Registered Number 02504868
Tyco Holdings (U.K.) Limited
Annual report and financial statements
for the year ended 30 September 2022
Tyco Holdings (U.K.) Limited
Annual report and financial statements for the year ended
30 September 2022
Contents
Page
Strategic report
1
Directors' report
2
Independent auditors' report to the members of Tyco Holdings (U.K.) Limited
5
Statement of comprehensive income
7
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11
Tyco Holdings (U.K.) Limited
Strategic report
The directors present their Strategic report on the company, for the year ended 30 September 2022.
Principal activities of business
The activity of the company continues to be that of a holding company. The company's main subsidiaries principally operate within the fire protection and security divisions of the Johnson Controls International plc group. The company engages in investment of activities which are, by their nature, non-recurrent events.  The company will continue to monitor each investment it holds together with any potential opportunities as they arise.
Business review
The results for the year are given in the Statement of comprehensive income on page 8. This shows the company made a profit before tax of £30,457,000  (2021: loss of £322,260,000) which is mostly due to income from fixed asset investments of £42,279,000 and net gains arising on disposal of fixed asset investments £109,251,000.
There was an increase in net interest expense from £97,159,000 in the prior year to £115,123,000 in the current year mainly due to increased interest payable from new intercompany loans being entered into during the year.
Following the annual investment impairment review the year, company recognised an impairment on investment in subsidiaries for an amount of £5,950,000 (2021 impairment of £222,866,000).
At the year end, net liabilities were £672,819,000 (2021: net liabilities of £737,000,000 ).
Future developments
The directors are not aware, at the date of this report, of any likely major changes in the company's activities in the next year.
Key performance indicators
The company had no other activity other than as described above and the directors do not envisage that this will change in the foreseeable future. For this reason the company's directors believe that further key performance indicators of the company are not necessary for an understanding of the performances and position of the business. The
Principal risks and uncertainties
The principal risks and uncertainties of the company relate to the performance of its subsidiary companies
and any impairment to the investment values of these subsidiaries. Management complete an annual impairment trigger assessment and a more detailed assessment is carried out if a trigger is identified to mitigate the impairment risk to an acceptable level. The impairment indicator assessment completed for the year ended 30 September 2022 indicted the current value of the investments was less than the book value, therefore an impairment was made.
On behalf of the board
1
Tyco Holdings (U.K.) Limited
J Bucknall
Director
Date: 9 October 2023
2
Tyco Holdings (U.K.) Limited
Directors' report
The directors present their report and the audited financial statements of the company for the year ended 30 September 2022.
Future developments
The future developments of the company are noted in the Strategic report.
Post balance sheet events
In February 2023 the company allotted and issued one ordinary share of £1 in the capital of the company to Tyco International Holding S.à r.l. in consideration £640,000,000. (see note 19).
Subsequent to the year ended 30 September 22, the company was informed by the parent entity, Johnson Controls International plc (“JCI”), that disruptions were experienced  in portions of its internal information technology infrastructure and applications resulting from a cybersecurity incident. Promptly after detecting the issue, JCI began investigation with assistance from leading external cybersecurity experts and is also coordinating with its insurers. JCI continues to assess what information was impacted and is executing its incident management and protection plan, including implementing remediation measures to mitigate the impact of the incident, and will continue taking additional steps as appropriate. To date, many of JCI's application are largely unaffected and remain operational. To the extend possible, and in line with its business continuity plans, JCI implemented workarounds for certain operations to mitigate disruption and continue servicing its customers. However, the incident has caused, and is expected to continue to cause, disruption to parts of the JCI's business operations.
Dividends
The directors do not recommend payment of a dividend (2021: nil).
Going concern
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future as it has committed support from an appropriate entity within the Johnson Controls group for 12 months from the signing of these financial statements. Thus, they continue to adopt the going concern basis in preparing the financial statements. Further details of this can be found in the accounting policies notes in the financial statements
Financial risk management objectives and policies
The company's activities expose it to a number of financial risks including credit risk, exchange rate risk, interest rate risk and liquidity risk. The company does not use derivative financial instruments.
Credit risk
The company is not exposed to any credit risk other that in respect of inter-company balances within the Johnson Controls International plc group. The company does not have an external customer base.
The company uses financial institutions authorised by Johnson Controls International plc who actively manage the global banking facilities. All cash held on deposit is pooled at a European level to mitigate risk.
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Tyco Holdings (U.K.) Limited
Exchange rate risk
Potential exposure to currency exchange rate fluctuations is managed internally within the Group treasury function. The Group enter into forward exchange contracts on behalf of the company to the value of its future multi currency cash flows. Consequently exchange rate risk is not significant.
4
Tyco Holdings (U.K.) Limited
Directors' report (cont'd)
Financial risk management objectives and policies (cont'd)
Liquidity and interest rate risk
If company funding is required then this is achieved by either an internal loan from a Johnson Controls International plc group company or through cash pooling arrangements. As a result interest rate risk is largely managed as there is no external funding requirement at year end.
All Group risk is closely managed by the corporate risk management team, which is controlled by the ultimate parent company Johnson Controls International plc.
