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Registered number: 03242584












ARMSTRONG (U.K.) INVESTMENTS
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

 

ARMSTRONG (U.K.) INVESTMENTS
 
COMPANY INFORMATION


Directors
M A Laikin 
W M Willis-Jones 




Company secretary
M J Bignell



Registered number
03242584



Registered office
Harman House
Ground Floor

1 George Street

Uxbridge

Middlesex

UB8 1QQ




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH





 

ARMSTRONG (U.K.) INVESTMENTS

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10 - 11
Notes to the financial statements
12 - 21


 

ARMSTRONG (U.K.) INVESTMENTS
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

Principal activities
 
The company is a holding company for a group of companies which manufacture and sell building materials and commercial improvement products.

Business review
 
The company's results for the year are set out on page 7. The Company's loss for the financial year after taxation was £28,000 (2020: profit £32,557,000).
Since the company is a non-trading holding company the directors believe that analysis using key performance indicators is not necessary or appropriate for an understanding of the development, performance or position of the business of the company.

Principal risks and uncertainties
 
From the perspetive of the Company, the principal risks and uncertainties are integrated with the principal risks of Gebr. Knauf KG, the Company's ultimate parent company, and are not managed separately. Accordingly, the principal risks and uncertainties of Gebr. Knauf KG, which include those of the Company, are discussed in the directors' report Gebr. Knauf KG's financial statements.

Future developments
 
The most significant operational affiliate of the company is Knauf Ceiling Solutions UK Limited.  Due to surplus production capacity within the Knauf Group a review took place in 2023 and it was decided to close the plant based in Stafford.  Following the closure of the Stafford plant it is expected that Knauf Ceiling Solutions limited will return to profitability in 2025 when some of the ongoing contracts connected with the plant are unwound.

Post balance sheet events
Post year-end, the company dissolved its investments in Ceiling Solutions Armstrong FZE, Armstrong World Industries Mauritius, and Worthington Armstrong Ventures Mauritius. The company realised no gain or loss on the dissolution of these investments.


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



M A Laikin
Director

Date: 26 June 2024

Page 1

 

ARMSTRONG (U.K.) INVESTMENTS

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £28 thousand (2020 - profit £32,557 thousand).

The directors do not recommend a dividend.

Directors

The directors who served during the year were:

M A Laikin 
W M Willis-Jones 

Disclosure of information to auditor

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

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

Page 2

 

ARMSTRONG (U.K.) INVESTMENTS

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

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



M A Laikin
Director

Date: 26 June 2024

Page 3

 

ARMSTRONG (U.K.) INVESTMENTS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARMSTRONG (U.K.) INVESTMENTS
 FOR THE YEAR ENDED 31 DECEMBER 2021

Opinion


We have audited the financial statements of Armstrong (U.K.) Investments (the 'Company') for the year ended 31 December 2021, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 4

 

ARMSTRONG (U.K.) INVESTMENTS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARMSTRONG (U.K.) INVESTMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 

ARMSTRONG (U.K.) INVESTMENTS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARMSTRONG (U.K.) INVESTMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Auditor's responsibilities for the audit of the financial statements
 

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


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

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry; 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation
legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
 
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs.


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


Page 6

 

ARMSTRONG (U.K.) INVESTMENTS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARMSTRONG (U.K.) INVESTMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

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 our report
 

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





Simon Rothenberg (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

26 June 2024
Page 7

 

ARMSTRONG (U.K.) INVESTMENTS
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£000
£000

  

Administrative expenses
  
(28)
(1,374)

Operating loss
 4 
(28)
(1,374)

Income from shares in group undertakings
  
-
23,166

Amounts written off investments
  
-
10,504

(Loss)/profit before tax
  
(28)
32,296

Tax on (loss)/profit
  
-
261

(Loss)/profit for the financial year
  
(28)
32,557

There are no items of other comprehensive income for 2021 or 2020 other than the (loss)/profit for the yearAs a result, no separate Statement of comprehensive income has been presented.

The notes on pages 12 to 21 form part of these financial statements.

