Registered number:
For the year ended
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Company Information
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Contents
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Strategic Report
For the year ended 30 September 2022
The directors present the strategic report for the year ended 30 September 2022.
Voith Paper Limited (the “company”) is engaged in the service and maintenance of specialist machinery to the UK Paper Industry.
The core function of the company is to provide solutions for the customers’ process requirements through product design, manufacturing consistency, application, development and innovation. This concept is shared by the Voith Paper division which is unique as a manufacturer and supplier of both paper machines and clothing. The products, systems and services that are offered by Voith Paper and Voith’s strategic partners are coordinated with one another and support the paper industry in optimising its production processes and improving paper quality. The wider Voith Group has worldwide research and development facilities. At these facilities, professional engineers experiment with the theoretical and practical aspects of paper making to develop tomorrow’s technological advances in the paper machine and paper machine clothing industry. Trading during the year increased compared to the prior year with turnover of £7,240,378 ( 2021: £6,613,211 ), driven by the recovery of the paper industry after the Covid 19 impact. The company made a profit after taxation of £461,918 ( 2021: £440,423 ). Trading was still impacted by the Covid-19 pandemic, although to a lesser degree as in the previous year, as staff were not able to visit customer sites at times during the year due to lockdown restrictions imposed by the UK Government. The directors have carried out a variety of actions to keep our employees healthy and at the same time serving our customers in the best way possible. The company’s products continue to perform well in the field and the directors are confident that this will enhance the good standing of the company in the domestic and overseas markets.
Credit risk
The company’s objective is to reduce the risk of financial loss due to counterparty’s failure to honour its obligations. Appropriate credit control procedures are in place for ensuring that orders are not accepted or services provided to non-creditworthy customers. Individual exposures are monitored with customers subject to credit limits to ensure that the company’s exposure to bad debt is minimal. Liquidity risk The company aims to mitigate liquidity risk by managing the cash generated by its operations. Investment is carefully monitored. Approval procedures apply to all capital items purchased outright, leased, rented or subject to hire purchase agreements.
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Strategic Report (continued)
For the year ended 30 September 2022
Covid-19
The Coronavirus pandemic caused a considerable uncertainty in the markets, for our business and for every single individual. Although we were not completely unaffected by the pandemic, the impact on the company was limited. However, the pandemic could have an impact on future orders. We continue to focus on high quality products and a high level of service for our customers.
The company’s key financial and other performance indicators during the year were as follows:
This report was approved by the board
and signed on its behalf.
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Directors' Report
For the year ended 30 September 2022
The directors present their report and the financial statements for the year ended 30 September 2022.
The directors who served during the year were:
The profit for the year, after taxation, amounted to £
461,918
(2021 -
£
440,423
)
.
The directors do not recommend a final dividend.
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.
The directors consider that the future developments of the company remain positive, continuing with a strong product portfolio.
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Directors' Report (continued)
For the year ended 30 September 2022
There have been no significant events affecting the company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Independent auditors' report to the members of Voith Paper Limited
We have audited the financial statements of Voith Paper Limited (the 'company') for the year ended 30 September 2022, which comprise the statement of income and retained earnings, the statement of financial position
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).
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.
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.
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.
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Independent auditors' report to the members of Voith Paper Limited (continued)
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.
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.
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:
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Independent auditors' report to the members of Voith Paper Limited (continued)
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙
Supporting documentation relating to the company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations
- Detecting and responding to the risks of fraud
∙
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙
The legal and regulatory framework in which the company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙
Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙
Enquiring of management about any actual and potential litigation and claims.
∙
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
∙
Testing the appropriateness of journal entries and other adjustments. We have tested a sample of manual journals which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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Independent auditors' report to the members of Voith Paper Limited (continued)
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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Cheshire
SK1 1TD
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Statement of Income and Retained Earnings
For the year ended 30 September 2022
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Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 11 to 23 form part of these financial statements.
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Notes to the Financial Statements
For the year ended 30 September 2022
Voith Paper Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is PO BOX 8 Apex Works, Middleton, Manchester, M24 1QT. The address of the principal place of business is 204 Grimshaw Lane, Middleton, Manchester, M24 1GQ. The company's registration number is 00110875.
The nature of the company's operation and its principal activity is the service and maintenance of specialist machinery to the UK Paper Industry.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirement of Section 7 Statement of Cash Flows - the requirement of Section 3 Financial Statement Presentation paragraph 3.17 (d); This information is included in the consolidated financial statements of Voith GmbH & Co. KGaA as at 30 September 2022 and these financial statements may be obtained from from Post Box 2003, 89510 Heidenheim, Germany.
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
The company has a Profit before tax of £0.5m ( 2021: £0.5m ) and net assets totalling £5.5m ( 2021: £5.1m ) at 30 September 2022. The company currently meets its working capital requirements through its cash balances and credit facilities. Based on the company's forecasts and projections, the directors believe they have sufficient facilities to trade through the next 12 month period. Therefore, the directors believe it is appropriate to prepare the accounts to 30 September 2022 on a going concern basis and there will be no adverse effect on solvency for more than 12 months after the date of approval of the financial statements
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Notes to the Financial Statements
For the year ended 30 September 2022
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Revenue in relation to services is recognised as contract activity progresses, and as the right to consideration is earned. Fair value reflects the amount expected to be recovered from customers and is based on time spent, skills and expertise provided and cost incurred. same period as the related expenditure.
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Notes to the Financial Statements
For the year ended 30 September 2022
2.
Accounting policies (continued)
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.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Notes to the Financial Statements
For the year ended 30 September 2022
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the statement of financial position.
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Notes to the Financial Statements
For the year ended 30 September 2022
2.
Accounting policies (continued)
Warranty provision Warranty provisions are made against certain contracts delivered to customers. The value is dependent on the technical complexity of each individual contract concerned and includes consideration of past experience on similar contracts undertaken and, where appropriate, reports commissioned by independent experts. The company reviews its warranty provision on a regular basis. At the year end, the warranty provision totalled £329,712 (2021: £658,500) .
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Notes to the Financial Statements
For the year ended 30 September 2022
Analysis of turnover by geographical location:
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Notes to the Financial Statements
For the year ended 30 September 2022
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Notes to the Financial Statements
For the year ended 30 September 2022
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Notes to the Financial Statements
For the year ended 30 September 2022
12.
Taxation (continued)
The main rate of corporation tax is due to increase to 25% in the tax year commencing 1 April 2023 for companies
where profits exceed £250,000. A tapered rate will be introduced for profits above £50,000 up to a £250,000 limit.
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Notes to the Financial Statements
For the year ended 30 September 2022
The 2022 valuations were made by the Directors, on an open market value for existing use basis.
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Notes to the Financial Statements
For the year ended 30 September 2022
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Notes to the Financial Statements
For the year ended 30 September 2022
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Notes to the Financial Statements
For the year ended 30 September 2022
Share premium account
The share premium account includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. Profit and loss account The profit and loss account includes all current and prior period retained profits and losses. Included within the profit and loss account are non-distributable reserves totalling £195,573 in relation to revaluations of investment property net of the associated deferred tax arising.
The company operates a defined contributions pension scheme. 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 and amounted to £374,649
(2021 - £319,037)
. Contributions totaling £78,730
(2021 - £41.977)
were payable to the fund at the reporting date and are included in creditors.
The company's immediate parent undertaking is Voith Global Trading SE, Heidenheim, a company incorporated in Germany.
The company's ultimate parent undertaking is Voith GmbH & Co. KGaA, a company incorporated in Germany. This company prepares consolidated financial statements and copies of the group accounts are available from Post Box 2003, 89510 Heidenheim, Germany.
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