Directors
The following directors served during the year and up to the date of signing this report, unless otherwise stated:
M Ayre
(resigned 18 August 2023)
P Schieser
(resigned 17 November 2022)
J Earnshaw
(appointed 17 November 2022)
J Bucknall
(appointed 18 August 2023)
Directors' indemnities
As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The group also purchased and maintained throughout the financial year Directors' and Officers' liability insurance in respect of itself and its directors.
Statement of directors' responsibilities
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 prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” 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 year. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable United Kingdom Accounting Standards, comprising FRS102 have been followed, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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Tyco Holdings (U.K.) Limited
The directors are 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 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.
6
Tyco Holdings (U.K.) Limited
Directors' report (cont'd)
Directors' confirmations
In the case of each director in office at the date the Directors' report is approved:
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent auditors
The auditors, PricewaterhouseCoopers, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the next Directors' Board Meeting.
On behalf of the Board
J Bucknall
Director
Date: 9 October 2023
7
Tyco Holdings (U.K.) Limited
Independent auditors' report to the members of Tyco Holdings (U.K.) Limited
Report on the audit of the financial statements
Opinion
In our opinion, Tyco Holdings (U.K.) Limited's financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual report and financial statements (“Annual Report”), which comprise:
the statement of financial position as at 30 September 2022;
the statement of comprehensive income for the year then ended;
the statement of changes in equity for the year then ended; and
the notes to the financial statements, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
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.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
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Tyco Holdings (U.K.) Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
Strategic report and Directors' report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' report for the year ended 30 September 2022 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' report.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they 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.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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Tyco Holdings (U.K.) Limited
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to taxation legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management override of controls with journal entries and management bias in accounting estimates.  Audit procedures performed included:
Discussion with management around actual and potential litigation and claims;
Discussions with management, in respect of risk of fraud and any known or suspected instances of non-compliance with laws and regulation and fraud and reviewing board minutes;
Confirmation with those charged with governance in respect of risk of fraud and any known or suspected instances of non-compliance with laws and regulations;
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Tyco Holdings (U.K.) Limited
Consideration of the overall control environment and the processes and controls in place in the company, including procedures to achieve compliance with relevant laws and regulations;
Implementing specific procedures to address risks associated with management override of controls, including examination of journal entries; and
challenging assumptions and judgements made by management associated with accounting estimates.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 auditors' report.
Use of this report
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or
certain disclosures of directors' remuneration specified by law are not made; or
the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Barry O'Halloran (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Auditors
Cork
      October 2023
11
Tyco Holdings (U.K.) Limited
Statement of comprehensive income for the year ended 30 September 2022
2022
2021
Note
£'000
£'000
Administrative expenses
(2,966)
(1,739)
Intercompany write-off
5
(496)
Income from fixed asset investments
12
42,279
Net gains arising on disposal of fixed asset investments
12
109,251
Impairment of fixed asset investments
12
(5,950)
(222,866)
Interest receivable and similar income
6
31,083
24,296
Interest payable and similar expenses
7
(146,206)
(121,455)
Profit / (loss) before taxation
8
30,457
(320,521)
Tax credit on profit / (loss)
9
518
Profit / (loss) for the financial year
30,975
(320,521)
Re-measurement of net defined benefit obligation
18
36,172
78,067
Total comprehensive income / (expense) for the year
67,147
(242,454)
All amounts relate to continuing operations.
12
Tyco Holdings (U.K.) Limited
Statement of financial position as at 30 September 2022
2022-09-30
2022
2021
Note
£'000
£'000
Non-current assets
Tangible assets
11
Investments
12
1,213,014
753,727
1,213,014
753,727
Current assets
Debtors - amount falling due within one year
13
400,088
1,107,344
Debtors - amount falling due after more than one year
Pension asset
18
39,660
Cash at bank and in hand
903,942
771,903
1,343,690
1,879,247
Current liabilities
14
(2,968,311)
(2,682,436)
Net current liabilities
(1,624,621)
(803,189)
Total assets less current liabilities
(411,607)
(49,462)
Creditors - amount falling due after more than one year
15
(261,212)
(684,951)
Pension liability
18
(2,587)
Net liabilities
(672,819)
(737,000)
Capital and reserves
Called up share capital
17
150,369
150,369
Share premium account
147,026
147,026
Capital contribution reserve
21,000
21,000
Accumulated losses
(988,248)
(1,053,656)
Total deficit
(669,853)
(735,261)
The notes on pages 11 to 36 are an integral part of these financial statements.
The financial statements on pages 7 to 36 were approved by the Board of directors on
9 October 2023
09 October 2023
and were signed on its behalf by:
J Bucknall
Director
Tyco Holdings (U.K.) Limited
Registered Number 02504868
13
Tyco Holdings (U.K.) Limited
Statement of changes in equity for the year ended 30 September 2022
Called up share capital
Share premium account
Capital contribution reserve
Accumulated losses
Total deficit
£'000
£'000
£'000
£'000
£'000
Balance as at 1 October 2020
150,369
147,026
21,000
(811,202)
(492,807)
Loss for the financial year
(320,521)
(320,521)
Remeasurement of net defined benefit obligation
78,067
78,067
Balance as at 30 September 2021
150,369
147,026
21,000
(1,053,656)
(735,261)
Profit for the financial year
30,975
30,975
Remeasurement of net defined benefit obligation
36,172
36,172
Balance as at 30 September 2022
150,369
147,026
21,000
(986,509)
(668,114)
Accumulated losses represents accumulated comprehensive expense for the current financial year and prior financial years.
