C.P. WITTER LIMITED
Company registration number 01362420 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2022
31 December 2022
C.P. WITTER LIMITED
COMPANY INFORMATION
Directors
Mr M Baker
(Appointed 8 February 2023)
Mr S E Graham
(Appointed 8 February 2023)
Mr S Kumar
(Appointed 8 February 2023)
Secretary
Intertrust (UK) Limited
Company number
01362420
Registered office
Sixth Avenue
Deeside Industrial Park
Deeside
CH5 2LB
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
C.P. WITTER LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
C.P. WITTER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

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

Principal activities

C.P. Witter is a wholly owned subsidiary of Horizon Global European Holdings Limited. The principal activity of the company during the year was the manufacture, assembly and marketing of tow bars and accessories. The results and financial position of the company for the year ended 31 December 2022 are displayed on pages 9-11. The directors consider the results to reflect the difficult market conditions experienced in the year.

Review of the business

The sales for 2022 are £10,875,124 (2021 - £10,895,158) with an associated gross profit of £1,975,718 (2021 - £2,459,026) or 18% margin (2021 – 23%). The reduction in gross profit % in 2022 compared to 2021 is due to the rise in raw material costs and higher transfer prices from intercompany production facilities. Loss before taxation in 2022 was £551,632 compared to a loss before taxation of £251,395 in 2021. The higher loss in 2022 was due to the higher costs of production and materials. The operating loss was £362,382 (2021: £69,937).

 

Cash collection remained key with trade debt over 30 days as at 31st December 2022 remaining at 16% (16% - 2021). Net assets have decreased due to the release of the deferred tax asset during the year.

 

Principal risks and uncertainties

The directors have taken steps to ensure that the day-to-day risks which face the company in terms of, for example, health and safety and commercial risks are managed comprehensively by the company, by insurance cover which should mitigate the impact of risks turning into reality. The business takes Environmental issues very seriously and has achieved ISO14001. The business also prepares and reviews comprehensive monthly management financial reporting packages which can alert the board where appropriate to developments in trading performance and cash management. Any business operates against a background of risks and uncertainties. The directors believe that the principal risks facing C. P. Witter Limited are:

 

Competition

The company mitigates the risk of competition by supplying a variety of products across a number of different markets, product development of core products is done internally to allow for a minimal time to market for new products.

 

Health and Safety risk

The company works hard to comply with the standards imposed by the Health and Safety authorities through strong internal controls and effective staff training conducted both internally and externally where appropriate.

 

Volatility of exchange rates

The company does not actively use financial instruments as part of its exchange rate risk management. The risk is managed by holding both a Euro and US Dollar bank account and anticipating foreign exchange needs

 

Uncertainty of the automotive market

The company has market uncertainty as the towbar and accessories market is influenced by the number of new car registrations and new vehicle availability. The company monitors market data to anticipate any changes in demand so that the supply chain can be adjusted accordingly.

Key performance indicators

The management team review all salient Key Performance Indicators for the company every month e.g. sales and margin by revenue stream, cash collection.

 

Sales for 2022 are £10,875,124 compared to £10,895,158 in 2021 which is a marginal decrease. Gross profit in 2022 was £1,975,718 compared to £2,459,026 which is a 19.7% decrease. Gross profit did not increase in line with the increase in turnover in 2022 compared to 2021 due to the rise in raw material and freight costs.

 

Management do not utilise and have therefore not identified any significant non-financial KPI’s which warrant disclosure. The focus is constantly on overall performance improvements and the assurance that all regulatory compliance issues are maintained.

C.P. WITTER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Other information and explanations

Future developments

 

The company continues the process of modernisation of its manufacturing processes and product lines to maintain its UK market leader position and reputation for quality.

 

The towbar and accessories market is influenced by the number of new car registrations which decreased during 2022 by 2% YOY. The demand for AFV (alternative fuel vehicles) again continued to increase year-over-year in 2022 and this trend is expected to continue which may have an impact on sales as these type of vehicles are not generally designed for towing, however there is now an increasing number of mild hybrid vehicles entering the market that do have towing capability and 2022 saw an increase in the MHEV petrol vehicle registrations at 10%.

