The directors present the strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company was the manufacture and sale of woven synthetic forming fabrics for paper machines. All sales are made to group companies.

Heimbach UK became a wholly owned subsidiary of Heimbach GmbH in 1998. Prior to this it existed as CH Johnson Ltd and in total has been trading for over 225 years. It is a manufacturing and development organisation making forming fabrics for the paper industry. In August 2023 Heimbach group was acquired by Albany International, Albany International is already known as the leading producer of custom-designed, consumable fabrics and process belts essential for the manufacture of all grades of paper products. Adding Heimbach increases complementary technology, broadens geographic footprint, and reinforces global leadership position.

The company is located in south Manchester with excellent access to the motorway network and Manchester international airport. It has been located at the same site since 1950. Sales of its products are direct to other group companies with the bulk of production being exported either to Europe or the rest of the world.

The site is the Centre of Excellence for Heimbach group forming fabrics. The Centre of Excellence being responsible for all forming development and driving quality initiatives and improvements across the forming business. With no direct sales force the orders are received direct from other group companies.

We concentrate on our core business of making forming fabrics for paper machines. The primoselect designs continue to gather pace and now clothe many reference positions worldwide. Our lean manufacturing concept continues to provide opportunities to improve operational efficiencies and equipment reliability. Overall, the business is in a stable position and continues to deliver excellent final financial results.

The company is reporting a profit for the financial year of £1,231,439 (2022: £839,443).

The financial position of the company remains strong at the current year end with net assets excluding pension liabilities of £8,408,546 (2022: £7,617,107).

Key Performance Indicators

During the year, the major key performance indicators used were:

2023 has seen the worldwide demand for paper machine clothing fall slightly as the industry adjusts to the post Covid-19 pandemic situation. We see this as a temporary adjustment and expect the industry will return to normal levels during 2024. We also expect further opportunities to develop on the back of environmental and sustainability demands. We pride ourselves on our ability to supply most paper grades on a global front.

Whilst energy costs have risen significantly, the company has energy contracts in place protecting against the current turbulent market prices and is working hard on implementing energy reduction measures.

The directors have considered the company's financial position and believe the company is in a strong financial position, achieving profits of £1.2m during the year with over £0.9m of cash and £8.4m of total capital and reserves, and no external financing, as at 31 December 2023.

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

Exchange rates are naturally hedged via currency bank accounts, as a small amount of income is received in Euros and used to offset raw material purchases. All turnover is received in Sterling.

All turnover is generated from fellow organisations within Heimbach group therefore our credit risk is minimal.

We operate a defined benefit pension scheme which closed to future accrual and new members in 2001. As the scheme approaches maturity, we will be working closely with the Trustees and advisors to fine tune the schemes strategy to reach buy-out. The significant risks with regards to the defined benefit pension scheme are considered to be interest rates, inflation and mortality. The short-term market volatility has impacted valuations, however on a more midterm view we are comfortable with the Trustee's investment strategy hedging against interest rate and inflation risk.

The company distributes fully reconciled management accounts on a monthly basis to its parent company, Heimbach GmbH.

There have been no significant developments since the year end. Focus for the current year will continue to be placed on the manufacture and innovation of forming fabrics.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2023.

The principal activity of the company was the manufacture and sale of woven synthetic forming fabrics for paper machines. All sales are made to group companies.

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The ultimate holding company maintains insurance for the directors in respect of their duties as directors of the company.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of financial risk management objectives and policies and future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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). 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;

• 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.

We have audited the financial statements of Heimbach UK Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 31 December 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• 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.

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 remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, 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.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

• Enquiries with management, including directors, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the defined benefit pension liability and stock provisions;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; and

• Reviewing board minutes.

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Heimbach UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bradnor Road, Wythenshawe, Manchester, M22 4TS.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention, modified to include the exemption to use the previous valuation of the leasehold land and buildings as deemed cost upon transition to FRS 102 and also to include the defined benefit pension liability which is stated as detailed in accounting policy 1.14. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of its ultimate parent undertaking, Albany International Corporation Inc (AIC Inc.), a company incorporated in the USA. The consolidated financial statements of AIC Inc. are available to the public and may be obtained from 216 Airport Dr, Rochester, NH 03867, USA.

The directors have considered the company's financial position and believe the company is in a strong financial position, achieving profits of £1.2m during the year with over £0.9m of cash and £8.4m of total capital and reserves, and no external financing, as at 31 December 2023.true

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

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

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

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.

Other operating income is recognised when the services have been provided to fellow group companies and the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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

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

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

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Assets under construction are held on the balance sheet at cost and are not depreciated until the point when the asset is available for use.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the standard cost principle and includes expenditure incurred in acquiring the stock, production or conversion costs and other costs in bringing them to their present location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.

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

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

The company does not have any non basic financial instruments.

Financial assets are assessed for indicators of impairment at each reporting end date.

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

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

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

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

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The company does not have any non basic financial instruments.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expenses if the company has made any offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be measured reliably. If benefits are payable more than twelve months after the reporting date, then they are discounted to their present value.

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal of constructive obligation to pay further amounts. Payments to defined contribution retirement benefit schemes are charged as an expense to the profit and loss account as they fall due.

Defined benefit plans

Employees were entitled to become members of the UK company pension scheme which provides benefits based on final pensionable pay. The assets of the scheme are held separately from those of the company. On 1 December 2001, the UK group took the decision to cease future service benefit accrual under the plan and the Trustees will continue to run it on a closed basis.

As the scheme is closed to benefit accruals there was no current service cost charged to the profit and loss account in the year, in respect of the defined benefit scheme.

The cost of plan introductions, benefit changes, past service costs, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The useful economic life of tangible fixed assets is judged at the point of purchase. For long leasehold land and buildings, this has been reassessed at each revaluation.

As standard, a useful economic life of 50 years is applied to long leasehold land and buildings and between 3 and 20 years for plant, equipment and vehicles.

At each balance sheet date, management undertake an assessment of the carrying amounts of its tangible fixed assets based upon their knowledge of the assets to determine whether there is any indication that the assets have suffered an impairment loss. Where necessary, an impairment is recorded as an impairment loss.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

In order to adhere to the criteria of FRS 102, Section 28 'Employee benefits', the company uses the services of an independent external actuary to deliver the calculation of the defined benefit scheme deficit as at the reporting date.

The valuation is dependant upon, and highly sensitive to, a number of key actuarial assumptions including the life expectancy, discount rate, price inflation rate, and deferred pension increase rate. Further details of the actuarial assumptions used in respect of the 2023 valuation are provided in note 17.

At each balance sheet date, management undertake an assessment of the value at which stock items are held within the accounts.

Using the costs incurred against the stock items and the orders outstanding, an estimation is made by management as to whether the value of the stock is impaired and if a provision is required.

No analysis of turnover by geographical market has been presented as the directors feel this would be prejudicial to the interests of the company. Other operating income represents amounts charged to fellow group companies for support services, together with a Research and Development Expenditure Credit (RDEC).

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

Their aggregate remuneration comprised:

During the year, retirement benefits accrued under defined contribution schemes to 2 directors. Owing to the resignation of 1 of the directors, at the year end, the number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 2).

During the year, retirement benefits accrued under defined benefit schemes to 1 director. Owing to the resignation of this director, at the year end, the number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 0 (2022 - 1).

Adjustments in respect of prior periods

The adjustment in respect of prior periods of £446,086 represents a cross-border tax settlement relating to the period between 2009 and 2013. As at the balance sheet date, the amount of this receivable had been agreed between the relevant tax authorities, but had not yet been received. This is included within the corporation tax recoverable of £331,337.

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount (credited)/charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Factors affecting future tax and charges

The headline rate of corporation tax increased to 25% from 1 April 2023, this policy was substantively enacted on 25 May 2021 and therefore deferred tax has been provided for at 25% (2022: 25%).

Upon transition to FRS 102 the company took advantage of the exemption to use the 2011 revaluation of the leasehold land and buildings as deemed cost under section 35.10 (d).

The 2011 revaluation was performed by Mr J Thornborrow, MRICS, IRRV, of Joe Thornborrow Limited. The fair value at that date was calculated to be £1,750,000 which was made in accordance with the Appraisal and Valuation manual published by the Royal Institute of Chartered Surveyors.

If revalued long leasehold land and buildings were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been cost of £575,528 (2022: £575,528) and accumulated depreciation of £575,528 (2022: £575,528), giving a carrying value of £nil (2022: £nil).

Included in amounts owed by group undertakings is an unsecured loan totalling £2,256,932 (2022: £2,310,798). Either party may terminate the loan by giving six weeks written notice. The principal and accrued interest must then be repaid within ten weeks following the termination notice. Interest is charged on the amounts outstanding during the year at 0.5% above EURIBOR at the date the loan was taken out.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

It is impractical to estimate the movement of the deferred tax asset relating to retirement obligations in the twelve months following the balance sheet date, due to the estimation uncertainty over the related obligations, which can only be assessed following the next balance sheet date. Furthermore as at the signing date of these financial statements, as the company has not finalised its capital expenditure programme for 2024, an assessment as to the likely movement of other related timing differences cannot be made.

The company operates a defined contribution pension scheme for the benefit of the directors and employees meeting a certain criteria. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included within creditors at 31 December 2023 were outstanding contributions of £45,085 (2022: £40,723).    

The company also operates a defined benefit scheme for qualifying employees providing benefits based on final pensionable pay. With effect from 1 December 2001, the company took the decision to cease future benefit accrual under the scheme and, for the time being, the Trustees continue to run the scheme on a closed basis. The assets of the scheme are held separately from those of the company and are invested in managed funds.

The pension scheme is currently showing a funding surplus, with a funding level as at 5 April 2023 of 114% on the technical provisions basis.

The most recent valuation was carried out as at 5 April 2023 using the aggregate funding method for the on-going valuation, and was updated for FRS 102 purposes as at 31 December 2023 by a qualified independent actuary.

The assumptions below are based on market conditions as at 30 November 2023. The directors have considered changes in the underlying assumptions during the intervening period and concluded that given the unrecognised asset surplus, it is not considered material to update the assumptions at 31 December 2023.

Assumed life expectations on retirement at age 65:

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme. It is unclear whether the company has an unconditional right to a refund and therefore no surplus has been recognised within these financial statements.

The actual return on plan assets was £57,000 (2022 - £5,393,000).

The holders of the ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.

In June 2016 the company executed a debenture in favour of the trustees of the C.H.Johnson Pension Plan, of which the company is the principal employer. The debenture charges the property, undertakings and assets of the company, which is limited to the lesser of the sum of £3,500,000 or two thirds of the net assets of the company. The debenture comprises a fixed and floating charge over all property vested within the company present and future, including all property, goodwill, book debts, buildings, fixtures, fittings, plant and machinery.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company is party to a long leasehold agreement in respect of land and buildings. Annual rent of £758 is charged under the agreement which has a remaining lease term of 917 years. This commitment is included within the above table.

Amounts contracted for but not provided in the financial statements:

The company has taken advantage of the exemption conferred by Section 33 FRS102, namely from disclosing any transactions entered into between two or more members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

During the year the company entered into the following transactions with related parties:

See note 19 for details of the debenture provided to the trustees of the C.H.Johnson Pension Plan, of which the company is the principal employer.

The immediate parent company of Heimbach UK Limited is Heimbach GmbH, a company incorporated in Germany.

Heimbach UK Limited's ultimate parent company is Albany International Corporation Inc (AIC Inc), a company incorporated in United States of America.

The largest and smallest group in which the results of the company are consolidated is that headed by Albany International Corporation Inc (AIC Inc.). The consolidated financial statements of AIC Inc. are available to the public and may be obtained from 216 Airport Dr, Rochester, NH 03867, USA.