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Registered number: NI019880










Canyon Europe Limited










Annual Report and Financial Statements

For the Year Ended 31 December 2023

 
Canyon Europe Limited
 

Company Information


Directors
Hugh Ross 
Mieko Tada 
Naoko Satoh 




Company secretary
Michael Patrick Lynch



Registered number
NI019880



Registered office
4 Mallusk Road

Newtownabbey

Co. Antrim

BT36 4PR




Independent auditors
Sumer Auditco NI Limited
Statutory Auditors

4th Floor

Glendinning House

6 Murray Street

Belfast

BT1 6DN




Bankers
Ulster Bank Limited
11-16 Donegall Square East

Belfast

BT1 5UB





Mizuho Bank, Ltd.

Mizuho House

30 Old Bailey

London

EC4M 7AU




Solicitors
Elliot Duffy Garrett
40 Linenhall Street

Belfast

BT2 8BA





 
Canyon Europe Limited
 

Contents



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 30

 
Canyon Europe Limited
 

Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors present the Strategic Report for the year ended 31 December 2023. The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.

Business review
 
The principal activities of the company continued to be that of plastic atomiser manufacturing. The directors consider that the company's development and performance, including results for the year are in line with expectations. Significant work has been performed to date to successfully secure new customers and adapt working processes to align to the logistics of the manufacture of smaller and more complex orders. This includes ongoing investment in research and development activities. The directors are satisfied with the position of the company at the end of the year. Whilst the commercial environment is expected to remain competitive in 2024 the company is confident that it will deliver a strong performance. The company will continue to seek every opportunity to further increase profitability. The company is currently being funded through cash reserves. The company will continue to utilise its cash reserves and the financial support of the its parent company for the near future and has prepared forecasts for the foreseeable future from the dates of approval of the financial statements which support the ability to continue as a going concern. As a consequence the directors believe that the company is well placed to manage business risk successfully despite the prevailing economic conditions. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and the financial statements.

Principal risks and uncertainties
 
Performance in the sector is affected by general economic conditions and specific sectoral factors such as market trends and exchange rates. The company's active review of market prices and trends provides protection against loss. The business may also be impacted by the general economic conditions, including the ongoing conflict in Ukraine.  Due to the company's reputation, standing and position in the market place, the directors are of the opinion that the risks and uncertainties facing the company can be adequately managed.

Financial key performance indicators
 
The directors consider operating profit and cash at bank and in hand to be the main measures of financial performance.                                                Operating loss decreased from £1,304,000 in 2022 to £294,000 in 2023 and Cash at Bank has increased from £5,430,000 in 2022 to £6,266,000 in 2023.  

Environment
 
The company recognises its corporate responsibility to carry out its operations whilst minimising the environmental impacts. The directors' continued  aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

Health and safety

The company is committed to achieving the highest practicable standards in health and safety management and strives to make its premises a safe environment for employees and customers alike.
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Page 1

 
Canyon Europe Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Human resources

The company's most important resource is its people, their knowledge and experience is crucial to meeting customer requirements. Retention of key personnel is critical and the company has invested increasingly in employment training and development by introducing appropriate incentive and career progression arrangements. 


This report was approved by the board on 25 September 2024 and signed on its behalf.



Hugh Ross
Director
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Page 2

 
Canyon Europe Limited
 

 
Directors' Report
For the Year Ended 31 December 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £25,000 (2022 - £972,000).

The company did not vote a dividend in respect of the year ended 31 December 2023 (2022 - £nil).

Directors

The directors who served during the year were:

Hugh Ross 
Mieko Tada 
Naoko Satoh 

Financial risk management

The company's operations expose it to a variety of financial risks that include foreign exchange, credit and liquidity risks. The company has in place a risk management programme that seeks to limit their adverse effects on the financial performance of the company.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board.

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Page 3

 
Canyon Europe Limited
 

 
Directors' Report (continued)
For the Year Ended 31 December 2023

Liquidity risk

The company actively maintains sufficient cash balances. along with short term debt finance that is designed to ensure the company has sufficient available funds for operations and planned extensions.. 

Future developments

Information in relation to future developments has been included in the Strategic report by cross reference.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no further events which affect the company since the year end.

Auditors

The auditorsSumer Auditco NI Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 September 2024 and signed on its behalf.
 





Hugh Ross
Director

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Page 4

 
Canyon Europe Limited
 

 
Independent Auditors' Report to the Members of Canyon Europe Limited
 

Opinion


We have audited the financial statements of Canyon Europe Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its loss 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 United Kingdom, including the Financial Reporting Council'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.


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Page 5

 
Canyon Europe Limited
 

 
Independent Auditors' Report to the Members of Canyon Europe Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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:


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 Directors' Responsibilities Statement set out on page 3, 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.


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Page 6

 
Canyon Europe Limited
 

 
Independent Auditors' Report to the Members of Canyon Europe Limited (continued)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.  We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: posting of unusual journals and revenue recognition.
 
We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.   Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, sample testing of journals posted during the year, specific tests of detail over revenue recognition,  and ensuring that the accounting policy has been complied with and a review of areas of judgement for indicators of management bias to address the risks.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities 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 Auditors' Report.


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Page 7

 
Canyon Europe Limited
 

 
Independent Auditors' Report to the Members of Canyon Europe Limited (continued)


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 2006Our 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 Auditors' 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.





Brian Clerkin (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco NI Limited
 
Statutory Auditors
  
4th Floor
Glendinning House
6 Murray Street
Belfast
BT1 6DN

25 September 2024
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Page 8

 
Canyon Europe Limited
 

Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
7,940
8,293

Cost of sales
  
(7,061)
(8,463)

Gross profit/(loss)
  
879
(170)

Administrative expenses
  
(1,173)
(1,134)

Operating loss
 5 
(294)
(1,304)

Interest receivable and similar income
 9 
141
13

Other finance income/(expense)
  
21
(15)

Loss before tax
  
(132)
(1,306)

Tax on loss
 11 
135
334

Profit/(loss) for the financial year
  
3
(972)

Other comprehensive income for the year
  

Actuarial (losses) / gains on defined benefit pension scheme
  
(429)
1,063

Movement of deferred tax relating to pension deficit
  
61
(266)

Other comprehensive income for the year
  
(368)
797

Total comprehensive income for the year
  
(365)
(175)

The notes on pages 14 to 30 form part of these financial statements.

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Canyon Europe Limited
Registered number: NI019880

Balance Sheet
As at 31 December 2023

2023
2023
2022
2022
Note
£000
£000
£000
£000

Fixed assets
  

Tangible assets
 12 
3,038
3,565

  
3,038
3,565

Current assets
  

Stocks
 13 
1,159
1,784

Debtors: amounts falling due within one year
 14 
1,447
1,361

Cash at bank and in hand
 15 
6,266
5,433

  
8,872
8,578

Creditors: amounts falling due within one year
 16 
(664)
(579)

Net current assets
  
 
 
8,208
 
 
7,999

Total assets less current liabilities
  
11,246
11,564

Provisions for liabilities
  

Deferred tax
 18 
(169)
(365)

Pension asset
 22 
93
336

Net assets
  
11,170
11,535


Capital and reserves
  

Called up share capital 
 19 
250
250

Profit and loss account
 20 
10,920
11,285

  
11,170
11,535


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2024.




Hugh Ross
Director

The notes on pages 14 to 30 form part of these financial statements.
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Page 10

 
Canyon Europe Limited
 

Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 January 2022
250
11,460
11,710



Loss for the year
-
(972)
(972)

Actuarial gains on pension scheme
-
797
797



At 1 January 2023
250
11,285
11,535



Profit for the year
-
3
3

Actuarial losses on pension scheme
-
(368)
(368)


At 31 December 2023
250
10,920
11,170


The notes on pages 14 to 30 form part of these financial statements.

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Page 11

 
Canyon Europe Limited
 

Statement of Cash Flows
For the Year Ended 31 December 2023

2023
2022
£000
£000

Cash flows from operating activities

Profit / (Loss) for the financial year
3
(972)

Adjustments for:

Depreciation of tangible assets
570
550

Interest received
(141)
(13)

Taxation charge
(135)
(334)

Decrease/(increase) in stocks
625
(654)

(Increase)/decrease in debtors
(27)
1,235

Increase/(decrease) in creditors
71
(301)

Increase/(decrease)) in amounts owed to groups
28
(182)

(Decrease) in net pension assets/liabs
(186)
(150)

Corporation tax received/(paid)
-
(143)

Net cash generated from operating activities

808
(964)


Cash flows from investing activities

Purchase of tangible fixed assets
(43)
(70)

Interest received
71
13

Net cash from investing activities
28
(57)


Net increase/(decrease) in cash and cash equivalents
836
(1,021)

Cash and cash equivalents at beginning of year
5,430
6,451

Cash and cash equivalents at the end of year
6,266
5,430


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,266
5,433

Bank overdrafts
-
(3)

6,266
5,430


The notes on pages 14 to 30 form part of these financial statements.

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Canyon Europe Limited
 

Analysis of Net Debt
For the Year Ended 31 December 2023




At 1 January 2023
Cash flows
At 31 December 2023
£000

£000

£000

Cash at bank and in hand

5,433

833

6,266

Bank overdrafts

(3)

3

-


5,430
836
6,266

The notes on pages 14 to 30 form part of these financial statements.

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Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

Canyon Europe Limited is a private company limited by shares incorporated in Northern Ireland within the United Kingdom. The registration number and address of the registered office are given in the company information section of these financial statements. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The Directors of Canyon Europe Limited have reviewed the appropriateness of the going concern assumption and consider that the company has sufficient resources to continue as a trading entity for the foreseeable future.
Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

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Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

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Page 15

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

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Page 16

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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Page 17

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2 %
Plant and machinery
-
10%, 12.5%, 15%,  20% and 33.3%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

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Page 18

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

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Page 19

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(a) Critical judgements in applying the company's accounting policies:
There are no critical judgements in applying the entity's accounting policies.
(b) Critical accounting estimates and assumptions:
The company has an obligation to pay pension benefits to certain employees.  The cost 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.  See note 22 for the disclosures relating to the defined benefit pension scheme. 


4.


Turnover

The whole of the turnover is attributable to the manufacture of plastic atomisers.  The directors consider the inclusion of sales by geographic region to be seriously prejudicial to their operations and have elected not to present this information.


5.


Operating loss

The operating loss is stated after charging:

2023
2022
£000
£000

Research & development charged as an expense
13
11

Exchange differences
47
(45)

Other operating lease rentals
5
5


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
10
10

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Page 20

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£000
£000

Wages and salaries
2,128
2,552

Social security costs
213
269

Cost of defined contribution scheme
48
56

2,389
2,877


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
66
90


8.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
107
108

107
108



9.


Interest receivable

2023
2022
£000
£000


Other interest receivable
141
13

141
13

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Page 21

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

10.


Other finance income / (costs)

2023
2022
£000
£000

Net interest on net defined benefit liability
21
(15)

21
(15)



11.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
-
(75)

Adjustments in respect of previous periods
-
(228)


Total current tax

-
(303)

Deferred tax


Origination and reversal of timing differences
(135)
(31)

Total deferred tax
(135)
(31)


Taxation on loss on ordinary activities
(135)
(334)
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Page 22

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Loss on ordinary activities before tax
(132)
(1,306)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(25)
(248)

Effects of:


Expenses not deductible for tax purposes
(33)
(30)

Utilisation of tax losses
-
228

Depreciation for year in excess of capital allowances
82
65

Adjustments to tax charge in respect of prior periods
-
(228)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(62)
(90)

Unrelieved tax losses carried forward
38
-

Deferred tax movement
(135)
(31)

Total tax charge for the year
(135)
(334)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

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Page 23

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

12.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Total

£000
£000
£000



Cost or valuation


At 1 January 2023
4,730
18,658
23,388


Additions
-
43
43



At 31 December 2023

4,730
18,701
23,431



Depreciation


At 1 January 2023
2,824
16,999
19,823


Charge for the year on owned assets
89
481
570



At 31 December 2023

2,913
17,480
20,393



Net book value



At 31 December 2023
1,817
1,221
3,038



At 31 December 2022
1,906
1,659
3,565


13.


Stocks

2023
2022
£000
£000

Raw materials and consumables
922
1,462

Finished goods and goods for resale
237
322

1,159
1,784


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Page 24

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

14.


Debtors

2023
2022
£000
£000


Trade debtors
1,007
943

Other debtors
103
95

Prepayments and accrued income
34
20

Tax recoverable
303
303

1,447
1,361



15.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
6,266
5,433

Less: bank overdrafts
-
(3)

6,266
5,430



16.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Bank overdrafts
-
3

Trade creditors
405
261

Amounts owed to group undertakings
17
2

Other taxation and social security
66
98

Other creditors
1
-

Accruals and deferred income
175
215

664
579


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Page 25

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

17.


Financial instruments

2023
2022
£000
£000

Financial assets


Financial assets measured at fair value through profit or loss
6,266
5,433




Financial assets measured at fair value through profit or loss comprise cash and cash equivalents


18.


Deferred taxation




2023
2022


£000

£000






At beginning of year
(365)
(130)


Charged to profit or loss
135
31


Charged to other comprehensive income
61
(266)



At end of year
(169)
(365)

The provision for deferred taxation is made up as follows:

2023
2022
£000
£000


Accelerated capital allowances
(195)
(280)

Tax losses carried forward
50
-

Pension surplus
(23)
(85)

(168)
(365)


19.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



250,000 (2022 - 250,000) Ordinary shares of £1.00 each
250
250


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Page 26

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

20.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other
adjustments.


21.


Contingent liabilities

There is a contingent liability to repay certain grants received from Invest NI if certain conditions are not met.  The directors do not anticipate any repayment falling due under the terms on which the grants were received. 

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Page 27

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

22.


Pension commitments

For certain employees, the company operates a defined benefit pension scheme with assets held in a separately administered fund.  The scheme provides retirement benefits on the basis of members' final salary.  The plan in administered by independent trustees, who are responsible for ensuring that the plan is sufficiently funded to meet current and future obligations.  The company has agreed a funding plan with the trustees, whereby ordinary contributions are made into the scheme based on a  percentage of active employees' salary.  Additional contributions are agreed with the trustee to reduce the funding deficit where necessary.  The scheme closed to future accrual on 31 December 2020.

The Company also operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge includes contributions payable by the Company  to the defined contribution fund and amounted to £48,000 (2022 - £56,000). Contributions totaling £11,000 (2022 - £13,000) were payable to the fund at the balance sheet date and are included in creditors.



Reconciliation of present value of plan liabilities:


2023
2022
£000
£000

Reconciliation of present value of plan liabilities


At the beginning of the year
4,267
6,429

Interest cost
203
121

Actuarial gains/losses
227
(2,171)

Benefits paid
(331)
(112)

At the end of the year
4,366
4,267


Reconciliation of present value of plan assets:


2023
2022
£000
£000


At the beginning of the year
4,603
5,552

Interest income
224
106

Actuarial gains/losses
(202)
(1,108)

Contributions
165
165

Benefits paid
(331)
(112)

At the end of the year
4,459
4,603

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Page 28

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
22.Pension commitments (continued)


Composition of plan assets:


2023
2022
£000
£000


Equity instruments
30
2,546

Bonds
1,359
1,059

Annuities
624
633

Cash
130
365

Gilts
2,316
-

Total plan assets
4,459
4,603

2023
2022
£000
£000


Fair value of plan assets
4,459
4,603

Present value of plan liabilities
(4,366)
(4,267)

Net pension scheme liability
93
336


The amounts recognised in profit or loss are as follows:

2023
2022
£000
£000


Net interest cost
(21)
15

Total
(21)
15

2023
2022
£000
£000

Analysis of actuarial gains recognised in Other Comprehensive Income


Actuarial gains from assets
202
(1,108)

Experience gains and losses arising on the scheme liabilities
108
(283)

Changes in assumptions underlying the present value of the scheme liabilities
119
2,454

429
1,063

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Page 29

 
Canyon Europe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
22.Pension commitments (continued)


Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023
2022
%
%
Discount rate


4.65

4.95
 
Future salary increases


n/a

n/a
 
Future pension increases


2.95

2.85
 
Inflation assumption


3.1

3.15
 
Mortality rates



 
- for a male aged 65 now


21.0

21.5
 
- at 65 for a male aged 45 now


22.3

22.7
 
- for a female aged 65 now


23.5

23.8
 
- at 65 for a female member aged 45 now


24.9

25.3
 






23.


Related party transactions

Details of transactions and balances with related parties and their relationship to the entity are noted below:


2023
2022
£000
£000

Transactions with entity with control over the company:
Sales
37
26
Purchases
(255)
(510)
Management charges
(242)
(247)
Balance due to entities with control
(17)
(2)


24.


Controlling party

The directors consider the Tada family to be the ultimate controlling party by virtue of their shareholding in Canyon Corporation, a company registered in Japan, which is the immediate and ultimate parent company.

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Page 30