rates of contribution payable are determined by the actuary. In the intervening years the actuary reviews the continuing appropriateness of the rates.

The company has not recognised the net pension asset on the scheme at the balance sheet date as the company does not have unconditional rights to the surplus. Regular pension costs are accounted for on the basis of charging the expected cost of providing pensions over the period during which the company benefits from the employees' services. The effects of variations from regular cost are spread over the expected average remaining service lives of members of the scheme.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2021 - 4 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

295,394

AMORTISATION

At 1 January 2022

and 31 December 2022

295,394

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

-

Goodwill relates to the purchase of the business, inventory and customer base of a small filtration division of a UK Plc in January 2009 and was brought into PECOFacet UK Limited on 31 July 2009 as part of the transfer of the whole business. Goodwill is being amortised over the estimated useful life of 10 years.

6.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 January 2022

and 31 December 2022

121,592

DEPRECIATION

At 1 January 2022

and 31 December 2022

121,592

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

-

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2022

and 31 December 2022

245,881

NET BOOK VALUE

At 31 December 2022

245,881

At 31 December 2021

245,881

Shares in group undertakings include the following investments:

A 4.72% interest in the shares of Facet France SARL at a cost of £177,554 (2021 £177,554)

A 9.34% interest in the shares of Facet Iberica SA at a cost of £66,327 (2021 £66,327)

A 100% in interest in the shares of Facet (Middle East), registered in Dubai, at a cost of £7,993,605, which was impaired to a £nil valuation in 2018 (2021 £nil).

8.

STOCKS

2022

2021

as restated

£

£

Finished goods

-

6,679

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

as restated

£

£

Trade debtors

218,307

285,394

Amounts owed by group undertakings

1,294,109

1,187,038

Other debtors

2,184

2,184

Deferred tax asset

730,000

774,000

Prepayments

213

2,819

2,244,813

2,251,435

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

as restated

£

£

Trade creditors

25,776

75,516

Amounts owed to group undertakings

316,841

264,592

Social security and other taxes

134,445

155,314

Accrued expenses

96,195

221,517

573,257

716,939

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

as restated

£

£

100,000

Ordinary

£1

100,000

100,000

12.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 January 2022

887,056

800,000

1,687,056

Profit for the year

165,381

165,381

Actuarial gain/(loss) recognised in the year, net of related deferred tax

(517,000

)

-

(517,000

)

Pension surplus not recognised

482,000

-

482,000

At 31 December 2022

1,017,437

800,000

1,817,437

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Martin Gibbs FCCA (Senior Statutory Auditor)

for and on behalf of Dafferns LLP

14.	EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefits scheme. An actuarial estimate performed by an independent qualified actuary has been undertaken as at 31 December 2022.

The company expects to contribute £24,000 to its defined benefit plan in the period to 31 December 2023.

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension plans

2022

2021

as restated

£

£

Present value of funded obligations

(4,820,000

)

(7,280,000

)

Fair value of plan assets

6,125,000

9,067,000

1,305,000

1,787,000

Present value of unfunded obligations

-

-

Surplus not recognised

(1,305,000

)

(1,787,000

)

Deficit

-

-

Net liability

-

-

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

2022

2021

as restated

£

£

Current service cost

23,000

21,000

Net interest from net defined benefit asset/liability

(34,000

)

(23,000

)

Past service cost

-

-

(11,000

)

(2,000

)

Actual return on plan assets

170,000

119,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

2022

2021

as restated

£

£

Opening defined benefit obligation

7,280,000

7,538,000

Current service cost

23,000

21,000

Contributions by scheme participants

5,000

5,000

Interest cost

136,000

96,000

Actuarial losses/(gains)

(2,322,000

)

(89,000

)

Benefits paid

(302,000

)

(291,000

)

4,820,000

7,280,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

2022

2021

as restated

£

£

Opening fair value of scheme assets

9,067,000

9,273,000

Contributions by employer

24,000

24,000

Contributions by scheme participants

5,000

5,000

Actuarial return on plan assets (excluding interest income)

(2,839,000

)

(63,000

)

Interest on assets

170,000

119,000

Benefits paid

(302,000

)

(291,000

)

6,125,000

9,067,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

2022

2021

as restated

£

£

Actuarial gains/(losses) on assets

(2,839,000

)

(63,000

)

Actuarial gains/(losses) on obligations

2,322,000

89,000

(517,000

)

26,000

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit

pension plans

2022

2021

as restated

Buyout aware

74.20%

82.00%

LDI

3.60%

8.40%

Dynamic Diversified

15.60%

6.80%

Cash

6.60%

2.80%

100.00%

100.00%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2022

2021

as restated

Discount rate

4.80%

1.90%

Inflation - RPI

3.30%

3.50%

Inflation - CPI

2.60%

2.70%

Pension increase - RPI

3.20%

3.40%

Pension increase - CPI

3.30%

3.50%

The expected rates of return for scheme assets have been based on a combination of long-term estimates of the expected returns on each type of asset currently held by the Scheme.

Future salary increases do not require disclosure for the current and subsequent years.

15.	FINANCIAL COMMITMENTS

Total financial commitments and guarantees which are not included in the balance sheet amount to £nil (2021: £3,153).

16.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

17.	ULTIMATE CONTROLLING PARTY

The company is a wholly-owned subsidiary undertaking of Facet Netherlands BV.

The company's ultimate parent company at 31 December 2022 is Filtration Group FGC LLC, a company incorporated in the United States of America. The largest group in which the results of the company are consolidated is that of Filtration Group FGC LLC, whose address is: 600 W 22nd Street, Oak Brook, IL 60523-1949, United States of America.