 

For 2023 the UK is forecasting an increase in turnover compared to prior year. Although the automotive industry is experiencing challenges due to component supply issues, UK sales forecast for 2023 is predominantly based on sales to the aftermarket and therefore is not impacted by the lower new car registrations. In addition due to the continuing uncertainty relating to foreign travel the company anticipates that there will be continued demand for the products as leisure travel changes to more domestic holidays in response to this.

 

The UK economy is currently being impacted by a ‘cost of living crisis’ that is being caused by a number of global factors. In addition to this there are unique factors impacting the UK including labour shortages caused by Brexit, increased energy prices and rises in taxes. Management is monitoring the situation to assess the impact if any on the company. The UK economy continues to be impacted by increases in inflation, however the Company is currently successfully managing these increases by passing them on to customers through higher prices. Therefore the Company is not expecting any material indirect impact on its operations or performance as a result of the conflict, but is monitoring this closely.

 

Events after the balance sheet date

 

On 30 December 2022, the ultimate parent company, Horizon Global Company LLC, entered into an Agreement and Plan of Merger to be acquired by First Brands Group, LLC, a company registered in the United States of America. The acquisition closed 8 February 2023, on which date the ultimate parent company became First Brands Group, LLC. Also effective on 8 February 2023, First Brands Group LLC became the parent undertaking both the smallest and largest group to consolidate the financial statements of the Company, which will begin in 2023.

 

On behalf of the board

Mr M Baker
Director
29 September 2023
C.P. WITTER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

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

Results and dividends

The results for the year are set out on page 9.

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

Directors

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

Mr M Baker
(Appointed 8 February 2023)
Mr S E Graham
(Appointed 8 February 2023)
Mr S Kumar
(Appointed 8 February 2023)
Mr J R Machado
(Resigned 8 February 2023)
Mr D W Parker
(Resigned 8 February 2023)
J Goldbaum
(Resigned 8 February 2023)
M Siemer
(Resigned 8 February 2023)
M Meyer
(Resigned 8 February 2023)
K Nienhuis
(Resigned 8 February 2023)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

During 2022 the company gained approval for 78 new products; 45 towbars and 33 electrical kits. In addition to this new product development a number of existing products were reviewed based on production process changes brought about by a new paint system in the main production facility. This increase in new approvals compared to the previous year was mainly due to a company decision to offer a range of products suitable for the growing E-Mobility Vehicle market (PHEV, HEV & BEV). Vehicle availability for development was also back to pre-pandemic levels making development process more efficient.

Future developments

Details of future developments can be found in the Strategic Report and form part of this report by cross-reference.

Strategic report

In accordance with s414(C) (11) of the Companies Act, included in the Strategic Report is a review of the development and performance of the business during the year, including key financial performance indicators, information relating to principle risks and uncertainties, future developments and events since the balance sheet date which would otherwise be required by Schedule 7 of the ‘large and medium sized companies and groups (financial statements and reports) regulation 2008’ to be contained in a Directors’ Report.

Statement of disclosure to auditor

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

C.P. WITTER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Financial risk management objectives and policies

The Company’s principal financial assets are bank balances and trade receivables. The Company’s activities expose it to a number of financial risks including cash flow risk, credit risk and liquidity risk.

Cash flow risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The Company’s principal financial assets are bank balances and cash, trade and other receivables, and investments.

The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

Liquidity risks are predominantly borne by the parent undertaking and so the company is shielded from this exposure.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In assessing the appropriateness of this, the directors have prepared detailed cashflow forecasts for the Company covering a period in excess of twelve months from the date of signing of these financial statements, and further have run a number of sensitivities such as variation in sales and cost of sales. These forecasts and sensitivities indicate that the Company has adequate resources to support its operations. Thus, they continue to adopt the going concern basis in preparing the annual financial statements. The directors are in receipt of a letter of support from First Brands Group LLC. The letter of support states that the parent will continue to provide the necessary funding to allow the company to meet their liabilities as they fall due over the 12-month period from the date of approval of the financial statements.