Share premium account represents the excess over nominal value, which the immediate holding company subscribed for the share capital of the company.
Capital contribution reserve represents additional funding from the immediate holding company.
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Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022
1    General information
Tyco Holdings (U.K.) Limited is a company domiciled and incorporated in the United Kingdom under the Companies Act 2006. The address of its registered office is Security House, The Summit, Hanworth Road, Sunbury On Thames, Middlesex, England, TW16 5DB.
The principal activity of the company is that of a holding company, investing in companies.
2    Statement of compliance
These financial statements have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102) and in accordance with the Companies Act 2006.
3    Summary of significant accounting policies
The principal accounting policies, which have been applied in the preparation of these financial statements are set out below. These policies have been consistently applied to both the years/periods presented, unless otherwise stated. The company has applied FRS 102 in these financial statements.
Basis of preparation
These financial statements are prepared on the going concern basis, under the historical cost convention.
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant in these financial statements are disclosed in note 4.
Reduced disclosures
In accordance with FRS 102, the company has taken advantage of the exemptions from the following disclosure requirements on the basis that the information is provided in the consolidated financial statements of Johnson Controls International plc, which is registered in Cork Ireland.  Johnson Controls International plc prepares consolidated financial statements which are publicly available and can be obtained from the address given in note 20.
Section 4 ‘Statement of Financial Position'
Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows'
Presentation of a Statement of Cash Flow and related notes and disclosures;
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Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Section 11 ‘Basic Financial Instruments' & Section 12 ‘Other Financial Instrument Issues'
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in the statement of comprehensive income;
Section 33 ‘Related Party Disclosures'
Paragraphs 33.7 and 33.1A, Disclosure of compensation for key management personnel and related party transactions.
3    Summary of significant accounting policies (cont'd)
Group financial statements
The company is exempt from the requirement to prepare and deliver consolidated financial statements under the provisions of Section 401 of the Companies Act 2006 as it is a wholly owned subsidiary undertaking of Johnson Controls International plc, which is registered in Cork, Ireland and which itself prepares consolidated financial statements which are publicly available and can be obtained from the address given in note 20. Accordingly consolidated financial statements have not been prepared and the financial information presented for the current year is for the company as an individual undertaking.
Going concern
The financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £672,819,000 (2021: £737,000,000) which the directors believe to be appropriate for the following reason.  Johnson Controls International plc has provided the company with an undertaking that for at least 12 months from the date of approval of these financial statements, it will continue to make available such funds as are needed by the company to settle obligations as they fall due.
Functional and presentational currency
The company's functional and presentational currency is the pound sterling because the majority of its' economic flows are in pound sterling.
Foreign currencies
Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
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Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.
Taxation
The tax charge represents the sum of the current tax charge and deferred tax charge.
Current tax
Current tax is the amount of income tax payable in respect of the taxable profits for the year or prior years at the standard effective rate of corporation tax in the UK.
Deferred tax
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 tax expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is recognised on all timing differences at the reporting date, unless it is not considered probable that deferred tax assets will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured at rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. Deferred tax is measured on an undiscounted basis.
3    Summary of significant accounting policies (cont'd)
Tangible assets
Tangible assets are stated at cost, which is the original purchase price plus incidental expenses, less accumulated depreciation. Depreciation is calculated to write off the cost, less estimated residual value of each asset evenly over its expected useful economic life, as follows:
Asset class
Amortisation method and rate
Fixtures and fittings
straight-line 5% to 33% per annum
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks and bank overdrafts.  Bank overdrafts are shown in creditors due within one year.
Financial instruments
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Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Financial assets
Basic financial assets, including debtors, cash and bank balances and loans to fellow group companies 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.
Such assets are subsequently carried at amortised cost using the effective interest rate method and are assessed annually for objective evidence of impairment. Any impairment loss or reversal of an impairment loss is recognised in the Statement of comprehensive income.
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, the 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.
Financial liabilities
Basic financial liabilities, including trade creditors and other payables, bank loans and loans from fellow group companies, 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. Such debt instruments are subsequently carried at amortised cost using the effective interest rate method.
Offsetting
Financial assets and liabilities are offset and 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.
3    Summary of significant accounting policies (cont'd)
Fixed asset investments
Fixed assets investments are stated at cost plus incidental expenses less provisions for impairment in value.  The company reviews the carrying value of investments when there has been an indication of potential impairment annually. If it is determined that the carrying value exceeds the recoverable amount, the excess is written off to the Statement of comprehensive income.
Interest receivable and similar income
Interest income is recognised in the period to which it relates regardless of when it is received.
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Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Share capital
Ordinary shares are classed as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Interest payable
Interest costs are recognised in the period for which the interest relates. Differences between interest payable in the period and interest actually paid are shown as either accruals or prepayments in the balance sheet.
Pensions
Tyco Holdings (U.K.) Limited is the sponsoring employer of the Tyco UK Holdings CARE Pension Scheme and as such, the company accounts for the CARE Scheme as at 30 September 2022 under Financial Reporting Standard 102 (FRS102). The CARE Scheme is a defined benefit plan providing career average revalued earnings benefits, but is closed to new entrants. The CARE Scheme has been closed to future accrual since 30 April 2010. The assets are held in a separate trustee administered fund.
Scheme liabilities are estimated using the projected unit credit method. Under this method each participant's benefits under the plan are attributed to years of service, taking into consideration future salary increases and the plan's benefit allocation formula. The scheme liability is the total present value of the individuals' attributed benefits for valuation purposes at the measurement date, and the service cost is the total present value of the individual's benefits attributable to service during the period.
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the company's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are credited or charged to other comprehensive income. The net interest cost is calculated by applying a single discount rate to the net balance of the defined benefit liability or asset. This cost is recognised in the Statement of comprehensive income in administrative expenses.
The cost of the defined benefit plan, recognized in the Statement of comprehensive income as employee costs, except where included in the cost of an asset, comprises:
the increase in pension benefit liability arising from employee service during the period; and
the cost of plan introductions, benefit changes, curtailments and settlements.
Related party transactions
The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.
Balance sheet presentation
The company has elected to adapt the format of the balance sheet to show current & non-current assets & liabilities.
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Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
4    Critical accounting judgements and estimation uncertainty
Critical accounting estimates and assumptions
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying value of assets and liabilities with the next financial year are addressed below:
Impairment of fixed asset investments
As per the accounting policy fixed asset investments are reviewed for indicators of impairment. If there is such an indication, the recoverable amount of the investment is compared to its carrying value. The recoverable amount of the investment is the higher of the fair value less costs to sell and value in use.  The value-in-use (VIU) of relevant groups of cash generating units (CGUs) for impairment testing purposes is determined using calculations of cash flow projections from the financial plans approved by the Board. These calculations involve the use of estimates including projected future cash flows and other future events.
Defined benefit pension scheme
The company has an obligation to pay defined pension benefits to certain former employees of the company or it's subsidiaries. Scheme liabilities are estimated using the projected unit credit method. Under this method each participant's benefits under the plan are attributed to years of service, taking into consideration the plan's benefit allocation formula. The scheme asset/liability is the total present value of the individuals' attributed benefits for valuation purposes at the measurement date, less the fair values of the plan assets.  The scheme actuary estimates these figures determining the net pension asset in the Statement of financial position. Management are satisfied that it is appropriate to recognise the pension surplus by reference to the underlying terms of the Trust deeds.
See note 18 for disclosures relating to the pension scheme.
5    Intercompany write-off
2022
2021
£'000
£'000
Intercompany write-off
(496)
(496)
20
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
6    Interest receivable and similar income
2022
2021
£'000
£'000
Bank interest receivable
6,787
1,074
Interest receivable from group undertakings
4,998
9,264
Interest receivable on defined benefit pension scheme (note 18)
19,298
13,958
31,083
24,296
7    Interest payable and similar expenses
2022
2021
£'000
£'000
Bank interest
2,462
1,181
Interest payable to group undertakings
124,455
105,009
Interest payable on defined benefit pension scheme (note 18)
19,289
15,265
146,206
121,455
.
8    Profit / (loss) before taxation
2022
2021
Profit/(loss) before taxation is stated after charging:
£'000
£'000
Foreign currency exchange losses
30
12
Audit fee
35
35
21
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
9    Tax credit on profit / (loss)
2022
2021
£'000
£'000
Current Tax
UK Corporation tax at 19% (2021:19%)
Total current tax
Deferred tax
Origination and reversal of timing differences
Adjustments in respect of prior periods
(518)
Total deferred tax (note 16)
(518)
Total tax on profit / (loss)
(518)
There is no tax charge for the current or prior financial year.
Reconciliation of tax charge
The tax assessed for the year is lower (2021: lower) than the standard rate of corporation tax in the United Kingdom of 19% (2021:19%). The differences are explained below:
2022
2021
£'000
£'000
Profit / (loss) before taxation
30,457
(322,260)
Profit / (loss) before taxation multiplied by the standard rate of corporation tax of 19% (2021: 19%)
5,787
(61,229)
Income not taxable
(36,170)
Expenses not deductible for tax purposes
8,499
42,440
Group relief surrendered for nil consideration
18,483
4,962
Movement in unrecognised deferred tax
(1,183)
(1,971)
Non taxable gains on disposal
(19)
(1)
CIR adjustment
5,167
15,799
Adjustments in respect of prior periods
(518)
Total tax charge for the year
46
22
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
The rate of UK corporation tax is currently 19%. In its 2021 spring budget, the UK government announced that from 1 April 2023, the corporation tax rate will increase to 25%. This was substantively enacted for UK GAAP purposes on 10 June 2021.
Temporary differences at the Statement of financial position have been measured using the enacted deferred tax rate of 25% and reflected in these financial statements.
10    Directors and employees
The directors received no remuneration (2021: £nil) in respect of their services to the company during the year as their services as directors of the company were incidental to the other services within the Johnson Controls International plc group of companies. Directors' remuneration costs are borne by other members of the Johnson Controls International plc group of companies. It is not possible to determine an allocation to this company. The average monthly number of employees, excluding directors, is nil (2021: nil).
11    Tangible assets
Fixtures and fittings
£'000
Cost
At 1 October 2021 and 30 September 2022
4,909
Accumulated
depreciation
At 1 October 2021
4,909
Charge for the year
At 30 September 2022
4,909
Net book value
At 30 September 2022
At 30 September 2021
23
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
12    Investments
Total
Shares in subsidiary undertakings
£'000
Cost
At 1 October 2021
1,282,622
Additions
508,918
Disposal
(146,616)
At 30 September 2022
1,644,924
Provision for impairment
At 1 October 2021
528,895
Impairment charge
5,950
Impairment reversal on disposal
(102,935)
At 30 September 2022
431,910
Net book amount
At 30 September 2022
1,213,014
At 30 September 2021
753,727
24
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
12    Investments (cont'd)
2022
2021
Analysed as:
£'000
£'000
ADT (UK) Holdings Limited
5,950
ADT Fire and Security Plc
420,879
287,966
ADT South Africa Holding Limited
56,839
56,839
Thorn Security Group Limited
42,681
42,681
ShopperTrak Limited
Tyco Holdings (UK) Pension Trustees Limited
Wormald Holdings (UK) Limited
38,889
Controlled Electronic Management Systems Limited
50,440
50,440
DSC International S.A.
Pritchard Services Group BV
533
Tyco Qatar Fire & Security WLL
17,410
17,410
McDowall Limited
5,179
5,179
McDowall Air Conditioning (U.K.) Limited
1,521
1,521
Tyco Fire & Security (UAE) LLC
4,259
Johnson Controls Building Efficiency UK Ltd.
242,060
242,060
ADT Trustees Limited
179
ADT Finance Limited
375,826
Johnson Controls Capital UK Limited
1,213,014
753,727
In the directors' opinion, the carrying value of the investments, net of impairment provisions, is supported by the value of the underlying business.
Impairment reviews of the carrying value of investments were performed where indicators were in existence that there could be an increase or reduction in the subsidiary value. A trigger test was therefore performed where the net assets of the subsidiary were compared to the carrying value of the investments. Where the carrying value was lower than the net assets an impairment assessment was performed. Where the carrying value was greater than the gross assets less an impairment carried forward, the impairment was re-assessed taking into consideration any changes in economic circumstances of the subsidiary.
During the year, company recognised impairment on investment value of ADT (UK) Holdings Limited for an amount of £5,950,000 (2021: £222,866,000).
25
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
On 1 October 2021 the company sold its 100% beneficial ownership in Tyco Fire & Security (UAE) LLC to Johnson Controls UAE Holding Limited for a consideration of £4,361,274, leading to a profit on disposal of £101,421.
12    Investments (cont'd)
In March 2022 Wormald Holdings (UK) Limited declared two dividends in specie totalling £148,039,307.  £136,721,170 was used to extinguish the intercompany account payable held by Tyco Holdings (UK) Limited and £11,368,137 to extinguish the intercompany loan payable held by Tyco Holdings (UK) Limited. Wormald Holdings (UK) Limited was then dissolved on 14 June 2022. At the date of dissolution, the company held the investment in Wormald Holdings (UK) Limited at a net book value of £38,889,439. The net gain on these transactions has been recognised in the Statement of comprehensive income.
The company owned 100% of the share capital of Pritchard Services Group BV on 16th June 2022 when the directors approved its liquidation. Following on from the liquidation, the assets of the subsidiary were distributed to the company as the sole shareholder leading to a loss on dissolution of £26,713
During the year on 30 March 2022 the company acquired an additional 17.76% interest in ADT Fire and Security plc from Britannia Security Group Limited for a consideration of £132,913,479.
On 2 August 2022 the company purchased the 100% of the share capital of ADT Trustees Limited from ADT (UK) Limited  for a consideration of £178,769.
During the year on 30 August 2022 the company purchased the 100% ownership of ADT Finance Limited from ADT (UK) Limited for a consideration of £375,825,744.
On 6 September 2022 the company purchased the 100% of the share capital of Johnson Controls Capital UK Limited (formerly Pritchard Services Group Investments Limited) from Shepton Holdings Limited for a consideration of £100.
During the year in September 2022 Thorn Security Group Limited distributed a loan note receivable from Johnson Controls EMEALA Holdings Limited to Tyco Holdings (UK) Limited in the form of a dividend for £42,279,117.
