Cabot Plastics Limited
Cabot Plastics Limited
Annual report and financial statements
for the year ended 30 September 2023
Registered Number 01329233
Cabot Plastics Limited
Contents
Page
Directors and advisors
1
Directors' report
2
Directors' responsibilities statement
5
Independent auditor's report
6
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13
Cabot Plastics Limited
Directors and advisors
Directors
R J Anderton
A Tucker
Secretary and registered office
A Tucker
Finance Dept
Sully Moors Road
Sully
Penarth
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 Plastics Limited
Directors' report
for the year ended 30 September 2023
The directors present their annual report on the affairs of Cabot Plastics Limited (“the Company”), together with the audited financial statements for the year ended 30 September 2023. The directors' report has been prepared in accordance with the provisions applicable to companies entitled to the small companies' exemption, which excludes the company from preparing a strategic report.
Principal activities
Following the transfer of trade to Cabot Switzerland GmbH in February 2012, the company has not traded.
Business review and transfers from reserves
The loss for the year, before taxation amounted to £12,000 (2022: loss of £141,000). The profit and loss account for the year is set out on page 10. The loss for the year of £12,000 (2022: loss of £338,000) has been taken from reserves.
The balance sheet on page 11 of the financial statements shows the financial position of the company as at 30 September 2023. Shareholders' deficit as at year-end is £52,000 (2022: Shareholders' deficit of £40,000). The company has no available distributable reserves and hence the directors are unable to recommend a dividend payment (2022: £nil).
Future developments
The company is not intending to trade in the foreseeable future.
Going concern
At 30 September 2023 the company had net liabilities £52,000 (2022: £40,000). 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. 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.
Given the uncertainties surrounding the current economic environment, the company is reliant on Cabot Corporation's ability to support them in the coming months. The letter of support has provided an acknowledgement whereby any amounts due to Cabot Corporation or its subsidiaries within the group will not be recalled for repayment until a time when sufficient funds are available.
Cabot Corporation 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.
Accordingly, the going concern basis adopted for the preparation of the financial statements is considered appropriate.
Key performance indicators
Given the straightforward nature of the business and the fact that the company has not traded in the current or preceding year, 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 Plastics Limited.
2
Cabot Plastics Limited
Directors' report (continued)
for the year ended 30 September 2023
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 is exposed 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.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. The department 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 this.
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 when it is required.
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 have factored into Cabot reference rates affecting internally charged interest on various intercompany loans.
Events after the balance sheet date
No subsequent events have occurred since the end of the financial year.
Directors
The directors of the company, who held office during the year and thereafter are R J Anderton 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.
3
Cabot Plastics Limited
Directors' report (continued)
for the year ended 30 September 2023
Auditor and disclosure of information to 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 and signed on behalf of the Board by:
A Tucker
Director
28 Mar 2024
28 March 2024
…………………..
4
Cabot Plastics 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.
5
Cabot Plastics Limited
Independent auditor's report to the members of Cabot Plastics Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Cabot Plastics 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.
6
Cabot Plastics Limited
Independent auditor's report to the members of Cabot Plastics Limited (continued)
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.
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.
7
Cabot Plastics Limited
Independent auditor's report to the members of Cabot Plastics Limited (continued)
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:
*
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.
8
Cabot Plastics Limited
Independent auditor's report to the members of Cabot Plastics Limited (continued)
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.
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
9
Cabot Plastics Limited
Profit and loss account
for the year ended 30 September 2023
Note
2023
2022
£'000
£'000
Administrative expenses
(11)
(11)
Operating loss
3
(11)
(11)
Finance costs (net)
4
(1)
(130)
Loss before taxation
(12)
(141)
Tax charge on loss
6
(197)
Loss for the financial year
(12)
(338)
The notes on pages 13 to 17 form part of these financial statements.
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.
10
Cabot Plastics Limited
Balance sheet
at 30 September 2023
Note
2023
2022
£'000
£'000
Creditors: amounts falling due within one year
7
(52)
(40)
Net current liabilities
(52)
(40)
Total assets less liabilities
(52)
(40)
Capital and reserves
Called up share capital
8
1,600
1,600
Share premium account
8
8,755
8,755
Profit and loss account
8
(10,407)
(10,395)
Shareholders' deficit
(52)
(40)
The notes on pages 13 to 17 form part of these financial statements.
The financial statements of Cabot Plastics Limited, registered number 01329233, were approved by the Board of Directors and authorised for issue on …………
28 Mar 2024
28 March 2024
…………. They were signed on its behalf by:
A Tucker
Director
11
Cabot Plastics 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 1 October 2021
1,600
1,900
(10,057)
(6,557)
Issue of Shares
-
6,855
-
6,855
Loss for the financial year
-
-
(338)
(338)
Total comprehensive income/ (expense)
-
6,855
(338)
6,517
At 30 September 2022
1,600
8,755
(10,395)
(40)
Loss for the financial year
-
-
(12)
(12)
Total comprehensive expense
-
-
(12)
(12)
At 30 September 2023
1,600
8,755
(10,407)
(52)
The notes on pages 13 to 17 form part of these financial statements.
12
Cabot Plastics 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 the preceding year.
General information and basis of accounting
Cabot Plastics 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 financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The entity satisfies the criteria of being a qualifying entity as defined in FRS 102, as it's 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 1400, 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 paragraphy 33.7.
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 £.
Taxation
Current tax, including UK 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.
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.
13
Cabot Plastics Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
1
Accounting policies (continued)
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of
exchange ruling at the year-end. Transactions in foreign currencies are translated at the rate of exchange ruling at the date of the transaction. All exchange differences, both realised and unrealised, are taken to the profit and loss account in the year in which they arise.
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 in its group undertakings relating to intercompany debtors and creditors.
Financial instruments.
(i) Financial assets and liabilities
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.
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.
14
Cabot Plastics 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:
There are no other critical judgements, apart from those involving estimations and recoverability of receivables, 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 stated after charging:
2023
2022
£'000
£'000
Fees payable to the company's auditor for the audit of the company's financial statements
5
5
There were no fees payable to Menzies LLP and their associates for non-audit services (2022: £nil).
4
Finance costs (net)
2023
2022
£'000
£'000
Interest payable to other group companies
(1)
(130)
15
Cabot Plastics Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
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 on ordinary activities
The tax charge / (credit) comprises:
2023
2022
£'000
£'000
Current tax on loss
UK corporation tax
197
Total taxation charge
-
197
The tax charge assessed for the year is higher than (2022: higher than) the rate of corporation tax 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
(12)
(141)
Loss multiplied by the rate of corporation tax in the UK 22.01% (2022: 19%)
(3)
(27)
Effect of:
Adjustment to tax charge in respect of Prior Periods
-
197
Group Relief
3
27
Total tax charge on loss
-
197
Deferred Tax
A deferred tax asset in respect of non trade losses of £23,869 (2022: £23,869) has not been recognised due to the uncertainty of the recoverability of the asset.
16
Cabot Plastics Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
7
Creditors – amounts falling due within one year
2023
2022
£'000
£'000
Amounts owed to group undertakings
34
18
Accruals
17
22
Trade Creditors
1
52
40
Amounts owed to group undertakings are interest-bearing and based on 3 month SONIA rates plus a spread of 1.25% 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 are between 2.8%-6.62%. Amounts are repayable on demand.
.
8
Called up share capital and reserves
2023
2022
£'000
£'000
Ordinary shares of £1 each
Allotted, called up and fully paid
1,600,001 (2022:1,600,001) ordinary shares of £1 each
1,600
1,600
The company has one class of ordinary share which carries no right to fixed income.
Share Premium
The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses. Share Premium remains at £8,755,000 (2022: £8,755,000).
Reserves
The profit and loss deficit of £10,407,000 (2022: £10,395,000) represents cumulative profits and losses.
9
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 the company's results. Copies of the group accounts 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.
17
Cabot Plastics Limited
The directors regard Cabot GB Limited, which is registered in England and Wales, as its immediate holding company. Copies of the financial statements of Cabot GB Limited may be obtained from The Secretary, Cabot GB Limited, Sully Moors Road, Sully, Vale of Glamorgan, CF64 5RP.
18
falseCCH SoftwareiXBRL Review & Tag 2022.22023-09-302022-10-01013292332022-10-012023-09-30013292332023-09-30013292332021-10-012022-09-30013292332022-09-3001329233bus:FRS1022022-10-012023-09-3001329233bus:PrivateLimitedCompanyLtd2022-10-012023-09-3001329233bus:Audited2022-10-012023-09-3001329233bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP