Company registration number SC146948 (Scotland)
PLEXUS CORP (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
PLEXUS CORP (UK) LIMITED
COMPANY INFORMATION
Directors
A Ninivaggi
P Jermain
S Thomson
F Zycinski
(Appointed 30 November 2023)
Secretary
L Middlemass
Company number
SC146948
Registered office
Pinnacle Hill
Kelso
Roxburghshire
TD5 8XX
Auditor
RSM UK Audit LLP
3rd Floor
2 Semple Street
Edinburgh
EH3 8BL
PLEXUS CORP (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 12
Statement of comprehensive income
13
Balance sheet
14
Statement of changes in equity
15
Notes to the financial statements
16 - 33
PLEXUS CORP (UK) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 1 -

The directors present their strategic report for the period ended 30 September 2023. Annual Reports and Financial statements are prepared according to Plexus fiscal dates, which follow a 4-4-5 Week accounting cycle.

 

Results and performance

The results for the period are as shown in the Income Statement on page 13, and the period end balance sheet position is shown on page 14. The Profit for the financial year of £29,300,000 has been transferred to reserves. Shareholders’ funds have increased from £11,714,000 to £42,248,000. The main driver for this increase is the dividends of £32,299,000 (2022: £12,516,000) which were received from the investment in Plexus Asia, Limited.

 

Gross Profit percentage of 16.5% (2022: 9.6%) is driven by net increased customer end-market demand, inclusive of a partial easing of supply chain constraints.

 

Operating loss before dividends has decreased (71.1%), further details can be found under the KPI indicators of the strategic report.

 

The 2023 increase in debtors is primarily due to the group treasury arrangements in place.

Principal activities

The principal activity of the company during the period was to participate in the Electronic Manufacturing Services (“EMS”) industry by providing advanced product design, manufacturing and testing services to our customers with a focus on the mid to lower volume, higher mix segment of the EMS market.

 

Review of the business

In line with the rest of this industry in the UK, the company continues to experience a competitive marketplace mainly driven by competition from Asia and Eastern Europe. The company differentiates itself by offering value added services and operating in different sectors to those served by lower labour cost competitors. Typically, the company focuses on highly complex product builds with demanding regulatory environments in the Industrial, Healthcare and Life scineces, aerospace and defence market sectors. The company offers customers the ability to outsource all phases of product realisation, including:

Our customers’ products typically require exceptional production and supply-chain flexibility, necessitating an optimised demand-pull-based manufacturing and supply chain solution across an integrated global platform.

Research and development

The company’s research and development programme is a key component of the company’s Product Realisation Process that forms part of its service offering. Customers who require expertise to engineer, test and manufacture electronic products engage the company as their partner to turn ideas into commercially successful products. This is performed in the conceptual design, board layout, rapid prototyping, new product introduction, manufacturing engineering and test engineering cells operated within the company. Research and development undertaken is expensed to the profit and loss account as incurred.

 

PLEXUS CORP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 2 -
Principal risks and uncertainties

The company’s management recognises that there are several risk factors beyond their control, which could have an impact on the annual results. These include, but are not limited to, global economic conditions, exchange rates, volume and timing of our customer orders, increasing competition in the global marketplace, retaining existing customers and changes in the cost and availability of components.

 

In relation to foreign exchange management the parent company makes use of financial derivatives as appropriate and these transactions are not passed down to the subsidiary companies.

The retention of the customer base is a risk which is mitigated by offering a comprehensive and thoroughly tested approach in the highly complex and lower volume market from design through to sustained services.

Future developments

Current expectations for the fiscal 2024 operational forecast demonstrates strong sales growth when compared to fiscal 2023. We forecast accelerating revenue growth as fiscal 2024 progresses, leveraging strong demand in our Aerospace/Defence and Industrial market sectors whilst driving new program ramp momentum. The business had experienced improvements in the semi-conductor supply chain during the second half of fiscal 2023. We anticipate that these headwinds will continue throughout fiscal 2024 as supply and demand converges. Broadly, all other commodity factors of; lead-time, cost and market dynamic trends are stable.

 

The impacts of inflation have largely been mitigated by our contractual rights with customers, although continued inflation may affect our future operating results.

 

 

Key performance indicators

The main financial KPI is operating loss before dividends which has improved, from (11.9%) of turnover in 2022 to (3.11%) in 2023. While the business has experienced a recent improvement in the economic climate, it also continues to experience a change in product mix primarily as a result of new customers acquired during the previous period. The company’s balance sheet emphasis has continued to be on working capital management.

 

The key metrics are:

 

The overall net cash cycle days (including customer deposits) has increased to 52 days (2022: 36 days).

One of the key non-financial KPIs used by the business is the nationally used metric established by the Health & Safety Executive to normalise accident reporting in the UK. This KPI reported 1,598 accidents per 100,000 employees in 2022 and 1,582 per 100,000 in 2023. The business reported a total number of 8 accidents in 2022 and 9 in 2023, and these rates are below the national average.

PLEXUS CORP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 3 -
Section 172 Statement

 

The Directors of Plexus Corp (UK) Limited must act in accordance with the rules listed within the UK Companies Act 2006 and are required to promote the success of the company for the benefit of all stakeholders. These duties are carried out in a number of ways as summarized below.

Regular Governance reviews are in place with the Plexus Leadership Team considering Strategy, Annual Operating Plan and the Company’s financial results. These reviews take into account all stakeholders of the organization to ensure optimal positioning for the future.

We value our employees and strive to provide a healthy, safe and fulfilling work experience. Through our annual employee survey process, we are able to assess team member satisfaction, identify improvement opportunities and leverage suggestions from team members. Formal initiatives are generated based on the feedback we receive, both at an enterprise and site level.

Our improved level of employee engagement with an eNPS result of 69.58% (2022: 61.32%), demonstrating the success of our cultural change and our action orientated approach to employee feedback.

Talent Development and Succession Planning for key roles progressed well, with a number of talent moves across all functions, exporting of talent and some successful developmental assignments continued throughout the year.

Our Environmental, Social and Corporate Governance (ESG) program contains five pillars that reinforce our commitment to create a better world. We recognise that we must be a responsible employer, community partner, global citizen and industry steward and that we are accountable to our stakeholders in the way we govern our company.

We have built our company on a promise to be the best, most reliable partner within our industry. We bring our values to the table in every customer relationship. We’re committed to working with the highest integrity. We value strong customer relationships, teamwork and open communication. Our team finds inspiration in solving the toughest product challenges and we nurture a culture that drives above-and-beyond excellence in everything we do.

We are committed to upholding high standards of ethics, integrity and corporate social responsibility in our business operations. In part, this is demonstrated through our membership in the Responsible Business Alliance (RBA), formerly the Electronics Industry Citizenship Coalition (EICC), an alliance of companies who share a commitment to ensure working conditions in the electronics supply chain are safe, that workers are treated with respect and dignity and that business operations are environmentally responsible. We expect our suppliers to share our commitment to ethics, product or service conformity, product safety, integrity and social responsibility.

Plexus’ values and leadership behaviours support our culture of accountability by defining how we will conduct ourselves in driving fairness, honesty and ethical business practices. Plexus regularly dedicates time and resources to assess compliance and social risks associated with each individual role and continues to educate team members at all levels of the organization on the importance of avoiding unfair business practices and critical regulatory, social and ethics topics, tracking progress via the company’s Learning Management System. Plexus looks to support and share with our communities as we prosper by contributing to non-profit causes in our communities and encouraging volunteerism. We give to local charities that enhance innovation, promote technology related educational programs (STEM) and preserve the quality of life in communities in which our teammates reside.

We have seen participation in the volunteer time off programme rise this year, with team members taking part in charity hikes, beach cleans and aiding underprivileged children at Christmas.

As a global organization, we understand the far-reaching impact we have on our planet and its inhabitants and are committed to making a positive impact in the world. We leverage a globally recognized environmental management system to guide and monitor progress, a framework that helps to identify areas of risk and cost exposure, set site-specific targets to mitigate those risks and verify our processes to validate their legal compliance. Regular reviews of our sustainability program allow for timely adjustments to our overall sustainability strategy.

Further information can be found at www.Plexus.com.

 

PLEXUS CORP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 4 -

On behalf of the board

S Thomson
Director
15 January 2024
PLEXUS CORP (UK) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 5 -

The directors present their annual report and financial statements for the period ended 30 September 2023.

Results and dividends

The results for the period are as shown on the income statement on page 13 and as noted in the Strategic Report. The profit for the financial year of £29,300,000 (2022: profit £3,474,000 ) has been transferred to reserves.

 

No ordinary dividends were paid. The directors do not recommend payment of a final dividend. Dividends of £32,299,000 (2022: £12,516,000) were received from the investment in Plexus Asia, Limited.

Directors

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

A Ninivaggi
P Jermain
S Thomson
R Darroch
(Resigned 30 November 2023)
F Zycinski
(Appointed 30 November 2023)

Going concern

Plexus Corp remains committed to the UK operation.

The directors, having considered the above, continue to adopt the going concern basis in preparing the financial statements which assume that the company will continue in operation for the foreseeable future.

Research and development

Research and development activities are included in the Strategic report.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of their business units and of the company as a whole. Communication with all employees continues through internal newsletters, briefing groups and electronic communications.

 

The company is part of the group share-based payments plans whereby eligible employees may be granted share-based awards from the parent company Plexus Corp.

 

 

PLEXUS CORP (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 6 -

Financial risk management

The company’s financial risk management seeks to minimise the exposure to price risk, credit risk, liquidity and cash flow risk.

Prices are subject to foreign exchange risk, primarily in respect of transactions that are denominated in US dollars or Euros. These are mitigated by monitoring current and forecasted rates against our specific customer and supplier requirements. There have been no foreign exchange derivative instruments used during the period. Any currency bought or sold is transacted at spot or same day rates.

Customer credit risk is not significant as the company has policies in place to ensure that our customers have an appropriate credit history and are monitored on an ongoing basis.

For banking credit risk purposes, all financial institutions’ credit ratings are reviewed prior to depositing funds and the company monitors exposure to credit risk on a weekly basis.

Liquidity and cash flow risk are managed by ensuring that sufficient cash is available to fund continuing and future operations.

Future developments

Expected future developments are included in the Strategic report.

Auditor

RSM UK Audit LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
351,008
389,930
- Electricity purchased
1,909,249
1,876,267
2,260,257
2,266,197
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
62.08
70.68
- Fuel consumed for owned transport
-
-
62.08
70.68
Scope 2 - indirect emissions
- Electricity purchased
727.35
714.78
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
789.43
785.46
Intensity ratio
Tonnes-CO2e/1000 hours worked
0.76
0.75
PLEXUS CORP (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 7 -
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Measures taken to improve energy efficiency

During 2023 the company has continued to seek energy efficient improvements. Initiatives include:

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
S Thomson
Director
15 January 2024
PLEXUS CORP (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 8 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

PLEXUS CORP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLEXUS CORP (UK) LIMITED
- 9 -
Opinion

We have audited the financial statements of Plexus Corp (UK) Limited (the 'company') for the period ended 30 September 2023 which comprise the statement of comprehensive income, balance sheet, 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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

Opinions on other matters prescribed by the Companies Act 2006

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

PLEXUS CORP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLEXUS CORP (UK) LIMITED
- 10 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 8, 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.

PLEXUS CORP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLEXUS CORP (UK) LIMITED
- 11 -
The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

 

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures.

 

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety, namely the Health and Safety at Work Act 1974, The Management of Health and Safety at Work Regulations 1999, the Electrical Equipment (Safety) Regulations 1994, and also the Data Protection Act. We performed audit procedures to inquire of management whether the company is in compliance with these law and regulations and inspected correspondence with licensing or regulatory authorities.

 

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, and testing a sample of revenue transactions to supporting documentation considering cut-off and confirming that revenue is recorded in line with the accounting policy.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.

 

 

 

PLEXUS CORP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PLEXUS CORP (UK) LIMITED
- 12 -

Use of our report

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

Claire Monaghan (Senior Statutory Auditor)
For and on behalf of RSM UK Audit LLP, Statutory Auditor
Chartered Accountants
15 January 2024
Third Floor
2 Semple Street
Edinburgh
EH3 8BL
PLEXUS CORP (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 13 -
Period
Period
ended
ended
30 September
1 October
2023
2022
Notes
£'000
£'000
Turnover
3
78,334
70,287
Cost of sales
(65,448)
(63,571)
Gross profit
12,886
6,716
Operating expenses
(19,737)
(18,588)
Other operating income
4,418
3,447
Operating loss
4
(2,433)
(8,425)
Interest receivable and similar income
7
33,698
12,529
Interest payable and similar expenses
8
(1,938)
(566)
Profit before taxation
29,327
3,538
Tax on profit
9
(27)
(64)
Profit for the financial period
29,300
3,474

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

 

There is no difference between the profit before taxation and the profit for the financial year stated above and

their historical cost equivalents.

 

The company has no other comprehensive income or expense other than those included in the results above, and

therefore no separate statement of other comprehensive income has been presented.

PLEXUS CORP (UK) LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 14 -
30 September 2023
1 October 2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
10
8
16
Tangible assets
11
5,680
5,061
Investments
12
4,151
4,151
9,839
9,228
Current assets
Stocks
15
36,044
31,525
Debtors falling due after more than one year
16
45,235
-
0
Debtors falling due within one year
16
16,568
16,662
Cash at bank and in hand
12,663
38,583
110,510
86,770
Creditors: amounts falling due within one year
17
(45,250)
(50,531)
Net current assets
65,260
36,239
Total assets less current liabilities
75,099
45,467
Creditors: amounts falling due after more than one year
18
(32,851)
(33,753)
Net assets
42,248
11,714
Capital and reserves
Called up share capital
21
2,999
2,999
Share based payment reserve
23
7,893
6,659
Profit and loss reserves
24
31,356
2,056
Total equity
42,248
11,714
The financial statements were approved by the board of directors and authorised for issue on 15 January 2024 and are signed on its behalf by:
S Thomson
Director
Company registration number SC146948 (Scotland)
PLEXUS CORP (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 15 -
Share capital
Share based payment reserve
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 3 October 2021
2,999
5,478
(1,418)
7,059
Period ended 1 October 2022:
Profit and total comprehensive income
-
-
3,474
3,474
Share based payment credit
-
1,181
-
0
1,181
Balance at 1 October 2022
2,999
6,659
2,056
11,714
Period ended 30 September 2023:
Profit and total comprehensive income
-
-
29,300
29,300
Share based payment credit
-
1,234
-
0
1,234
Balance at 30 September 2023
2,999
7,893
31,356
42,248
PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 16 -
1
Accounting policies
Company information

The principal activity of the company during the period was to participate in the Electronic Manufacturing

Services (“EMS”) industry by providing advanced product design, manufacturing and testing services to our

customers with a focus on the mid to lower volume, higher mix segment of the EMS market. The company

has a manufacturing plant in the UK and sells to the UK, Europe, and the rest of the world.

 

Plexus Corp (UK) Limited is a private company limited by shares incorporated in Scotland. The registered office is Pinnacle Hill, Kelso, Roxburghshire, TD5 8XX.

1.1
Reporting period

The individual statements of Plexus Corp (UK) Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Companies Act 2006.

1.2
Accounting convention

These financial statements are prepared on a going concern basis, under the historical cost convention. The preparation of financial statements in conformity with FRS 102 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 to the financial statements are disclosed in note 2.

(i) Functional and presentation currency

The company’s functional and presentation currency is the pound sterling.The financial statements are rounded to the nearest whole £1,000.

 

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and nonmonetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within ‘finance (expense)/income’. All other foreign exchange gains and losses are presented in the profit and loss account within operating expenses.

 

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -

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:

 

 

The financial statements of the company are consolidated in the financial statements of Plexus Corp. These consolidated financial statements are available from its registered office, Plexus Corp. One Plexus Way, Neenah, WI 54956.

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

 

Plexus Corp (UK) Limited is a wholly owned subsidiary of Plexus Corp Limited and of its ultimate parent, Plexus Corp. The results of Plexus Corp (UK) Limited are included in the consolidated financial statements of Plexus Corp., which are publicly available. The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Plexus Corp. The address of the ultimate parents registered office is Plexus Corp. One Plexus Way, Neenah, WI 54956.

 

These financial statements are the company’s separate financial statements.

 

1.3
Going concern

The company meets its day-to-day working capital requirements through group treasury management as necessary. The current economic conditions continue to create uncertainty over the level of demand for true

the company’s products. The company’s forecasts and projections, taking account of reasonably possible

changes in trading performance, show that the company should be able to operate within the level of its

current facilities. After making enquiries, the directors have a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future.

 

The company therefore continues to adopt the going concern basis in preparing its financial statements.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

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

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
Amortised over its estimated useful life, of between three and five years, on a straight line basis.
1.6
Tangible fixed assets

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

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

Freehold buildings
2% per annum
Leasehold improvements
Depreciated over the lease term
Plant and equipment
10% to 33% per annum
Fixtures and fittings
10% to 33% per annum
Computers
10% to 33% per annum

Freehold land and assets in the course of construction are 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.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

All general ledger transactions for stock flows through the ledger at standard cost which is typically reflective of the quoted cost to the customer. At the end of the month all inventory is revalued to the weighted average cost based on the WA cost method.

 

Stocks held as raw or work-in-progress is valued using the first-in, first-out (FIFO) method for valuation. Inventory held at standard cost is adjusted once per month to reflect the weighted average cost of inventory on-hand.

 

Stocks held as finished goods have their value determined by the rolled-up weighted average of all the components on the current bill of material. Finished goods inventory at standard cost is adjusted once per month to reflect the weighted average cost of inventory on-hand.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.10
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.

1.11
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 trade debtors, other debtors, amounts due from group undertakings, 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.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 trade and other creditors, and amounts due from group undertakings, 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.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

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

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.

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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.

1.14
Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday

arrangements and defined contribution pension plans.

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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.16
Share-based payments

Equity settled share based payments are measured at fair value at the date of grant with reference to the stock price at date of grant. The fair value is expensed on a straight line basis over the vesting period, based on an estimate of the shares that will eventually vest. A corresponding adjustment is made to equity.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes pricing mode and Plexus Corp share price. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity. These awards vest 100% after three years.

 

For the Period ended 30 September 2023, a total of 44,782 RSU’s (2022: 44,043) and 11,850 PSU’s (2022: 12,800) were outstanding for United Kingdom employees under the Corporation’s plans

1.17
Leases

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

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.18

Provisions and contingencies

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

 

Contingent liabilities arise as a result of past events when it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date; or when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

1.19

Share capital

Ordinary shares are classified 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.

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 24 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment, and note 1.6 for the useful economic lives for each class of assets.

 

Inventory provisioning

The company designs, manufactures and sells electronic machinery and is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 15 for the net carrying amount of the inventory.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 16 for the net carrying amount of the debtors.

Investments

In assessing the carrying value of investments the directors consider the underlying net assets in each of the entities and recoverable amounts. Consideration is also given to trading performance and expected future cash flows.

Inventory Provisioning

The company provides for inventory scrappage in the manufacturing process. This provision is calculated with reference to scrap costs in the prior 6 months as a percentage of material costs and is then applied to the stock value. The stock provision at 30 September 2023 was £606,000.

 

 

 

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 25 -
3
Turnover and other revenue
2023
2022
£'000
£'000
Turnover analysed by geographical market
United Kingdom
63,698
54,709
Other Europe
10,352
13,480
North America
4,179
2,057
Rest of the World
105
41
78,334
70,287
2023
2022
£'000
£'000
Other revenue
Interest income
1,399
13
Dividends received
32,299
12,516

Turnover is attributable to only one class of business, electronic manufacturing services.

4
Operating loss
2023
2022
Operating loss for the period is stated after charging/(crediting):
£'000
£'000
Exchange (gains)/losses
(2,114)
4,495
Fees payable to the company's auditor for the audit of the company's financial statements
82
85
Depreciation of owned tangible fixed assets
851
970
Profit on disposal of tangible fixed assets
-
(3)
Amortisation of intangible assets
7
12
Share-based payments
1,234
1,182
Operating lease charges
827
997
5
Employees

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

2023
2022
Number
Number
Production
422
371
Distribution and Selling
88
80
Administration
59
54
Total
569
505
PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
5
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

2023
2022
£'000
£'000
Wages and salaries
23,899
22,473
Social security costs
2,245
2,601
Pension costs
1,498
1,180
27,642
26,254
6
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
1,077
915
Amounts receivable under long term incentive schemes
1,126
648
2,203
1,563

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

The number of directors who are entitled to receive shares under long term incentive schemes during the period was 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£'000
£'000
Remuneration for qualifying services
762
619
Amounts receivable under long term incentive schemes
1,095
639
Company pension contributions to defined contribution schemes
56
53

The highest paid director has been entitled to receive shares under a long term incentive scheme during the period.

 

 

Overseas-based directors received no emoluments for their services as directors of the company (2022: £nil).

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 27 -
7
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest on bank deposits
1,399
13
Income from fixed asset investments
Income from shares in group undertakings
32,299
12,516
Total income
33,698
12,529
8
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest payable to group undertakings
1,938
566
9
Taxation
2023
2022
£'000
£'000
Deferred tax
Previously unrecognised tax loss, tax credit or timing difference
27
64

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£'000
£'000
Profit before taxation
29,327
3,538
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
5,572
672
Tax effect of expenses that are not deductible in determining taxable profit
(129)
63
Tax effect of income not taxable in determining taxable profit
(6,136)
(2,286)
Tax effect of utilisation of tax losses not previously recognised
27
64
Unutilised tax losses carried forward
873
1,979
Permanent capital allowances in excess of depreciation
(190)
(238)
Other non-reversing timing differences
10
(254)
Deferred tax adjustments in respect of prior years
-
0
64
Taxation charge for the period
27
64

Due to the uncertainty of sufficient taxable profits in the near term the directors have derecognised the deferred tax asset.

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 28 -
10
Intangible fixed assets
Software
£'000
Cost
At 2 October 2022
144
Disposals
(1)
At 30 September 2023
143
Amortisation and impairment
At 2 October 2022
128
Amortisation charged for the period
7
At 30 September 2023
135
Carrying amount
At 30 September 2023
8
At 1 October 2022
16
PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 29 -
11
Tangible fixed assets
Freehold buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 2 October 2022
3,920
1,283
238
9,324
1,144
2,401
18,310
Additions
-
0
-
0
1,486
-
0
2
-
0
1,488
Disposals
-
0
-
0
-
0
(86)
-
0
(113)
(199)
Transfers
-
0
-
0
(607)
320
6
281
-
0
At 30 September 2023
3,920
1,283
1,117
9,558
1,152
2,569
19,599
Depreciation and impairment
At 2 October 2022
1,590
788
-
0
7,801
1,065
2,005
13,249
Depreciation charged in the period
80
91
-
0
394
48
238
851
Eliminated in respect of disposals
-
0
-
0
-
0
(68)
-
0
(113)
(181)
At 30 September 2023
1,670
879
-
0
8,127
1,113
2,130
13,919
Carrying amount
At 30 September 2023
2,250
404
1,117
1,431
39
439
5,680
At 1 October 2022
2,330
495
238
1,523
79
396
5,061
PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 30 -
12
Fixed asset investments
2023
2022
Notes
£'000
£'000
Investments in subsidiaries
13
-
0
2,581
Loans to subsidiaries
13
2,581
-
0
Investments in associates
14
1,570
1,570
4,151
4,151

 

13
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Plexus Corp (Kelso) Limited
Pinnacle Hill, Kelso, Roxburghshire, TD5 8XX
Ordinary
100.00
Plexus Corp (Maldon) Limited
Octagon Point 5 Cheapside London EC2V 6AA
Ordinary
100.00
14
Associates

Details of the company's associates at 30 September 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Plexus Asia, Limited.
Abacus Trust Management Services,Geneva Place, 333 Waterfront Drive, PO Box 3339, BVI
Ordinary
18.90

The remaining share capital of Plexus Asia Limited is held by Plexus International Services Inc.

 

Dividend income received from Plexus Asia Limited totaled £32,299,000 as recognised in the Income Statement.

 

The directors are of the opinion that the carrying value of the company’s investments is supported by their

underlying net assets.

15
Stocks
2023
2022
£'000
£'000
Raw materials and consumables
29,157
24,181
Work in progress
2,213
2,747
Finished goods and goods for resale
4,674
4,597
36,044
31,525
PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 31 -
16
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
14,439
15,111
Amounts owed by group undertakings
219
136
Other debtors
891
1,157
Prepayments and accrued income
1,019
258
16,568
16,662
2023
2022
Amounts falling due after more than one year:
£'000
£'000
Amounts owed by group undertakings
45,235
-
0
Total debtors
61,803
16,662

The loan to Plexus Corp. is non-secured and was issued on 7 February 2023 with a ten-year term. The interest rate applicable is the LIBOR Index rate plus 1.5%.

 

17
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
as restated
Trade creditors
12,619
14,755
Amounts owed to group undertakings
5,505
5,564
Taxation and social security
2,118
2,908
Other creditors
18,147
17,067
Accruals and deferred income
6,861
10,237
45,250
50,531

Amounts owed to group undertakings are unsecured, interest free and have no fixed repayment date.

18
Creditors: amounts falling due after more than one year
2023
2022
£'000
£'000
Amounts owed to group undertakings
32,851
33,753

The loan from Plexus Corp Services (UK) Limited is for financing of the expansion and operations of the company. This loan in non-secured and was issued on 2 April 2017 with a ten-year term. The interest rate applicable is 360 day USD SOFR plus 1.5%.

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 32 -
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
1,498
1,180
20
Share-based payment transactions

Plexus Corp Inc. ("the Corporation") also issues, to employees of Plexus Corp (UK) Limited, restricted stock units (RSUs) and performance stock units (PSUs) which are actual share awards on vesting rather than options to buy shares at a fixed exercise price. Fair value of the shares is measured using the Black-Scholes pricing mode and Plexus Corp share price. These awards vest 100% after three years.

Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£'000
£'000
Outstanding at 2 October 2022
59,479
62,471
-
0
-
0
Granted
18,430
19,938
-
0
-
0
Forfeited
(1,360)
(1,181)
-
0
-
0
Vested
(19,917)
(21,749)
-
0
-
0
Outstanding at 30 September 2023
56,632
59,479
-
0
-
0

 

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary Shares of £1 each
3,000,000
3,000,000
2,999
2,999
22
Reserves

Profit and loss reserves

Cumulative profit and loss net of distributions to owners.

 

Share based payment reserve

Non-distributable equity reserve arising from share-based payment transactions.

PLEXUS CORP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 33 -
23
Own shares reserve
2023
2022
£'000
£'000
At the beginning of the period
6,659
5,478
Additions
1,234
1,181
At the end of the period
7,893
6,659
24
Profit and loss reserves
2023
2022
£'000
£'000
At the beginning of the period
2,056
(1,418)
Profit for the period
29,300
3,474
At the end of the period
31,356
2,056
25
Operating lease commitments
Lessee
2023
2022
£'000
£'000
Within one year
10
89
Between two and five years
459
244
469
333
26
Contingent liabilities

The company has entered into a guarantee arrangement with its bankers, dated 9 December 2014. The company has given a guarantee in favour of HMRC with a maximum liability of £40,000. A counter indemnity has been given to the company’s bankers.

27
Ultimate controlling party

The company’s immediate holding company is Plexus Corp. Limited which is incorporated in the United Kingdom. The company’s ultimate parent company and ultimate controlling party is Plexus Corp., a company registered in the United States of America which is the parent company of the smallest and largest groups to consolidate the company’s financial statements. Copies of the consolidated financial statements of the ultimate parent company may be obtained from Plexus Corp., One Plexus Way, PO Box 156, Neenah, Wisconsin, 54957-0156. Further information can be obtained from the website at www.plexus.com.

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