Company registration number 02290856 (England and Wales)
PSM INTERNATIONAL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PSM INTERNATIONAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
L C Brown
L A Jonsson
S Lee
A M Akerblad
Company number
02290856
Registered office
25 Bloom Lane
Scunthorpe
DN15 9AJ
Auditor
BHP LLP
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
PSM INTERNATIONAL HOLDINGS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 18
PSM INTERNATIONAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
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 a holding company.
Results and dividends
The results for the year are set out on page 6.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L C Brown
L A Jonsson
S Lee
A M Akerblad
A M Nyström
(Resigned 9 February 2024)
Auditor
BHP LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
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.
PSM INTERNATIONAL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
On behalf of the board
L A Jonsson
Director
16 September 2024
PSM INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PSM INTERNATIONAL HOLDINGS LIMITED
- 3 -
Opinion
We have audited the financial statements of PSM International Holdings Limited (the 'company') for the year ended 31 December 2023 which comprise 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.
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.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
PSM INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PSM INTERNATIONAL HOLDINGS LIMITED (CONTINUED)
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.
We focused on laws and regulations relevant to the company which could give rise to a material misstatement in the financial statements. our testing included discussions with management, directors and those staff with direct responsibility for the compliance with laws and regulations, agreeing financial statement disclosures to underlying supporting documentation, and reviewing legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
PSM INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PSM INTERNATIONAL HOLDINGS LIMITED (CONTINUED)
- 5 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Chris Neale
Senior Statutory Auditor
For and on behalf of BHP LLP
19 September 2024
Chartered Accountants
Statutory Auditor
Mayesbrook House
Lawnswood Business Park
Redvers Close
Leeds
LS16 6QY
PSM INTERNATIONAL HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£000
£000
Administrative expenses
55
113
Operating profit
3
55
113
Interest receivable and similar income
6
8,229
8,528
Impairment of intercompany debtors
1,853
(322)
Profit before taxation
10,137
8,319
Tax on profit
7
(440)
(411)
Profit for the financial year
9,697
7,908
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PSM INTERNATIONAL HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Investments
9
15,327
17,327
Current assets
Debtors falling due after more than one year
12
1,180
1,244
Debtors falling due within one year
12
1,881
Cash at bank and in hand
1,124
1,487
4,185
2,731
Creditors: amounts falling due within one year
13
(5,918)
(5,941)
Net current liabilities
(1,733)
(3,210)
Net assets
13,594
14,117
Capital and reserves
Called up share capital
14
Profit and loss reserves
13,594
14,117
Total equity
13,594
14,117
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
L A Jonsson
Director
Company registration number 02290856 (England and Wales)
PSM INTERNATIONAL HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£000
£000
£000
Balance at 1 January 2022
13,622
13,622
Year ended 31 December 2022:
Profit and total comprehensive income
-
7,908
7,908
Dividends
8
-
(7,413)
(7,413)
Balance at 31 December 2022
14,117
14,117
Year ended 31 December 2023:
Profit and total comprehensive income
-
9,697
9,697
Dividends
8
-
(10,220)
(10,220)
Balance at 31 December 2023
13,594
13,594
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information
PSM International Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 25 Bloom Lane, Scunthorpe, DN15 9AJ.
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 £000.
The financial statements have been prepared under the historical cost convention. 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 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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Bulten AB. These consolidated financial statements are available from its registered office, Box 9148, Gothenburg, Sweden, SE-400 93.
The company is a wholly-owned subsidiary of Bulten AB and is included in the consolidated financial statements of Bulten AB which are publicly available. Consequently, the company has taken advantage of section 401 of the Companies Act 2006 not to prepare consolidated financial statements.
1.2
Going concern
The financial statements have been prepared on the going concern basis notwithstanding the net current liabilities of £1,733,000 which the directors believe to be appropriate for the following reasons. The company's parent undertaking, Bulten AB, has indicated that for at least twelve months from the date of approval of these financial statements, it will not seek repayment of the amounts currently made available. The directors consider that this should enable the company to continue in operational existence for the foreseeable future. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.true
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.3
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.4
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.
1.5
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.
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
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.
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
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.
1.7
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.
1.8
Foreign exchange
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.
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.
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 13 -
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.
Carrying value of investments
The company considers whether investments are impaired. Where an indication of impairment is identified the estimation of recoverable values requires estimation of the recoverable value of the cash generating units (CGUs). Significant assumptions in the financial plans include sales growth, productivity developments and operating margins. These assumptions are determined based on published statistics for the development of the automotive industry, customers' model strategies and their long-term delivery plans as well as the executive management's assessment of the development of group margins.
The forecasts reflect historical levels, adjusted for expected growth and changes to customer contracts. Cash flows beyond a three year period are extrapolated using an estimated growth rate resulting from assumed inflation of 2.0%. The forecasted cash flow has been calculated in present value with a discount rate after tax of 10.1%. The discount rate has been determined by calculating a weighted cost of group own and borrowed capital.
The estimated recoverable amount of the investments exceed the book value, which is why no impairment requirement has been identified. Alternative calculations have been made by changing the assumptions concerning the required return on equity, growth rate and sustainable operating margin. A change in these individual assumptions of two percentage points wold not result in any impairment requirement to the investments.
Impairment of intercompany debtors
The company makes an estimate of the recoverable value of intercompany debtors. When assessing the impairment of intercompany debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
3
Operating profit
2023
2022
Operating profit for the year is stated after (crediting):
£000
£000
Exchange gains
(92)
(149)
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
9
14
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
5
5
No salaries or wages have been paid to employees (2020 - £nil), including the directors. It is not possible to make an accurate apportionment of their remuneration in respect to this company.
6
Interest receivable and similar income
2023
2022
£000
£000
Interest income
Interest receivable from group companies
32
38
Income from fixed asset investments
Income from shares in group undertakings
8,100
8,278
Income from participating interests - joint ventures
97
212
Total income
8,229
8,528
7
Taxation
2023
2022
£000
£000
Current tax
Foreign current tax on profits for the current period
440
411
The actual 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:
2023
2022
£000
£000
Profit before taxation
10,137
8,319
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
2,384
1,581
Tax effect of expenses that are not deductible in determining taxable profit
60
Tax effect of income not taxable in determining taxable profit
(2,364)
(1,613)
Change in unrecognised deferred tax assets
(20)
(25)
Witholding tax expensed
(3)
Witholding tax
440
411
Taxation charge for the year
440
411
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 15 -
The company has tax losses of £755,293 (2022 - £840,225) that are available indefinitely for offset against future taxable profits of the company. Deferred tax assets have not been recognised in respect of these losses as there is uncertainty over whether suitable profits will arise in future periods against which the deferred tax asset would reverse.
8
Dividends
2023
2022
£000
£000
Final paid
10,220
7,413
9
Fixed asset investments
2023
2022
Notes
£000
£000
Investments in subsidiaries
10
14,407
16,407
Investments in joint ventures
11
920
920
15,327
17,327
Movements in fixed asset investments
Shares in subsidiaries and joint ventures
£000
Cost or valuation
At 1 January 2023
17,327
Disposals
(2,000)
At 31 December 2023
15,327
Carrying amount
At 31 December 2023
15,327
At 31 December 2022
17,327
PSM Fasteners Corporation was acquired from PSM International Holdings Limited to Bulten Fasteners AB in May 2023 via a dividend in specie at net book value.
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
PSM Fasteners International BV
1
Ordinary
100.00
Bulten Fasteners (Wuxi) Co Ltd
2
Ordinary
100.00
Bulten Taiwan Fasteners Ltd
3
Ordinary
100.00
Bulten Fasteners (Singapore) PTE Ltd
4
Ordinary
100.00
Bulten Fasteners (Hong Kong) Limited
5
Ordinary
100.00
PSM-ZJK Fasteners (Shenzhen) Co., Ltd
6
Ordinary
51.00
Registered office addresses (all UK unless otherwise indicated):
1
Verrijin Stuartweg 103, NL-1112AW, Diemen
2
Plainvim International (Wuxi) Industrial Park, No.30 WanQuan Road, Xishan District, Wuxi, Jiangsu Province, China
3
No 17, Lane 180 Nanyang St, Shljr City, Talpei, Taiwan R.O.C
4
2 Ang Mo Kio Street 64, 02-01, Econ Industrial Building, Singapore 569084
5
Room 1601, 16/F, Chow Tai Fook Centre, No. 580 A-F Nathan Road, Mong Kok, Kowloon, Hong Kong
6
Whole Floor of 201, Building B, No.8 Jingqiang Road, Xiuxin Community, Kengzi Sub-district, Shenzhen
11
Joint ventures
Details of the company's joint ventures at 31 December 2023 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Japan PSM Company Ltd
8-10 Denenchofu-Minami, Ohta, Tokyo, 145-0076 Japan
Ordinary
50.00
PSM Fasteners AB
P O Box 550, 175, 26 Jarfalla, Sweden
Ordinary
50.00
PSM Celada Fasteners
Via Porpora 24, Milano, Italy 20131
Ordinary
50.00
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
12
Debtors
2023
2022
Amounts falling due within one year:
£000
£000
Amounts owed by group undertakings
1,881
2023
2022
Amounts falling due after more than one year:
£000
£000
Amounts owed by group undertakings
1,180
1,244
Total debtors
3,061
1,244
Amounts owed by group undertakings due within one year are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Amounts owed by group undertakings due after more than one year attracts interest at a rate of 2.616% per annum and is repayable on 25 October 2025.
There are £860,000 provisions for impairment (2022 - £2,713,000).
13
Creditors: amounts falling due within one year
2023
2022
£000
£000
Amounts owed to group undertakings
5,823
5,845
Accruals and deferred income
95
96
5,918
5,941
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000
£000
Ordinary shares of £1 each
2
2
-
-
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
15
Events after the reporting date
On 7th December 2022, the Bulten Group announced the decision to close down the plant located in Pembroke, UK. As a result of this decision the accounts receivable of £2,390,757 were fully impaired and written down to £nil. At the year ended 31 December 2023, the management reversed £1,853,000 of the impairment of the accounts receivable, being the best estimate at the year end date of the amount to be recovered through the liquidation process. Post year end, the company received £2,070,000 from the liquidators. The difference of £217,000 has not been adjusted in these financial statements as this is considered to be a non-adjusting post balance sheet event.
PSM INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
16
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Dividends received
2023
2022
£000
£000
Entities over which the entity has control, joint control or significant influence
97
212
The company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the group.
17
Ultimate controlling party
The immediate parent undertaking of the company is Bulten AB, a company registered in Box 9148 400 93 Gothenburg, Sweden, which is the smallest and largest group of which the company is a member that prepares group financial statements including the results of the company.
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