 

The business continues to maintain its leading market position. The budget for the next twelve months shows that the business will make small losses but in the long term the budgets show that the business will be profit making. The business performance against budget is reviewed monthly by the group and a comprehensive report is produced to review the business and revised forecasts are submitted if required.

 

Further details regarding the adoption of the going concern basis can be found in the accounting policies in note 1 of the financial statements.

 

 

On behalf of the board
Mr M Baker
Director
29 September 2023
C.P. WITTER LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

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

 

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

 

 

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.

C.P. WITTER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C.P. WITTER LIMITED
- 6 -
Opinion

We have audited the financial statements of C.P. Witter Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

C.P. WITTER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.P. WITTER LIMITED
- 7 -
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 strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

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.

C.P. WITTER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C.P. WITTER LIMITED
- 8 -

Irregularities, including fraud, and instances of non-compliance with laws and regulations

 

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 designed audit procedures to respond to the risk, recognising that 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. We considered the nature of the company's industry and its control environment, and reviewed the company's policies and procedures relating to fraud and compliance with laws and regulations.

 

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

 

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to the reporting frame work (FRS102 and Companies Act 2006), the relevant tax compliance regulations, Employment Law, Health & Safety Regulations, and Environmental Legislation (ISO9001).

We understood how the entity is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. Where relevant we have reviewed direct correspondence with regulatory bodies to confirm compliance. We also reviewed board meeting minutes to confirm there were no material instances of non-compliance.

We assessed the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquires of management, review of the systems in place, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Elwyn Turner FCA
Senior Statutory Auditor
For and on behalf of Dyke Yaxley Limited
29 September 2023
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
C.P. WITTER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
Turnover
3
10,875,124
10,895,158
Cost of sales
(8,899,406)
(8,436,132)
Gross profit
1,975,718
2,459,026
Distribution costs
(281,737)
(318,864)
Administrative expenses
(3,771,188)
(3,305,888)
Other operating income
1,714,827
1,095,789
Operating loss
4
(362,380)
(69,937)
Interest receivable and similar income
7
3,876
-
0
Interest payable and similar expenses
8
(193,128)
(181,458)
Loss before taxation
(551,632)
(251,395)
Tax on loss
9
(1,716,325)
449,266
(Loss)/profit for the financial year
(2,267,957)
197,871

The profit and loss account has been prepared on the basis that all operations are continuing operations.

C.P. WITTER LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
206,682
280,607
Current assets
Stocks
11
2,799,996
2,896,714
Debtors
12
2,630,140
4,095,719
Cash at bank and in hand
378,063
253,562
5,808,199
7,245,995
Creditors: amounts falling due within one year
13
(3,947,950)
(3,417,483)
Net current assets
1,860,249
3,828,512
Total assets less current liabilities
2,066,931
4,109,119
Creditors: amounts falling due after more than one year
14
(3,791,987)
(3,566,218)
Net (liabilities)/assets
(1,725,056)
542,901
Capital and reserves
Called up share capital
18
31,581
31,581
Share premium account
181,286
181,286
Profit and loss reserves
(1,937,923)
330,034
Total equity
(1,725,056)
542,901
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
Mr M  Baker
Director
Company Registration No. 01362420
C.P. WITTER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
31,579
8,416
132,163
172,158
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
197,871
197,871
Issue of share capital
18
2
172,870
-
172,872
Balance at 31 December 2021
31,581
181,286
330,034
542,901
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(2,267,957)
(2,267,957)
Balance at 31 December 2022
31,581
181,286
(1,937,923)
(1,725,056)
C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

C.P. Witter Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sixth Avenue, Deeside Industrial Park, Deeside, CH5 2LB.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

C. P. Witter Limited is a private company limited by shares incorporated in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the Strategic Report. The financial statements have been prepared under the historical cost convention and in accordance with applicable law and Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The functional currency of C. P. Witter Limited is pounds sterling because that is the currency of the primary economic environment in which the company operates.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

C.P. Witter Limited is a wholly owned subsidiary of Horizon Global European Holdings Limited, a company incorporated in the United Kingdom. As at 31 December 2022, the results and financial position of the company are consolidated into the financial statements of Horizon Global European Holdings Limited. Therefore, these financial statements present information about C. P. Witter Limited as an individual undertaking and not about its group.

C. P. Witter Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it (under sections 7, 28, 11, 12 and 33) in respect of its separate financial statements. C. P. Witter Limited is consolidated in the financial statements of its immediate parent, Horizon Global European Holdings Limited These financial statements can obtained at its registered address at, Sixth Avenue, Deeside Industrial Park, Deeside, United Kingdom, CH5 2LB. Exemptions have been taken in relation to presentation of a cash flow statement and related notes, disclosure of related party transactions, the remuneration of key management personnel and of a separate financial instruments note.

C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In assessing the appropriateness of this, the directors have prepared detailed cashflow forecasts for the Company covering a period in excess of twelve months from the date of signing of these financial statements, and further have run a number of sensitivities such as variation in sales and cost of sales. These forecasts and sensitivities indicate that the company has adequate resources to support its operations. Thus they continue to adopt the going concern basis in preparing the annual financial statements. The directors are in receipt of a letter of support from First Brands Group LLC. The letter of support states that the parent will continue to provide the necessary funding to allow the company to meet their liabilities as they fall due over the 12-month period from the date of approval of the financial statements. true

 

The business continues to maintain its leading market position. The budget for the next twelve months also confirms the strength of the business with projected sales growth. The business performance against budget is reviewed monthly by the group and a comprehensive report is produced to review the business and revised forecasts are submitted if required.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The Intercompany recharge income arises from the recharge of employee salary costs, engineering and development costs. Recharge income is recognised on an accrual basis in accordance with the arrangement between the associated group undertaking.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Plant and equipment
10% straight line
Fixtures and fittings
12.5% straight line (Computers 25% straight line)

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

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

1.12
Retirement benefits

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

1.13
Leases

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

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
All turnover is derived from the principal activity undertaken
10,875,124
10,895,158
C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 17 -
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
9,608,154
9,267,609
Rest of Europe
1,263,840
1,619,606
Rest of the World
3,130
7,943
10,875,124
10,895,158
2022
2021
£
£
Other revenue
Interest income
3,876
-
Grants received
-
30,116
Intercompany recharge income
1,714,827
1,065,673

The Intercompany recharge income arises from the recharge of employee salary costs, engineering and development costs.

4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
261,909
(88,931)
Government grants
-
(30,116)
Depreciation of owned tangible fixed assets
94,028
113,354
Operating lease charges
348,938
350,692
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
35,750
47,741

The audit fees payable include the audit fee for Horizon Global European Holdings Limited.

C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
6
Employees

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

2022
2021
Number
Number
Production
13
12
Administration
39
37
Total
52
49

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,761,351
1,649,748
Social security costs
191,537
169,870
Pension costs
67,982
80,308
2,020,870
1,899,926
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
3,876
-
0
8
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
-
41
Interest payable to group undertakings
193,128
181,417
193,128
181,458
9
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
1,716,325
(449,266)
C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
(Continued)
- 19 -

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

2022
2021
£
£
Loss before taxation
(551,632)
(251,395)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(104,810)
(47,765)
Tax effect of expenses that are not deductible in determining taxable profit
14,019
15,680
Tax effect of income not taxable in determining taxable profit
(1,288)
(208)
Adjustments in respect of prior years
9,093
11,469
Effect of change in corporation tax rate
(27,958)
(428,442)
Deferred tax adjustments in respect of prior years
1,827,269
-
0
Taxation charge/(credit) for the year
1,716,325
(449,266)

The tax adjustment in respect of prior years relates to the deferred tax asset previously recognised being released in relation to tax losses incurred. Tax losses shall be recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits. Management have concluded that there is uncertainty over the level of future taxable profits against which the losses will be relieved. On this basis, management have decided not to recognised a deferred tax asset.

