Registered number:
05726866
CCPI EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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CCPI EUROPE LIMITED
CONTENTS
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Directors' responsibilities statement
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Independent auditors' report
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Statement of changes in equity
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Notes to the financial statements
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CCPI EUROPE LIMITED
COMPANY INFORMATION
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Unit D Vector 31 Business Park
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National Westminster Bank Plc
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CCPI EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their annual report together with the financial statements and auditor's report for the year ended 31 December 2020.
The principal activity of the company continues to be that of the manufacture and sale of thermocouples and ceramic products.
The results for the year and the financial position at the year end fell short of forecasts and prior year. The company was impacted by Covid-19 and saw the main reduction in revenue during the months of March through to September. Business improved from October onwards and continues to do so into 2021. The gross profit margin for the year was 45.23% (2019: 44.38%) and sales decreased to £6,030,051 (2019: £7,321,115).
At the balance sheet date, the company had sufficient cash at bank and in hand and other current assets to meet its short term liabilities. Net assets at the year end was £9,667,443 (2019: £8,607,027). The company does not anticipate any financial issues in the forthcoming year. Going forward, the directors feel the company continues to be well placed both commercially and financially to maintain its core business and to seize commercial opportunities as they arise.
Principal risks and uncertainties
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The principal risks facing our business are strategic, commercial, operational and financial. The principal strategic and commercial risk is competitor activity and pressure. Operational risks and uncertainties include health and safety, employee relations, mitigation of, and recovery from, major disasters, product quality and customer service. We comply with recognised quality, health and safety and environmental standards and regulations.
The principal financial risks are the risk of customers defaulting on their debts and the risk that the Company’s creditors do not advance credit. Our business is across a number of customers and we actively manage credit risk through regular monitoring of our customers and their debts. We regularly monitor our creditor balance and terms and hold sufficient cash sums to enable payment to be made to creditors as amounts fall due.
The company has considered the impact of Brexit and concludes that there is no material impact to our business.
Covid-19 is also a continuing risk for the Company. Further details on this can be found in the directors report on pages 4-6.
Development and performance
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The strategic objective of the company remains to be a leading company manufacturing and selling thermocouples and related ceramic products in the UK. To fulfil its strategic objectives the directors continue to look for further opportunities that may arise in their specific industry. The company is also acutely aware of the impact of Covid-19, further information on this can be found in the directors' report on pages 4-6. The directors will continue to strive to deliver a quality service to all clients.
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CCPI EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Financial key performance indicators
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The key performance indicators for the company are turnover and gross profit margin, along with the following:
Return on capital: 10.95% (2019: 14.82%)
Liquidity: 5.21 (2019: 4.42)
Sales credit days: 75 (2019: 74)
The above key performance indicators are considered satisfactory by the directors.
Future developments
CCPI Europe has started the goal of becoming a Lean Organisation by the end of 2023. This is supported by the CEO of Marmon Group and will require transformational leadership and systemic thinking from the CCPI directors. Lean manufacturing is a series of methods designed to minimise the waste of material and labour while maintaining or increasing levels of production. This results in a net improvement in total productivity.
The benefits that will be seen at CCPI Europe will include improved efficiency, reduced waste, and increased productivity. The benefits will flow down further with increased product quality, improved lead times, sustainability, employee satisfaction and increased profits.
As part of our continued growth plans at CCPI Europe, investment in innovation and automation is ongoing to support our customer needs and sustainability. There continues to be market share growth opportunities in Europe, and the recent launch of our digital solutions are providing value-add temperature measurement solutions.
This report was approved by the board
and signed on its behalf.
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CCPI EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their annual report together with the financial statements and auditor's report for the year ended 31 December 2020.
The principal activity of the company continues to be that of the manufacture and sale of thermocouples and ceramic products.
Future developments, financial risk management objectives and policies, and principal risks and uncertainties are included in the Strategic report on pages 2-3 and form part of this report by cross-reference.
The directors who served during the year were:
The results for the year are set out on Page 12.
No ordinary dividends were paid (2019: None). The directors do not recommend payment of a final dividend.
Financial risk management objectives and policies and principal risks and uncertainties
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Future developments, financial risk management objectives and policies, and principal risks and uncertainties are included in the Strategic report on pages 2-3 and form part of this report by cross- reference.
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CCPI EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The outbreak of the Covid-19 pandemic in early 2020 and the economic consequence of measures taken by the UK Government are affecting the Company’s business operations. The negative financial consequence of the temporary decline in revenue in 2020 were mitigated by the support provided by the UK Government to UK business and the actions taken by the Directors to manage costs and contracts appropriately to maintain cash reserves.
The Company has a diverse range of customers in multiple industries. Whilst we saw a decline in some revenue streams in 2020, we are now seeing a recovery. The first half of 2021 is showing trading activity at a similar level to what we achieved prior to the pandemic.
Whilst the Covid-19 pandemic has had an impact, the Company has remained profitable and continues to do so. The Company continues to win new business with new customers, both in the UK and in Europe. There have been no issues with the Company’s supply chain. The Company continues to see a high level of new enquiries and is maintaining a strong order book. The Directors believe the improvements on the business operations that have been seen for the first half of 2021 will continue.
The Company has considerable financial resources with cash at bank and in hand of £7,161,638 (2019: £6,284,215) and net current assets of £8,105,704 (2019: £7,038,304).
The Directors have assessed the Company’s status as a going concern, using all available information, and have considered a period of at least 12 months from the date of approving based on the Company’s latest trading projections. In performing this assessment, the directors have taken account of the current activity levels, external economic data and predictions, and the Company’s current cash position. Following this assessment, the directors have concluded that there are sufficient financial resources available to enable the Company to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements and, accordingly, have prepared the financial statements on a going concern basis.
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
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the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
A resolution to reappoint Deloitte will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board and signed on its behalf.
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CCPI EUROPE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors are responsible for preparing the strategic report, the directors' report and the the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare the financial statements for each financial year. Under that law the directors have elected to prepare the 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 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 the financial statements, the directors are required to:
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select suitable accounting policies for the company's financial statements and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent; and
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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 are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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CCPI EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CCPI EUROPE LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2020
Report on the audit of the financial statements
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Opinion
In our opinion the financial statements of CCPI Europe Limited (the ‘company’):
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give a true and fair view of the state of the company’s affairs as at 31 December 2020 and of its profit for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
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the profit and loss account;
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the balance sheet;
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the statement of changes in equity;
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the statement of cash flows; and
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and the related notes 1 to 21.
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 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 Financial Reporting Council’s (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
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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.
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CCPI EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CCPI EUROPE LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
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.
Responsibilities of directors
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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.
Auditor’s responsibilities for the audit of the financial statements
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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 for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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CCPI EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CCPI EUROPE LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Extent to which the audit was considered capable of detecting irregularities, including fraud
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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.
We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:
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had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act 2006 in addition to tax and employment legislation; and
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do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included health and safety regulations in addition to the United Kingdom Accreditation Service standards.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:
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There is a risk of material misstatement due to fraud related to the cut-off of revenue recognition around year end due to the incentive to manipulate delivery dates in order to overstate results. In response to this risk, we obtained proof of delivery and sales invoices for a sample of dispatches either side of year end, and checked that revenue was recognised in the appropriate period. We further assessed the design and implementation of a key revenue recognition control.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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enquiring of management and legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
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reading minutes of meetings of those charged with governance.
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CCPI EUROPE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CCPI EUROPE LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Report on other legal and regulatory requirements
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Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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
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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 any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
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.
Dawn Harris, FCA
(Senior Statutory Auditor)
for and on behalf of
Deloitte LLP
Statutory Auditor
Reading
United Kingdom
29 July 2021
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CCPI EUROPE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
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Profit for the financial year
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All profits are derived from continuing operations. There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly no statement of other comprehensive income has been presented.
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The notes on pages 15 to 30 form part of these financial statements.
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REGISTERED NUMBER:
05726866
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BALANCE SHEET
AS AT
31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by
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The notes on pages 15 to 30 form part of these financial statements.
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CCPI EUROPE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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CCPI EUROPE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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(Decrease)/increase in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Sale of fixed asset investments
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Net cash from investing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 15 to 30 form part of these financial statements.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
CCPI Europe Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit D Vector 31 Business Park, Waleswood Way, Sheffield, South Yorkshire, S26 5NU.
The financial statements are presented in Sterling (£).
2.
Accounting policies
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Basis of preparation of financial statements
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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
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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:
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Exemption from preparing consolidated financial statements
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The
company
is a parent
company
that is also a subsidiary included in the consolidated financial statements of its immediate parent undertaking established under the law of an EEA state and is therefore exempt from the requirement to prepare consolidated financial statements under
section 400 of the Companies Act 2006
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CCPI Europe Limited is a wholly owned subsidiary of The Marmon Group Limited and the results of CCPI Europe Limited are included in the consolidated financial statements of The Marmon Group Limited, which are available from its registered office.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
The outbreak of the Covid-19 pandemic in early 2020 and the economic consequence of measures taken by the UK Government are affecting the Company’s business operations. The negative financial consequence of the temporary decline in revenue in 2020 were mitigated by the support provided by the UK Government to UK business and the actions taken by the Directors to manage costs and contracts appropriately to maintain cash reserves.
The Company has a diverse range of customers in multiple industries. Whilst we saw a decline in some revenue streams in 2020, we are now seeing a recovery. The first half of 2021 is showing trading activity at a similar level to what we achieved prior to the Pandemic.
Whilst the Covid-19 pandemic has had an impact, the Company has remained profitable and continues to do so. The Company continues to win new business with new customers, both in the UK and in Europe. There have been no issues with the Company’s supply chain. The Company continues to see a high level of new enquiries and is maintaining a strong order book. The Directors believe the improvements on the business operations that have been seen for the first half of 2021 will continue.