26
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
12    Investments (cont'd)
At 30 September 2022, details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Company and principal activity
Class
of
shares
Proportion of issued share capital held by:
Nature of business / Principal activity
Registered Office
The Company
Other group companies
ADT (UK) Holdings Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
ADT Group Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
ADT (UK) Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
Shepton Holdings Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
Britannia Security Group Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
27
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
ADT Trustees Limited*
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
ADT Finance Limited*
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
Johnson Controls Capital UK limited (formerly Pritchard Services Group Investments Limited)*
Ordinary shares
100%
Non-Trading
Security House,   The Summit,  Hanworth Road,  Sunbury on  Thames, Middlesex,  TW16 5DB, United  Kingdom
12    Investments (cont'd)
Company and principal activity
Class
of
shares
Proportion of issued share capital held by:
Nature of business / Principal activity
Registered Office
The Company
Other group companies
ADT Fire and Security plc
Ordinary shares
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
AsPro Crest Limited
Ordinary
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW 16 5DB, United Kingdom
New Tech Security Limited
Ordinary
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW 16 5DB, United Kingdom
NT Security Limited
Ordinary
100%
Trading*
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW 16 5DB, United Kingdom
28
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
WOT Security Limited
Ordinary
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW 16 5DB, United Kingdom
Electronic Security Systems and Fire Protection Ltd
Ordinary
100%
Trading
c/o Alexander Sloan, 7th Floor
180 St. Vincent Street Glasgow, United Kingdom
Esotec Ltd
Ordinary
100%
Trading
Security House The Summit, Hanworth Road, Sunbury-On-Thames, Middlesex, England, TW16 5DB
Fisher Group Holdings Limited
Ordinary
100%
Non-Trading
48 Deerdykes View, Cumbernauld, Glasgow, Scotland, G68 9HN
12    Investments (cont'd)
Company and principal activity
Class
of
shares
Proportion of issued share capital held by:
Nature of business / Principal activity
Registered Office
The Company
Other group companies
Fisher Group Limited
Ordinary
100%
Trading
48 Deerdykes View, Cumbernauld, Glasgow, Scotland, G68 9HN
Fisher Group Service Limited
Ordinary
100%
Trading
48 Deerdykes View, Cumbernauld, Glasgow, Scotland, G68 9HN
Sparkling Systems Limited
Ordinary
100%
Trading
48 Deerdykes View, Cumbernauld, Glasgow, Scotland, G68 9HN
Nu-Form Fire UK Limited
Ordinary
100%
Trading
Tyco Park Grimshaw Lane, Newton Heath, Manchester, M40 2WL
Envision Intelligent Solutions Limited*
Ordinary
100%
Trading
48 Deerdykes View, Cumbernauld, Glasgow, Scotland, G68 9HN
29
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Vindex Systems Limited*
Ordinary
100%
Non-Trading
Tyco Park Grimshaw Lane, Newton Heath, Manchester, M40 2WL
Tyco Qatar Fire & Security WLL
Ordinary shares
100%
Trading
P.O Box 22296, Doha, Ad Dawhah, Qatar
Thorn Security Group Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
Thorn Security Limited
Ordinary shares
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
ADT South Africa Holding Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
Tyco Holdings (UK) Pension Trustees Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
12    Investments (cont'd)
Company and principal activity
Class
of
shares
Proportion of issued share capital held by:
Nature of business / Principal activity
Registered Office
The Company
Other group companies
Johnson Controls UK Trustees Limited
Ordinary shares
100%
Non-Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
ShopperTrak Limited
Ordinary shares
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
ShopperTrak Central Europe GmbH
Ordinary shares
100%
Trading
Kronenstrasses 12, Berlin, 10117, Germany
ShopperTrak France S.a.r.l.
Ordinary shares
100%
Trading
5 Avenue du Chemin de Presles, 94410, France
30
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
ShopperTrak Tecnologia Brasil Ltda.
Ordinary shares
100%
Trading
Alameda Santos, 200, 5° andar, Conjuntos 509 e 510, Cerqueira César, São Paulo
ShopperTrak RCT Equipment Trading LLC
Ordinary shares
100%
Trading
Office 217, Al Safa 1, Bur Dubai, Dubai
Controlled Electronic Management Systems Limited
Ordinary shares
100%
Trading
195 Airport Road West, Belfast, BT3 9ED, United Kingdom
DSC International S.A.
Ordinary shares
100%
Trading
6E 't Hofveld, Groot-Bijgaarden, Vlaams Brabant (VLG), 1702, Belgium
Johnson Controls Building Efficiency UK Ltd.
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
ELRAC Limited
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
12    Investments (cont'd)
Company and principal activity
Class
of
shares
Proportion of issued share capital held by:
Nature of business / Principal activity
Registered Office
The Company
Other group companies
East Lancashire Refrigeration Limited
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
Cool Solution Refrigeration Limited
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
31
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Cool Solution (Midlands) Limited
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
McDowall Limited
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
McDowall Air Conditioning (U.K.) Limited
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
Macron Safety Systems (UK) Limited
Ordinary shares
100%
Trading
Burlingham House, Hewett Road, Great Yarmouth, Norfolk, NR31 0NN, UK
Tyco Fire & Integrated Solutions (UK) Limited
Ordinary shares
100%
Trading
Tyco Park, Grimshaw Lane, Newton Heath, Manchester, M40 2WL, UK
Asset Plus Energy Performance Limited*
Ordinary shares
100%
Trading
9/10 The Briars Waterberry Drive Hampshire, Waterlooville, PO7 7YH
Powertec Pumps Limited*
Ordinary shares
100%
Trading
Tyco Park Grimshaw Lane, Newton Heath, Manchester, United Kingdom, M40 2WL
Xcell Misting Limited*
Ordinary shares
100%
Trading
Security House, The Summit, Hanworth Road, Sunbury on Thames, Middlesex, TW16 5DB, United Kingdom
* New investment during the year 2022
13    Debtors - amounts falling due within one year
2022
2021
£'000
£'000
32
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Amounts owed by group undertakings
385,604
1,099,844
Corporation tax
12,604
7,388
Prepayments
1,880
112
400,088
1,107,344
Amounts owed by group undertakings includes a loan with a value of €64,000,000 (2021: €64,000,000) maturing on 8 September 2023 and bears interest at a fixed rate of 3.65% (2021: 0.63%). A partial repayment of  €54,000,000 was made against this loan on 23 May 2023.
Also included in the amounts owed by group undertakings is a loan with a value of £500,000 (2021: nil) due to mature on 24 November 2022 and bearing interest at a fixed rate of 3.08%. In November 2022 this loan was extended to 20 December 2022 at a fixed interest rate of 4.05%.
Included in amounts owed by group undertakings in the prior year was loan with a value of £210,258,000 due to mature on31 January 2022 and bearing interest at a fixed rate of 1.65%. This loan was repaid on 30 March 2022.
Also included in the amounts owed by group undertakings in the prior year was a loan with a value of £12,096,000  bearing interest at a fixed rate of 1.17%. This loan was repaid on 1 October 2021.
Also included in the amounts owed by group undertakings in the prior year was a loan with a value of £175,000,000 bearing interest at a fixed rate of 0.9%). This loan was repaid in September 2022.
All other amounts owed by group undertakings are unsecured, interest free and repayable on demand.
33
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
14     Current Liabilities
2022
2021
£'000
£'000
Bank overdrafts
81,141
420,160
Amounts owed to group undertakings
2,886,000
2,260,504
Accruals
1,170
1,254
Deferred tax
518
2,968,311
2,682,436
Amounts owed to group undertakings falling due within one year include six (2021: four) loans comprising of:
a.
one loan of £200,657,000 (2021: £200,657,000) maturing on 25 September 2023 bearing interest at a fixed rate of 5.47% per annum (2021 0.75% per annum). This loan was repaid in full in February 2023;
b.
one loan of £198,330,000 (2021: £198,330,000) due to mature on 4 January 2023 bearing interest at a fixed rate of  5.23% per annum (2021: 7.08% per annum). This loan was repaid in full in February 2023;
c.
one loan of £278,621,000 (2021: £278,621,000) due to mature on 13 May 2025 bearing interest at a fixed rate of 18.23% per annum (2021: 18.23% per annum). This loan was repaid in full in February 2023;
d.
one loans with a total value of £208,000,000 (2021:  £208,000,000) maturing on 13 May 2025 bearing interest at a fixed rate of 18.23% per annum (2021: 18.23% per annum). This loan was repaid in full in February 2023;
e.
two loans with a total value of £5,655,000 (2021: nil) maturing on 3 October 2022 bearing interest at a fixed rate of 3.63% per annum. These loans were repaid in full in October 2022.
Included in amounts owed to group undertakings in the prior year were three loans with a combined value of £2,840,500 where interest was charged at 0.55% per annum. These loans matured and were repaid in October 2021.
Also included in amounts owed to group undertakings is £1,582,074,000 (2021: £1,328,953,000) in relation to group cash pooling arrangements which is unsecured, repayable on demand and interest free.
All other amounts are unsecured, interest free and repayable on demand.
15    Non-Current Liabilities
2022
2021
£'000
£'000
Amounts owed to group undertakings
261,212
684,951
261,212
684,951
34
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Amounts owed to group undertakings is made up of one loan (2021: three loans) amounting to £261,212,000 (2021: £684,951,000), maturing on 13 March 2027 and bearing interest at a fixed rate of 8.06% per annum.
16    Deferred tax
The deferred tax asset recognised consists of:
2022
2021
£'000
£'000
Accelerated capital allowances
(118)
Post employment benefit
636
Total deferred tax recognised
518
£'000
Asset recognised at 1 October 2021
518
Amount debited to Statement of  comprehensive income
(518)
Asset recognised at 30 September 2022
There is a closing unrecognised deferred tax asset of £10,060,000 (2021: unrecognised deferred tax asset of £8,301,000), which is made up of differences relating to the pension liability of £(9,915,000)  (2021: £647,000) and other timing differences of £19,975,000 (2021: £7,654,000). The deferred tax asset has not been recognised during the year due to the uncertainty over future taxable income within the company against which the asset could reverse.
17    Called up share capital
30 September 2022
30 September 2021
Allotted, called-up and fully paid
£'000
£'000
150,368,746 (2020: 150,368,746) ordinary shares of £1 each
150,369
150,369
The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.
35
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
18    Pension schemes
Defined benefit pension scheme
Tyco Holdings (U.K.) Limited is the sponsoring employer of the CARE Scheme and as such, the company accounts for the CARE Scheme as at 30 September 2022 were prepared under Financial Reporting Standard 102 (FRS102).
Tyco Holdings (U.K.) Limited CARE Pension Scheme (“CARE Scheme”)
The CARE Scheme is a defined benefit plan providing career average revalued earnings benefits, which is now closed to new entrants. The CARE Scheme has been closed to future accrual since 30 April 2010. The assets are held in a separate trustee administered fund. The assets and liabilities of the Tyco UK Group Pension Scheme (ex-Glynwed) were transferred into the Tyco Holdings (U.K.) Limited CARE Pension Scheme on 28 September 2015 and are now included within that scheme.
The last funding valuation of the Scheme was carried out by a qualified actuary as at 30 September 2019.  Company contributions of £13.1 million are expected to be paid to the Scheme during the year ended 30 September 2023.
The results of the latest funding valuation at 30 September 2019 have been adjusted to the new balance sheet date, taking account of experience over the period since 30 September 2019, changes in market conditions, and differences in the financial and demographic assumptions. The present value of the Defined Benefit Obligation, and the related current service cost, were measured using the projected unit credit method.
The principal assumptions used to calculate the liabilities under FRS 102 as follows:
2022
2021
%pa
%pa
RPI inflation
3.79
3.57
CPI inflation
3.54
2.87
Discount rate for scheme liabilities
5.22
2.10
The mortality assumptions are based on the recent actual mortality experience of Scheme members and allow for expected future improvements in mortality rates.
Scheme asset allocation
The major categories of scheme assets are as follows:
2022
2021
£'000
£'000
Equity securities
28,734
147,350
Corporate Bonds
285,733
359,715
Liability Driven Investment
198,147
376,808
Property
47,973
43,063
36
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Other
62,076
6,170
622,663
933,106
18    Pension schemes (cont'd)
Amounts recognised in the Statement of financial position
2022
2021
£'000
£'000
Fair value of assets
622,663
933,106
Present value of funded defined benefit obligations
(583,003)
(935,693)
Net defined benefit asset/( liability)
39,660
(2,587)
Amounts recognised in Statement of comprehensive income
2022
2021
£'000
£'000
Amounts recognised in operating loss
Past service cost
1,120
Administration expenses
1,023
448
Amounts recognised in operating loss
1,023
1,568
Net interest (income)/cost
Interest expense on defined benefit obligation
19,289
15,265
Interest income on scheme assets
(19,298)
(13,958)
Total net interest (income)/cost
(9)
1,307
Pension expense included in Statement of comprehensive income
1,014
2,875
Amounts recognised in other comprehensive income:
2022
2021
£'000
£'000
Asset (losses)/gains arising during the year
(301,465)
38,320
Change in assumptions underlying present value of scheme liabilities
337,637
39,747
Total amount included in other comprehensive income
36,172
78,067
37
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
18    Pension schemes (cont'd)
Changes to the present value of the defined benefit obligation during the year:
2022
2021
£'000
£'000
Opening defined benefit obligation
935,693
997,955
Interest expense
19,289
15,265
Benefit payments from plan assets
(34,342)
(38,900)
Actuarial gains on liabilities
(337,637)
(39,747)
Past service cost (including curtailments)
1,120
Closing defined benefit obligation
583,003
935,693
Changes in the fair value of plan assets are as follows:
2022
2021
£'000
£'000
Opening fair value of scheme assets
933,106
908,676
Interest income
19,298
13,958
Return on plan assets
(301,465)
38,320
Administration expenses paid
(1,023)
(448)
Contributions by the company
7,089
11,500
Benefit payments from employer
(34,342)
(38,900)
Fair value of plan assets at end of year
622,663
933,106
19    Post balance sheet events
In February 2023 the company allotted and issued one ordinary share of £1 in the capital of the company to Tyco International Holding S.à r.l. in consideration for £640,000,000.
38
Tyco Holdings (U.K.) Limited
Notes to the financial statements for the year ended 30 September 2022 (cont'd)
Subsequent to the year ended 30 September 22, the company was informed by the parent entity, Johnson Controls International plc (“JCI”), that disruptions were experienced  in portions of its internal information technology infrastructure and applications resulting from a cybersecurity incident. Promptly after detecting the issue, JCI began investigation with assistance from leading external cybersecurity experts and is also coordinating with its insurers. JCI continues to assess what information was impacted and is executing its incident management and protection plan, including implementing remediation measures to mitigate the impact of the incident, and will continue taking additional steps as appropriate. To date, many of JCI's application are largely unaffected and remain operational. To the extend possible, and in line with its business continuity plans, JCI implemented workarounds for certain operations to mitigate disruption and continue servicing its customers. However, the incident has caused, and is expected to continue to cause, disruption to parts of the JCI's business operations.
20    Ultimate parent undertaking and controlling party
The company's immediate parent undertaking is Tyco International Holding S.a.r.l., a company incorporated in the Luxembourg.
The ultimate parent undertaking and controlling party is Johnson Controls International plc, a company incorporated in Cork, Ireland.  Johnson Controls International plc is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements for the year ended 30 September 2022. The consolidated financial statements of Johnson Controls International plc are available from:
Johnson Controls International plc
1 Albert Quay
Cork
Ireland
39
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