10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2022
4,090
991,684
1,124,997
2,120,771
Additions
-
0
10,025
10,078
20,103
At 31 December 2022
4,090
1,001,709
1,135,075
2,140,874
Depreciation and impairment
At 1 January 2022
2,965
806,500
1,030,699
1,840,164
Depreciation charged in the year
409
52,901
40,718
94,028
At 31 December 2022
3,374
859,401
1,071,417
1,934,192
Carrying amount
At 31 December 2022
716
142,308
63,658
206,682
At 31 December 2021
1,125
185,184
94,298
280,607
C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
11
Stocks
2022
2021
£
£
Raw materials and consumables
193,666
180,557
Work in progress
141,286
90,874
Finished goods and goods for resale
2,465,044
2,625,283
2,799,996
2,896,714
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
882,010
741,186
Other debtors
1,488,584
1,410,768
Prepayments and accrued income
190,700
158,594
2,561,294
2,310,548
2022
2021
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
68,846
1,785,171
Total debtors
2,630,140
4,095,719

Concentrations of credit risk with respect to trade debtors are limited due to the company’s customer base being large and unrelated. Due to this, the directors believe there is no further credit risk provision required in excess of normal doubtful debtors.

Amounts owed by associated group undertakings are unsecured and are repayable on demand. Interest is charged at 5.25%. The transactions arise from the recharge of engineering development costs and the sale of finished goods.

13
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
273,557
385,479
Taxation and social security
138,637
113,231
Other creditors
3,381,247
2,755,339
Accruals and deferred income
154,509
163,434
3,947,950
3,417,483
C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Creditors: amounts falling due within one year
(Continued)
- 21 -

Amounts owed to associated group undertakings totaling £3,368,307 (2021 - £2,741,176) are unsecured and are repayable on demand. The transactions arise from the purchase of goods and the recharge of intercompany management fees.

14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Other borrowings
15
3,791,987
3,566,218
15
Loans and overdrafts
2022
2021
£
£
Loans from group undertakings
3,791,987
3,566,218
Payable after one year
3,791,987
3,566,218

The balance of the loans with Horizon International Holdings have a term of 3 years with interest rate 5%. Balance of loans with Horizon Global Hong Kong Holdings Limited have a term of 8 years with interest rate 3% and the balance of loans with Horizon GBP Finance LLC have terms of 5 and 10 years, which reach maturity by June 2025, with an interest rate 5.25%. Amounts owed to associated group undertakings are all unsecured.

 

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2022
2021
Balances:
£
£
Accelerated capital allowances
17,995
13,994
Tax losses
-
1,705,230
Other timing differences
50,851
65,947
68,846
1,785,171
C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
16
Deferred taxation
(Continued)
- 22 -
2022
Movements in the year:
£
Asset at 1 January 2022
(1,785,171)
Charge to profit or loss
1,716,325
Asset at 31 December 2022
(68,846)

The deferred tax asset set out above is expected to reverse within more than 12 months.

17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,982
80,308

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.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30,002
30,002
30,002
30,002
A Ordinary shares of £1 each
1,579
1,579
1,579
1,579
31,581
31,581
31,581
31,581

Both Ordinary and A Ordinary shares have equal voting and dividend rights.

19
Financial commitments, guarantees and contingent liabilities

There is a contingent liability in respect of a guarantee of £40,000 (2021: £40,000) provided to H M Revenue & Customs by HSBC Bank Plc. This guarantee relates to VAT on duty payable on goods imported by the company.

C.P. WITTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
347,372
337,795
Between two and five years
496,420
810,143
843,792
1,147,938
21
Events after the reporting date

On 30 December 2022, the ultimate parent company, Horizon Global Company LLC, entered into an Agreement and Plan of Merger to be acquired by First Brands Group, LLC, a company registered in the United States of America. The acquisition closed 8 February 2023, on which date the ultimate parent company became First Brands Group, LLC. Also effective on 8 February 2023, First Brands Group LLC became the parent undertaking both the smallest and largest group to consolidate the financial statements of the Company, which will begin in 2023.

