Cabot UK Holdings Limited
Annual report and financial statements
for the year ended 30 September 2023
Registered Number 04076579
Cabot UK Holdings 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 UK Holdings Limited
Directors and advisors
Directors
A Tucker
E Oezdemir
L Dumont
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 UK Holdings 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 UK Holdings Limited is a holding company of investments held in other Cabot group companies.
Business review
Cabot UK Holdings Limited is presented in currency of GBP although the functional currency is USD due to the parent structure and the transactions the company utilise.
The balance sheet position of the company is acceptable and in line with the directors' expectations. Net assets were £121,222,000 (2022: £121,129,000(restated)).   The directors consider the net current asset position of £3,271,000 (2022; net current liabilities: £3,178,000 (restated)) to be 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 profit after tax for the year was £94,000 (2022 Loss: £7,127,000). Prior year was impacted by the foreign exchange impact of closing grid notes. The operating loss of £111,000 (2022; £29,000) was in line with the directors' expectations given the company's position within the larger group which requires assessment at a consolidated level. The directors expect the company to continue at similar levels for the foreseeable future.
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 UK Holdings Limited.
Principal risks and uncertainties
The principal risks are limited to the carrying value of the investments in the company's subsidiaries. The directors review the carrying value for any impairment at least twice a year and make adjustments if deemed necessary.
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 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 these.
2
Cabot UK Holdings Limited
Strategic report (continued)
for the year ended 30 September 2023
Liquidity risk
The company actively maintains a short-term debt finance with other Group companies that is designed to ensure the company has sufficient available funds for operations and planned expansions and is also supported by a letter of support from the Cabot Group
Interest rate cash flow risk
The company has no interest-bearing liabilities.
Economic Impacts
Increase in interest rates and inflation have factored into Cabot reference rate affecting internally charged interest on various intercompany loans.
Future developments
The directors are not aware of any other planned changes in the nature or scale of the company's operations.
Approved by the Board of Directors ……… 28 Mar 2024 ……….and signed on behalf of the Board by:
L Dumont
Director
3
Cabot UK Holdings Limited
Directors' report
for the year ended 30 September 2023
The directors present their annual report on the affairs of the company, together with the financial statements and auditor's report for the year ended 30 September 2023.
Principal activities and review of business
The company's principal activity is that of a holding company. There have not been any significant changes in the principal activity of the company in the financial year ended 30 September 2023. Further details are given in the Strategic Report.
Dividends and transfers to reserves
The directors did not propose a dividend in the year (Dividend declared in 2022: nil). The profit for the year of £101,000 (2022 Loss: £7,127,000) has been taken to reserves.
Going concern
At 30 September 2023 the Company had net current assets of £3,271,000 (2022: £3,178,000 (restated)) and total net assets of £121,222,000 (2022: £121,129,000 (restated)). 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 acknowledgement 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.
Accordingly, the going concern basis adopted for the preparation of the financial statements is considered appropriate.
Directors
The directors who held office during the year and thereafter are A Tucker, E Oezdemir and L Dumont. 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.
Events after the balance sheet date
No subsequent events have occurred since the end of the financial year.
4
Cabot UK Holdings 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:
L Dumont
Director
5
Cabot UK Holdings 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 UK Holdings Limited
Independent auditor's report to the members of Cabot UK Holdings Limited
Opinion
We have audited the financial statements of Cabot UK Holdings 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 profit 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.
7
Cabot UK Holdings Limited
Independent auditor's report to the members of Cabot UK Holdings Limited (continued)
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.
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.
8
Cabot UK Holdings Limited
Independent auditor's report to the members of Cabot UK Holdings Limited (continued)
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.
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.
9
Cabot UK Holdings Limited
Independent auditor's report to the members of Cabot UK Holdings Limited (continued)
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
10
Cabot UK Holdings Limited
Profit and loss account
for the year ended 30 September 2023
Note
2023
2022
£'000
£'000
Administrative expenses
(111)
(29)
Operating (loss)
3
(111)
(29)
Dividend income
4
-
6,348
Finance Income
5
131
383
Other income
6
74
1,064
Amounts written off investments
9
-
(16,557)
Profit/(loss) before taxation
94
(8,791)
Tax credit
8
-
0
1,664
Profit/ (loss) for the financial year
94
(7,127)
The notes on pages 14 to 24 form part of the annual financial statements.
All the items in the profit and loss account for the current and prior year 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 UK Holdings Limited
Balance sheet
As at 30 September 2023
Restated
2023
2022
Note
£'000
£'000
Fixed assets
Investments
9
117,951
117,951
Current assets
Debtors: due within one year
10
3,316
3,188
3,316
3,188
Creditors: amounts falling due within one year
11
(45)
(11)
Net current assets
3,271
3,177
Total assets less current liabilities, being net assets
121,222
121,128
Capital and reserves
Called up share capital
12
-
-
Share premium account
12
105,693
105,693
Profit and loss account
12
15,435
15,529
Shareholder's funds
121,222
121,128
The notes on pages 14 to 24 form part of the annual financial statements.
The financial statements of Cabot UK Holdings Limited, registered number 04076579, 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:
L Dumont
Director
12
Cabot UK Holdings Limited
Statement of changes in equity
For year ended 30 September 2023
Called up share capital
Share premium
Profit and loss account
Total
£'000
£'000
£'000
£'000
At 1 October 2021
-
105,693
23,183
128,876
Prior Year adjustment
-
(621)
(621)
At 01 October 2021 (as restated)
105.693
22,562
128,255
Loss for the financial year
    -
-
(7,127)
(7,127)
Total comprehensive (expense)
-
-
(7,127)
(7,127)
At 30 September 2022
-
105,693
15,435
121,128
Profit for the financial year
    -
-
94
94
Total comprehensive income
-
-
94
94
At 30 September 2023
    -
105,693
15,529
121,222
The notes on pages 14 to 25 form part of the annual financial statements.
13
Cabot UK Holdings 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 financial year.
General information and basis of accounting
Cabot UK Holdings Limited (“the Company”) is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and 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 pages 2 and 3.
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.
Cabot UK Holdings Limited functional currency is USD due to the parent structure and the transaction types, however is presented in GBP for Statutory Presentational purposes.  Monetary amounts in these financial statements are rounded to the nearest £.
The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. 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 paragraph 33.7.
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.
14
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
1
Accounting policies (continued)
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.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.  Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are 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.
When the amount that can be deducted for tax for an asset that is recognised in a business combination is less (more) than the value at which it is recognised, a deferred tax liability (asset) is recognised for the additional tax that will be paid (avoided) in respect of that difference.  Similarly, a deferred tax asset (liability) is recognised for the additional tax that will be avoided (paid) because of a difference between the value at which a liability is recognised and the amount that will be assessed for tax.
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.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing difference
Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
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.
15
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
1
Accounting policies (continued)
Taxation (continued)
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.
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. USD to GBP movements are converted at the average exchange rate for the year where applicable.
  Financial Instruments
The Cabot Group's Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages financial risk, including market risk covering currency risk, fair value interest rate risk and price risk together with credit risk, liquidity risk and cash flow interest rate risk. The Group Treasury are tasked with mitigating risk and governed by financial risk management policies that are set by the group board.
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.
16
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
1
Accounting policies (continued)
(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.
Dividend Income
Dividend income from investments is recognised when the shareholders' rights to receive payment have been established (provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably).
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.
Interest revenue
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 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.
Group financial statements
Group financial statements have not been prepared as permitted by section 401 of the Companies Act 2006 as the company is a wholly-owned subsidiary of Cabot Corporation Inc., a company incorporated in the United States of America, which prepares consolidated financial statements which are publicly available.
Share Premium
The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.
17
Cabot UK Holdings 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 also considered the long-term prospects and growth potential for its investments, as well as the general current economic environment. The directors have considered the overall recoverability of receivables and corporate support if required. 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 profit / (loss)
The operating loss consists 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
10
9
There were no fees payable to Menzies LLP and their associates for non-audit services (2022: £nil).
18
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
4     Dividend Income
2023
2022
£'000
£'000
Inter Company dividend receivable
-
0
6,348
5    Finance Income/ (costs)
2023
2022
£'000
£'000
Interest payable on inter-company loans
-
(883)
Interest receivable on inter-company loans
131
1,266
Total
131
383
6     Other income/ (Costs)
2023
2022
£'000
£'000
Realised foreign currency fluctuations
74
1,064
Total
74
1,064
7    Staff numbers and costs
There were no employees other than the directors, in the company in either year. The directors receive no remuneration for their services to the company(2022:£nil).
19
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
8      Tax on profit /(loss)
The tax credit comprises:
2023
2022
£'000
£'000
Current tax on profit/ (loss)
UK corporation tax
-
(1,664)
Tax charge / (credit) on profit / (loss)
-
(1,664)
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
Profit/(Loss) before tax
94
(8,791)
Tax on profit/ (loss) at the rate of UK corporation tax of 22.01% (2022: 19%)
21
(1,671)
Effects of:
Income not taxable for tax purposes
-
(1,206)
Remeasurement of deferred tax for change in rate
3
(1,664)
Deferred tax not recognised
(24)
2,877
Current tax (credit) for the year
-
(1,664)
20
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
8    Tax on profit/(loss) (continued)
Deferred tax
A deferred tax asset in respect of non-trade losses of £1,365,000 (2022: £5,629,000) has not been recognised due to the uncertainty over the recoverability of the asset.
9       Fixed asset investments
Cost and net book value
Investments in subsidiary undertakings
  £'000
Cost
At 1 October 2022
333,992
Additions
-
At 30 September 2023
333,992
Impairment
At 1 October 2022
216,041
Impairment Charge
-
At 30 September 2023
216,041
Net book value
At 30 September 2023
117,951
At 30 September 2022
117,951
21
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
9   Fixed asset investments (continued)
Related undertaking
Registered Office/ country of Incorporation of principal business
Principal activity
Holding
%
Cabot G.B. Limited
Finance Dept, Sully Moors Road, Sully, Penarth, CF64 5RP United Kingdom
Investment company and provision of retirement benefits
Ordinary
100%
Cabot UK Holdings III Limited
Finance Dept, Sully Moors Road, Sully, Penarth, CF64 5RP United Kingdom
Investment company
Ordinary
100%
Cabot India Limited
Kear Solitaire, 12th Floor, Plot no. 5, Palm Beach Road, Sector 19, Sanpada, Navi Mumbai, Maharashtra 400705 India
Resale of corporate materials
Ordinary
37.8%
Cabot Holdings GMBH II
Kronenstraße
Investment Company
Ordinary
100%
2, 79618 Rheinfelden, Baden,
Germany
Cabot Performance Materials UK Ltd
Finance Dept, Sully Moors Road, Sully, Penarth, CF64 5RP United Kingdom
Provision of technical and selling services
Ordinary
100%
The subsidiary undertaking has not been consolidated by Cabot UK Holdings Limited as permitted by s.401of the Companies Act 2006 as it is consolidated in the financial statements of Cabot Corporation Inc.
22
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
10 Debtors
Restated
Amounts falling due within one year
2023
2022
£'000
£'000
Amounts owed by Cabot group undertakings
3,316
3,184
Other debtors
-
0
4
Total
3,316
3,188
Amounts due from 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 rate used for the current year is 4.13%. Amounts are repayable on demand.
11 Creditors: amounts falling due within one year
Restated
2023
2022
£'000
£'000
Amounts due to Cabot group companies
9
-
0
Accruals
36
11
Trade creditors
-
0
-
0
Total
45
11
Amounts due to group undertakings are not interest-bearing.
23
Cabot UK Holdings Limited
Notes to the financial statements
for the year ended 30 September 2023 (continued)
12 Called up share capital and reserves
Ordinary shares of £1 each
2023
2022
£'000
£'000
Allotted, called up and fully paid
40,880,822 (2022: 40,880,822) ordinary shares of £0.00001 each
-
-
The company's ordinary shares carry no right to fixed income.
The shares were issued at a premium of £105,693,000.
Reserves
The profit and loss surplus of £15,529,000 (2022 surplus: £15,435,000(restated)) represents cumulative profits or losses net of dividend paid. The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.
13 Ultimate and immediate holding company
The ultimate parent undertaking and controlling party is Cabot Corporation Inc., 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 Luxembourg Holdings SA as its immediate holding company.  Copies of the financial statements of Cabot Luxembourg Holdings SA may be obtained from Durachpark, Mühlentalstrasse 36, Schaffhausen , CH-8200, Switzerland.
14   Prior Period Adjustment
There has been a prior period adjustment of £621,000 in 2022 to remove deferred tax on unutilised tax losses. This has reduced debtors by £670,000, reduced creditors by £49,000 and reduced profit and loss accounts reserves by £621,000. There is no impact on tax.
24
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