Company registration number 10812243 (England and Wales)
COOPER COATED COIL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
COOPER COATED COIL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
N D Templeton-Ward
K D Tranter
R A Babington
Company number
10812243
Registered office
4 Steelpark Trading Estate
Steelpark Way
Wolverhampton
WV11 3BF
Auditor
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
First Floor
Two Chamberlain Square
Birmingham
B3 3AX
COOPER COATED COIL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
COOPER COATED COIL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The Company is the ultimate holding company in the Cooper Coated Coil Group.

 

During the financial year under review, the Company’s specialist coil coating business Cooper Coated Coil Limited continued to experience challenging trading conditions.

 

As reported last year, the pre-buying of stock in 2022, together with reduced consumer demand, is taking time to work through the supply chain. During the latter part of the year, demand began to stabilise. A recent industry survey carried out for the Company by an independent market research company, concluded that demand will gradually recover during the period 2024 to 2026.

 

The Board carefully monitored business performance throughout the year and appropriate cost reduction programmes have been put in place to minimise the cost base.

Principal risks and uncertainties

 

The management of the business and the nature of the group's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business.

 

The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.

 

Currency risk

 

The group is exposed to translation and transaction foreign exchange risk. In relation to translation risk, as far as possible the assets held in the foreign currency are matched to an appropriate level of borrowings in the same currency. The group uses foreign currency derivative contracts to further manage the foreign currency risk to the business.

 

Liquidity risk

 

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 

The directors have prepared forecasts and are satisfied that the group has adequate resources to fund its day-to-day requirements, growth and strategic objectives for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

 

The group finances its operations through a mixture of retained profits, a parent company loan, bank borrowings and invoice financing arrangements. The group exposure to interest rate fluctuations on its borrowings managed by the use of both fixed and floating facilities.

 

Interest rate risk

 

The group finances its operations through a mixture of inter-company funding, bank borrowings and invoice financing arrangements. The group exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

COOPER COATED COIL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Credit risk

 

The group's principal financial assets are bank deposits, cash and trade debtors.

 

The credit risk associated with the bank deposits and cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from the group's trade debtors.

 

In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Key performance indicators
2023
2022
Gross profit %
1
4.2%
7.5%
EBITDA £
2
(£458,984)
£537,059
EBITDA %
3
(2.8%)
2.5%
1 - Gross profit %: gross profit as a percentage of turnover
2 - EBITDA £: operating profit before exceptional items, interest, tax, depreciation and amortisation
3 - EBITDA %: EBITDA as a percentage of turnover

This report was approved by the board on 3 February 2025 and signed on its behalf.

K D Tranter
Director
COOPER COATED COIL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

N D Templeton-Ward
K D Tranter
R A Babington
Directors indemnity insurance

The group provides indemnity for its directors (to the extent permitted by law), in respect of liabilities which could occur as a result of their office. This indemnity does not provide cover should a director be proved to have acted fraudulently or dishonestly. This indemnity was in place throughout the financial year, and at the date of signing.

Financial instruments

The group finances its operations through capital investment and day-to-day through the use of operational bank accounts. The group makes use of financial instruments principally through its operational bank accounts. The directors' objectives are to retain sufficient liquid funds to enable the group to meet its day to day requirements as they fall due and to maximise returns on surplus funds where possible. The group's funds are held primarily in short term deposit accounts. The directors believe that this gives the flexibility to release cash resources at short notice and allows the group to take advantage of changing economic conditions as they arise.

Future developments

The directors do not expect any change in the principal activity during the next financial year.

Auditor

In accordance with the company's articles, a resolution proposing that Forvis Mazars LLP be reappointed as auditor of the company will be put at a General Meeting.

Going concern

The Group has net current assets of £729,380 as at 31 December 2023 (2022: £1,570,653). The Group has net liabilities of £3,058,160 as at 31 December 2023 (2022: net assets £2,102,937). The Group has support from its ultimate controlling party Mobeus Equity Partners IV LLP and they have confirmed its ongoing support to Cooper Coated Coil Holdings Limited for a period of at least 12 months from the date of signing the financial statements for the year ended 31 December 2023. The directors of the Company have concluded that the going concern basis is appropriate based on the financial forecasts of the group and the ultimate controlling party (Mobeus Equity Partner IV LLP) confirming financial support to the Company.

