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REGISTERED NUMBER: 07185959 (England and Wales)











STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


THE VALSPAR (UK) FUNDING CORPORATION
LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: C G Morley
J J Miklich
J M Donchess
S J Walker





REGISTERED OFFICE: Avenue One
Station Lane
Witney
Oxfordshire
OX28 4XR





REGISTERED NUMBER: 07185959 (England and Wales)





AUDITORS: Bradshaw Johnson
Chartered Accountants
Statutory Auditor
Croft Chambers
11 Bancroft
Hitchin
Hertfordshire
SG5 1JQ

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PURPOSE OF THE ENTITY
The Valspar (UK) Funding Corporation ("the Company") exists to enable the steady cash flow between the cash accounts used within the Valspar EMEAI (Europe,the Middle East, Africa and India) entities. The funds are distributed to allow the entities to make scheduled payments, excess funds are swept from the accounts on a daily basis and net funds are paid into a global account to ensure better liquidity management.

The funds swept/lent to the entities are recorded in the local and Funding Corporation books as intercompany loans attracting an accrued daily rate of interest based on the 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP.

REVIEW OF BUSINESS
Profit and loss account
During the year the Company generated interest income on intercompany loans of €12,410,816 (FY22 €4,616,852) on investment of excess cash and incurred €10,539,422 (FY22 €3,612,338) of interest expense on intercompany loans and overdrawn accounts.

The Company generated a profit after taxation for the year of €2,759,360 (FY22 €169,253).

Balance sheet
During the year as part of the cash sweep activities, the Company accumulated bank overdraft balances totalling €94,604,017 (FY22 €83,791,272) which are offset against intercompany receivable loan accounts held within the EMEAI entities totalling €104,511,986 (FY22 €90,932,201).

Consolidation
The Sherwin-Williams Company is the ultimate parent of the Group (The Sherwin-Williams Company and all subsidiaries) in whose accounts the entity is consolidated.

PRINCIPAL RISKS AND UNCERTAINTIES
The Company has loans and borrowings, which are subject to floating interest rates. The Company is therefore exposed to interest rate risk. The Company is also exposed to economic risk and also has some exposure to foreign exchange risk. Corporate treasury reviews the requirement for foreign exchange deals on behalf of participating entities and deals entered into where necessary to convert non functional currency into functional currency. The Company is exposed to funding risk however the risk of being unable to fund the operations on an ongoing basis has been mitigated through the level of financial support available from the ultimate parent company.


THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

SECTION 172(1) STATEMENT
The Directors fulfil their duty by ensuring that there is a strong governance structure and process running through all aspects of the Group's operations. The Group's strategy and business model are underpinned by the employees and all members of the Board undertake regular site visits to deliver key engagement and development programmes. The Group engages with its key stakeholders in a variety of ways, explained in more detail in the Directors' responsibilities statement on pages 5 & 6. The Board is kept informed of all relevant issues by means of a number of written reports.

The Board of Directors of The Valspar (UK) Funding Corporation Limited consider that they, both individually and collectively, have acted in a way that would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1)(a-f) of the Act) in the decisions they have taken during the year ended 31 December 2023. In making this statement the Directors considered the longer term consideration of stakeholders and the environment and have taken into account the following:

a) the likely consequences of any decisions in the long-term;
b) the interests of the Group's employees;
c) the need to foster the Group's business relationships with suppliers, customers and others;
d) the impact of the Group's operations on the community and the environment;
e) the desirability of the Group maintaining a reputation for high standards of business conduct; and
f) the need to act fairly between members of the Company.

KEY PERFORMANCE INDICATORS
The Company does not have specific key performance indicators since the main function is to provide support to the group. The intercompany loan positions were managed effectively and reconciled every month.


THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

GOING CONCERN AND LIQUIDITY RISK ASSESSMENT
The Company is part of The Sherwin-Williams Company, a company incorporated in the United States of America. The Company is a listed Fortune 500 company and provides comfort in respect of the provision of financial support to The Valspar (UK) Funding Corporation Limited to assist in meeting liabilities as and when they fall due to the extent that money is not otherwise available to meet such liabilities.

The parent company, The Sherwin-Williams Company, will continue to support the Company in the foreseeable future. This has been confirmed by a letter of support that covers the period of 12 months from the date of signing the financial statements.

The Directors have assessed the ability of The Sherwin-Williams Company to provide the level of support that might be required given the level of uncertainty associated with trading and cash forecasts and see no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of The Valspar (UK) Funding Corporation Limited to continue as a going concern or its ability to continue with the current banking arrangements.