Page 8


 
REGISTERED NUMBER:03242584
ARMSTRONG (U.K.) INVESTMENTS

BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£000
£000

Fixed assets
  

Fixed asset investments
  
5,538
5,550

  
5,538
5,550

Current assets
  

Debtors: amounts falling due within one year
 9 
278
269

Cash at bank and in hand
  
2
187

  
280
456

Creditors: Amounts Falling Due Within One Year
 10 
(11)
(171)

Net current assets
  
 
 
269
 
 
285

Total assets less current liabilities
  
5,807
5,835

  

Net assets
  
5,807
5,835


Capital and reserves
  

Called up share capital 
 11 
1
1

Other reserves
 12 
5,409
5,409

Profit and loss account
 12 
397
425

  
5,807
5,835


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M A Laikin
Director

Date: 26 June 2024

The notes on pages 12 to 21 form part of these financial statements.

Page 9

 

ARMSTRONG (U.K.) INVESTMENTS

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Other reserves
Profit and loss account
Total equity

£000
£000
£000
£000

At 1 January 2021
1
5,409
425
5,835



Loss for the financial year
-
-
(28)
(28)
Total comprehensive income for the year
-
-
(28)
(28)


Total transactions with owners
-
-
-
-


At 31 December 2021
1
5,409
397
5,807


The notes on pages 12 to 21 form part of these financial statements.

Page 10

 

ARMSTRONG (U.K.) INVESTMENTS

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020


Called up share capital
Other reserves
Profit and loss account
Total equity

£000
£000
£000
£000

At 1 January 2020
1
6,488
9,861
16,350



Profit for the financial year
-
-
32,557
32,557
Total comprehensive income for the year
-
-
32,557
32,557


Contributions by and distributions to owners

Dividends
-
-
(43,072)
(43,072)

Transfer between reserves
-
-
1,079
1,079

Transfer between reserves
-
(1,079)
-
(1,079)


Total transactions with owners
-
(1,079)
(41,993)
(43,072)


At 31 December 2020
1
5,409
425
5,835


The notes on pages 12 to 21 form part of these financial statements.

Page 11

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

Armstrong (UK) Investments Limited is a holding company for a group of companies which manufacture and sell building materials and commercial improvement products.
The company is a private company incorporated in England and Wales. The address of its registered office and principal place of business is Harman House, 2nd Floor, 1 George Street, Uxbridge, Middlesex, United Kingdom, UB8 1QQ.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The company was, at the end of the year, a wholly-owned subsidiary of Gebr Knauf KG, whose registered address is given in Note 13. Gebr Knauf KG prepares consolidated financial statements, in which the company is included. In accordance with the exemption given in Section 400 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts.

The following principal accounting policies have been applied:

 
2.2

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 12

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

 
2.4

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

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

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

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 13

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.6

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.

 
2.7

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.

 
2.8

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 14

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)


2.8
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

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

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Page 15

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.9

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

An entity should disclose the judgements, apart from those involving estimations, that management has made in the process of applying the accounting policies and that have the most significant effect on the amounts recognised in those financial statements. The key areas requiring the use of estimates and judgements which may significantly affect the financial statements are considered to be:
Carrying value of the Company's investment in subsidiaries
The main sensitivity around the recoverable amount of investments is the future trading performances of the company's subsidiaries. The directors have conducted a review of the carrying value of its investments and no impairment was considered necessary. 


4.


Operating loss

The operating loss is stated after charging:

2021
2020
£000
£000

Exchange differences
-
1,373


5.


Auditor's remuneration

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


2021
2020
£000
£000

Fees payable to the Company's auditor for the audit of the Company's financial statements
6
-

Page 16

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

6.


Taxation


2021
2020
£000
£000


Foreign tax


Foreign tax in respect of prior periods
-
(261)

-
(261)

Total current tax
-
(261)

Deferred tax

Total deferred tax
-
-


Tax on (loss)/profit
-
(261)

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2020 - the same as) the standard rate of corporation tax in the UK of 19% (2020 - 19%) as set out below:

2021
2020
£000
£000


(Loss)/profit on ordinary activities before tax
(28)
32,296


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
(5)
6,136

Effects of:


Tax exempt income
-
(6,397)

Unrelieved tax losses carried forward
5
-

Total tax charge for the year
-
(261)


Factors that may affect future tax charges

In the Spring Budget 2021. The UK Government announced that from 1 April 2023, the corporation tax
rate would increase to 25% for companies with profits over £250,000. A small profits rate was also
introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at
19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate
reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.

Page 17

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

7.


Dividends

2021
2020
£000
£000


Dividends
-
43,072

-
43,072


8.


Fixed asset investments





Investments in associates

£000



Cost or valuation


At 1 January 2021
5,550


Disposals
(12)



At 31 December 2021
5,538




Page 18

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

Subsidiary undertakings


The following were subsidiary undertakings of the Company:


Name

Registered office

Principal activity

Class of shares

Holding

Knauf Ceiling Solutions Limited (Formerly Armstrong Metal Ceilings Limited)
Harman House, Ground Floor 1 George Street, Uxbridge, Middlesex, UB8 1QQ
Manufacture and sale of metal ceiling tiles
Ordinary
100%
Worthington Armstrong Venture Mauritius
33 Edith Cavell Street, Port Louis, Mauritius
Sale of floor and ceiling products
Ordinary
1%
Knauf Ceiling Solutions (India) Private Ltd (Formerly Wave Suspension Systems India Private Limited)
Gat No 417/1 Village Takavae (BKD Tluka Maval, Pune, Maharashtra, India
Manufacture suspended ceiling grid
Ordinary
0.324%
Wave Aluminium Profiles Limited
Harman House, Ground Floor 1 George Street, Uxbridge, Middlesex, UB8 1QQ
Dormant
Ordinary
100%
Ceiling Solutions Armstrong FZE
Jebel Ali Free Zone, Dubai, UAE license 166139
Sale of ceiling products
Ordinary
100%
Knauf Ceiling Market Solutions DMCC.
Unit 2004 Gold Crest Executive, Plot No. JLT-PH1-C2A, Jumeirah Lakes Towers, Dubai, UAE license 66037
Sale of ceiling and wall products
Ordinary
100%
Armstrong World Industries Mauritius
33 Edith Cavell Street, Port Louis, Mauritius
Holding company for Armstrong World Indusries (India) Private Limited
Ordinary
1%
Armstrong Building Products
Harman House, 2nd Floor, 1 George Street, Uxbridge, Middlesex, UB8 1QQ
Dormant
Ordinary
100%

Post year-end, the company dissolved its investments in Ceiling Solutions Armstrong FZE, Armstrong World Industries Mauritius, and Worthington Armstrong Ventures Mauritius. The company realised no gain or loss on the dissolution of these investments. 

Page 19

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

9.


Debtors

2021
2020
£000
£000


Amounts owed by group undertakings
278
269

278
269


Amounts owed by group undertakings are interest free, have no fixed repayment date and are repayable
on demand.


10.


Creditors: Amounts falling due within one year

2021
2020
£000
£000

Amounts owed to group undertakings
-
171

Accruals and deferred income
11
-

11
171


Amounts owed to group undertakings are interest free, have no fixed repayment date and are repayable
on demand.


11.


Share capital

2021
2020
£000
£000
Allotted, called up and fully paid



1,000 (2020 - 1,000) Ordinary shares of £1.00 each
1
1



12.


Reserves

Other reserves

On 25 September 1996 the company received a capital contribution of £28,750,000. This is a distributable reserve. £22,262,000 was distributed from the capital contribution reserve to the company's ultimate parent undertaking in previous years. The balance as at the end of the year amounts to £5,409,000 (2020: £5,409,000).

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Page 20

 

ARMSTRONG (U.K.) INVESTMENTS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

13.


Controlling party

As at the balance sheet date, the company was a wholly owned subsidiary undertaking of Knauf Ceilings Holding GmbH, a company incorporated by Iphofen, Germany. 

The Company's ultimate parent undertaking is Gebr. Knauf KG, a company incorporated in Iphofen, Germany. The largest and smallest group in which the results of the Company are consolidated is that headed by Gebr. Knauf KG. The consolidated accounts of this company may be obtained from: 

The Chief Financial Officer
Geb. Knauf KG
AM Bahnhof 7
97346, Iphofen
Germany

Page 21