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 auditor of the company 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 auditor of the company is aware of that information.

Medium companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

COOPER COATED COIL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
This report was approved by the board on
3 February 2025
03 February 2025
and signed on its behalf.
K D Tranter
Director
COOPER COATED COIL HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

COOPER COATED COIL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COOPER COATED COIL HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Cooper Coated Coil Holdings Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 which comprise of the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance Sheet, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

COOPER COATED COIL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COOPER COATED COIL HOLDINGS LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 5, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

COOPER COATED COIL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COOPER COATED COIL HOLDINGS LIMITED
- 8 -

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as: tax legislation, pension legislation, the Companies Act 2006.

 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to: posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit 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.

Paul Kurowski (Senior Statutory Auditor)
For and on behalf of Forvis Mazars LLP
4 February 2025
Chartered Accountants
First Floor
Statutory Auditor
Two Chamberlain Square
Birmingham
B3 3AX
COOPER COATED COIL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
16,498,537
21,647,586
Cost of sales
(15,798,825)
(20,014,631)
Gross profit
699,712
1,632,955
Administrative expenses
(2,386,742)
(2,442,038)
Other operating income
11,012
11,012
Exceptional item
4
(3,316,994)
-
0
Operating loss
5
(4,993,012)
(798,071)
Interest receivable and similar income
9
997
107
Interest payable and similar expenses
10
(498,683)
(485,026)
Loss before taxation
(5,490,698)
(1,282,990)
Tax on loss
11
329,601
176,146
Loss for the financial year
(5,161,097)
(1,106,844)
Loss for the financial year is attributable to:
- Owners of the parent company
(4,026,776)
(1,069,045)
- Non-controlling interests
(1,134,321)
(37,799)
(5,161,097)
(1,106,844)

The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

 

There are no recognised gains and losses other than those passing through the profit and loss account.

 

 

 

 

 

The notes on pages 16 - 34 form part of these financial statements.

COOPER COATED COIL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
-
0
2,258,673
Other intangible assets
12
-
0
1,983,994
Total intangible assets
-
4,242,667
Tangible assets
13
1,186,379
1,411,949
1,186,379
5,654,616
Current assets
Stocks
17
1,020,393
1,315,801
Debtors
18
2,925,633
3,301,421
Cash at bank and in hand
108,021
196,048
4,054,047
4,813,270
Creditors: amounts falling due within one year
19
(3,324,667)
(3,242,617)
Net current assets
729,380
1,570,653
Total assets less current liabilities
1,915,759
7,225,269
Creditors: amounts falling due after more than one year
20
(4,508,426)
(4,362,090)
Provisions for liabilities
Deferred tax liability
23
465,493
760,242
(465,493)
(760,242)
Net (liabilities)/assets
(3,058,160)
2,102,937
Capital and reserves
Called up share capital
25
1,418
1,418
Share premium account
90,851
90,851
Profit and loss reserves
(2,799,905)
1,226,871
Equity attributable to owners of the parent company
(2,707,636)
1,319,140
Non-controlling interests
(350,524)
783,797
(3,058,160)
2,102,937

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

COOPER COATED COIL HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
03 February 2025
K D Tranter
Director
Company registration number 10812243 (England and Wales)
COOPER COATED COIL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
1
1
Current assets
Debtors
18
-
0
92,268
Cash at bank and in hand
16,769
16,769
16,769
109,037
Creditors: amounts falling due within one year
19
(16,769)
(16,769)
Net current assets
-
92,268
Net assets
1
92,269
Capital and reserves
Called up share capital
25
1,418
1,418
Share premium account
90,851
90,851
Profit and loss reserves
(92,268)
-
Total equity
1
92,269

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £92,268 (2022 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
03 February 2025
K D Tranter
Director
Company registration number 10812243 (England and Wales)
COOPER COATED COIL HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 January 2022
1,418
90,851
2,295,916
2,388,185
821,596
3,209,781
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(1,069,045)
(1,069,045)
(37,799)
(1,106,844)
Balance at 31 December 2022
1,418
90,851
1,226,871
1,319,140
783,797
2,102,937
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(4,026,776)
(4,026,776)
(1,134,321)
(5,161,097)
Balance at 31 December 2023
1,418
90,851
(2,799,905)
(2,707,636)
(350,524)
(3,058,160)
The notes on pages 16 - 34 form part of these financial statements
COOPER COATED COIL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
1,418
90,851
-
0
92,269
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
0
Balance at 31 December 2022
1,418
90,851
-
0
92,269
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(92,268)
(92,268)
Balance at 31 December 2023
1,418
90,851
(92,268)
1
The notes on pages 16 - 34 form part of these financial statements
COOPER COATED COIL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
273,858
493,827
Interest paid
(275,722)
(476,696)
Income taxes refunded/(paid)
77,542
(184,259)
Net cash inflow/(outflow) from operating activities
75,678
(167,128)
Investing activities
Purchase of tangible fixed assets
(52,041)
(235,710)
Interest received
997
107
Net cash used in investing activities
(51,044)
(235,603)
Financing activities
Proceeds from new borrowings
-
250,000
Payment of finance leases obligations
(112,661)
(81,074)
New non capital finance leases
-
82,060
Net cash (used in)/generated from financing activities
(112,661)
250,986
Net decrease in cash and cash equivalents
(88,027)
(151,745)
Cash and cash equivalents at beginning of year
196,048
347,793
Cash and cash equivalents at end of year
108,021
196,048
The notes on pages 16 - 34 form part of these financial statements
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Cooper Coated Coil Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4 Steelpark Trading Estate, Steelpark Way, Wolverhampton, WV11 3BF.

 

The group consists of Cooper Coated Coil Holdings Limited and all of its subsidiaries.

 

The principal trading activity of the group continued to be that of the design, production and worldwide distribution of precoated metals to the bakeware, domestic appliance, houseware and niche industrial manufacturing sectors.

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 £.

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies. The principal accounting policies adopted are set out below.

 

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 2).

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Cooper Coated Coil Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The Group has net current assets of £729,380 as at 31 December 2023 (2022: £1,570,653). The Group has net liabilities of £3,058,160 as at 31 December 2023 (2022: net assets £2,102,937). The Group has support from its ultimate controlling party Mobeus Equity Partners IV LLP and they have confirmed its ongoing support to Cooper Coated Coil Holdings Limited for a period of at least 12 months from the date of signing the financial statements for the year ended 31 December 2023. The directors of the Company have concluded that the going concern basis is appropriate based on the financial forecasts of the group and the ultimate controlling party (Mobeus Equity Partner IV LLP) confirming financial support to the Company.

1.5
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

 

1.6
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life, which the Directors have assessed as 10 years.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Intangible fixed assets other than goodwill

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

 

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 

The estimated useful lives range as follows:

Brands
10 years
Customer lists
10 years
1.8
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.

 

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
Over the term of the lease
Plant and machinery
4 - 10 years
Fixtures and fittings
4 - 5 years
Motor vehicles
4 years

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 the Consolidated Statement of Comprehensive Income.

1.9
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 the Statement of Comprehensive Income.

 

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.

1.10
Borrowing costs

All borrowing costs are recognised in the Consolidated Statement of Comprehensive Income in the year in which they are incurred.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

1.12
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 Consolidated 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 Group's cash management.

1.13
Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

1.14
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
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 group’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 balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred by the balance sheet date with certain limited exceptions.

 

Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

1.16
Provisions

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

 

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Pensions

 

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 the Consolidated Statement of Comprehensive Income 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.

1.19
Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
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 Statement of Comprehensive Income.

1.22

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.23

Debtors

Short term debtors are measured at transaction price, less any impairment.

1.24

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.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Amortisation, depreciation and residual values

The directors have reviewed the asset lives and associated residual values of the all the fixed tangible and intangible asset classes, and in particular, the useful economic life and residual values of plant and machinery and fixtures and fittings, and have concluded that asset lives and residual values are appropriate.

Stocks

The groups holds levels of stock to be able to support its principal activity. The result of this is the potential for items to become obsolete as a result of having no target market. Management assess the expected selling price of all stock lines and provide for items which in their judgement may be obsolete.

Trade debtors

Trade debtors consist of amounts due from customers. An allowance for doubtful debt is maintained for estimated losses resulting from the viability of the company’s customers to make required payment. The allowance is based on the company’s regular assessment of the credit worthiness and financial conditions for customers.

3
Turnover

The whole of turnover is attributable to the group’s principal activity.

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,537,365
5,877,779
European Union
8,746,109
12,206,234
Rest of the World
3,215,063
3,563,573
16,498,537
21,647,586
2023
2022
£
£
Other revenue
Interest income
997
107
Grants received
11,012
11,012
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item
3,316,994
-

Exceptional items represent the impairment of the intangible assets, being goodwill of £1,765,900, brands of £978,094 and customer lists of £573,000 (see note 12).

5
Operating loss
2023
2022
£
£
Operating (loss)/profit for the period is stated after charging/(crediting):
Government grants
(11,012)
(11,012)
Depreciation of owned tangible fixed assets
240,818
363,570
Depreciation of tangible fixed assets held under finance leases
50,543
45,887
Amortisation of intangible assets
925,673
925,673
Impairment of intangible assets
3,316,994
-
0
Operating lease rentals - motor vehicles
4,748
8,125
Operating lease rentals - land and buildings
252,987
250,188
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Fees payable to the Group's auditor and its associates for the audit of the
Group's annual financial statements
42,000
40,000
42,000
40,000
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Manufacturing
40
47
-
-
Administrative
2
2
-
-
Selling
4
5
-
-
Total
46
54
-
0
-
0
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,014,317
2,156,648
-
0
-
0
Social security costs
201,397
229,419
-
-
Pension costs
100,518
105,434
-
0
-
0
2,316,232
2,491,501
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
307,002
320,396
Company pension contributions to defined contribution schemes
12,502
11,951
319,504
332,347
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
156,524
149,915
Company pension contributions to defined contribution schemes
12,502
11,951

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
997
107
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on convertible loan notes
425,000
399,589
Other finance costs:
Interest on finance leases and hire purchase contracts
9,880
8,330
Other interest
63,803
77,107
Total finance costs
498,683
485,026
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(42,690)
Adjustments in respect of prior periods
(34,852)
(72,507)
Total current tax
(34,852)
(115,197)
Deferred tax
Origination and reversal of timing differences
(294,749)
(60,949)
Total tax credit
(329,601)
(176,146)

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

2023
2022
£
£
Loss before taxation
(5,490,698)
(1,282,990)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(1,372,675)
(243,768)
Tax effect of expenses that are not deductible in determining taxable profit
972,938
89,142
Tax effect of income not taxable in determining taxable profit
(2,753)
(2,092)
Unutilised tax losses carried forward
105,203
-
0
Adjustments in respect of prior years
(34,852)
(72,507)
Adjustment to deferred tax rates
2,773
68,000
Tax effect of enhanced capital allowances
(235)
(14,921)
Taxation credit
(329,601)
(176,146)
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Intangible fixed assets
Group
Goodwill
Brands
Customer lists
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
4,927,731
2,729,000
1,600,000
9,256,731
Amortisation and impairment
At 1 January 2023
2,669,058
1,478,006
867,000
5,014,064
Amortisation charged for the year
492,773
272,900
160,000
925,673
Impairment losses
1,765,900
978,094
573,000
3,316,994
At 31 December 2023
4,927,731
2,729,000
1,600,000
9,256,731
Carrying amount
At 31 December 2023
-
0
-
0
-
0
-
0
At 31 December 2022
2,258,673
1,250,994
733,000
4,242,667
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Long term leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
19,141
2,666,334
329,325
25,802
3,040,602
Additions
-
0
20,159
45,632
-
0
65,791
At 31 December 2023
19,141
2,686,493
374,957
25,802
3,106,393
Depreciation and impairment
At 1 January 2023
9,345
1,420,018
194,273
5,017
1,628,653
Depreciation charged in the year
3,228
273,473
6,060
8,600
291,361
At 31 December 2023
12,573
1,693,491
200,333
13,617
1,920,014
Carrying amount
At 31 December 2023
6,568
993,002
174,624
12,185
1,186,379
At 31 December 2022
9,796
1,246,316
135,052
20,785
1,411,949
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
253,796
304,339
-
0
-
0
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
15
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
Cooper Coated Coil Investments Limited
4, Steelpark Trading Estate, Steelpark Way, Wolverhampton, WV11 3BF, United Kingdom
Ordinary
100.00
-
Cooper Coated Coil Management Limited
4, Steelpark Trading Estate, Steelpark Way, Wolverhampton, WV11 3BF, United Kingdom
Ordinary
-
91.45
Cooper Coated Coil Limited
4, Steelpark Trading Estate, Steelpark Way, Wolverhampton, WV11 3BF, United Kingdom
Ordinary
-
91.45
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Cooper Coated Coil Investments Limited
(11,906,916)
(7,088,027)
Cooper Coated Coil Management Limited
(5,392,835)
(6,706,787)
Cooper Coated Coil Limited
1,295,214
(6,553,395)
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Financial instruments measured at amortised cost
2,766,682
3,061,883
-
92,268
Financial instruments measured at fair value through Statement of Comprehensive Income
108,021
196,048
16,769
16,769
2,874,703
3,257,931
16,769
109,037
Carrying amount of financial liabilities
Measured at amortised cost
- Non-derivatives that are not part of a trading portfolio
(7,731,689)
(7,487,667)
(16,769)
(16,769)

Financial assets measured at fair value comprise of cash and cash equivalents.

 

Financial assets that are debt instruments measured at amortised cost comprise of trade debtors, amounts owed by group undertakings and other debtors.

 

Financial liabilities measured at amortised cost comprise of trade creditors, invoice discounting facility, loans, obligations under finance leases, other creditors, accruals and deferred income and amounts owed to group undertakings.

17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
748,687
1,024,603
-
-
Work in progress
271,706
291,198
-
-
1,020,393
1,315,801
-
-

An impairment loss of £215,334 (2022: £705,865) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,500,472
2,798,108
-
0
-
0
Corporation tax recoverable
-
0
42,690
-
0
-
0
Amounts owed by group undertakings
-
-
-
92,268
Other debtors
266,210
263,775
-
0
-
0
Prepayments and accrued income
158,951
196,848
-
0
-
0
2,925,633
3,301,421
-
92,268
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
102,780
102,780
-
0
-
0
Invoice discounting facility
22
1,429,650
1,396,680
-
0
-
0
Trade creditors
1,311,176
1,270,825
-
0
-
0
Other taxation and social security
101,314
116,884
-
-
Other creditors
102,224
30,563
16,769
16,769
Accruals and deferred income
277,523
324,885
-
0
-
0
3,324,667
3,242,617
16,769
16,769

The invoice discounting facility is secured by a debenture over all the trade debtors of the company with interest charged at 1.5% above base rate.

20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
70,069
172,850
-
0
-
0
Other borrowings
22
4,189,240
4,189,240
-
0
-
0
Accruals and deferred income
249,117
-
0
-
0
-
0
4,508,426
4,362,090
-
-
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
102,780
102,780
-
0
-
0
In two to five years
70,069
172,850
-
0
-
0
172,849
275,630
-
-

The group net obligations under hire purchase contracts amount to £172,849 (2022 - £275,360) and are secured on the assets to which they relate.

 

Finance lease payments represent rentals payable by the company for certain items of fixed assets. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Invoice discounting facility
1,429,650
1,396,680
-
0
-
0
Loan notes
4,189,240
4,189,240
-
0
-
0
5,618,890
5,585,920
-
-
Payable within one year
1,429,650
1,396,680
-
0
-
0
Payable after one year
4,189,240
4,189,240
-
0
-
0

The loan notes were issued on 28 July 2017 for an initial 5-year period, repayable in full on 28 July 2022. The terms of the loan notes were amended to extend the repayment date to 31 March 2026. The interest rate associated to the loan notes is 9% per annum, payable monthly in arrears. After the second anniversary of the issuance of the notes on 28 July 2019, an additional 1% per annum is being accrued on the value of the notes outstanding at the time. The interest rate payments were paused on a roll up basis by agreement from 30 June 2023 until 20 July 2025. On 19 October 2017 the loan notes were listed on The International Stock Exchange. In December 2024 the loan notes were delisted from the International Stock Exchange and shareholders introduced £250k in the form of a loan note.

