Company registration number 00414844 (England and Wales)
NCR Financial Solutions Group Limited
Annual report and financial statements
for the year ended 31 December 2023
NCR Financial Solutions Group Limited
Company information
Directors
C Kee
K Busfield
T Hertrich
(Appointed 13 October 2023)
Secretary
P Nowakowski
Company number
00414844
Registered office
12th Floor
5 Merchant Square
Paddington
London
W2 1AY
Auditor
Henderson Loggie LLP
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
NCR Financial Solutions Group Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Notes to the financial statements
15 - 34
NCR Financial Solutions Group Limited
Strategic report
for the year ended 31 December 2023
- 1 -

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

Fair review of the business

In September 2022 NCR Corporation announced a plan to separate NCR Corporation into two independent, publicly traded companies – one focused on ATMs (subsequently announced as NCR Atleos), the other on digital commerce (NCR Voyix) with a target separation date of end 2023. This separation was completed on 16th October 2023.

 

NCR Financial Solutions Group Ltd is now part of NCR Atleos. NCR Atleos focuses on delivering ATM as a Service to a large installed customer base across banks and retailers. This builds on NCR’s leadership in self-service banking and ATM networks to meet global demand for ATM access and leverage new ATM transaction types, including digital currency solutions, to drive market growth.

 

Results and performance

The results of the Company for the year, as set out on page 11 show a profit before tax of £5,134,000 (2022: loss £1,940,000). The total profit and loss accumulated deficit is (£35,971,000) (2022: (£42,621,000)).

 

Exceptional items

During the year the company recognised a total charge of £2,846,000 (2022: charge £711,000) in relation to restructuring expenses, onerous lease costs and exceptional legal fees.

 

Future developments

NCR Financial Solutions Group Limited’s aim is to continue to focus on delivering innovative products to ensure we continue to improve and enhance new and existing products and offerings to maintain our competitive edge in the increasingly fast changing market place.

Principal risks and uncertainties

We operate in the intensely competitive information technology industry. This industry is characterized by rapidly changing technology, evolving industry standards and increasingly greater commoditisation of products, making differentiation difficult. Our future competitive performance and market position depend on a number of factors, including our ability to react to competitive product and pricing pressures, rapidly and continually design and develop innovative solutions and related products for our customers and reduce costs without creating operating inefficiencies or impairing product or service quality.

Key performance indicators

As referred to above, the nature of our business is research and development with our costs being reimbursed by NCR Atleos Corporation. As a result, performance is assessed by group management at corporate level therefore the directors do not look at individual KPIs for an understanding of the development, performance or position of NCR Financial Solutions Group Limited.

NCR Financial Solutions Group Limited
Strategic report (continued)
for the year ended 31 December 2023
- 2 -
Promoting the success of the company

Section 172 statement

The following statement describes how the Directors have had regard to the matters set out in section 172(1)(a) to (f) when performing their duty under Section 172 of the Companies Act 2006.

 

The company is a subsidiary of NCR Atleos Corporation and as such follows many of the processes and practices of that Company, which are further referenced in this statement where relevant. The Directors' obligations with respect to Section 172 requirements are applied through the group's policies and processes.

 

When making decisions, the Directors ensure that they act in a way that they consider, in good faith, would most likely promote the Company's success for the benefit of its members as a whole, and in doing so have regard (among other matters) to:

 

S171(1) (A) "The likely consequences of any decision in the long term"

The Directors understand the business and the evolving environment in which we operate. The strategy followed by the Board, and decisions taken to implement it, is intended to strengthen our position in the marketplace over the longer term.

 

S172(1) (B) "The interests of the Company's employees"

The Directors acknowledge that the Company's employees are vital to its success. They assume responsibility for safeguarding interests of employees and execute initiatives and programmes designed at the group level, to attract and retain employees with different skill sets, experience and attributes.

 

S172(1) (C) "The need to foster the Company's business relationships with suppliers, customers and others"

The Directors recognise the importance of clear communication and proactive engagement with stakeholders. Comprehensive engagement enables informed decision making and is integral to the long-term success of the Company. The Directors factor the implications of decisions on stakeholders, where relevant and feasible. The Directors help to ensure that there is fair and ethical selection of suppliers for all products and services by applying NCR Atleos's group-wide procurement processes.

 

S172(1) (D) "The impact of the Company's operations on the community and the environment"

The Directors are committed to supporting economic, cultural, social and educational well-being of communities by investing in innovative programs that provide solutions and benefit to communities at large. The Company strives to minimise the environmental footprint of its operations and products, while also delivering innovative technologies and solutions designed to help businesses and consumers reduce their own environmental footprint.

 

S172(1) (E) "The desirability of the Company maintaining a reputation for high standards of business conduct"

The Directors apply NCR Atleos's Code of Conduct which is designed to provide guidance on the group's standard for upholding NCR Atleos's shared values, which form the foundation of business relationships with customers, partners, and suppliers that maintain and guide decisions to achieve the Company's business objectives.

 

S172(1) (F) "The need to act fairly as between members of the Company"

The Company is wholly owned by Cardtronics (UK) Limited and adheres to the group policies often set by the ultimate parent, NCR Atleos Corporation.

On behalf of the board

K Busfield
Director
24 September 2024
NCR Financial Solutions Group Limited
Directors' report
for the year ended 31 December 2023
- 3 -

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 the research and development of new products for the NCR Atleos Group.

Results and dividends

The results for the year are set out on page 11.

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:

C Kee
K Busfield
LK Moyer
(Resigned 13 October 2023)
T Hertrich
(Appointed 13 October 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is an employee share scheme in place as a means of further encouraging the involvement of employees in the company's performance.

Auditor

The auditor, Henderson Loggie LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

NCR Financial Solutions Group Limited
Directors' report (continued)
for the year ended 31 December 2023
- 4 -
Energy and carbon report

This report is provided to summarise the Company's environmental reporting in accordance with the UK government's policy on Streamlined Energy and Carbon Reporting (SECR).

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
3,528,447
3,580,185
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
164.00
154.00
- Fuel consumed for owned transport
1.00
3.00
165.00
157.00
Scope 2 - indirect emissions
- Electricity purchased
539.00
527.00
Total gross emissions
704.00
684.00
Intensity ratio
Total carbon emissions per £m of revenue in the year to 31 December 2023 were
14
14
Quantification and reporting methodology

We have calculated the carbon emissions and kWh figures using the UK Government’s 2023 Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total carbon emissions in metric tonnes per CO2 per £m of revenue in the year.

Measures taken to improve energy efficiency

The company embraces passive or renewable energy as far as possible and continues to improve energy efficiency.

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.

Business review and future developments

A review of the business and future developments are included in the strategic report.

NCR Financial Solutions Group Limited
Directors' report (continued)
for the year ended 31 December 2023
- 5 -
Financial risk management

The company's operations expose it to a variety of financial risks that include the effects of changes in currency risk, liquidity risk and interest rate risk. The company has in place a risk management programme that is overseen by the parent company, NCR Atleos Corporation.

On behalf of the board
K Busfield
Director
24 September 2024
NCR Financial Solutions Group 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.

NCR Financial Solutions Group Limited
Independent auditor's report
to the members of NCR Financial Solutions Group Limited
- 7 -
Opinion

We have audited the financial statements of NCR Financial Solutions Group 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.

NCR Financial Solutions Group Limited
Independent auditor's report
to the members of NCR Financial Solutions Group Limited (continued)
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

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

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.

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, are detailed below.

NCR Financial Solutions Group Limited
Independent auditor's report
to the members of NCR Financial Solutions Group Limited (continued)
- 9 -

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the 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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

NCR Financial Solutions Group Limited
Independent auditor's report
to the members of NCR Financial Solutions Group Limited (continued)
- 10 -

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.