The Group operates in a low growth market environment which is set to continue in 2024. The Group continues to manage its risk by developing innovation in its product range, and maintaining a very strong brand presence through advertising and promotional literature spend. The Group is financially sound and continues to have a strong customer retention from its customer base who place a value on continuity of supply.

The Company's business activities, together with the factors likely to affect its future development and position, are set out in the Report of the Directors on pages 5 to 6.

The Company is expected to continue to generate positive cash flows on its own account for the foreseeable future. The Company participates in the Group's centralised treasury arrangements and shares banking arrangements with its parent and fellow subsidiaries.

Annual and rolling company profit forecasts are collated on a business unit level as oppose to each individual statutory entity level.

The 2024 forecast anticipates further volume growth and improved performance for the business unit reflecting the Company's and Sherwin's EMEAI strategy to grow business.

On the basis of their assessment of the Company's financial position the Company's Directors have a reasonable expectation that the Company will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

ON BEHALF OF THE BOARD:





J J Miklich - Director


25 September 2024

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The Directors present their report with the financial statements of the Company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of the investment of funds available from the daily cash concentration of Deutsche Bank balances into the Company. The daily cash balances across EMEAI are swept into the Company and excess cash invested.

DIVIDENDS
No dividends were paid during the year ended 31 December 2023 (2022 - €nil).

FUTURE DEVELOPMENTS
The Company will review the opportunities to invest funds in longer term investments at higher returns, subject to liquidity needs and security over funds.

POST BALANCE SHEET EVENTS
There have not been any significant matters subsequent to the balance sheet date.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

C G Morley
J J Miklich
J M Donchess

Other changes in directors holding office are as follows:

D P Wright - resigned 15 March 2023
S J Walker - appointed 15 March 2023

DIRECTORS' LIABILITIES
The Company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the directors' report.

GOING CONCERN
See Strategic Report page 4.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 (FRS 102) 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued

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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the Directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS
The auditors, Bradshaw Johnson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J J Miklich - Director


25 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

Opinion
We have audited the financial statements of The Valspar (UK) Funding Corporation Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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 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.

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

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

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 considered the nature of the Company's industry and its control environment, and reviewed the Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the Company operates in, and identified the key laws and regulations that:
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax legislation; and
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)


We discussed among the audit engagement team including relevant internal specialists such as tax specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
- reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with HMRC.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Andrew Pearce (Senior Statutory Auditor)
for and on behalf of Bradshaw Johnson
Chartered Accountants
Statutory Auditor
Croft Chambers
11 Bancroft
Hitchin
Hertfordshire
SG5 1JQ

26 September 2024

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes €    €    €    €   

TURNOVER - -

Foreign exchange loss/(gain) (872,890 ) 795,694
Administrative expenses (15,076 ) 39,567
(887,966 ) 835,261
OPERATING PROFIT/(LOSS) 5 887,966 (835,261 )

Interest receivable and similar income 6 12,410,816 4,616,852
13,298,782 3,781,591

Interest payable and similar expenses 7 10,539,422 3,612,338
PROFIT BEFORE TAXATION 2,759,360 169,253

Tax on profit 8 - -
PROFIT FOR THE FINANCIAL YEAR 2,759,360 169,253

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,759,360

169,253

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

31.12.23 31.12.22
Notes €    €   
CURRENT ASSETS
Debtors 9 246,289,641 180,264,626

CREDITORS
Amounts falling due within one year 10 236,418,886 173,153,231
NET CURRENT ASSETS 9,870,755 7,111,395
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,870,755

7,111,395

CAPITAL AND RESERVES
Called up share capital 12 1,148 1,148
Share premium 4,999,999 4,999,999
Retained earnings 4,869,608 2,110,248
SHAREHOLDERS' FUNDS 9,870,755 7,111,395

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





J J Miklich - Director


THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
€    €    €    €   
Balance at 1 January 2022 1,147 1,940,995 - 1,942,142

Changes in equity
Issue of share capital 1 - 4,999,999 5,000,000
Total comprehensive income - 169,253 - 169,253
Balance at 31 December 2022 1,148 2,110,248 4,999,999 7,111,395

Changes in equity
Total comprehensive income - 2,759,360 - 2,759,360
Balance at 31 December 2023 1,148 4,869,608 4,999,999 9,870,755

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATEMENT OF COMPLIANCE

The Valspar (UK) Funding Corporation Limited is a private company limited by shares incorporated in England. The registered office is:

Avenue One
Station Lane
Witney
Oxfordshire
OX28 4XR.

The Company's financial statements have been prepared in compliance with FRS 102 as it applies to the financial statements for the year ended 31 December 2023.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared in accordance with applicable accounting standards. The financial statements are prepared in Euros.

The financial statements are presented to round €1's to align with fellow group companies within the UK.

Going concern
The financial statements have been prepared on a going concern basis as The Sherwin-Williams Company, the ultimate parent undertaking, has agreed to provide adequate support to enable the Company to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;
- the requirement of paragraph 33.7.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The Directors believe there are no key sources of estimation uncertainty in preparation of the financial statements.

Taxation
Taxation for the year comprises current tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.


THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred taxation is recognised in respect of all temporary differences arising between the tax base of assets and liabilities and their carrying amount. Deferred tax is determined using the tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax is measured on an undiscounted basis.

Deferred tax assets are recognised only to the extent that the Directors consider that it is probable that there will be suitable future taxable profits available against which the temporary differences can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same tax authority.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into Euros at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into Euros at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

Financial instruments
All financial assets and liabilities are measured at amortised cost.

Interest receivable and payable
Intercompany loan interest receivable and payable is calculated on the daily balance of the intercompany loan position. The Company accrues interest receivable at 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP plus 200 points and accrues interest payable at 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP plus 200 points.

Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand and short-term deposits with an original maturity date of three months or less.

Short-term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating income.

Group balances
This Company holds the pooled cash balances for the Valspar EMEAI entities. The funds lent to/from the entities are recorded as intercompany payables/receivables and attract a daily rate of interest based on 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP.

The Company do not expect to settle these period-end account balances on a net basis, therefore they are disclosed on a gross basis by entity.

3. EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2023 nor for the year ended 31 December 2022.

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. DIRECTORS' EMOLUMENTS

Directors remuneration for the years ended 31 December 2023 and 2022 has been borne by other companies within the Sherwin-Williams group. The Directors of the Company are also Directors or officers of other companies within the Sherwin-Williams group. The Directors' services to the Company do not occupy a significant amount of their time. As such, the Directors do not consider that they have received any remuneration for their incidental services to the Company for the year ended 31 December 2023 and year ended 31 December 2022.

5. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging/(crediting):

31.12.23 31.12.22
€    €   
Foreign exchange loss/(gain) (872,890 ) 795,694

6. INTEREST RECEIVABLE AND SIMILAR INCOME

31.12.23 31.12.22
€    €   
Interest income from group entities 12,410,816 4,616,852

Interest rates are based on 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP.

7. INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.23 31.12.22
€    €   
Interest expense to group entities 10,539,422 3,612,338

Interest rates are based on 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP.

8. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 December 2023 nor for the year ended 31 December 2022.

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
€    €   
Profit before tax 2,759,360 169,253
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

689,840

32,158

Effects of:
Group relief (689,840 ) (32,158 )
Total tax charge - -

The standard rate of tax applied to reported profit on ordinary activities is 25% (2022: 19%).

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
€    €   
Amounts owed by group undertakings 246,289,641 180,264,626

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
€    €   
Bank loans and overdrafts (see note 11) 94,604,017 83,791,272
Amounts owed to group undertakings 141,777,655 89,332,425
Accrued expenses 37,214 29,534
236,418,886 173,153,231

Balances are repayable on demand. Interest rates are based on 30 day average SOFR rates for USD, daily short term rate €STR for EUR and daily SONIA overnight rate for GBP.

11. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
€    €   
Amounts falling due within one year or on demand:
Bank overdrafts 94,604,017 83,791,272

The bank overdraft is repayable on demand. Interest rates are based on average rate of 0.8458%.

THE VALSPAR (UK) FUNDING CORPORATION
LIMITED (REGISTERED NUMBER: 07185959)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

12. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: €    €   
1,001 Ordinary £1 1,148 1,148

The nominal value of each share has been issued in GBP (£), however the presentational and functional currency of these financial statements is Euro's (€).

13. RELATED PARTY DISCLOSURES

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

14. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

As at 31 December 2023, the Company's immediate parent undertaking and ultimate controlling party is The Sherwin-Williams Company, which is incorporated in the United States of America. Copies of its group financial statements, which include the Company, are available from:

The Sherwin-Williams Company
101 W. Prospect Ave
Cleveland
Ohio
USA
44115-1075