Company Registration No. 01986500 (England and Wales)
CASCADE (U.K.) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
31 March 2023
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
CASCADE (U.K.) LIMITED
COMPANY INFORMATION
Directors
Mr D Roncari
Mr P Drake
Mr U Schmidt
Secretary
S Flitcroft
Company number
01986500
Registered office
3 Kelbrook Road
Parkhouse Industrial Estate
Openshaw
Manchester
M11 2DD
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
CASCADE (U.K.) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
CASCADE (U.K.) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Results, dividends and future developments
The loss for the financial year ended 31 March 2023 amounts to £120,000 (year ended 31 March 2022: profit of £479,000).
The directors do not recommend the payment of a dividend (year ended 31 March 2022: £nil). No dividends have been paid during the period (year ended 31 March 2022: £nil).
Sales were 16% higher than 2022 as selling prices increased throughout the year as the higher steel costs and higher energy costs were passed onto customers.
The Steel prices continued to increase throughout the year and ended the year 20% higher than they started.
Energy costs doubled in the second half of the year as we came out of fixed price contracts.
Distribution and administrative overheads were £59,000 or 5% higher than the previous year.
The average number of employees in the year showed an decrease of 2 people from 105 to 103.
The defined benefits pension scheme showed a £582,000 actuarial loss during the year as asset prices declined but were partly offset by the rise in corporate bond yields which decreased the value of the scheme liabilities..
Financial risk management
The company sells its products and sources raw material and components on markets outside the UK, as a result of this the company is subject to risks resulting from changes in foreign exchange rates. The company is not actively hedging its foreign currency exposure, however, at group level a consolidation and management of these risks is taking place.
The purchase price of flat bar steel as the main input material is highly correlated to the world economic climate in particular in regard to the development of the construction industry. Steel price changes can have a significant impact on the company’s cost of sales. It is the directors’ policy to reduce this risk through placing purchase orders fixing prices for a foreseeable number of months.
Liquidity risks are managed through the group central cash management system.
The business is subject to the risks of the general UK, European and World trading environment in which it operates, but the good name of Cascade in the markets that we operate will help mitigate any weakness in these economies.
Development and performance
The directors are pleased that the company has increased sales and passed on raw material and energy cost increases to customers that helped increase gross profit by £67,000.
The company has planned to implement energy saving initiatives to reduce energy costs in the second half of FY24. Steel prices have reduced in the new financial year but we will need to use through stocks to gain the full benefits from the lower prices.
CASCADE (U.K.) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Key performance indicators
The directors have chosen to analyse the turnover, gross profit and operating profit/(loss) both expressed as a percentage of turnover for the understanding of the performance of the business. The average number of day's invoices to customers open before payment ("day's sales outstanding") is used to analyse the development of the company's liquidity.
Year ended 31 March 2023
Year ended 31 March 2022
Turnover (£'000)
22,084
19,003
Gross profit margin (%)
7.6%
8.4%
Operating profit/(loss) margin (%)
2.4%
2.8%
Day's sales outstanding (year ending balance)
68.3
70.6
Turnover in the year increased by 16% with domestic sales increasing by 23% and export sales increasing by 8%
The gross profit margin decrease to 7.6% from 8.4% due to cost increasing at a higher rate than selling prices. Day sales outstanding is calculated as the period end debtors as a proportion of the prorated final quarter sales in the financial year multiplied by 360 days. This reduced to 68.3 days compared to the prior year.
Mr U Schmidt
Director
29 September 2023
CASCADE (U.K.) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of design, manufacture and sale of forklift arms.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D Roncari
Mr P Drake
Mr U Schmidt
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.
Auditor
The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CASCADE (U.K.) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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.
On behalf of the board
29 September 2023
Mr U Schmidt
Director
CASCADE (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASCADE (U.K.) LIMITED
- 5 -
Opinion
We have audited the financial statements of Cascade (U.K.) Limited (the 'company') for the year ended 31 March 2023 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:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CASCADE (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASCADE (U.K.) LIMITED
- 6 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
CASCADE (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASCADE (U.K.) LIMITED
- 7 -
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and
in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
CASCADE (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASCADE (U.K.) LIMITED
- 8 -
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.
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.
Daniel Bowles FCCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
29 September 2023
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
CASCADE (U.K.) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£'000
£'000
Turnover
3
22,085
19,003
Cost of sales
(20,417)
(17,402)
Gross profit
1,668
1,601
Distribution costs
(554)
(685)
Administrative expenses
(579)
(389)
Operating profit
4
535
527
Interest receivable and similar income
7
75
36
Interest payable and similar expenses
8
(584)
(251)
Profit before taxation
26
312
Tax on profit
9
(146)
167
(Loss)/profit for the financial year
(120)
479
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(582)
666
Tax relating to other comprehensive income
146
(167)
Total comprehensive income for the year
(556)
978
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
CASCADE (U.K.) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
10
2,624
2,715
Current assets
Stocks
11
7,265
5,327
Debtors
12
4,358
3,423
11,623
8,750
Creditors: amounts falling due within one year
13
(15,558)
(12,467)
Net current liabilities
(3,935)
(3,717)
Total assets less current liabilities
(1,311)
(1,002)
Creditors: amounts falling due after more than one year
14
(52)
Net assets excluding pension surplus
(1,311)
(1,054)
Defined benefit pension surplus
17
2,365
2,664
Net assets
1,054
1,610
Capital and reserves
Called up share capital
18
2,500
2,500
Capital redemption reserve
3,825
3,825
Profit and loss reserves
(5,271)
(4,715)
Total equity
1,054
1,610
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 U Schmidt
Director
Company Registration No. 01986500
CASCADE (U.K.) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 1 April 2021
2,500
3,825
(5,693)
632
Year ended 31 March 2022:
Profit for the year
-
-
479
479
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
666
666
Tax relating to other comprehensive income
-
-
(167)
(167)
Total comprehensive income for the year
-
-
978
978
Balance at 31 March 2022
2,500
3,825
(4,715)
1,610
Year ended 31 March 2023:
Loss for the year
-
-
(120)
(120)
Other comprehensive income:
Actuarial losses on defined benefit plans
-
-
(582)
(582)
Tax relating to other comprehensive income
-
-
146
146
Total comprehensive income for the year
-
-
(556)
(556)
Balance at 31 March 2023
2,500
3,825
(5,271)
1,054
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information
Cascade (U.K.) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Kelbrook Road, Parkhouse Industrial Estate, Openshaw, Manchester, M11 2DD.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
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;
Section 11 ‘Basic Financial Instruments’ and 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 profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Toyota Industries Corporation which are publicly available.
1.2
Going concern
The directors have received written confirmation that continuing financial support will be provided by the company's ultimate parent entity to enable it to settle its liabilities as they fall due for the foreseeable future and on that basis consider it appropriate to prepare the financial statements on a going concern basis.true
1.3
Turnover
Turnover represents the amounts (excluding value added tax) derived from the provision of goods to customers during the period and from commission on sales of attachments Turnover is recognised on despatch but a revenue recognition adjustment is made to reflect the timing difference on when the goods are actually received by the customer.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at historical purchase cost, net of depreciation and any impairment losses. Costs include only those costs, that are directly attributable in bringing the asset into working condition for its intended use.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost less their residual values over their useful lives on the following bases:
Land and buildings
15 to 40 years
Plant and machinery
5 to 10 years
Computer and office equipment
3 and 5 years
Long leasehold land is not depreciated.
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.
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 complete and sell based on a FIFO method. Provision is made for any obsolete or slow moving stock.
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.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The company also operates a defined benefit pensions scheme for the benefit of the majority of its employees, the assets of which are held separately from those of the company in independently administered funds.
Pension scheme assets are measured using market value. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high quality corporate bond of equivalent terms and currency to the liability. The increase in the present value of the liabilities of the group defined benefit pension schemes expected to arise from employee service in the period is charged to operating profit. The expected return on the schemes' assets and the increase during the period in the present value of the schemes' liabilities arising from the passage of time are included in other finance income. Actuarial gains and losses are recognised in the statement of comprehensive income.
Pension schemes' surpluses, to the extent that they are considered recoverable, or deficits are recognised in full and presented on the face of the balance sheet. A deferred tax asset is recognised in respect of a pension deficit to the extent it is considered recoverable.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased 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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
Grants relating to the property, plant and equipment are included on the face of the balance sheet and are credited to the statement of comprehensive income over the estimated life of the assets to which they relate, by equal annual instalments.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
The main areas of judgement that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in relation to stock and debtor valuation and defined benefit pension scheme assumptions.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
3
Turnover and other revenue
2023
2022
£'000
£'000
Turnover analysed by class of business
Sale of goods
21,425
18,333
Commission
660
670
22,085
19,003
2023
2022
£'000
£'000
Turnover analysed by geographical market
United Kingdom
13,913
12,017
European economic community, Asia, North & South America
8,172
6,986
22,085
19,003
2023
2022
£'000
£'000
Other revenue
Interest income
75
36
The directors consider that further analysis of turnover by geographical destination would be prejudicial to the interests of the company.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange gains
(25)
(6)
Government grants
(38)
(38)
Fees payable to the company's auditor for the audit of the company's financial statements
17
16
Depreciation of owned tangible fixed assets
396
417
Depreciation of tangible fixed assets held under finance leases
21
21
Operating lease charges
60
50
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Office and management
14
15
Manufacturing
89
90
Total
103
105
Their aggregate remuneration comprised:
2023
2022
£'000
£'000
Wages and salaries
3,465
3,384
Social security costs
377
338
Pension costs
131
112
3,973
3,834
6
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
22
Company pension contributions to defined contribution schemes
1
23
In the previous year, remuneration for qualifying services equated to 17.1% of the total remuneration paid to directors by the company; whilst, the remaining 82.9% is for non-qualifying services provided to other group entities.
In the previous year, the number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1.
7
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest on the net defined benefit asset
75
36
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
8
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest payable on amounts owed to group undertakings
584
251
9
Taxation
2023
2022
£'000
£'000
Deferred tax
Origination and reversal of timing differences
146
(167)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£'000
£'000
Profit before taxation
26
312
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
5
59
Tax effect of expenses that are not deductible in determining taxable profit
1
1
Remeasurement of deferred tax for changes in tax rates
(1)
Change in unrecognised deferred tax assets
136
(237)
Fixed asset timing differences
5
10
Taxation charge/(credit) for the year
146
(167)
In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£'000
£'000
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(146)
167
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
10
Tangible fixed assets
Land and buildings
Plant and machinery
Computer and office equipment
Total
£'000
£'000
£'000
£'000
Cost
At 1 April 2022
3,522
7,001
519
11,042
Additions
313
313
Disposals
(39)
(39)
Transfers
142
(129)
13
At 31 March 2023
3,522
7,417
390
11,329
Depreciation and impairment
At 1 April 2022
2,031
5,840
456
8,327
Depreciation charged in the year
99
318
417
Eliminated in respect of disposals
(39)
(39)
Transfers
(2)
68
(66)
At 31 March 2023
2,128
6,187
390
8,705
Carrying amount
At 31 March 2023
1,394
1,230
2,624
At 31 March 2022
1,491
1,161
63
2,715
Within land and buildings is long leasehold land amounting to £300,000 (2022: £300.000), which has not been depreciated due to the length of the lease being over 100 years.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£'000
£'000
Plant and machinery
16
37
11
Stocks
2023
2022
£'000
£'000
Raw materials and consumables
3,830
2,562
Work in progress
147
138
Finished goods and goods for resale
3,288
2,627
7,265
5,327
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
12
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
3,737
3,054
Amounts owed by group undertakings
173
172
Prepayments and accrued income
448
197
4,358
3,423
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
13
Creditors: amounts falling due within one year
2023
2022
Notes
£'000
£'000
Obligations under finance leases
15
16
21
Trade creditors
550
885
Amounts owed to group undertakings
13,572
10,514
Taxation and social security
516
361
Other creditors
37
Accruals and deferred income
904
649
15,558
12,467
Amounts owed to group undertakings include an amount of £13,431,109 (2022: £10,423,000) which is unsecured, repayable on demand and incurs interest at LIBOR + 2.5%. The remaining balance is unsecured, interest free and repayable on demand.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£'000
£'000
Obligations under finance leases
15
16
Government grants
36
52
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£'000
£'000
Within one year
16
21
In two to five years
16
16
37
The obligations under hire purchase contracts are secured on the assets to which they relate.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Recognised
Not recognised
2023
2022
2023
2022
Balances:
£'000
£'000
£'000
£'000
Accelerated capital allowances
-
-
897
865
Tax losses
-
-
609
590
Other short-term timing differences
-
-
99
75
-
-
1,605
1,530
2023
Movements in the year:
£'000
Liability at 1 April 2022
-
Charge/(credit) to statement of comprehensive income
146
Charge/(credit) to other comprehensive income
(146)
Liability at 31 March 2023
-
The deferred tax asset has not been recognised on the grounds that there is insufficient evidence that the asset will be recovered in the foreseeable future.
The potential deferred tax asset of £869,000 (2022: £865,000) would become recoverable in the event that future taxable profits are probable.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
131
112
The company operates a defined contribution pension scheme for all qualifying employees. Contributions to the defined contribution scheme in the period were £131,000 (2022: £112,000).
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
17
Retirement benefit schemes
(Continued)
- 23 -
Defined benefit schemes
Cascade UK Limited operates a defined benefit pension arrangement called the Kenhar Products Limited Pension Scheme (the Scheme). The Scheme provides benefits based on final salary and length of service on retirement, leaving service or death. The Scheme closed to new entrants on 1 November 2005 and closed to future benefit accrual on 1 February 2006.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Company must agree with the Trustees of the Scheme the contributions to be paid to meet the Statutory Funding Objective.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 March 2020 and the next valuation of the Scheme is due as at 31 March 2023. In the event that the valuation reveals a deficit the Company may be required to increase contributions above those set out in the existing Schedule of Contributions. Conversely, if the position is better than expected, it’s possible that contributions may be reduced.
The Company expects to pay contributions to the Scheme of £208,000 in the year to 31 March 2024.
The Scheme is managed by a board of Trustees who have responsibility for obtaining valuations of the Scheme, administering benefit payments and investing the Scheme's assets. The Trustees delegate some of these functions to their professional advisers where appropriate.
There were no plan amendments, curtailments or settlements during the period.
Profile of defined benefit obligation
The weighted average duration of the benefit obligation is around 14 years.
The valuations are updated annually and the following assumptions were used:
2023
2022
Key assumptions
%
%
Discount rate
4.7
2.7
Inflation assumption (RPI)
3.2
3.7
Inflation assumption (CPI)
2.7
3.3
Mortality pre and post-retirement
110
110
* 110% of the S3PA tables with CMI 2019 projections using a long-term improvement rate of 1.00% p.a.
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
17
Retirement benefit schemes
(Continued)
- 24 -
Mortality assumptions
2023
2022
Under the adopted mortality tables, the future life expectancy in years is as follows:
Years
Years
Life expectancy at 65
- Males
21.2
21.1
- Females
23.5
23.5
Life expectancy at 65 (at current age of 45)
- Males
22.2
22.2
- Females
24.7
24.6
2023
2022
Amounts recognised in the profit and loss account
£'000
£'000
Interest on defined benefit liability
173
135
Interest on defined benefit asset
(248)
(171)
Total costs/(income)
(75)
(36)
2023
2022
Amounts taken to other comprehensive income
£'000
£'000
Actuarial changes related to obligations
(1,645)
(618)
Return on assets less interest
2,227
(48)
Total costs/(income)
582
(666)
2023
2022
£'000
£'000
Present value of defined benefit obligations
4,852
6,508
Fair value of plan assets
(7,217)
(9,172)
Surplus in scheme
(2,365)
(2,664)
2023
Movements in the present value of defined benefit obligations
£'000
Liabilities at 1 April 2022
6,508
Benefits paid
(184)
Actuarial gains and losses
(1,645)
Interest cost
173
At 31 March 2023
4,852
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
17
Retirement benefit schemes
(Continued)
- 25 -
The defined benefit obligations arise from plans which are wholly or partly funded.
2023
Movements in the fair value of plan assets
£'000
Fair value of assets at 1 April 2022
9,172
Benefits paid
(184)
Contributions by employer
208
Return on assets
(1,979)
At 31 March 2023
7,217
2023
2022
£'000
£'000
Corporate Bonds
-
2,385
Diversified Growth
492
2,332
Index Linked Bonds
-
1,855
Multi-Asset
-
2,530
Cash
306
70
Liability Aware Profile Funds
3,679
-
Cashflow Driven Investment funds
2,740
-
7,217
9,172
18
Share capital
2023
2022
£'000
£'000
Ordinary share capital
Issued and fully paid
2,500,000 Ordinary shares of £1 each
2,500
2,500
19
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:
2023
2022
£'000
£'000
Within one year
51
31
Between two and five years
62
40
113
71
CASCADE (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£'000
£'000
Acquisition of tangible fixed assets
1,109
-
21
Related party transactions
The company has taken advantage of the exemption as provided by section 33.1A of FRS 102, on the grounds that it is a wholly owned subsidiary of a group headed by Toyota Industries Corporation, whose financial statements are publicly available.
22
Ultimate controlling party
The immediate parent undertaking is Cascade Canada Ltd.
The ultimate parent undertaking and controlling party is Toyota Industries Corporation, a company incorporated in Japan.
Toyota Industries Corporation is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 31 March 2023. The consolidated statements of Toyota Industries Corporation can be obtained from the site http://www.toyota-industries.com.
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr D RoncariMr P DrakeMr U SchmidtS Flitcroft019865002022-04-012023-03-31019865002023-03-3101986500bus:Director12022-04-012023-03-3101986500bus:Director22022-04-012023-03-3101986500bus:Director32022-04-012023-03-3101986500bus:CompanySecretary12022-04-012023-03-3101986500bus:RegisteredOffice2022-04-012023-03-31019865002021-04-012022-03-3101986500core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3101986500core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3101986500core:RevenueReservesInvestmentFundsOnly2021-04-012022-03-31019865002022-03-3101986500core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3101986500core:PlantMachinery2023-03-3101986500core:ComputerEquipment2023-03-3101986500core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3101986500core:PlantMachinery2022-03-3101986500core:ComputerEquipment2022-03-3101986500core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3101986500core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3101986500core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3101986500core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3101986500core:CurrentFinancialInstruments2023-03-3101986500core:CurrentFinancialInstruments2022-03-3101986500core:Non-currentFinancialInstruments2023-03-3101986500core:Non-currentFinancialInstruments2022-03-3101986500core:ShareCapital2023-03-3101986500core:ShareCapital2022-03-3101986500core:CapitalRedemptionReserve2023-03-3101986500core:CapitalRedemptionReserve2022-03-3101986500core:RetainedEarningsAccumulatedLosses2023-03-3101986500core:RetainedEarningsAccumulatedLosses2022-03-3101986500core:ShareCapital2021-03-3101986500core:CapitalRedemptionReserve2021-03-3101986500core:RetainedEarningsAccumulatedLosses2021-03-3101986500core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3101986500core:PlantMachinery2022-04-012023-03-3101986500core:ComputerEquipment2022-04-012023-03-3101986500core:UKTax2022-04-012023-03-3101986500core:UKTax2021-04-012022-03-310198650012022-04-012023-03-310198650012021-04-012022-03-310198650022022-04-012023-03-310198650022021-04-012022-03-310198650032022-04-012023-03-310198650032021-04-012022-03-3101986500core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3101986500core:PlantMachinery2022-03-3101986500core:ComputerEquipment2022-03-31019865002022-03-3101986500core:WithinOneYear2023-03-3101986500core:WithinOneYear2022-03-3101986500core:BetweenTwoFiveYears2023-03-3101986500core:BetweenTwoFiveYears2022-03-3101986500bus:PrivateLimitedCompanyLtd2022-04-012023-03-3101986500bus:FRS1022022-04-012023-03-3101986500bus:Audited2022-04-012023-03-3101986500bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP