Company registration number 02540492 (England and Wales)
3D EUROPEAN HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
3D EUROPEAN HOLDINGS LIMITED
COMPANY INFORMATION
Director
J D Creech
(Appointed 30 April 2024)
Company number
02540492
Registered office
2nd Floor, West & South Wing
The Maylands Building
200 Maylands Avenue
Hemel Hempstead
Herts
HP2 7TG
Auditor
Mercer & Hole LLP
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
Bankers
HSBC Bank Plc
60 Queen Victoria Street
London
EC4N 4TR
3D EUROPEAN HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 19
3D EUROPEAN HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

 

Principal activities

The company has two principal activities:                                        

    - holding of the investments of the European subsidiaries, and                                     

    - collection and distribution of management fees between the parent and the European subsidiaries.

Review of the development, performance and position of the business

The results for the year are in line with director's expectations.                                                                    

With expected stability in the trading subsidiaries complemented by healthy industry growth rates, the director believes that the holding company will continue to function in the existing structure through 2024.

 

Principal risks and uncertainties

We are exposed to market risk from changes in interest rates, foreign currency exchange rates and commodity prices which may adversely affect our results of operations and financial condition. We seek to minimise these risks through regular operating activities as appropriate.

Stakeholder statement

Customers

The 3D Systems group promotes our solutions globally through a direct sales force and channel partners. Our customer success organisation includes sales professionals, application engineers, vertical specialists, and other support teams. These teams provide complete service to our customers and channel partners, from a technical consultation to the sale of our software, printer, and services products. Our customers include major companies as well as small and midsize businesses in a broad range of industries, including medical, dental, automotive, aerospace, durable goods, government, defence, technology, jewellery, electronics, education, consumer goods, energy, biotechnology and others.

 

Workforce and Community

We are focused on empowering innovation through our people to drive industry-leading solutions to maintain a competitive edge in additive manufacturing. We review talent strategies to prioritise the development of people, the diversity of talent to expand technology innovation, and the engagement of our global workforce.

Talent Management & Engagement: Our company aims to advance additive manufacturing through ongoing product innovation, and as such we recognise the importance of the retention, growth, and development of our employees – employees are necessary to achieving our long-term success.

Inclusion and Belonging: The global representation of our teams promotes diversity of thought, experiences, culture, and backgrounds that enhances our ability to deliver innovative solutions to our customers. Throughout an employee’s career with 3D Systems, we are focused on fostering an engaged, inclusive, and purpose-driven culture through various company-wide programmes.

Community: We extend our focus of inclusion within our local communities and strive to make a positive impact by serving our underserved populations through our 3D Gives Back volunteer programme. We encourage employees to support community programmes and volunteer their time.

Compensation & Benefits: We design our compensation programmes with the goal of being competitive and equitable to support employees in sharing in the success of 3D Systems.

Workplace Health & Safety: We are committed to creating a safe, secure, healthy, and injury-free work environment for our employees, customers, partners, and visitors. Our focus is on reducing significant safety risks and driving a strong safety culture through communication, awareness of the necessary equipment at all facilities, and safety trainings.

 

3D EUROPEAN HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Suppliers

3D Systems outsources our 3D printer assembly and refurbishment activities to selected design, engineering and manufacturing companies in the USA, Switzerland and Belgium. We purchase finished printers from these suppliers pursuant to forecasts and customer orders that we supply to them. During 2023, we continued our work to in-source the manufacturing of multiple printing platforms from contract manufacturing partners in order to realise improvements in production quality, cost efficiency, and inventory management.

We also have arrangements with third parties who blend certain materials according to our specifications that we sell under our own brand names, and we purchase certain complementary materials from third parties for resale to our customers.

We work closely with its key suppliers and have forged close working relationships over many years. We also seek to build strong working relationships with all suppliers and consider them integral in our ability to support excellent customer service.

Key performance indicators

The directors use various KPIs to monitor the results of the business on an ongoing basis. Financial measures include Turnover, Cost and Operating Margin, which are all line items disclosed on the face of the profit and loss account. Revenue has increased by 24.4% driven by the inclusion of new entities in the group resulting in the increase in management fees. Expenses have increased by 43.1% in line with the corresponding revenue.

 

 

Revenue

Cost

Operating Margin

 

£’000

£’000

 

2022

16,807

(14,959)

11.0%

2023

20,900

(21,410)

(2.4%)

Increase

4,093

6,451

 

Increase %

24.4%

43.1%

 

 

 

Future prospects

The Holdings activity is determined by its continuation as the mechanism for management fee distribution. Its growth is therefore dependent on the growth of the wider 3D trading entities and any new acquisitions, along with an increase in the global and pan-European roles within these subsidiary companies.

 

On behalf of the board

J D Creech
Director
1 November 2024
3D EUROPEAN HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Strategic report

A review of the business, future developments and principal risks and uncertainties of the company are included within the Strategic Report.    

Results and dividends

The results for the year are set out on page 8.

 

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

A Johnson
(Resigned 30 April 2024)
J D Creech
(Appointed 30 April 2024)
Qualifying third party indemnity provisions

3D European Holdings Limited has granted an indemnity to its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. The ultimate parent maintains and anticipates to continue maintaining directors and officers insurance for the aforementioned directors in an amount equal to $100m. Such qualifying third party indemnity provision remains in force as at the date of approving the financial statements.

Auditor

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

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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.

On behalf of the board
J D Creech
Director
1 November 2024
3D EUROPEAN HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

3D EUROPEAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 3D EUROPEAN HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of 3D European Holdings 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 director's 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 director 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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

3D EUROPEAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 3D EUROPEAN HOLDINGS LIMITED (CONTINUED)
- 6 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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. These included, but were not limited to, the Companies Act 2006 and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

3D EUROPEAN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF 3D EUROPEAN HOLDINGS LIMITED (CONTINUED)
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Lawes MA MSc FCA
Senior Statutory Auditor
For and on behalf of Mercer & Hole LLP
1 November 2024
Chartered Accountants
Statutory Auditor
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
3D EUROPEAN HOLDINGS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£000's
£000's
Turnover
3
20,900
16,807
Administrative expenses
(21,410)
(14,959)
Operating (loss)/profit
4
(510)
1,848
Interest receivable and similar income
6
1,325
645
Interest payable and similar expenses
7
(1,124)
(478)
Amounts written off investments
8
(4,051)
-
(Loss)/profit before taxation
(4,360)
2,015
Tax on (loss)/profit
9
-
0
(383)
(Loss)/profit for the financial year
(4,360)
1,632

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

3D EUROPEAN HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£000's
£000's
(Loss)/profit for the year
(4,360)
1,632
Other comprehensive income
-
-
Total comprehensive income for the year
(4,360)
1,632
3D EUROPEAN HOLDINGS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£000's
£000's
£000's
£000's
Fixed assets
Investments
11
112,336
116,385
Current assets
Debtors falling due after more than one year
13
18,527
19,409
Debtors falling due within one year
13
56,584
37,591
Cash at bank and in hand
84
82
75,195
57,082
Creditors: amounts falling due within one year
14
(34,651)
(15,403)
Net current assets
40,544
41,679
Total assets less current liabilities
152,880
158,064
Creditors: amounts falling due after more than one year
15
(15,709)
(16,533)
Net assets
137,171
141,531
Capital and reserves
Called up share capital
16
154,984
154,984
Profit and loss reserves
17
(17,813)
(13,453)
Total equity
137,171
141,531
The financial statements were approved by the board of directors and authorised for issue on 1 November 2024 and are signed on its behalf by:
J D Creech
Director
Company registration number 02540492 (England and Wales)
3D EUROPEAN HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£000's
£000's
£000's
Balance at 1 January 2022
94,984
(15,085)
79,899
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,632
1,632
Issue of Share Capital
60,000
-
60,000
Balance at 31 December 2022
154,984
(13,453)
141,531
Year ended 31 December 2023:
Loss and total comprehensive income
-
(4,360)
(4,360)
Balance at 31 December 2023
154,984
(17,813)
137,171
3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

3D European Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, West & South Wing, The Maylands Building, 200 Maylands Avenue, Hemel Hempstead, Herts, HP2 7TG.

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's.

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 3D Systems Corporation.

Consolidation

The company has taken the exemption conferred by Section 401 of the Companies Act 2006 not to produce consolidated financial statements as it is a wholly-owned indirect subsidiary of 3D Systems Corporation. Copies of the consolidated financial statements of 3D Systems Corporation are publicly available from 333 Three D Systems Circle, Rock Hill, SC 29730, USA or from the United States Securities and Exchange Commission website at www.sec.gov. These financial statements therefore present the results of the company only.    

1.2
Going concern

The financial statements have been prepared on a going concern basis. In making the assessment, the director has prepared detailed trading and cashflow forecasts for the next twelve months from the date of signing the financial statements and believes that the company can continue to trade for the foreseeable future. The director has also reviewed the financial status of the wider group and is satisfied it has the resources available to continue to supply products to the company’s trading subsidiaries.true

 

1.3
Turnover

Turnover consists of management charges receivable from subsidiary companies, and is included on an accruals basis.

3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.5
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.

1.6
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.

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.

3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 and loans from fellow group companies 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.

1.7
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.

1.8
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.9
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In determining the carrying amounts of investments and intercompany debtors, the company makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The companies estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgments in respect of measuring financial instruments.    

3
Turnover and other revenue
2023
2022
£000's
£000's
Turnover analysed by geographical market
UK
389
237
Europe
18,598
14,510
USA
1,913
2,060
20,900
16,807
2023
2022
£000's
£000's
Other revenue
Interest income
1,325
645
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£000's
£000's
Exchange losses/(gains)
686
(1,785)
Fees payable to the company's auditor for the audit of the company's financial statements
16
15
5
Employees

The company had no employees in the current or prior year.

 

No director received emoluments from the company during the year (2022: £Nil).

3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Interest receivable and similar income
2023
2022
£000's
£000's
Interest income
Interest receivable from group companies
1,325
645
7
Interest payable and similar expenses
2023
2022
£000's
£000's
Interest payable to group undertakings
1,124
478
8
Amounts written off investments
2023
2022
£000's
£000's
Amounts written off investments in subsidiary undertakings
4,051
-
9
Taxation
2023
2022
£000's
£000's
Current tax
UK corporation tax on profits for the current period
-
0
383

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

2023
2022
£000's
£000's
(Loss)/profit before taxation
(4,360)
18,570
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(1,025)
383
Tax effect of expenses that are not deductible in determining taxable profit
952
-
0
Surrender of group relief
73
-
0
Taxation charge for the year
-
383
3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£000's
£000's
In respect of:
Fixed asset investments
11
4,051
-
Recognised in:
Amounts written off investments
4,051
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

11
Fixed asset investments
2023
2022
Notes
£000's
£000's
Investments in subsidiaries
12
112,336
116,385
Movements in fixed asset investments
Shares in subsidiaries
£000's
Cost or valuation
At 1 January 2023
148,725
Additions
2
At 31 December 2023
148,727
Impairment
At 1 January 2023
32,340
Impairment losses
4,051
At 31 December 2023
36,391
Carrying amount
At 31 December 2023
112,336
At 31 December 2022
116,385
3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Fixed asset investments
(Continued)
- 18 -

During the year, 3D Systems Turkey Makine Pazarlama ve Ticaret Anonim Şirketi was incorporated in Turkey and became a subsidiary.

 

Following a review of management’s best estimate of the carrying value of subsidiary investments, an impairment of £4,051,000 was recorded during the year (2022: £nil).

 

Impairments are calculated based on the difference between the subsidiary's net assets plus the net present value of future cashflows and the investment holding value. The net present value of the subsidiary cashflows was determined through discounting expected future cash flows at a discount rate of 9%.

12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
3D Systems GmbH
Germany
Ordinary shares
100.00
-
3D Systems Italia SRL
Italy
Ordinary shares
100.00
-
3D Systems Europe Limited
UK
Ordinary shares
100.00
-
3D Systems Benelux B.V.
Netherlands
Ordinary shares
100.00
-
LayerWise NV
Belgium
Ordinary shares
100.00
-
Kumovis GmbH
Germany
Ordinary shares
0
100.00
Kumovis Inc.
USA
Ordinary shares
0
100.00
Phenix Systems
France
Ordinary shares
0
100.00
Sint Tech SARL
France
Ordinary shares
0
100.00
Additive Manufacturing Technologies Inc
USA
Ordinary shares
0
100.00
3D Systems France SARL
France
Ordinary shares
0
100.00
Vertex-Global Holding B.V.
Netherlands
Ordinary shares
0
100.00
Layerwise, Inc.
USA
Ordinary shares
0
100.00
NextDent B.V.
Netherlands
Ordinary shares
0
100.00
Vertex-Dental B.V.
Netherlands
Ordinary shares
0
100.00
Vertex-Dental Asia PTE Ltd
Singapore
Ordinary shares
0
100.00
3D Systems Turkey
Turkey
Ordinary shares
100.00
-
Mecial Precision Parts
Belgium
Ordinary shares
0
100.00
13
Debtors
2023
2022
Amounts falling due within one year:
£000's
£000's
Amounts owed by group undertakings
56,584
37,591
2023
2022
Amounts falling due after more than one year:
£000's
£000's
Amounts owed by group undertakings
18,527
19,409
Total debtors
75,111
57,000
3D EUROPEAN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Creditors: amounts falling due within one year
2023
2022
£000's
£000's
Trade creditors
5
-
0
Amounts owed to group undertakings
34,243
14,964
Corporation tax
383
421
Accruals and deferred income
20
18
34,651
15,403
15
Creditors: amounts falling due after more than one year
2023
2022
£000's
£000's
Amounts owed to group undertakings
15,709
16,533
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000's
£000's
Issued and fully paid
Ordinary shares of £1 each
154,984,201
154,984,201
154,984
154,984
17
Profit and loss reserves

The company's reserves are as follows:

 

18
Related party transactions

The company has taken advantage of the exemption available under FRS 102 'Related party disclosures' whereby it has not disclosed transactions with ultimate parent company or any wholly owned subsidiary undertaking or group.     

19
Ultimate controlling party

The company's immediate parent undertaking is 3D Systems Inc., a company incorporated in California, United States of America.

                            

The ultimate parent and controlling party is 3D Systems Corporation, a public company incorporated in Delaware, United States of America. Copies of the 3D Systems Corporation consolidated financial statements may be obtained from 333 Three D Systems Circle, Rock Hill, SC 29730, USA or from the United States Securities and Exchange Commission website at www.sec.gov.

 

3D Systems Corporation and 3D Systems Inc. are the respective parent undertakings of the largest and smallest groups to consolidate these financial statements.    

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