Constellium UK Limited - Limited company accounts 23.2
Constellium UK Limited - Limited company accounts 23.2
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
CONSTELLIUM UK LIMITED |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
CONSTELLIUM UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the Company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company is that of research and development of aluminium products and the hosting of employees. |
FUTURE DEVELOPMENTS |
The company continues to be funded by the group and will continue to bid for government funding on its research and development programs where available. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
RESULTS AND DIVIDENDS |
The loss for the year amounted to £103,224 (2021: a loss of £97,907). No dividend was proposed during the year (2021: £nil). |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has entered into indemnity arrangements for the benefit of all of its directors in relation to certain losses and liabilities which they may incur to third parties in the course of acting as directors of the company and in compliance with the requirements of the Companies Act 2006. The insurance was in place for the full year ended 31 December 2022 and remains in place at the date of signing these financial statements. |
GOING CONCERN |
The company's ultimate parent undertaking has indicated that for at least twelve months from the date of approval of these financial statements, it will continue to make available such funds as are needed by the company to pay its liabilities as they fall due and in particular will not seek repayment of the amounts currently made available. |
The directors consider that this should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. |
Based on the undertakings from the parent company the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
AUDITORS |
The auditors, Haines Watts, Statutory Auditor, have been appointed during the current year |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CONSTELLIUM UK LIMITED |
Opinion |
We have audited the financial statements of Constellium UK Limited (the 'Company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 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 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 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 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 directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CONSTELLIUM UK LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CONSTELLIUM UK LIMITED |
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 a Report of the Auditors 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. |
We obtained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 and relevant tax compliance regulations in the UK. |
We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
- | Challenging assumptions and judgements made by management in its significant accounting estimates; |
- | Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
- | Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
- | Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud. |
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance will all laws and regulations. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CONSTELLIUM UK LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
The Lightbox |
87 Castle Street |
Reading |
Berkshire |
RG1 7SN |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 |
Administrative expenses |
(1,593,203 | ) | (1,621,297 | ) |
Other operating income | 4 |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Interest receivable and similar income |
(345,203 | ) | (409,698 | ) |
Interest payable and similar expenses | 7 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 8 | ( |
) | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME |
Actuarial gain/(loss) on post employment |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
RETIREMENT HEALTHCARE BENEFITS OBLIGATIONS |
16 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Equity settled share based |
payments | - | 69,506 | 69,506 |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Equity settled share based |
payments | - | 127,092 | 127,092 |
Balance at 31 December 2022 |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Constellium UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The financial statements are rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The Company's parent company has indicated that for at least twelve months from the date of approval of these financial statements it will continue to make available such funds as are needed by the Company to pay its liabilities as they fall due and in particular will not seek repayment of the amounts currently made available. |
The directors consider that this should enable the Company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. As with any Company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of the approval of these financial statements, they have no reason to believe that it will not do so. |
Based on the undertakings from the parent company the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
FRS102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the company's shareholders. |
The company has taken advantage of the exemption, under FRS102 paragraph 1.12 (e) from disclosing key management personnel compensation, as required by FRS102 paragraph 33.7. |
The company has taken advantage of the exemption under section 7 of FRS102 and paragraph 3.17 (d) from preparing the statement of cash flows. |
Related party exemption |
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. |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents rechargeable costs excluding Value Added Tax in respect of hosting employees. |
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 |
Depreciation is provided at the following annual rates in order to write off each asset over its |
estimated useful life. |
Plant & Machinery | 2-3 years |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Rental 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 lease asset are consumed. |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
Defined contribution schemes |
The Company participates in a defined contribution scheme. Defined contribution schemes are externally funded, with the assets of the scheme held separately from those of the Company in separate trustee administered funds and contributions to such schemes are charges to the profit and loss account as they become payable. |
Other post employment benefit schemes |
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method. |
The change in the post employment benefit obligation arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expenses in measuring profit or loss in the period in which they arise. |
The net interest element is determined by multiplying the post employment benefit obligation by the discount rate, taking into account any changes in post employment benefit obligation during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost. |
Remeasurement changes comprise of gains and losses on post employment benefit schemes, the effect of the asset ceiling and the return on the post employment benefit obligation excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods. |
The post employment benefit liability in the balance sheet comprises the total for each plan of the present value of the post employment benefit obligation (using a discount rate based on high quality corporate bonds). |
Share-based payments |
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Monte Carlo model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the Company. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | OTHER OPERATING INCOME |
2022 | 2021 |
£ | £ |
Sundry receipts | - | 2,500 |
Government grants |
1,235,658 | 1,209,806 |
Grants received from the UK Government are in respect of the development of lightweight aluminium solutions for use within the automotive industry. |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Research & development | 37 | 30 |
Management | 6 | 7 |
Sales | 3 | 3 |
Apprentice | 6 | 5 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
6. | OPERATING LOSS |
The operating loss is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases |
Software licences amortisation |
Foreign exchange differences |
Share based payments |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Interest payable |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) | ( |
) |
Tax on loss | ( |
) | ( |
) |
UK corporation tax has been charged at 19% . |
Tax effects relating to effects of other comprehensive income |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on post employment | - | 33,823 |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on post employment | - | 82,410 |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | INTANGIBLE FIXED ASSETS |
Software |
licences |
£ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Amortisation for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
10. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
£ |
COST |
Additions |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by joint ventures |
Other debtors |
Tax |
Prepayments and accrued income |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | 1 | 290,000 | 290,000 |
Preference | 1 | 100,000 | 100,000 |
390,000 | 390,000 |
The 3% redeemable non-voting non-cumulative preference shares are redeemable at the discretion of Constellium UK Limited. |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 |
Deficit for the year | ( |
) |
Actuarial gain/(loss) on post employment benefit schemes |
33,823 |
Equity settled share based |
payments | 127,092 |
At 31 December 2022 |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
16. | EMPLOYEE BENEFIT OBLIGATIONS |
The Company has a constructive obligation to continue to make payments for health care insurance premiums for retired key personnel. No other post retirement benefits are provided. |
The present value of the obligation has been calculated using the discounted cash flow model, based on life expectancy in the UK, age related insurance premium increases and inflation. |
Key assumptions: |
2022 | 2021 |
% | % |
Discount rate | 4.8 | 1.45 |
Inflationary increase | 6.5 | 2.2 |
Mortality assumptions |
Assumed life expectations on retirement at age 65: |
2022 | 2021 |
Years | Years |
Retiring today |
- Males | 81.200 | 81.200 |
- Females | 81.200 | 81.200 |
Included within administrative expenses is the release of £73,697 (2021 - £76,130) of the provision relating to premium paid in the year. Included in finance costs is £3,230 (2021 - £2,350) relating to the unwinding of the discount factor. |
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows: |
2022 | 2021 |
£ | £ |
Retirement healthcare liability balance | 315.669 | 403,806 |
Total liability recognised | 315.669 | 403,806 |
The defined benefit obligations arise from plans which are wholly unfunded. |
Defined contribution scheme |
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. |
The pension cost charge represents contributions payable by the Company to the fund of £300,004 (2021 - £224,427). Contributions totalling £283 (2021 - £28,101) were payable to the fund at the balance sheet date. |
CONSTELLIUM UK LIMITED (REGISTERED NUMBER: 00226185) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
17. | ULTIMATE CONTROLLING PARTY |
The ultimate parent undertaking is Constellium SE, a company incorporated in France. |
Constellium SE is the parent undertaking of the largest and smallest group of undertakings to consolidate these financial statements at 31 December 2022. The consolidated financial statements of Constellium SE are available at the following address: |
40 - 44 rue Washington |
75008 Paris |
France |
18. | SHARE-BASED PAYMENT TRANSACTIONS |
The parent company has periodically granted Performance Stock Units (PSUs) and Restricted Stock Units (RSUs, collectively Stock Units) to selected employees. These Stock Units vest after three years from the grant date if the following conditions are met: |
- A vesting condition under which the beneficiaries must be continuously employed by or at the service of the Company through the end of the vesting period; and |
- A performance condition, contingent on the Total Stockholder Return (TSR) performance of Constellium shares over the vesting period compared to the TSR of specified indices. PSUs will ultimately vest based on vesting multiplier which ranges from 0% to 200%. |
Number of Stock Units | Weighted average exercise price |
2022 | 2021 | 2022 | 2021 |
Number | Number | £ | £ |
Outstanding at 1 January 2021 | 41,697 | 60,885 | - | - |
Granted | 8,031 | 11,578 | - | - |
Exercised | (16,642 | ) | (13,547 | ) | - | - |
Expired | - | (17,219 | ) | - | - |
Outstanding at 31 December 2021 | 33,086 | 41,697 | - | - |
Exercisable at 31 December 2021 | - | - | - | - |
The fair value of Stock Units granted in the year was determined using the Monte Carlo pricing model. The Monte Carlo model is considered to apply the most appropriate valuation method due to the Stock Units having multiple sources of uncertainty. |
Non-vesting conditions and market conditions are taken into account when estimating the fair value of the Stock Units at grant date. Service conditions and non-market performance conditions are considered by adjusting the number of Stock Units expected to vest at each reporting date. |
During the year, the company recognised total share-based payment expenses of £111,680 (2021 - £69,506) and employer's NIC of £15,412 (2021 - £9,592) which relate to equity settled share based payment transactions. |