Gavin Black
Senior Statutory Auditor
For and on behalf of Henderson Loggie LLP
24 September 2024
Chartered Accountants
Statutory Auditor
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
NCR Financial Solutions Group Limited
Profit and loss account
for the year ended 31 December 2023
- 11 -
2023
2022
Notes
£000
£000
Turnover
3
52,163
50,623
Cost of sales
(43,939)
(45,687)
Gross profit
8,224
4,936
Administrative expenses
(2,272)
(2,500)
Other operating income
3,024
3,521
Exceptional items
4
(2,846)
(711)
Operating profit
5
6,130
5,246
Interest receivable and similar income
9
3,995
1,836
Interest payable and similar expenses
10
(4,991)
(9,022)
Profit/(loss) before taxation
5,134
(1,940)
Tax on profit/(loss)
11
(2,766)
(3,445)
Profit/(loss) for the financial year
2,368
(5,385)

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

NCR Financial Solutions Group Limited
Statement of comprehensive income
for the year ended 31 December 2023
- 12 -
2023
2022
£000
£000
Profit/(loss) for the year
2,368
(5,385)
Other comprehensive income
Actuarial gain/(loss) on defined benefit pension schemes
3,698
(23,003)
Tax relating to other comprehensive income
(925)
5,751
Other comprehensive income for the year
2,773
(17,252)
Total comprehensive income for the year
5,141
(22,637)
NCR Financial Solutions Group Limited
Balance sheet
as at 31 December 2023
- 13 -
2023
2022
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
13
14,623
17,720
Current assets
Debtors
14
92,831
71,396
Cash at bank and in hand
348
334
93,179
71,730
Creditors: amounts falling due within one year
15
(87,057)
(69,644)
Net current assets
6,122
2,086
Total assets less current liabilities
20,745
19,806
Provisions for liabilities
Deferred tax liability
17
(21,914)
(19,003)
(21,914)
(19,003)
Deferred income
18
(83)
(126)
Net assets excluding pension surplus
(1,252)
677
Defined benefit pension surplus
19
89,781
81,202
Net assets
88,529
81,879
Capital and reserves
Called up share capital
21
4,500
4,500
Share premium account
22
120,000
120,000
Profit and loss reserves
23
(35,971)
(42,621)
Total equity
88,529
81,879
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
K Busfield
Director
Company registration number 00414844 (England and Wales)
NCR Financial Solutions Group Limited
Statement of changes in equity
for the year ended 31 December 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
Balance at 1 January 2022
4,500
-
0
(22,039)
(17,539)
Year ended 31 December 2022:
Loss
-
-
(5,385)
(5,385)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
(23,003)
(23,003)
Tax relating to other comprehensive income
-
-
5,751
5,751
Total comprehensive income
-
-
(22,637)
(22,637)
Issue of share capital
21
-
0
120,000
-
120,000
Share option charge
-
-
2,055
2,055
Balance at 31 December 2022
4,500
120,000
(42,621)
81,879
Year ended 31 December 2023:
Profit
-
-
2,368
2,368
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
3,698
3,698
Tax relating to other comprehensive income
-
-
(925)
(925)
Total comprehensive income
-
-
5,141
5,141
Share option charge
-
-
1,509
1,509
Balance at 31 December 2023
4,500
120,000
(35,971)
88,529
NCR Financial Solutions Group Limited
Notes to the financial statements
for the year ended 31 December 2023
- 15 -
1
Accounting policies
Company information

NCR Financial Solutions Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12th Floor, 5 Merchant Square, Paddington, London, W2 1AY.

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:

 

 

The financial statements of the company are consolidated in the financial statements of NCR Atleos Corporation; a company incorporated in the USA.

1.2
Going concern

The company meets its day to day working capital requirements through the group banking facility. The directors of the company have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of truethe current global economic environment. This analysis also considers the effectiveness of available measures to assist in mitigating the impact. The company has also received confirmation of ongoing financial support from its ultimate parent undertaking, NCR Atleos Corporation. Based on these assessments and having regard to the resources available to the group, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing these financial statements.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 16 -
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.

 

The company recognises revenue when specific criteria relating to each of the company's sales channels have been met, as described below.

