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Company Information
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Contents
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Directors' report
For the year ended 31 December 2023
The directors present their report and the financial statements of Fawley Industrial Limited ('the company') for the year ended 31 December 2023.
The profit for the year, after taxation and minority interests, amounted to £3,235k (2022 - loss £2,966k).
During the year, the directors declared dividends amounting to the total of £11,592k (2022: £576k).
The directors who served during the year were:
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as, in the opinion of the directors, its inclusion would be seriously prejudicial to the interests of the Group.
The directors are responsible for preparing the Directors' report, the Group strategic report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Directors' report (continued)
For the year ended 31 December 2023
This report was approved by the board on
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Group strategic report
For the year ended 31 December 2023
During the financial year, the principal activity of the company was that of an investment holding company.
On 30 August 2023 certain subsidiaries of the Group primarily focused on two key UK SME industrial market sectors (‘Embedded’ Engineering services and specialist manufacturing) were acquired by Amcomri Group Limited, a related party, which has subsequently been listed on the Alternative Investment Market as Amcomri Group plc. On 11 October 2023, the Group's largest indirect trading subsidiary, UK Windows & Doors Group Limited ('UKWG'), was placed into administration. Details of the remaining direct subsidiary undertakings held by the Group at 31 December 2023 can be found in note 14. As at 31 December 2023, the principal activity of the company and group was that of a holding company.
The group achieved an operating loss of £7.103m in the year (2022: £2.506m).
The group’s activities expose it to a number of financial risks including credit risk, liquidity risk and cashflow risk. The group does not use derivative financial instruments for speculative purposes.
The group continues to have access to additional capital for working capital and acquisition funding purposes provided by its principal shareholder.
The group had consolidated net assets of £2.625m as at 31 December 2023 (2022: £10.742m). The company no longer has any employees.
The Board regularly considers the impact of their decision making on its key stakeholders, these including our shareholders, our employees, customer and supply chain partners.
Engaging with our shareholders: The Board maintains a strong level of communication with shareholders, this including formal monthly board meetings and regular less formal touchpoints. Continuation of this engagement is key for the next phase of the group's development.
This report was approved by the board on 7 March 2025 and signed on its behalf by:
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Independent auditor's report to the members of Fawley Industrial Limited
For the year ended 31 December 2023
We have audited the financial statements of Fawley Industrial Limited ('the parent company') and its subsidiaries ('the group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated and Company Statements of financial position, the Consolidated and Company Statement of changes in equity, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
On 11 October 2023, the Group's largest indirect trading subsidiary, UK Windows & Doors Group Limited ('UKWG'), was placed into administration. Additionally, as detailed in note 27, the ownership of various direct and indirect subsidiaries (together 'the AGL trading group') was acquired by Amcomri Group Limited (now Amcomri Group Plc) on 30 August 2023. The consolidated financial statements have been prepared on the basis that UKWG was disposed of on 11 October 2023, following their administration, and that the AGL trading group was effectively disposed of on 30 August 2023 at the date the acquisition occurred.
Due to the administration of UKWG and due to the financial records, specifically disposed balance sheets not being available at the date the AGL trading group left the group, we were unable to determine whether the results presented as discontinued operations and the profit on disposal of subsidiaries presented in Exceptional items in continuing operations in the Consolidated statement of comprehensive income were true and fair. Notwithstanding this, the total profit for the financial year is, in our opinion, true and fair due to the fact that any adjustment required in the results of the aforementioned subsidiaries would require a corresponding contrary adjustment in the profit on disposal. 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 Group 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.
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Independent auditor's report to the members of Fawley Industrial Limited (continued)
For the year ended 31 December 2023
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 Group's or the parent 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.
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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Independent auditor's report to the members of Fawley Industrial Limited (continued)
For the year ended 31 December 2023
Except for the matter described in the basis for qualified opinion section of our report, In the 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 Group strategic report or the Directors' report.
Arising solely from our limitation of scope as detailed in our Basis for Qualified Opinion paragraph above, in our opinion:
∙We have not obtained all the information and explanations that we consider necessary for the purpose of our audit; and
∙We were unable to determine whether adequate accounting records have been kept.
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 Group 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:
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Independent auditor's report to the members of Fawley Industrial Limited (continued)
For the year ended 31 December 2023
Auditor's responsibilities for the audit of the financial statements (continued)
How the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the Senior Statutory Auditor 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 made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements through discussions with directors and other management at the planning stage;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations;
∙we interacted with component auditors throughout the audit. Interactions with component auditors included, if
applicable, formal written instructions and reviewing selected audit papers; and
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct material
effect on the financial statements or the operations of the group including the Companies Act 2006, employment legislation and taxation legislation.
We assessed the extent of compliance with the laws and regulations identified above through:
∙making enquiries of management; and
∙considering the internal controls in place that are designed 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:
∙determined the susceptibility of the group to management override of controls by checking the implementation of
controls and enquiring of individuals involved in the financial reporting process;
∙reviewed journal entries in components of the group audited by the group audit engagement team, to identify
unusual transactions; and
∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias
on the part of the group’s management.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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Independent auditor's report to the members of Fawley Industrial Limited (continued)
For the year ended 31 December 2023
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.
for and on behalf of
130 Wood Street
EC2V 6DL
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Consolidated statement of comprehensive income
For the year ended 31 December 2023
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Consolidated statement of financial position
As at
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Consolidated statement of financial position (continued)
As at 31 December 2023
The financial statements were approved and authorised for issue by the board on 7 March 2025 and were signed on its behalf by:
The notes on pages 17 to 41 form part of these financial statements.
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Company statement of financial position
As at
The financial statements were approved and authorised for issue by the board on
The notes on pages 17 to 41 form part of these financial statements.
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Consolidated statement of changes in equity
For the year ended 31 December 2023
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Company statement of changes in equity
For the year ended 31 December 2023
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Consolidated statement of cash flows
For the year ended 31 December 2023
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Consolidated statement of cash flows (continued)
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
The company is a private company limited by shares and incorporated in England and Wales. The registered office is 46/48 Beak Street, London, W1F 9RJ.
2.Accounting policies
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 Republic of Ireland' ('FRS 102') 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 group management to exercise judgment in applying the group's accounting policies (see note 3). The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Consolidated statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Goodwill
Other intangible assets
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.
Negative goodwill
Negative goodwill is recognised when the cost of an acquisition is less than the fair value of net assets acquired. It is released to the Consolidated statement of comprehensive income when the non-monetary assets acquired in the acquisition are realised.
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Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Financial instruments are recognised in the Group's Statement of financial position when the Group 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 debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) 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.
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Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors 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 At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 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 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 instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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Notes to the financial statements
For the year ended 31 December 2023
Amortisation of 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 its share of the identifiable assets and liabilities of the acquiree at the date of acquisition. Negative goodwill is released to profit or loss on the same timeline any non-monetary assets acquired in the purchase are realised. Positive goodwill is amortised over a period of 10 years. Warranty provision The warranty provision is estimated by the directors using historical data on previous claims and then extrapolated forward and adjusted for sales volume changes, inflation and other known factors such as product modifications introduced to reduce warranty failure or suppliers’ contributions to cover warranty costs. The fair value of the provision is calculated using a discounted cash flow model and is sensitive to the discount rate used. Stock provision The group manufactures products that are subject to changing consumer demands and fashion trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. Useful economic lives of tangible assets The annual deprecation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. Impairment of debtors Management makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
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Notes to the financial statements
For the year ended 31 December 2023
Analysis of turnover by country of destination:
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
10.Taxation (continued)
There are no factors that may affect future tax charges.
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
The group had 10 principal bank loans which attracted interest of between 2.5% and 5.45% above the BoE base rate and had fixed and floating charges over the assets of certain subsidiaries of the group.
Upon the subsidiaries leaving the group, the loans were disposed of.
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
Profit and loss account
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
27. (continued)
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Notes to the financial statements
For the year ended 31 December 2023
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Notes to the financial statements
For the year ended 31 December 2023
The company and group had no contingent liabilities at 31 December 2023 or 31 December 2022.
The company and group had no capital commitments at 31 December 2023 or 31 December 2022.
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Notes to the financial statements
For the year ended 31 December 2023
The immediate and ultimate parent undertaking of the company is
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