 

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
211,000
313,000
Tax losses
(142,250)
-
Other timing differences
396,743
447,242
465,493
760,242
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
760,242
-
Credit to Statement of Comprehensive Income
(294,749)
-
Liability at 31 December 2023
465,493
-
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to the Statement of Comprehensive Income in respect of defined contribution schemes
100,518
105,434

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totalling £904 (2022: £1,946) were payable to the fund at 31 December 2023.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
24,469
24,469
245
245
A1 Ordinary shares of 1p each
12,300
12,300
123
123
B Ordinary shares of 1p each
55,000
55,000
550
550
C Ordinary shares of 10p each
5,000
5,000
500
500
96,769
96,769
1,418
1,418

Rights of shares

 

The A and B shares carry one vote per share, they also both bear the right to receive dividends with the A shares holding preferred dividend rights for up to five years from adoption.

 

The A 1 and C Ordinary shares have no voting rights and do not bear any rights in regards to dividends. The A 1 and C Ordinary shares have rights on capital distribution to shareholders up to the subscription price.

 

In all other respects the shares rank pari passu.

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
240,824
254,440
-
-
Between two and five years
914,888
967,533
-
-
In over five years
476,660
709,182
-
-
1,632,372
1,931,155
-
-
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
51,000
-
-
COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
28
Related party transactions

Where available, the group has taken the exemption under section 33 of FRS 102 to not disclose transactions or balances with other qualifying group companies.

 

Cooper Coated Coil Investments Limited, a direct subsidiary undertaking, recognised management charge income of £816,000 (2022: £816,000) during the year from its subsidiary company, Cooper Coated Coil Management Limited.

 

Cooper Coated Investments Limited received £Nil (2022: £166,473) from its indirect subsidiary undertaking, Cooper Coated Coil Limited, during the year, in respect of the trading losses claimed from Cooper Coated Coil Limited under group relief arrangements.

 

Cooper Coated Coil Management Limited received £Nil (2022: £114,772) from its subsidiary undertaking, Cooper Coated Coil Limited, during the year, in respect of the trading losses claimed from, Cooper Coated Coil Limited under group relief arrangements.

 

As at 31 December 2023 Mobeus Equity Partners IV LLP held £4,189,240 (2022: £4,189,240) of loan notes issued by Cooper Coated Coil Investments Limited, a direct subsidiary undertaking of the company. Interest amounts owed to Mobeus Equity Partners IV LLP and included within creditors at 31 December 2023 were £249,177 (2022: £36,096). During the year ended 31 December 2023 the interest charges accrued on the amounts owed to Mobeus Equity Partners IV LLP were £425,000 (2022: £399,589). During the year ended 31 December 2023 interest payments on the amounts owed to Mobeus Equity Partners IV LLP were £211,919 (2022: £397,466).

 

 

29
Events after the reporting date

In September 2024 following a continued downturn in activity, the Group’s trading entity, Cooper Coated Coil Limited, announced a reduction in production capacity. This restructure will see a reduction of approximately twelve jobs within the business that should reduce its cost base by around £400K. Together with other cost savings measures that are planned, the Directors expect that the Company will return to profitability in 2026.

 

In December 2024 the loan notes as referred to in note 22 were delisted from the International Stock Exchange and the terms of the loan notes were amended to extend the repayment date to 31 March 2026. The shareholders have committed to investing an additional £500k of loan notes, with the first payment of £250k being received on 19 December 2024.

30
Controlling party

The ultimate controlling party of Cooper Coated Coil Holdings Limited is considered to be Mobeus Equity Partners LLP, an entity incorporated in the United Kingdom, by virtue of their 81.39% (2021: 81.39%) shareholding of the company. There is no larger group for which the consolidated results of Cooper Coated Coil Holdings Limited and its subsidiaries are included within.

COOPER COATED COIL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
31
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(5,161,097)
(1,106,844)
Adjustments for:
Taxation credited
(329,601)
(176,146)
Finance costs
498,683
485,026
Investment income
(997)
(107)
Amortisation and impairment of intangible assets
4,242,667
925,673
Depreciation and impairment of tangible fixed assets
291,361
409,457
Movements in working capital:
Decrease in stocks
295,408
1,939,228
Decrease in debtors
333,098
1,844,972
Increase/(decrease) in creditors
104,336
(3,827,432)
Cash generated from operations
273,858
493,827
32
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
196,048
(88,027)
108,021
Borrowings excluding overdrafts
(5,585,920)
(32,970)
(5,618,890)
Obligations under finance leases
(275,630)
102,781
(172,849)
(5,665,502)
(18,216)
(5,683,718)
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