Caseware UK (AP4) 2023.0.135 2023.0.135 2023-09-302023-09-3030falsefalsetruetruetruetruetruetrue2022-10-01falseIndustrial auctioneers, valuers and consultants30 04092016 2022-10-01 2023-09-30 04092016 2021-10-01 2022-09-30 04092016 2023-09-30 04092016 2022-09-30 04092016 2021-10-01 04092016 3 2022-10-01 2023-09-30 04092016 3 2021-10-01 2022-09-30 04092016 d:CompanySecretary1 2022-10-01 2023-09-30 04092016 d:Director1 2022-10-01 2023-09-30 04092016 d:Director2 2022-10-01 2023-09-30 04092016 d:Director3 2022-10-01 2023-09-30 04092016 d:Director4 2022-10-01 2023-09-30 04092016 d:RegisteredOffice 2022-10-01 2023-09-30 04092016 d:Agent1 2022-10-01 2023-09-30 04092016 e:OfficeEquipment 2022-10-01 2023-09-30 04092016 e:OfficeEquipment 2023-09-30 04092016 e:OfficeEquipment 2022-09-30 04092016 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 04092016 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-09-30 04092016 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-09-30 04092016 e:CurrentFinancialInstruments 2023-09-30 04092016 e:CurrentFinancialInstruments 2022-09-30 04092016 e:CurrentFinancialInstruments e:WithinOneYear 2023-09-30 04092016 e:CurrentFinancialInstruments e:WithinOneYear 2022-09-30 04092016 e:ReportableOperatingSegment1 2022-10-01 2023-09-30 04092016 e:ReportableOperatingSegment1 2021-10-01 2022-09-30 04092016 e:ReportableOperatingSegment2 2022-10-01 2023-09-30 04092016 e:ReportableOperatingSegment2 2021-10-01 2022-09-30 04092016 e:ShareCapital 2022-10-01 2023-09-30 04092016 e:ShareCapital 2023-09-30 04092016 e:ShareCapital 2021-10-01 2022-09-30 04092016 e:ShareCapital 2022-09-30 04092016 e:ShareCapital 2021-10-01 04092016 e:OtherMiscellaneousReserve 2022-10-01 2023-09-30 04092016 e:OtherMiscellaneousReserve 2023-09-30 04092016 e:OtherMiscellaneousReserve 2021-10-01 2022-09-30 04092016 e:OtherMiscellaneousReserve 2022-09-30 04092016 e:OtherMiscellaneousReserve 2021-10-01 04092016 e:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 04092016 e:RetainedEarningsAccumulatedLosses 2023-09-30 04092016 e:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 04092016 e:RetainedEarningsAccumulatedLosses 2022-09-30 04092016 e:RetainedEarningsAccumulatedLosses 2021-10-01 04092016 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-09-30 04092016 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-09-30 04092016 d:OrdinaryShareClass1 2022-10-01 2023-09-30 04092016 d:OrdinaryShareClass1 2023-09-30 04092016 d:OrdinaryShareClass1 2022-09-30 04092016 d:OrdinaryShareClass2 2022-10-01 2023-09-30 04092016 d:OrdinaryShareClass2 2023-09-30 04092016 d:OrdinaryShareClass2 2022-09-30 04092016 d:OrdinaryShareClass3 2022-10-01 2023-09-30 04092016 d:OrdinaryShareClass3 2023-09-30 04092016 d:OrdinaryShareClass3 2022-09-30 04092016 d:FRS102 2022-10-01 2023-09-30 04092016 d:Audited 2022-10-01 2023-09-30 04092016 d:FullAccounts 2022-10-01 2023-09-30 04092016 d:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 04092016 e:Subsidiary1 2022-10-01 2023-09-30 04092016 e:Subsidiary1 1 2022-10-01 2023-09-30 04092016 e:Subsidiary2 2022-10-01 2023-09-30 04092016 e:Subsidiary2 1 2022-10-01 2023-09-30 04092016 e:Subsidiary3 2022-10-01 2023-09-30 04092016 e:Subsidiary3 1 2022-10-01 2023-09-30 04092016 e:Subsidiary4 2022-10-01 2023-09-30 04092016 e:Subsidiary4 1 2022-10-01 2023-09-30 04092016 e:Subsidiary5 2022-10-01 2023-09-30 04092016 e:Subsidiary5 1 2022-10-01 2023-09-30 04092016 e:Subsidiary6 2022-10-01 2023-09-30 04092016 e:Subsidiary6 1 2022-10-01 2023-09-30 04092016 e:WithinOneYear 2023-09-30 04092016 e:WithinOneYear 2022-09-30 04092016 2 2022-10-01 2023-09-30 04092016 6 2022-10-01 2023-09-30 04092016 f:PoundSterling 2022-10-01 2023-09-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04092016









LIQUIDITY SERVICES UK LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
LIQUIDITY SERVICES UK LIMITED
 
 
COMPANY INFORMATION


Directors
W P Angrick III 
M Shaffer 
N Taylor 
J Daunt 




Company secretary
Corporation Service Company (UK) Limited



Registered number
04092016



Registered office
C/O Corporation Service Company (UK) Limited
5 Churchill Place

10th Floor

London

E14 5HU




Independent auditors
Clifford Fry and Co LLP (Statutory auditors)

St Mary's House

Netherhampton

Salisbury

Wiltshire

SP2 8PU




Bankers
Barclays Bank PLC
Hatton Garden Business Centre

99 Hatton Garden

London

EC1N 8DN





 
LIQUIDITY SERVICES UK LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13 - 14
Notes to the financial statements
15 - 37


 
LIQUIDITY SERVICES UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The Directors present their Strategic Report in respect of the year ended 30 September 2023.

Principal activities and review of the business
 
The Company’s principal activity is the provision of services as industrial auctioneers, valuers and consultants. The Company has continued sales of assets through auction and private sale of principally owned assets.

Revenue has decreased to £10.9m from £11.3m. There was a reduction in principal asset sales of £1.0m offset by an increase of consignment sales in the same period of £0.6m. The increase in consignment activity was largely due to having secured a large medium-term project for the disposal of assets in a single project across multi-national sites, all conducted on a consignment basis. There was a slight reduction in opportunities related to not being able to acquire inventory, but the Company continued to share the risk through partnering with competitors across Europe. However, due to uncertainties with market pricing there were sales that did not achieve the anticipated sales prices that were considered at the investment appraisal stage and so revenue and profit was lower in respect of these. Overall gross profit has increased from £4.6m to £6.0m, representing a 32% increase. This growth profile represents a higher proportion of sales activity having bene generated with the Company acting without the participation of commercial partners in the consignment sale sector. Administration expenses increased by £0.6m, driven by performance related bonus payments being made in the year. There continues to be investment in the sector and development of the business with expected future growth enabling the Company to generate profits.

Future developments

The Company will continue to invest in its subsidiaries and look for future investments that will provide benefits for the Company's shareholders. 

Page 1

 
LIQUIDITY SERVICES UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal risks and uncertainties
 
The Directors continually review and evaluate the risks that the Company is facing. The principal risks and uncertainties the Company is facing are:

Product supply risks
Liquidity Services UK Limited relies on the supply of saleable assets from third parties to be able to generate an income from the sales or commissions earned on the sale of those assets. While the Company has several forward flow agreements with several large multinational companies, there is no guarantee for the supply of assets for sale within those agreements.  
Competitive risk
There are several competitors within the market and the Company puts a strong emphasis on being part of a wider global group of companies with a presence in each continent. The Company is further developing online tools to enable wider coverage of each sale to a greater number of registered buyers in the wider Liquidity Services buyer population and looks to utlise this as a competitive differentiator. The Company also needs to maintain a competitive level of pricing when negotiating commission rates.
Financial risks
The Company is a wholly owned subsidiary of Liquidity Services Limited, which is in turn a wholly owned subsidiary of Liquidity Services, Inc., a company incorporated in the United States of America. The Company’s operating structure and activities expose it to a limited range of financial risks; principally interest rate and foreign currency risk. As a member of the Liquidity Services, Inc. Group, the Company has access to a range of resources in managing these risks. The Company has established a risk and financial management framework with the primary objective of protecting the Company from events that hinder the achievement of the Company’s performance objectives, which fits within the framework of the ultimate parent undertaking.  
Liquidity and cashflow risks
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability. The Company manages this risk by the use of Group funding facilities.

Going concern
 
Management (including the Directors) regularly prepares and reviews financial forecasts to manage the business and make investment decisions. Management has used these practices to continue to take proactive actions to conserve resources and maximise opportunities for revenue generation.

To the extent necessary, the Company continues to have the financial support of its ultimate parent company, Liquidity Services, Inc. The ultimate parent company has the available financial resources to provide any necessary support and has provided a support letter expressing its intent to continue to provide any financial support required through 12 months from the issuance of the financial statements.
Based upon these considerations, the Directors continue to adopt the going concern basis in preparing the Annual report and Financial statements.

Page 2

 
LIQUIDITY SERVICES UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023


This report was approved by the board on 14 August 2024 and signed on its behalf.





................................................
N Taylor
Director

Page 3

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The Directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £226 thousand (2022 - loss £1,016 thousand).

The directors do not recommend the payment of a dividend (2022 - £Nil).

Directors

The Directors who served during the year and their interests in the Company's issued share capital were:

Ordinary A shares
of 1p each
Deferred B shares
of 1p each
Deferred C shares
of 1p each

30/9/23

1/10/22


30/9/23

1/10/22


30/9/23

1/10/22


W P Angrick III 
-
-
-
-
-
-
M Shaffer 
-
-
-
-
-
-
N Taylor 
-
-
-
-
-
-
J Daunt 
-
-
-
-
-
-


Page 4

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Future developments

The Company will continue to invest in its subsidiaries and look for future investments that will provide benefits for the Company's shareholders. 

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsClifford Fry and Co LLP (Statutory auditors)will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 14 August 2024 and signed on its behalf.
 





................................................
N Taylor
Director

Page 5

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIQUIDITY SERVICES UK LIMITED
 

Opinion


We have audited the financial statements of Liquidity Services UK Limited (the 'Company') for the year ended 30 September 2023, which comprise the Profit and loss account, the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 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.


Page 6

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIQUIDITY SERVICES UK 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 ReportOur 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 4, 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.


Page 7

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIQUIDITY SERVICES UK 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 non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Company, including obtaining details on how they identify and comply with laws and regulations and whether they were aware of any non-compliance, how they detect and respond to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and finally the controls they have in order to mitigate risks of fraud or non-compliance with laws and regulations.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, intentional misrepresentations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue and profit recognition.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to,  the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and enquiries with management.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 non-compliance 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 non-compliance. 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.


Page 8

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LIQUIDITY SERVICES UK 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 2006Our 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.





Simon Allenby FCA (Senior statutory auditor)
  
for and on behalf of
Clifford Fry and Co LLP (Statutory auditors)
 
St Mary's House
Netherhampton
Salisbury
Wiltshire
SP2 8PU

14 August 2024
Page 9

 
LIQUIDITY SERVICES UK LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
10,898
11,254

Cost of sales
  
(4,896)
(6,696)

Gross profit
  
6,002
4,558

Administrative expenses
  
(6,150)
(5,512)

Operating loss
 5 
(148)
(954)

Interest receivable and similar income
 9 
809
379

Interest payable and similar expenses
 10 
(887)
(441)

Loss before tax
  
(226)
(1,016)

Loss for the financial year
  
(226)
(1,016)

The notes on pages 15 to 37 form part of these financial statements.

Page 10

 
LIQUIDITY SERVICES UK LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£000
£000


Loss for the financial year

  

(226)
(1,016)

Other comprehensive income
  


Actuarial (loss)/gain on defined benefit schemes
  
(913)
1,919

Restriction of recognition of pension asset
  
1,021
(1,949)

Other comprehensive income for the year
  
108
(30)

Total comprehensive loss for the year
  
(118)
(1,046)

The notes on pages 15 to 37 form part of these financial statements.

Page 11

 
LIQUIDITY SERVICES UK LIMITED
REGISTERED NUMBER: 04092016

BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 13 
12
13

  
12
13

Current assets
  

Stocks
 15 
795
49

Debtors: amounts falling due within one year
 16 
4,547
4,084

Cash at bank and in hand
 17 
5,732
4,345

  
11,074
8,478

Creditors: amounts falling due within one year
 18 
(56,007)
(53,294)

Net current liabilities
  
 
 
(44,933)
 
 
(44,816)

Total assets less current liabilities
  
(44,921)
(44,803)

  

Net liabilities
  
(44,921)
(44,803)


Capital and reserves
  

Called up share capital 
 20 
1,010
1,010

Capital contribution reserve
 21 
1,309
1,309

Profit and loss account
 21 
(47,240)
(47,122)

  
(44,921)
(44,803)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 August 2024.




................................................
N Taylor
Director

The notes on pages 15 to 37 form part of these financial statements.

Page 12

 
LIQUIDITY SERVICES UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£000
£000
£000
£000

 
At 1 October 2021
1,010
1,309
(47,122)
(44,803)


Comprehensive loss for the year

Loss for the year

-
-
(226)
(226)

Actuarial gains on pension scheme
-
-
108
108


Other comprehensive loss for the year
-
-
108
108


Total comprehensive loss for the year
-
-
(118)
(118)


Total transactions with owners
-
-
-
-


At 30 September 2023
1,010
1,309
(47,240)
(44,921)


The notes on pages 15 to 37 form part of these financial statements.

Page 13

 
LIQUIDITY SERVICES UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022


Called up share capital
Other reserves
Profit and loss account
Total equity

£000
£000
£000
£000

 
At 1 October 2020
1,010
1,309
(46,076)
(43,757)


Comprehensive loss for the year

Loss for the year

-
-
(1,016)
(1,016)

Actuarial losses on pension scheme
-
-
(30)
(30)


Other comprehensive loss for the year
-
-
(30)
(30)


Total comprehensive loss for the year
-
-
(1,046)
(1,046)


Total transactions with owners
-
-
-
-


At 30 September 2022
1,010
1,309
(47,122)
(44,803)


The notes on pages 15 to 37 form part of these financial statements.

Page 14

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

Liquidity Services (UK) Limited is a private company limited by share capital, registered and incorporated and in England and Wales. The registered office is C/O Corporation Service Company (UK) Limited, 5 Churchill Place, 10th Floor, London, E14 5HU. The Company's principal place of business is 1 King William Street, London, EC4N 7AR. The principal activity of the Company throughout the year was that of industrial auctioneers, valuers and consultants. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Liquidity Services, Inc. as at 30 September 2021 and these financial statements may be obtained from 6931 Arlington Road Suite 200, Bethesda, Maryland, 20814, United States of America.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.

Page 15

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

To the extent necessary, the Company continues to have the financial support of its parent company, Liquidity Services, Inc. The parent company has the available financial resources to provide any necessary support and has provided a support letter expressing its intent to continue to provide any financial support required through 12 months from the issuance of the financial statements.
Based upon these considerations, the Directors continue to adopt the going concern basis in preparing the Annual report and Financial statements.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Page 16

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 17

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.10

Pensions

The Company operates two pension schemes:
Defined benefit pension plan
The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the estimated regular cost of providing the benefits accrued, adjusted to reflect variations from that cost. The interest and expected return on assets are included within interest payable net.
The scheme is funded with the assets held separately from the Company in separate trustee administered funds. A liability is recognised in the balance sheet in respect of the defined benefit scheme which represents the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. A full valuation of the liability is calculated by an independent actuary every three years and updated on an annual basis using the projected unit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have the terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in reserves in the year in which they arise. Past service costs are recognised immediately in income, unless the changes to the pension scheme are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case the past service costs are amortised on a straight-line basis over the vesting period.
A pension scheme asset is recognised on the balance sheet only to the extent that the surplus may be recovered by reduced future contributions or to the extent that the trustees have agreed a refund from the scheme at the balance sheet date. A pension liability is recognised to the extent that the Company has a legal or constructive obligation to settle the liability.

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 18

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.11

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 19

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
3 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 20

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

Cash and cash equivalents

Cash at bank and in hand includes deposits held at call with banks and monies held under guarantee.

The Company routinely collects cash from auction sales, the proceeds from which are ultimately payable to the client whose assets are being sold. Client money owing is reported within cash on the balance sheet with a corresponding liability reported as amounts due to clients within creditors. Client cash that is held together with the Company’s own cash is reported within cash at bank, but if for legal or other reasons it must be segregated from Company funds it is reported separately as client cash on escrow. Monies held under guarantee is cash held in an account to which the Company enjoys legal title, but there are restrictions over access.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 21

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.19

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 22

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are as follows:

Defined benefit scheme assumptions
The calculation of the defined benefit pension scheme asset/liability requires significant judgement in the adoption of various assumptions. Any movement in the assumptions could have a material impact on the financial statements.
Investment impairment
The Company considers whether investments in subsidiary undertakings are impaired. Where an indication of impairment is identified the estimation of recoverable value requires an assessment of the recoverable value of cash generating units (CGUs), which in turn requires assumptions to be made about future cash flows from the CGUs and the appropriate discount rates in order to calculate the net present value of those cash flows. This represented a critical judgement, but all investments have now been fully impaired. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Sale of goods
4,067
5,135

Services rendered
6,831
6,119

10,898
11,254


An analysis of turnover by geographical market is as follows:

2023
2022
£000
£000
UK

5,162

3,230
 
Other European Union

5,222

6,651
 
Middle East and Africa

493

923
 
North America

21

450
 
10,898

11,254
 

Page 23

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

5.


Operating loss

The operating loss is stated after charging:

2023
2022
£000
£000

Depreciation - tangible fixed assets
9
35

Exchange differences
129
(21)

Other operating lease rentals
-
240


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
23
20


7.


Employees

Staff costs, including Directors' remuneration, were as follows:


2023
2022
£000
£000

Wages and salaries
3,076
2,115

Social security costs
424
332

Cost of defined contribution scheme
134
87

3,634
2,534


The average monthly number of employees, including the Directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
30
30

Page 24

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

8.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
291
397

Company contributions to defined contribution pension schemes
17
16

308
413


During the year retirement benefits were accruing to 1 Director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £291 thousand (2022 - £397 thousand).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £17 thousand (2022 - £16 thousand).


9.


Interest receivable

2023
2022
£000
£000


Interest on pension scheme assets
798
379

Other interest receivable
11
-

809
379


10.


Interest payable and similar expenses

2023
2022
£000
£000


Interest payable to group undertakings
86
84

Interest on pension scheme liabilities
642
357

Interest expense on effect of asset ceiling
159
-

887
441

Page 25

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.


Taxation


2023
2022
£000
£000

Current tax


Deferred tax


Tax on loss
-
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% to 31 March 2023 and 25% from 1 April 2023 (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Loss on ordinary activities before tax
(226)
(1,017)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% to 31 March 2023 and 25% from 1 April 2023
(50)
(193)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2
3

Depreciation in excess of capital allowances
2
6

Non-taxable income
(2)
-

Unrelieved tax losses carried forward
48
188

Other differences leading to an increase (decrease) in the tax charge
-
(4)

Total tax charge for the year
-
-


Factors that may affect future tax charges

At Budget 2023, the government announced that the Corporation Tax main rate (for all profits except ring fence profits) for the years starting 1 April 2023 would increase to 25%.


Deferred tax

No deferred tax asset has been recognised in respect of trading losses as the directors cannot forsee with sufficient certainty the period over which these differences are expected to be utilised. 

Page 26

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

12.


Intangible assets



Software develop-ment

£000



Cost


At 1 October 2022
44



At 30 September 2023

44



Amortisation


At 1 October 2022
44



At 30 September 2023

44



Net book value



At 30 September 2023
-



Page 27

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Tangible fixed assets





Office and computer equipment

£000



Cost or valuation


At 1 October 2022
46


Additions
8


Disposals
(38)



At 30 September 2023

16



Depreciation


At 1 October 2022
33


Charge for the year on owned assets
9


Disposals
(38)



At 30 September 2023

4



Net book value



At 30 September 2023
12



At 30 September 2022
13


14.


Fixed asset investments





Investments in subsidiary companies

£000



Cost or valuation


At 1 October 2022
2,183



At 30 September 2023

2,183


At 1 October 2022
2,183



At 30 September 2023
-

Page 28

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Liquidity Services (Asia) Ltd
Room 1104 ChinaChem Leighton Plaza, 29 Leighton Road, Causeway Bay, Hong Kong.
Ordinary
100%
GoIndustry Dovebid Philippines Inc
Unit 6B, 6th Floor, 1100 Citibank-Frabelle Building, Madrigal Business Park, Alabang-Zapote Road, Muntinlupa City 1770, Philippines.
Ordinary
100%
Goindustry DoveBid (Shanghai) Co Ltd
Tower 1, Kerry Overbright City. No. 218 Tianmu Road West, Zhabei District, Shanghai 2000070, China.
Ordinary
100%
Liquidity Services (Hong Kong) Ltd
Room 1004, ChinaChem, Leighton Plaza, 29 Leighton Road, Causeway Bay, Hong Kong.
Ordinary
100%
Liquidity Services Global Solutions (Pty) Ltd
Suite 11, 30 English Street, Essendon Firelds, Victoria 3041, Australia.
Ordinary
100%
Liquidity Services (Shanghai) Trading Co., Ltd
Tower 1, Kerry Overbright City. No. 218 Tianmu Road West, Zhabei District, Shanghai 2000070, China.
Ordinary
100%


15.


Stocks

2023
2022
£000
£000

Finished goods and goods for resale
795
49

795
49


Page 29

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

16.


Debtors

2023
2022
£000
£000


Trade debtors
1,332
1,443

Amounts owed by group undertakings
1,661
1,548

Other debtors
1,132
555

Prepayments and accrued income
422
538

4,547
4,084



17.


Cash and cash equivalents

2023
2022
£000
£000

Own cash at bank and in hand
2,036
1,495

Monies held under guarantee
3,696
2,850

5,732
4,345


The Company has a limited guarantee given by Liquidity Services, Inc. for £150,000 dated 12 October 2016.


18.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Amounts due to clients
4,871
3,607

Trade creditors
106
70

Amounts owed to group undertakings
50,305
49,105

Other taxation and social security
-
98

Other creditors
82
-

Accruals and deferred income
643
414

56,007
53,294


Page 30

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

19.


Financial instruments

2023
2022
£000
£000

Financial assets


Financial assets measured at fair value through profit or loss
5,732
-




Financial assets measured at fair value through profit or loss comprise own cash at bank and in hand and monies held under guarantee.


20.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



100,999,960 (2022 - 100,999,960) Ordinary A shares of £0.01 each
1,010
1,010
6 (2022 - 6) Deferred B shares of £0.01 each
-
-
1,000 (2022 - 1,000) Deferred C shares of £0.01 each
-
-

1,010

1,010



21.


Reserves

Capital contribution reserve

Represents accumulated reserves prior to Company re-structuring.

Profit and loss account

Includes all current and prior period retained profits and losses. 

Page 31

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £134,215 (2022 - £87,093). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.



In addition to a defined contribution scheme the Company also maintains a defined benefit scheme, the Henry Butcher Pension and Life Assurance Scheme. This scheme is closed to new members and with effect from 31 December 2004, active members ceased to accrue benefits on a defined benefit basis and salary linkage was broken to their accrued rights. A new money purchase section was opened with effect from 1 January 2005 in which existing defined benefit members and new entrants were invited to join.
The scheme is fully funded. In April 2022 there was a change made to the Schedule of Contributions in order to facilitate the pension fund servicing its own administration costs. Liquidity Services UK Limited has made monthly contributions into the scheme totalling £240,000 (2022 - £120,000). Contributions totalling £120,000 (2022 - £120,000) were payable to the fund at the balance sheet date and are included in creditors.
The valuations have been based upon the most recent full valuation performed on 31 December 2018 as updated by the actuaries to reflect the projected scheme liabilities at 30 September 2023. Scheme assets have been presented at their market value at 30 September 2023.



Reconciliation of present value of plan liabilities:


2023
2022
£000
£000



At the beginning of the year
11,975
20,015

Loss on curtailments and settlements
-
76

Interest expense
642
357

Benefit payments from plan assets
(624)
(570)

Settlement payments from plan assets
-
(1,062)

Effect of changes in assumptions
(893)
(7,081)

Effect of experience adjustments
251
240

At the end of the year
11,351
11,975

Page 32

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
22.Pension commitments (continued)


Composition of plan liabilities:


2023
2022
£000
£000


Defined benefit obligation by active participant status
Vested deferreds
6,224
6,481

Retirees
5,127
5,494

Total plan liabilities
11,351
11,975



Reconciliation of fair value of plan assets:


2023
2022
£000
£000


At the beginning of the year
14,873
20,945

Interest income
798
379

Employer contributions
240
120

Benefit payments from plan assets
(624)
(570)

Settlement payments from plan assets
-
(1,062)

Administrative expenses paid from plan assets
(345)
(17)

Return on plan assets (excluding interest income)
(1,555)
(4,922)

At the end of the year
13,387
14,873


Composition of plan assets:


2023
2022
£000
£000


Cash and cash equivalents
50
39

Equity instruments
-
3,218

Debt instruments
11,982
7,603

Other
1,355
4,013

Total plan assets
13,387
14,873

Page 33

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
22.Pension commitments (continued)

The defined benefit asset is analysed below:


2023
2022
£000
£000


Fair value of plan assets
13,387
14,873

Present value of plan liabilities
(11,351)
(11,975)

Restricted under FRS102 from recognising an asset
(2,036)
(2,898)

Net pension scheme asset/(liability)
-
-

The Company has not recognised the pension scheme surplus as it has not been established whether the Company is able to recover the surplus either through reduced contributions in the future or through refunds from the plan.


The amounts recognised in profit or loss are as follows:

2023
2022
£000
£000


Losses on curtailments and settlements
-
76

Interest expense on defined benefit obligation
642
357

Group interest receivable
(798)
(379)

Interest expense on effect of asset ceiling
159
19

Administrative expenses paid from plan assets
345
17

Net cost
348
90


Actual return on scheme assets
(757)
(4,543)

(757)
(4,543)


The cumulative amount of actuarial losses recognised in the Statement of comprehensive income was £2,868,000 (2022 - £1,955,000).



The Company expects to contribute £240,000 to its defined benefit pension scheme in 2024.




Page 34

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
22.Pension commitments (continued)


Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023
2022
%
%
Discount rate


5.7

5.5
 
Rate of increase of deferred pension linked to RPI inflation


3.4

3.8
 
Rate of increase of deferred pension linked to CPI inflation


3.0

3.4
 
Expected rate of return on plan assets


4.82

6.45
 



 
Implied life expectancy at age 65:
 
- for a male aged 65 now


21.6

22.1
 
- at 65 for a male aged 45 now


22.8

23.4
 
- for a female aged 65 now


23.6

24.1
 
- at 65 for a female member aged 45 now


25.1

25.6
 

The expected rate of return on scheme assets is based on the Plan's current invetment strategy and a weighted average of the expected returns of the component asset classes, less a deduction of 1.79% p.a. for Plan expenses. 


Page 35

 
LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
 
22.Pension commitments (continued)

Demographic Assumptions
The assumptions regarding the actuarial tables for future mortality experience use S3PMA tables with a 98% loading for males and S3PFA_M tables with a 96% loading for females, CMI_2022 with a period smoothing factor of 7 and 1.25% p.a. long term rate (2022: S3PMA tables with a 101% loading for males and S3PFA_M tables with a 98% loading for females, CMI_2021 with a period smoothing factor of 7.5 and 1.25% p.a. long term rate).


Amounts for the current and previous three periods are as follows:


Defined benefit pension schemes

2023
2022
2021
2020
£000
£000
£000
£000
Defined benefit obligation

(11,351)

(11,975)

(20,015)
 
(20,164)
 
Scheme assets

13,387

14,873

20,945
 
20,725
 
Surplus
2,036

2,898

930
 
561
 

Effect of changes in assumptions
893
7,081
(113)
(1,396)
Effect of experience adjustments
(251)
(240)
473
(144)
Return on plan assets (excluding interest income)
(1,555)
(4,922)
-
-
Actuarial gain/(loss) on pension liability
(913)
1,919
360
(1,540)



23.


Commitments under operating leases

At 30 September 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000


Not later than 1 year
33
136

33
136


24.


Related party transactions

The Company has taken advantage of the exemption under FRS 8 "Related Party Transactions" not to disclose transactions with other group companies that are 100% owned by the ultimate parent undertaking.

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LIQUIDITY SERVICES UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

25.


Controlling party

The Company is a wholly owned subsidiary of Liquidity Services Limited, a company incorporated and registered in the United Kingdom. The registered office of Liquidity Services Limited is C/O Corporation Service Company (UK) Limited, 5 Churchill Place, 10th Floor, London, E14 5HU.
The ultimate parent undertaking is Liquidity Services Inc., a company registered in the United States of America. The address of the largest and smallest group in which the results of the Company are available from is 6931 Arlington Road Suite 200, Bethesda, Maryland, 20814, United States of America. 
The controlling party is W P Angrick III.
 
The Company is exempt from the requirement to prepare group financial statements by virtue of section 401 of the Companies Act 2006.

 
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