Cabot U.K. Limited
Annual report and financial statements
for the year ended 30 September 2023
Registered Number 01517690
Cabot U.K. Limited
Contents
Page
Directors and advisors
1
Strategic report
2
Directors' report
4
Directors' responsibilities statement
6
Independent auditor's report
7
Profit and loss account
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14
Cabot U.K. Limited
Directors and advisors
Directors
E Oezdemir
L Dumont
A Tucker
Secretary and registered office
A Tucker
Sully Moors Road
Sully
Penarth
South Glamorgan
CF64 5RP
United Kingdom
Auditor
Menzies LLP
5 The Crescent
Ashcombe House
Leatherhead
KT22 8DY
United Kingdom
Solicitors
Eversheds LLP
Senator House
85 Queen Victoria Street
London
EC4V 4JL
United Kingdom
Bankers
JP Morgan Chase Bank, N.A.
Chaseside
Bournemouth
BH7 7DB
United Kingdom
1
Cabot U.K. Limited
Strategic report
for the year ended 30 September 2023
The directors present their strategic report on the affairs of the company together with the audited financial statements for the year ended 30 September 2023.
Cabot U.K. Limited is a holding company of investments in other Cabot group companies.
Review of the business
There have not been any significant changes in the principal activity of the company in the financial year ended 30 September 2023. There has been significant movement in the profit and loss year on year due to interest payable decreasing through closure of a loan note.
The company has net assets of £84,128,000 (2022:net assets of £84,354,000), the directors consider the year-end financial position satisfactory and in line with their expectations given the inter-company balances in existence. The letter of support received from the ultimate parent company confirms these will not be recalled where this would cause the company to cease to be a going concern.
The directors therefore consider the balance sheet position of the company to be acceptable given the company's position within the wider Cabot group and in line with the directors' expectations.
Key performance indicators
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business of Cabot U.K. Limited.
The directors have assessed the carrying value of the investments and consider them to be supported by the assets and trade of the company's subsidiary.
Future developments
The directors expect the company to continue to operate at similar levels for the foreseeable future.
Principal risks and uncertainties
The directors have considered the principal risks and uncertainties of the company and they consider these to be those detailed in the financial risk management disclosures below.
Financial risk management
The company's operations expose it to a variety of financial risks that include the effects of changes on liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.
The policies set by the board of directors are implemented by the company's finance department. The company has a policy and procedures manual that sets out specific guidelines to manage interest rate risk and circumstances where it would be appropriate to use financial instruments to manage these.
Credit risk
Cash flow is purely from Audit fees and interest income payable and therefore not considered high risk.
2
Cabot U.K. Limited
Strategic report (continued)
for the year ended 30 September 2023
Principal risks and uncertainties (continued)
Liquidity risk
The company actively maintains short-term debt finance with other Group companies that is designed to ensure the company has sufficient available funds for operations and planned expansions.
Interest rate cash flow risk
The company has interest-bearing liabilities. These relate entirely to inter-group borrowings which are largely dictated by the Group's interest rate management policies.
Economic Impacts
Increase in interest rates and inflation during the year have factored into Cabot reference rates affecting internally charged interest on various intercompany loans.
Approved by the Board of Directors on ……… 28 Mar 2024 ………. and signed on behalf of the Board by:
A Tucker
Director
3
Cabot U.K. Limited
Directors' report
for the year ended 30 September 2023
The directors present their annual report on the affairs of Cabot U.K. Limited (“the company”), together with the financial statements and auditor's report for the year ended 30 September 2023.
Dividends and transfers to reserves
The directors do not recommend the payment of a dividend (2022: £nil). The loss for the year of £226,000 (2022: loss of £3,100,000) has been taken from reserves.
Directors
The directors who held office during the year and thereafter are E Oezdemir, L Dumont and A Tucker.
The Company has made qualifying third-party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.
Subsequent events
No subsequent events have occurred since the end of the financial year.
Going concern
At 30 September 2023 the Company had net assets of £84,128,000 (2022: net assets of £84,354,000). The directors have carried out a review of the company's financial position for a period of 12 months from the date of signing these financial statements and received a letter of support from its parent company, Cabot Corporation Inc.
Given the uncertainties surrounding the current economic environment, the company is reliant on Cabot Corporation Inc's ability to support them in the coming months. The letter of support has provided an acknowledgment whereby any amounts due to Cabot Corporation Inc. or its subsidiaries within the group will not be recalled for repayment until a time when sufficient funds are available.
Cabot Corporation Inc. monitors the company's financial situation on an ongoing basis and may take actions to refinance or other actions to financially support this wholly owned subsidiary if required in the future. Cabot Corporation Inc. also confirms that it will guarantee any debts owed from its subsidiaries to the company should repayment be sought. Accordingly, the going concern basis adopted for the preparation of the financial statements is considered appropriate.
4
Cabot U.K. Limited
Directors' report (continued)
for the year ended 30 September 2023
Auditor
Each of the persons who is a director of the company at the date when this report is approved confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and
the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
Approved by the Board of Directors on ………
28 Mar 2024
28 March 2024
……….. and signed on behalf of the Board by:
A Tucker
Director
5
Cabot U.K. Limited
Directors' responsibilities statement
for the year ended 30 September 2023
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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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; and
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.
6
Cabot U.K. Limited
Independent auditor's report to the members of Cabot U.K. Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Cabot U.K. Limited (the ‘company') for the year ended 30 September 2023 which comprise the Profit and Loss account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of 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
30 September 2023
30 September 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.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Auditors' 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.
7
Cabot U.K. Limited
Independent auditor's report to the members of Cabot U.K. Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
*
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
*
the Directors' Report has been prepared in accordance with applicable legal requirements.
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 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 directors' 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 set out on page 6, 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.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of noncompliance 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:
8
Cabot U.K. Limited
Independent auditor's report to the members of Cabot U.K. Limited (continued)
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant included:
*
The Companies Act 2006;
*
Financial Reporting Standard 102;
*
UK tax legislation; and
*
General Data Protection Regulations.
*
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
*
We understood how the company is complying with those legal and regulatory frameworks by, making
inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes.
*
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise noncompliance with laws and regulations. The assessment did not identify any issues in this area.
*
We assessed the susceptibility of the company's and financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
*
Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
*
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process.
*
Challenging assumptions and judgements made by management in its significant accounting estimates; and Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above 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;
*
The application of inappropriate judgements or estimation to manipulate the Company's financial position
*
Posting of unusual journals and complex transactions; and
*
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
9
Cabot U.K. Limited
Independent auditor's report to the members of Cabot U.K. Limited (continued)
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 Auditors' 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.
Caroline Milton FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY
Date: 28 Mar 2024
10
Cabot U.K. Limited
Profit and loss account
for the year ended 30 September 2023
Note
2023
2022
£'000
£'000
Administrative expenses
(19)
290
Operating profit/(loss)
3
(19)
290
Finance costs (net)
4
(207)
(2,615)
Loss before taxation
(226)
(2,325)
Tax on loss
6
(775)
Loss for the financial year
(226)
(3,100)
The notes on pages 14 to 21 form part of the financial statements.
All the items above relate to continuing operations.
There has been no comprehensive income or expense in either reporting year other than that recorded in the profit and loss account. Accordingly a separate statement of comprehensive income is not presented.
11
Cabot U.K. Limited
Balance sheet
as at 30 September 2023
Note
2023
2022
£'000
£'000
Fixed assets
Investments
7
90,327
90,327
90,327
90,327
Current assets
Debtors: due within one year
8
-
22,573
-
22,573
Creditors: amounts falling due within one year
9
(6,199)
(28,546)
Net current (liabilities)
(6,199)
(5,973)
Total assets less current liabilities
84,128
84,354
Net assets
84,128
84,354
Capital and reserves
Called up share capital
10
5,300
5,300
Share Premium account
10
114,555
114,555
Profit and loss account
10
(35,727)
(35,501)
Total Equity
84,128
84,354
The notes on pages 14 to 21 form part of the financial statements.
The financial statements of Cabot U.K. Limited, registered number 01517690, were approved by the Board of Directors and authorised for issue …………
28 Mar 2024
28 March 2024
…………. They were signed on its behalf by:
A Tucker
Director
12
Cabot U.K. Limited
Statement of changes in equity
for the year ended 30 September 2023
Called up share capital
Share Premium
Profit and loss account
Total
£'000
£'000
£'000
£'000
At 30 September 2021
5,300
-
(32,401)
(27,101)
Issue of Shares
-
114,555
-
114,555
Loss for the financial year
-
-
(3,100)
(3,100)
Total comprehensive income / (expense)
-
114,555
(3,100)
111,455
At 30 September 2022
5,300
114,555
(35,501)
84,354
Loss for the financial year
-
-
(226)
(226)
Total comprehensive expense
-
-
(226)
(226)
At 30 September 2023
5,300
114,555
(35,727)
84,128
The notes on pages 14 to 21 form part of the financial statements.
13
Cabot U.K. Limited
Notes to the financial statements
for the year ended 30 September 2023
1
Accounting policies
The principal accounting policies are summarised below. They have all been applied consistently throughout the year and preceding year.
General information and basis of accounting
Cabot U.K. Limited (“the company”) is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the registered office is given on page 1. The nature of the company's operations and its principal activities are set out in the strategic report on page 2.
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.
The functional currency of the company is considered to be pounds sterling because that is the currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest £.
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated in the financial statements of its ultimate parent company, Cabot Corporation Inc., which may be obtained at Two Seaport Lane, Suite 1300, Boston MA 02210-2019, USA.
As such, advantage of the following disclosure exemptions available under paragraph 1.18 of FRS 102 were taken:
a) the requirements of section 7 Statement of cash flows;
b) the requirement of section 3 Financial Statement of Presentation paragraph 3.17 (d);
c) the requirements of section 33 Related party disclosures paragraph 33.7. The company has taken advantage of S401 of the Companies Act 2006 and has not prepared consolidated financial statements. The company's ultimate parent at the year-end date, Cabot Corporation Inc, prepared consolidated financial statements which included this company and its subsidiary undertakings.
14
Cabot U.K. Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
1
Accounting policies (continued)
Interest Income
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
Investments
Investments are stated at cost less any provision for impairment in value. An impairment is recognised where conditions exist that suggest the carrying value of an investment exceeds its recoverable amount, which is considered to be the higher of the future anticipated cash flows from the investment, discounted to current value, and the value of the investment which could be realised if it were to be sold, less any incidental costs of disposal.
Taxation
Current tax, including U.K. corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax liabilities are recognised for timing differences arising from investments in subsidiaries and
associates, except where the company is able to control the reversal of the timing difference and it is probable
that it will not reverse in the foreseeable future.
A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and liabilities are offset only if: a) the company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
15
Cabot U.K. Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
1
Accounting policies (continued)
Foreign currencies
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date or, if appropriate, at the forward contract rate. All exchange differences, both realised and unrealised, are taken to the profit and loss account in the year in which they arise and are included in the finance costs.
Financial Instruments
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss.
Debt instruments which comply with all of the condition of FRS102 are classified as 'basic'. Instruments classified as 'basic' financial instruments are subsequently measured at amortised cost using the effective interest method.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
(ii) Equity Instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of transaction costs.
Share Premium
The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.
Interest payable
Interest payable comprises of interest payable on intercompany lending and is calculated using the applicable interest rates. Interest payable costs are expensed in the period in which they are incurred.
Interest Rates
The Company is exposed to SONIA interest rates on its group undertakings relating to intercompany debtors and creditors.
16
Cabot U.K. Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical accounting judgements in applying the company's accounting policies:
The directors have considered the overall recoverability of receivables and corporate support if required. The directors have also considered cash flow forecasts in assessing the value of its investments. There are no other critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Due to the nature of the company, there are no key sources of estimation uncertainty.
3
Operating Loss
The operating loss is made up entirely of administrative expenses which include:
2023
2022
£'000
£'000
Fees payable to the company's auditor for the audit of the company's annual financial statements
5
6
There were no fees payable to Menzies LLP and their associates for non-audit services (2022: £nil).
17
Cabot U.K. Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
4
Finance costs (net)
2023
2022
£'000
£'000
Interest payable and similar expenses - on inter-company loans
207
2,635
Interest receivable and similar income - on inter-company loans
(20)
207
2,615
5
Staff numbers and costs
There were no employees, other than the directors, in the company in either year. The directors received no remuneration for their services to the company (2022: £nil).
6
Tax on loss
The tax charge comprises:
2023
2022
£'000
£'000
Current tax on loss
UK corporation tax
-
775
Total current tax
-
775
Total deferred tax
-
-
Total tax on loss
-
775
18
Cabot U.K. Limited
Notes to the financial statement
for the year ended 30 September 2023 (continued)
6
Tax on loss (continued)
The tax assessed for the year is different from the rate of corporation tax in the year of 22.01%( the corporation tax rate of 25% came into force on the 1st April 23, the rate currently being used is time apportioned) (2022: 19%). The differences are explained below:
2023
2022
£'000
£'000
Loss before taxation
(225)
(2,325)
Tax on loss at the rate of UK corporation tax of 22.01% (2022: 19%)
(50)
(442)
Effect of
Group Relief
50
315
Expenses disallowed
-
127
Prior Period Adjustment
-
775
Total tax charge for the year
-
775
Deferred Tax
A deferred tax asset in respect of non trade losses of £1,832,710 (2022: £1,832,710) has not been recognised due to the uncertainty of the recoverability of the asset.
7
Fixed asset investments
Cost and net book value
£'000
At 30 September 2022 and 30 September 2023
90,327
19
Cabot U.K. Limited
Notes to the financial statement
for the year ended 30 September 2023 (continued)
7
Fixed asset investments (continued)
The company has investments in the following subsidiary undertaking;
Registered Office/ Country of incorporation of principal business
Class of shares held
% Holding
Subsidiary undertaking:
Principal activity
Avenida das Indústrias, 135 – Bairro Capuava, Mauá – São Paulo, Brazil
Manufacture of performance chemicals
Cabot Brasil Industria e Comercios Ltda
Ordinary
100
The investment in Cabot Brasil Industria e Comercio Ltda represents 100% of the issued ordinary share capital. The company is incorporated in Brazil and its activity is the manufacture and marketing of the reinforcement and performance chemicals business.
The subsidiary undertaking has not been consolidated by Cabot U.K. Limited as permitted by s.401 of the Companies Act 2006 as it is consolidated in the financial statements of Cabot Corporation Inc.
8
Debtors
Amounts falling due within one year
2023
2022
£'000
£'000
Amounts owed by Cabot group undertakings
22,573
Total
-
22,573
Amounts due from group undertakings have no interest charged against them.
9
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Accruals
17
15
Amounts due to group undertakings
6,182
28,531
6,199
28,546
20
Cabot U.K. Limited
Notes to the financial statement
for the year ended 30 September 2023 (continued)
9
Creditors: amounts falling due within one year (continued)
Amounts due to group undertakings are interest-bearing and based on 3 month SONIA rates for short term debts or SWAP rates using a mid market quote for long term debts. The effective interest rates used for the current year is between 2.79% to 6.62%. Amounts are repayable on demand.
A letter of support from the parent company has provided an acknowledgment whereby any amounts due to Cabot Corporation Inc. or its subsidiaries within the group will not be recalled for repayment until a time when sufficient funds are available.
10
Called up share capital and reserves
2023
2022
£'000
£'000
5,300,004 (2022:5,300,004) Ordinary shares of £1 each - allotted, called up and fully paid
5,300
5,300
The company has one class of ordinary share capital which carries no right fixed income.
Reserves
The profit and loss deficit of £35,727,000 (2022: £35,501,000) represents cumulative profits and losses. Also the share premium of £114,555,377(2022: £114,555,377) contains the premium arising on issue of equity shares, net of issue expenses.
11 Ultimate and immediate holding company
The ultimate parent undertaking and controlling party is Cabot Corporation Inc., a company incorporated in the United States of America, which is the parent undertaking of the smallest and largest group to consolidate these financial statements. Copies of the group financial statements can be obtained from Cabot Corporation Inc., Two Seaport Lane, Suite 1300, Boston MA 02210-2019, USA which is also the entity's registered address.
The directors regard Cabot G.B. Limited, which is registered in England and Wales, as its immediate holding company. Copies of the financial statements of Cabot G.B. Limited may be obtained from The Secretary, Cabot G.B. Limited, Sully Moors Road, Sully, Penarth CF64 5RP.
21
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