The registered office of First Brands Group LLC is Key Tower 127 Public Square, Suite 5110, Cleveland, OH 44114.

22
Ultimate controlling party

At 31 December 2022, Cequent Nederlands Holdings B.V. (incorporated in The Netherlands) was the intermediate parent of the Company by virtue of its interest in the equity share of the Company. At 31 December 2022, Horizon Global Company LLC (incorporated in the United States of America) was the ultimate parent company of the Company and the ultimate controlling party was considered by the Directors to be Horizon Global Corporation 47912 Halyard Drive, Suite 100, Plymouth, Michigan 48170.

On 30 December 2022, the ultimate parent company, Horizon Global Company LLC, entered into an Agreement and Plan of Merger to be acquired by First Brands Group, LLC, a company registered in the United States of America. The acquisition closed 8 February 2023, on which date the ultimate parent company became First Brands Group, LLC. Also effective on 8 February 2023, First Brands Group LLC became the parent undertaking both the smallest and largest group to consolidate the financial statements of the Company, which will begin in 2023.

 

2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.200Mr M BakerMr S E GrahamMr S KumarMr J R MachadoMr D W ParkerJ GoldbaumM SiemerM MeyerK NienhuisIntertrust (UK) Limited2023-09-29013624202022-01-012022-12-31013624202022-12-3101362420bus:Director12022-01-012022-12-3101362420bus:Director22022-01-012022-12-3101362420bus:Director32022-01-012022-12-3101362420bus:CompanySecretary12022-01-012022-12-3101362420bus:Director42022-01-012022-12-3101362420bus:Director52022-01-012022-12-3101362420bus:Director62022-01-012022-12-3101362420bus:Director72022-01-012022-12-3101362420bus:Director82022-01-012022-12-3101362420bus:Director92022-01-012022-12-3101362420bus:RegisteredOffice2022-01-012022-12-31013624202021-01-012021-12-3101362420core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3101362420core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31013624202021-12-3101362420core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101362420core:PlantMachinery2022-12-3101362420core:FurnitureFittings2022-12-3101362420core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3101362420core:PlantMachinery2021-12-3101362420core:FurnitureFittings2021-12-3101362420core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101362420core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3101362420core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3101362420core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3101362420core:CurrentFinancialInstruments2022-12-3101362420core:CurrentFinancialInstruments2021-12-3101362420core:ShareCapital2022-12-3101362420core:ShareCapital2021-12-3101362420core:SharePremium2022-12-3101362420core:SharePremium2021-12-3101362420core:RetainedEarningsAccumulatedLosses2022-12-3101362420core:RetainedEarningsAccumulatedLosses2021-12-3101362420core:ShareCapital2020-12-3101362420core:SharePremium2020-12-3101362420core:RetainedEarningsAccumulatedLosses2020-12-3101362420core:ShareCapitalOrdinaryShares2022-12-3101362420core:ShareCapitalOrdinaryShares2021-12-3101362420core:ShareCapital2021-01-012021-12-3101362420core:SharePremium2021-01-012021-12-3101362420core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-3101362420core:PlantMachinery2022-01-012022-12-3101362420core:FurnitureFittings2022-01-012022-12-3101362420core:UKTax2022-01-012022-12-3101362420core:UKTax2021-01-012021-12-3101362420core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3101362420core:PlantMachinery2021-12-3101362420core:FurnitureFittings2021-12-31013624202021-12-3101362420core:Non-currentFinancialInstruments2022-12-3101362420core:Non-currentFinancialInstruments2021-12-3101362420core:WithinOneYear2022-12-3101362420core:WithinOneYear2021-12-3101362420core:BetweenTwoFiveYears2022-12-3101362420core:BetweenTwoFiveYears2021-12-3101362420bus:PrivateLimitedCompanyLtd2022-01-012022-12-3101362420bus:FRS1022022-01-012022-12-3101362420bus:Audited2022-01-012022-12-3101362420bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP