Company registration number 04024456 (England and Wales)
TIGERTURF (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TIGERTURF (UK) LIMITED
COMPANY INFORMATION
Directors
Mr G M Kendall
(Appointed 7 February 2024)
Mr J A Teekens
Mr D Hook
Company number
04024456
Registered office
229 Ikon
Droitwich Road
Hartlebury
DY10 4EU
Auditor
BK Plus Audit Limited
Azzurri House
Aldridge
Walsall
England
WS9 0RB
TIGERTURF (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 26
TIGERTURF (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

TigerTurf is UK’s premier artificial grass manufacturer with a passion for performance, producing industry-leading products for both the sports and landscape markets.

 

Made in Britain

TigerTurf UK have been proudly manufacturing artificial grass since 2000. Our products are manufactured in our factory in Kidderminster, UK, which has a rich history of carpet manufacturing. We are proud to be one of the very few companies that still manufacture carpets, of the artificial grass kind! Our UK-based production team ensures high quality throughout the manufacturing process and our sales team provides unrivalled customer service. 2023 production volumes totalled 1.258 million square meters (2022 – 1.015 million square meters).

 

Accreditations and Memberships

Over the past 23 years, we have gathered several accreditations and become members of sector-specific organisations. These include; FIH preferred supplier, SAPCA, ESTC, CHAS, ITF, Construction Line, ISO 14001 & ISO 9001.

 

The business's long-term objectives are:

In pursuing these objectives, the business intends to maintain sound financial management and avoid excessive risks.

Principal risks and uncertainties

 

The business seeks to manage, as far as possible, the key risks that it faces and has developed commercial strategies to mitigate each risk.

 

The business revenue portfolio is diversified by product and application in order to spread risk.

 

Having considered the above risks and uncertainties and with the ongoing support of TenCate Grass Holding B.V., the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

 

TIGERTURF (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key business strategies

TigerTurf is committed to designing, manufacturing, and supplying high quality performance sports and landscape products to the EMEA marketplace.

 

At the beginning of September 2021, the Company embarked on an expansion programme to increase production capacity with a plan to complete the first phase by the middle of 2022.

 

Specific sections of the programme relating to Tufter upgrades were completed in 2022, while the remaining sections of the programme relating to the Coating upgrades will be completed in 2024 (a 2nd hand coating line has been acquired from the Netherlands at the beginning of 2024).

 

The Company is currently exploring options for new business premises within the Kidderminster area.

 

As a result, in line with our investment program, TigerTurf has increased its manufacturing capacity further to match the growth expectation of the company in the coming years.

 

We continue to review our products within their product cycles and have already started development of new products to replace older models, whilst engaging clients directly to build a needs matrix for focussing the new product development process.

 

We remain focused on markets which can offer volume whilst enabling us to maintain a healthy margin, commoditised segments are avoided, unless they represent a tactical benefit or strategic goal.

 

We have focused on building the right internal and external team to deliver industry leading service and expertise and are committed to ensuring that we continue to raise the industry benchmark.

 

We are now heavily focused on upcycled products such as Ecocept and are busy promoting our environmentally friendly position which is unique in the grass industry. New products such as Pure EP (100% water-free) and Pure PT (100% non-infill) will reduce our impact on the environment.

 

We work closely with the TenCate Group team to continue to develop marketing leading products in the every changing turf business.

 

Our strategy is constantly reviewed by the Management Team in the light of the company's performance and changing market conditions to ensure it remains appropriate to achieve the grass group's objectives.

 

Key performance indicators

The company uses several financial measures to monitor progress against strategies and corporate objectives. These include monitoring turnover, operating margin and net capital employed. See page 8.

 

In addition to financial measures, the director's also monitor the business's operations with the objective of ensuring that health and safety is at the core of all working practices. In measuring the success of this, the director's review the level of reported incidents and monitors the training being undertaken by all relevant employees.

 

The Company continues to retain accreditation to ISO EN 9001, 14001 & 45001 standards, with the next phase of development to integrate all 3 standards into a unified management system.

 

In being responsible to all stakeholders, the Company has implemented corrective measures to stabilize the business and manage liquidity through managing working capital, postponing / terminating capital expenditures and several operational expense savings.

TIGERTURF (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future prospects

In June 2022, the Company commenced a programme to re-set the business, which involved a change in Senior Management and has since moved on to a complete review of activities in all areas of the operation.

    

This was in place by the end of 2022, with the last remaining change in the Finance Director taking place in February 2023. The new Senior Management team guided the Company successfully through the remainder of 2023. The directors are confident that the business's strategy will deliver results that meet our shareholders' expectations in the years to come.

On behalf of the board

Mr G M Kendall
Director
30 August 2024
TIGERTURF (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company continued to be that of manufacturing & supplying artificial & synthetic turf

Results and dividends

The results for the year are set out on page 10.

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

Directors

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

 

Mr G M Kendall
(Appointed 7 February 2024)
Mr J A Teekens
Mr D Hook
Financial instruments

The company utilises various financial instruments including loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the Strategic Report.

Research and development

The company has maintained its commitment to ongoing research and development, which is essential for future growth. The company has continued to create new products and a number of these were launched for sale during the period.

 

The company works in close cooperation with the Group R&D team, identifying specific needs in the market and then developing the required products to satisfy the market needs.

Future developments

The directors are confident that the business's strategy will deliver results that meet our shareholders' expectations in the years to come.

 

With the changes made in the Management team during 2022 and 2023, the company has experienced and knowledgeable staff in key leadership roles to guide it successfully into the future.

Statement of disclosure to auditor

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.

TIGERTURF (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Going concern

Notwithstanding a loss for the year ended 31 December 2023 of £423,954, the financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

 

TenCate Grass Holding B.V. (who have a common director with the company) has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intend to seek repayment of the amounts due at the balance sheet date.

 

The directors acknowledge that financial support has been provided in 2023 when required and have no reason to think that this will change going forward.

 

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

On behalf of the board
Mr G M Kendall
Director
30 August 2024
TIGERTURF (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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:

 

 

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.

TIGERTURF (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIGERTURF (UK) LIMITED
- 7 -
Opinion

We have audited the financial statements of Tigerturf (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:

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:

TIGERTURF (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TIGERTURF (UK) LIMITED
- 8 -
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:

Responsibilities of directors

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.

Auditor's 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The auditor’s assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur.

Which laws and regulations the auditor identified as being of significance in the context of the entity.

The auditor’s explanation of its audit response will depend on the risks identified but may include:

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing internal audit reports.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

 

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.

TIGERTURF (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TIGERTURF (UK) LIMITED
- 9 -

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.

Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
30 August 2024
Chartered Certified Accountant
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
TIGERTURF (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
26,396,069
20,113,622
Cost of sales
(22,662,007)
(18,537,330)
Gross profit
3,734,062
1,576,292
Administrative expenses
(2,979,960)
(8,592,000)
Operating profit/(loss)
5
754,102
(7,015,708)
Interest payable and similar expenses
8
(970,863)
(513,554)
Loss before taxation
(216,761)
(7,529,262)
Tax on loss
9
(207,193)
-
0
Loss for the financial year
(423,954)
(7,529,262)

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

TIGERTURF (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Loss for the year
(423,954)
(7,529,262)
Other comprehensive income
-
-
Total comprehensive income for the year
(423,954)
(7,529,262)
TIGERTURF (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
162,492
150,247
Tangible assets
11
1,218,953
1,326,932
1,381,445
1,477,179
Current assets
Stocks
12
6,219,573
6,039,036
Debtors
13
2,681,118
3,256,966
Cash at bank and in hand
2,445,901
497,521
11,346,592
9,793,523
Creditors: amounts falling due within one year
14
(5,453,314)
(4,666,356)
Net current assets
5,893,278
5,127,167
Total assets less current liabilities
7,274,723
6,604,346
Creditors: amounts falling due after more than one year
15
(13,099,962)
(10,643,061)
Provisions for liabilities
Provisions
16
2,086,533
3,656,296
Deferred tax liability
17
263,735
56,542
(2,350,268)
(3,712,838)
Net liabilities
(8,175,507)
(7,751,553)
Capital and reserves
Called up share capital
19
60,001
60,001
Share premium account
10,590,000
10,590,000
Profit and loss reserves
(18,825,508)
(18,401,554)
Total equity
(8,175,507)
(7,751,553)
The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
Mr G M Kendall
Director
Company registration number 04024456 (England and Wales)
TIGERTURF (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
60,001
10,590,000
(10,872,292)
(222,291)
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(7,529,262)
(7,529,262)
Balance at 31 December 2022
60,001
10,590,000
(18,401,554)
(7,751,553)
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(423,954)
(423,954)
Balance at 31 December 2023
60,001
10,590,000
(18,825,508)
(8,175,507)
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Tigerturf (Uk) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 229 Ikon, Droitwich Road, Hartlebury, Worcestershire, DY10 4EU.

1.1
Accounting convention

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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:

 

 

As the consolidated financial statements of Tennessee Acquisition Holding BV include the disclosures equivalent to those required by FRS 102, the company has also taken the exemptions available in respect of the above disclosures

1.2
Going concern

Atruet 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 financial statements.

1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

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.

1.5
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Development costs
Amortised evenly over their estimated useful life of four years
1.6
Tangible fixed assets

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

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

Plant and equipment
10-33% on cost

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.

1.7
Impairment of fixed assets

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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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 (or cash-generating unit) 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 (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

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

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

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

1.11
Equity instruments

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.

1.12
Taxation

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

Current 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

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.

1.13
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.14
Employee benefits

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 to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

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.

Stock

It is the company policy to make a provision against stock for any stock lines which are considered slow moving or which may not be used going forward and which may therefore realise less than their full cost. The provision is to reduce the value of stock to its estimated net realisable value.

Warranty Provisions

The provisions are in relation to quality issues as a result of production problems experienced in the past which caused premature wear of the carpet in high usage areas.

 

 

Transfer Pricing

Transfer pricing has been reviewed to minimise the impact on the business where tests have been undertaken by comparing the testing party with a benchmark and if the tested party is not within the bracket of the benchmark, the adjustments have been made accordingly.

TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Contract revenue
12,990,329
7,356,818
Artificial Turf
13,405,740
12,756,804
26,396,069
20,113,622
2023
2022
£
£
Turnover analysed by geographical market
UK
22,677,901
13,173,383
Europe
3,350,618
2,994,855
Rest of the world
367,550
3,945,384
26,396,069
20,113,622
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - Legacy Provision
-
4,742,000

The exceptional item is in relation to a provision created for quality issues as a result of production problems experienced in the past which caused premature wear of the carpet in high usage areas.

5
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(84,973)
165,906
Research and development costs
139,009
217,512
Fees payable to the company's auditor for the audit of the company's financial statements
32,658
26,450
Depreciation of owned tangible fixed assets
243,539
122,804
(Profit)/loss on disposal of tangible fixed assets
-
5,215
Amortisation of intangible assets
50,747
56,708
Operating lease charges
118,246
275,406
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
6
Employees

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

2023
2022
Number
Number
Sales, Marketing and Customer Service
11
13
Operations
43
39
Administration
3
6
Total
57
58

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,468,211
2,227,524
Social security costs
176,212
193,424
Pension costs
85,347
90,171
1,729,770
2,511,119
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
126,276
239,899
Company pension contributions to defined contribution schemes
11,728
20,474
138,004
260,373
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
169,570
Company pension contributions to defined contribution schemes
n/a
13,960
8
Interest payable and similar expenses
2023
2022
£
£
Other interest
970,863
513,554
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
207,193
-
0

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

2023
2022
£
£
Loss before taxation
(216,761)
(7,529,262)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(41,185)
(1,430,560)
Tax effect of expenses that are not deductible in determining taxable profit
56,132
-
0
Tax effect of income not taxable in determining taxable profit
(1,308)
-
0
Unutilised tax losses carried forward
-
0
1,430,560
Permanent capital allowances in excess of depreciation
(31,069)
-
0
Deferred tax
224,623
-
0
Taxation charge for the year
207,193
-
10
Intangible fixed assets
Development costs
£
Cost
At 1 January 2023
414,585
Additions
62,992
At 31 December 2023
477,577
Amortisation and impairment
At 1 January 2023
264,338
Amortisation charged for the year
50,747
At 31 December 2023
315,085
Carrying amount
At 31 December 2023
162,492
At 31 December 2022
150,247
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Tangible fixed assets
Plant and equipment
£
Cost
At 1 January 2023
3,358,720
Additions
135,560
At 31 December 2023
3,494,280
Depreciation and impairment
At 1 January 2023
2,031,788
Depreciation charged in the year
243,539
At 31 December 2023
2,275,327
Carrying amount
At 31 December 2023
1,218,953
At 31 December 2022
1,326,932
12
Stocks
2023
2022
£
£
Raw materials and consumables
3,842,750
4,254,905
Work in progress
47,468
46,040
Finished goods and goods for resale
2,329,355
1,738,091
6,219,573
6,039,036
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,945,181
2,205,118
Amounts owed by group undertakings
256,185
330,381
Prepayments and accrued income
479,752
721,467
2,681,118
3,256,966
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,707,370
801,968
Amounts owed to group undertakings
2,292,995
2,330,560
Taxation and social security
996,181
717,272
Other creditors
-
0
34
Accruals and deferred income
456,768
816,522
5,453,314
4,666,356
15
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
13,099,962
10,643,061

Loan is owed to TenCate Grass Group B.V and repayment will not be demanded until such time as the company is in a position to make repayment. Interest is charged at 8.5% per annum. Tencate Grass will also continue to provide financial support to Tigerturf to enable it to pay its debts as they fall.

16
Provisions for liabilities
2023
2022
£
£
Legacy provision
1,968,240
3,656,296
Warranty provision
118,293
-
2,086,533
3,656,296
Movements on provisions:
Legacy provision
Warranty provision
Total
£
£
£
At 1 January 2023
3,656,296
-
3,656,296
Additional provisions in the year
-
118,293
118,293
Utilisation of provision
(1,688,056)
-
(1,688,056)
At 31 December 2023
1,968,240
118,293
2,086,533
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
263,735
56,542
2023
Movements in the year:
£
Liability at 1 January 2023
56,542
Charge to profit or loss
207,193
Liability at 31 December 2023
263,735
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
85,347
90,171

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
600,011
600,011
60,001
60,001
20
Operating lease commitments
Lessee

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:

2023
2022
£
£
Within one year
276,160
337,423
Between two and five years
260,193
976,325
536,353
1,313,748
TIGERTURF (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
21
Related party transactions
2023
2022
Amounts due to related parties
£
£
Amount due to parent company
13,099,962
10,643,061
Amount due to fellow group
2,292,995
2,330,560

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Amount due to fellow group
256,185
330,381
22
Ultimate controlling party

The ultimate controlling party at the year end is deemed to be Leonard Green & Partners to Acquire TenCate Grass from Crestview Partners - TenCate.The registered office is 11111 Santa Monica Boulevard, Suite 2000, Los Angeles, CA 90025

 

 

The largest group in which the results of the company are consolidated is that headed by TCG Group BV, incorporated in the Netherlands. The consolidated financial statements of the group are available to the public and may be obtained from the Dutch Chamber of Commerce

 

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