 

(i) Research and development, selling and manufacturing

 

Costs incurred plus a defined uplift which is dependant on the activity that is being performed.

 

(ii) Software sales

 

Software revenue is recognised at point of sale. Software maintenance revenue is deferred over the invoice period and recognised at the point when the maintenance service is provided.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
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:

Freehold buildings
20 years
Leasehold improvements
Lease term
Plant and equipment
2 - 15 years
Tooling
2 - 8 years

Freehold land is not depreciated.

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.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 17 -
1.6
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.

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.

1.7
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.

1.8
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.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 18 -
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.

Derecognition of financial liabilities

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

1.9
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.

1.10
Taxation

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

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 19 -
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.

1.11
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.

1.12
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, 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.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 20 -

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.

1.13
Share-based payments

Where the company participates in a share-based payment arrangement established by a group company the company takes advantage of the alternative treatment allowed under Section 26 of FRS 102. The company recognises the share-based payment expense based on an allocation of its share of the group's total expense, calculated in relation to company participating employees. The corresponding credit is recognised in retained earnings as a component of equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.14
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.

1.15
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.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 21 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Share based payments

The company's employees have been granted share options by the ultimate parent, NCR Atleos Corporation. The company makes use of the exemption in Section 26 of FRS 102 to account for the expense based on a reasonable allocation of the parent company's total expense. The company has calculated its allocation of the parent company's total expense based on company participating employees.

 

The company also considered an allocation based on the relative remuneration cost of the relevant employees and considered that this gave rise to no significant differences in the allocated costs.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
2
Judgements and key sources of estimation uncertainty (continued)
- 22 -
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.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect the current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Impairment of tangible assets

The company makes an assessment whether there are any indicators assets may be impaired. This ensures tangible assets are not carried at more than their recoverable amount.

Impairment of debtors

The company makes an estimate of the recoverable value of intercompany and other debtors. When assessing impairment of debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, historical experience and other known information.

Defined benefit pension scheme

The company has an obligation to pay pension benefits to certain employees. The costs of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

Carrying value of deferred tax asset

The company has tax losses available to carry forward for which it has recognised a deferred tax asset. An assessment is made at each reporting date as to whether the losses will be utilised based on forecasted results or whether there is any indication of impairment. If any such indication exists, the company determines the element of tax losses that are expected to be utilised and the deferred tax asset and tax charge are adjusted accordingly.

3
Turnover and other revenue
2023
2022
£000
£000
Turnover analysed by class of business
Research and development
43,601
40,669
Selling
1,510
1,405
Manufacturing
7,052
8,549
52,163
50,623
NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
3
Turnover and other revenue (continued)
- 23 -
2023
2022
£000
£000
Turnover analysed by geographical market
United States
52,109
102
Europe
54
49,918
Pacific
-
603
52,163
50,623
2023
2022
£000
£000
Other revenue
Interest income
3,995
1,836
4
Exceptional items
2023
2022
£000
£000
Expenditure
Restructuring expenses
2,544
392
Onerous lease provision
38
319
Legal fees
264
-
2,846
711

During the year the company has recognised a total charge of £2,582,000 (2022 - charge £711,000) in relation to the restructuring of its geographical locations.

5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£000
£000
Exchange losses
304
400
Depreciation of owned tangible fixed assets
4,379
4,534
(Profit)/loss on disposal of tangible fixed assets
(427)
10
Share-based payments
1,509
2,055
Operating lease charges
872
869
NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
5
Operating profit (continued)
- 24 -

On 15 September 2022, NCR Corporation (the parent company) announced that its Board of Directors had approved a plan to separate NCR into two independent publicly traded companies – NCR Voyix (RemainCo) focused on digital commerce business and NCR Atleos (Spin-Off) on ATM business. The separation took place in Q4 of 2023. The impact on NCR FSG Limited was a change in its immediate parent company from NCR Limited to Cardtronics (UK) Limited and a change in its ultimate parent company from NCR Corporation to NCR Atleos Corporation. The commerce business and associated tangible fixed assets were acquired by NCR Voyix for a total of $1.5m (£1.2m) resulting in a gain on disposal in the Company's current year results of £427k. It is not possible to extract the current or prior year trading results for the disposed commerce business and so no discontinued activities have been presented for either year.

6
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
39
37
7
Employees

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

2023
2022
Number
Number
Engineering
362
425
Manufacturing
16
24
Other
122
156
Total
500
605

Their aggregate remuneration comprised:

2023
2022
£000
£000
Wages and salaries
32,282
32,201
Social security costs
3,723
3,697
Pension costs
2,773
3,075
38,778
38,973

During the year, redundancies totalled £825,000 (2022 - £26,000) and were in relation to restructuring within the business and are included within exceptional items in the profit and loss account.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 25 -
8
Directors' remuneration

Directors' costs are paid by other group companies and as such there is no charge for these costs in the current or prior year.

 

Directors are considered to be key management personnel.

9
Interest receivable and similar income
2023
2022
£000
£000
Interest income
Interest on the net defined benefit asset
3,995
1,836
10
Interest payable and similar expenses
2023
2022
£000
£000
Interest payable to group undertakings
4,991
9,022
11
Taxation
2023
2022
£000
£000
Current tax
UK corporation tax on profits for the current period
695
604
Adjustments in respect of prior periods
80
-
0
Total UK current tax
775
604
Foreign current tax on profits for the current period
5
-
0
Total current tax
780
604
Deferred tax
Origination and reversal of timing differences
1,989
1,780
Adjustment in respect of prior periods
(3)
1,061
Total deferred tax
1,986
2,841
Total tax charge
2,766
3,445
NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
11
Taxation (continued)
- 26 -

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

2023
2022
£000
£000
Profit/(loss) before taxation
5,134
(1,940)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 24% (2022: 19%)
1,206
(369)
Tax effect of expenses that are not deductible in determining taxable profit
176
113
Tax effect of income not taxable in determining taxable profit
(7)
(6)
Effect of change in corporation tax rate
119
427
Group relief
512
1,918
Permanent capital allowances in excess of depreciation
(17)
(303)
Research and development tax credit
695
601
Under/(over) provided in prior years
80
-
0
Deferred tax adjustments in respect of prior years
(3)
1,061
Withholding tax suffered
5
3
Taxation charge for the year
2,766
3,445

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

2023
2022
£000
£000
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
925
(5,751)

On 3 March 2021, the UK Budget 2021 announcements included measures to support economic recovery as a result of the COVID-19 pandemic. These included an increase to the UK’s main corporation tax rate to 25%, which became effective from 1 April 2023. The 25% rate was granted Royal Assent on 10 June 2021 and so was enacted at the balance sheet date. As a result, the effective corporation tax rate for the year is 23.50% (2022 - 19%) and the closing deferred tax balances as at 31 December 2023 are recognised at 25% (2022 - 25%).

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 27 -
12
Intangible fixed assets
Goodwill
£000
Cost
At 1 January 2023
11,941
Disposals
(11,941)
At 31 December 2023
-
0
Amortisation and impairment
At 1 January 2023
11,941
Disposals
(11,941)
At 31 December 2023
-
0
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0

Costs incurred of £9,855,587 represents mobile ticketing software assets first acquired following the hive up of assets Mobiqa Limited in 2011. These assets were recorded in the balance sheet at fair value based on future cashflows and recovered over the assets useful life. Mobiqa Limited was amortised on a straightline basis over 10 years and is now fully amortised. Due to a drop in expected revenue, an impairment of £2,441,467 was recorded in a prior year.

 

Costs incurred in developing software for a manufacturing execution system based in the Columbus plant (initial cost £310,776) are now fully amortised.

 

Network Controls International Limited software assets (initial cost £1,651,482) are now fully amortised.

 

Following the NCR Group reorganisation, these assets were disposed of at a £nil value.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 28 -
13
Tangible fixed assets
Freehold buildings
Leasehold improvements
Plant and equipment
Tooling
Total
£000
£000
£000
£000
£000
Cost
At 1 January 2023
33
8,477
23,610
45,032
77,152
Additions
-
0
-
0
1
2,120
2,121
Disposals
-
0
-
0
-
0
(9,029)
(9,029)
At 31 December 2023
33
8,477
23,611
38,123
70,244
Depreciation and impairment
At 1 January 2023
-
0
6,595
15,870
36,967
59,432
Depreciation charged in the year
-
0
498
94
3,787
4,379
Eliminated in respect of disposals
-
0
-
0
-
0
(8,190)
(8,190)
At 31 December 2023
-
0
7,093
15,964
32,564
55,621
Carrying amount
At 31 December 2023
33
1,384
7,647
5,559
14,623
At 31 December 2022
33
1,882
7,740
8,065
17,720
14
Debtors
2023
2022
Amounts falling due within one year:
£000
£000
Corporation tax recoverable
4,817
5,131
Amounts owed by group undertakings
86,021
65,148
Other debtors
-
0
101
Prepayments and accrued income
1,993
1,016
92,831
71,396

Amounts owed by group undertakings are unsecured, interest free and repayable on demand. NCR group operates a bank interest pool facility and bank interest is earned at a rate of 0.000233979% (2022 - 0.00966445%) for USD balances. At the year end there were no amounts owed in respect of this interest (2022 - £Nil).

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 29 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£000
£000
Bank overdraft
16
62,229
51,369
Trade creditors
4,805
5,005
Amounts owed to group undertakings
10,521
10,521
Taxation and social security
3,023
904
Deferred income
18
43
43
Other creditors
3,349
509
Accruals
3,087
1,293
87,057
69,644

Amounts due to group undertakings are unsecured, interest free, have no fixed maturity date and are repayable on demand. NCR group operates a bank interest facility and bank interest is earned at a rate of 0.000233979% (2022 - 0.0066445%) for USD balances. The same rate of interest is also applied when the bank account is in overdraft. At the year end there were no amounts due in respect of this interest (2022 - £Nil).

16
Loans and overdrafts
2023
2022
£000
£000
Bank overdraft
62,229
51,369
Payable within one year
62,229
51,369
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:
£000
£000
Accelerated capital allowances
(279)
(693)
Retirement benefit obligations
22,445
20,300
Short term timing differences
(252)
(604)
21,914
19,003
NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
17
Deferred taxation (continued)
- 30 -
2023
Movements in the year:
£000
Liability at 1 January 2023
19,003
Charge to profit or loss
1,986
Charge to other comprehensive income
925
Liability at 31 December 2023
21,914

Deferred tax is not recognised in respect of tax losses of £129,583,000 (2022 - £129,583,000) as it is not certain that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

The provision for deferred tax relates to the deferred tax liability on the defined benefit pension asset less deferred tax assets recognised on accelerated capital allowances and short term timing differences.

18
Deferred income
2023
2022
£000
£000
Other deferred income
126
169
Included in the financial statements as follows:
Current liabilities
43
43
Shown as deferred income on the face of the balance sheet
83
126
126
169
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
2,063
2,135

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.

There are no amounts prepaid or outstanding at the year end.

Defined benefit schemes

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31 December 2023 by Towers Watson Limited, Fellow of the Institute and Faculty of Actuaries, independent consulting actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
19
Retirement benefit schemes (continued)
- 31 -
2023
2022
Key assumptions
%
%
Discount rate
4.7
4.9
Expected rate of increase of pensions in payment
3.1
3.2
Expected rate of salary increases
2.6
3.4
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Current pensioners
- Males
21.9
21.4
- Females
20.9
23.3
Future pensioners
- Males
23.9
23.0
- Females
22.8
25.0
2023
2022

Amounts recognised in the profit and loss account

£000
£000
Net interest on net defined benefit liability/(asset)
(3,995)
(1,836)
Other costs and income
710
940
Total costs/(income)
(3,285)
(896)
2023
2022

Amounts taken to other comprehensive income

£000
£000
Actual return on scheme assets
(21,588)
168,694
Less: calculated interest element
16,903
9,510
Return on scheme assets excluding interest income
(4,685)
178,204
Actuarial changes related to obligations
987
(155,201)
Total costs/(income)
(3,698)
23,003
NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
19
Retirement benefit schemes (continued)
- 32 -

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

2023
2022
£000
£000
Present value of defined benefit obligations
272,088
271,037
Fair value of plan assets
(361,869)
(352,239)
Surplus in scheme
(89,781)
(81,202)
2023

Movements in the present value of defined benefit obligations

£000
Liabilities at 1 January 2023
271,037
Benefits paid
(12,844)
Actuarial gains and losses
987
Interest cost
12,908
At 31 December 2023
272,088

The defined benefit obligations arise from plans which are wholly or partly funded.

2023

Movements in the fair value of plan assets

£000
Fair value of assets at 1 January 2023
352,239
Interest income
16,903
Return on plan assets (excluding amounts included in net interest)
4,685
Benefits paid
(12,844)
Contributions by the employer
1,596
Administrative expenses
(710)
At 31 December 2023
361,869
2023
2022

Fair value of plan assets at the reporting period end

£000
£000
Equity instruments
40,061
35,630
Debt instruments
-
67,480
LDI and alternatives
316,538
246,812
Cash and cash equivalents
5,270
2,317
361,869
352,239
NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
19
Retirement benefit schemes (continued)
- 33 -

The equity instruments held in the plan assets are quoted and are valued at current bid price following adoption of the amendment to Section 28 'Retirement Benefits'. This adoption took place in both 2019 and 2018.

 

The actual return on plan assets was a charge £21,588,000 (2022 - credit £168,694,000).

 

Scheme assets do not include any of NCR Financial Solutions Group Limited's own financial instruments, or any property occupied by NCR Financial Solutions Group Limited.

 

To develop the expected long-term rate of return on assets assumption, the company considered the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each class net of expenses. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return of assets assumption for the portfolio.

 

The total administration expenses for 2023 and 2022 is included in cost of sales.

 

The company expects to contribute £1,596,000 to the pension plan for the year ended 31 December 2024 (2022 - £940,000 expected contributions for the year ended 31 December 2023).

20
Share-based payment transactions

Certain employees of the company along with other group employees have been granted options over the shares in NCR Atleos Corporation. The options are granted with a fixed exercise price, are exercisable three years after the date of grant and expire five years after the date of grant. Employees are required to remain in employment with the group. The group makes annual grants in February each year.

 

On exercise of the shares by the employees, the company is charged the intrinsic value of the shares by NCR Atleos Corporation. Payments of £1,509,000 (2022 - £2,055,000) were recognised directly in equity.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
4,500,001
4,500,001
4,500
4,500

The company has one class of ordinary shares and each share carries one vote and is entitled to participate pari passu in any dividend or capital distribution. On liquidation, surplus assets are to be distributed among the ordinary shares. The ordinary shares are not redeemable at the option of the company or the holder.

22
Share premium account

The share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

NCR Financial Solutions Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 34 -
23
Profit and loss reserves

Profit and loss reserves represents comprehensive income for the current and prior financial periods less dividends paid.

24
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
£000
£000
Within one year
828
867
Between two and five years
1,370
2,203
2,198
3,070
25
Related party transactions

The company is exempt from disclosing related party transactions as they are with other companies that are wholly owned within the NCR group.

26
Ultimate controlling party

The immediate parent undertaking is Cardtronics (UK) Limited, a company registered in the UK. Cardtronics (UK) Limited has taken advantage of the exemption from preparing consolidated financial statements under the terms of Section 401 of the Companies Act 2006.

 

The ultimate parent undertaking and controlling party is NCR Atleos Corporation, a company incorporated in the United States of America. NCR Atleos Corporation is the smallest and largest group of undertakings to consolidate these financial statements at 31 December 2023. The consolidated financial statements of NCR Atleos Corporation are available publicly from 864 Spring St NW, Atlanta, GA 30308, United States.

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