The Company has considerable financial resources with cash at bank and in hand of £7,161,638 (2019: £6,284,215) and current net assets of £8,105,704 (2019: £7,038,304).
The Directors have assessed the Company’s status as a going concern, using all available information, and have considered a period of at least 12 months from the date of signing based on the Company’s latest trading projections. In performing this assessment, the directors have taken account of the current activity levels, external economic data and predictions, and the Company’s current cash position. Following this assessment, the directors have concluded that there are sufficient financial resources available to enable the Company to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements and, accordingly, have prepared the financial statements on a going concern basis.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
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the company has transferred the significant risks and rewards of ownership to the buyer;
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the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
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the amount of revenue can be measured reliably;
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it is probable that the company will receive the consideration due under the transaction; and
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the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
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the amount of revenue can be measured reliably;
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it is probable that the company will receive the consideration due under the contract;
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the stage of completion of the contract at the end of the reporting period can be measured reliably; and
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the costs incurred and the costs to complete the contract can be measured reliably.
Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.
Government grants comprise amounts receivable from HM Revenue and Customs for employees under the Coronavirus Job Retention Scheme also known as the furlough scheme. These are recognised as other operating income in the period in which they become receivable in line with FRS 102.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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Straight line over the life of the lease
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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 the profit and loss account.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.
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.
The company’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Financial instruments (continued)
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Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
If a transfer does not result in derecognition because the company has retained significant risks and rewards of ownership of the transferred asset, the company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received. The asset and liability are not offset. In subsequent periods, the company recognises any income on the transferred asset and any expense incurred on the financial liability.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the application of the company’s accounting policies which are described in Note 2, 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.
There are no judgements or key sources of estimation uncertainty taken that could result in a material change to the carrying value in the financial statements within the next 12 months.
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An analysis of turnover by class of business is as follows:
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Sales of goods and related services
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Analysis of turnover by country of destination:
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All turnover within the financial statements is generated from the sale of thermocouples, ceramic products and the provision of related services.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Other operating income - Job Retention Scheme
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Under the Coronavirus Job Retention Scheme, the company has received a total of £157,378 during the financial period which has been recognised in the profit and loss account as other operating income. There have been no unfulfilled conditions and other contingencies attaching to grants.
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The operating profit is stated after charging:
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Fees payable to the company's auditors for the audit of the company's financial statements
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Exchange (gains) / losses
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Depreciation of owned tangible fixed assets
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Cost of stocks recognised as an expense
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Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements
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The company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent company.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 3 directors (2019 - 3) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £160,890 (2019 - £145,820).
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Current tax on profits for the year
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than
(2019 - higher than)
the standard rate of corporation tax in the UK of
19
%
(2019 -
19
%)
. The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances in excess of depreciation
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Other timing differences leading to an increase (decrease) in taxation
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges. The UK main corporation tax rate is expected to remain at 19% until 31st March 2023. In the UK budget on 3rd March 2021, it was announced that the main rate of corporation tax would increase to 25% from 1st April 2023.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Long-term leasehold property
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Charge for the year on owned assets
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Investments in subsidiary companies
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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The following was a subsidiary undertaking of the company:
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The above subsidiary registered office address is Unit D Vector 31 Business Park, Waleswood Way, Sheffield, South Yorkshire, S26 5NU.
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Prepayments and accrued income
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are repayable on demand and interest free.
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Financial assets measured at fair value through profit or loss
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Financial liabilities measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise trade and other debtors and cash and bank balances.
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Financial liabilities measured at fair value through profit or loss comprise trade creditors and loans from a connected company.
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Charged to profit or loss
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
17.
Deferred taxation (continued)
|
The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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The balance above is expected to be fully utilised within the next 12 months.
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Allotted, called up and fully paid
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500,000
(2019 -
500,000
)
Ordinary
shares of £
1.00
each
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The holders of Ordinary shares have the right to vote at the general meeting of the company.
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Retirement benefit scheme
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Defined contribution schemes
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Charge to profit or loss in respect of defined contribution schemes
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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.
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Related party transactions
|
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The company has taken advantage of the exemption available in FRS102 Section 33.1A "Related party disclosures" whereby it has not disclosed transactions with any wholly owned group or subsidiary undertaking.
Please refer to Note 9 of the financial statements in relation to remuneration of key management personnel.
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CCPI EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The immediate parent company of CCPI Europe Limited and the parent company of the immediate group for which consolidated financial statements are prepared which include this company is
Marmon Group Limited
, which is incorporated in the United Kingdom. The financial statements of Marmon Group Limited can be obtained from the registered office 1 Regent Park, 37 Booth Drive, Park Farm Industrial Estate, Wellingborough, Northants, England, NN8 6GR.
The ultimate parent company is
Berkshire Hathaway Inc.
, a U.S. company publicly traded on the New York Stock Exchange.
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