Company registration number 13052186 (England and Wales)
EURAZEO UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
EURAZEO UK LIMITED
COMPANY INFORMATION
Directors
M Hatchwell
R Abello
M de Bentzmann
Company number
13052186
Registered office
2nd Floor, 10 Stratton Street
Mayfair
London
England
W1J 8LG
Auditor
Forvis Mazars LLP
Chartered Accountants
30 Old Bailey
London
EC4M 7AU
EURAZEO UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
EURAZEO UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
Eurazeo UK Limited is a private market investment advisory firm solely advising on the acquisition, disposition, and financing of private market assets of Eurazeo Luxembourg and French Funds in the United Kingdom and Europe.
The Firm exclusively advises directly or indirectly its parent entity Eurazeo S.E. based in Paris and Luxembourg and French management companies and has no other clients. As the sole client of Eurazeo UK Limited, Eurazeo S.E. and/or its subsidiaries are the only sources of revenues.
After adding new Investment strategies over the last years, 2024 has been focused on further strengthening Eurazeo UK Limited capabilities in the existing strategies and functions (BuyOut, Growth, Real Estate, Venture Capital & Private Debt, as well as Marketing and Fundraising).
We have been recruiting a number of team members and expanded to 39 (2023: 32) people as at 31 December 2024.
Revenues have been growing in line with business expansion the increasing number of employees. In 2024, revenues grew by 24%, while we posted a 5.74% net profit margin.
Principal risks and uncertainties facing the Company
Eurazeo UK Limited does not bear most financial risks of a standalone entity given the relationship with its parent company/shareholder. This should prevent us from any unforeseen drop in income or tense liquidity.
We believe Eurazeo UK Limited to be highly relevant to Eurazeo S.E. for the foreseeable future when it comes to i) giving access to London international talent pool, ii) giving access to relevant transactional stakeholders and advisors, and iii) improving access to local or international clients.
We believe our main risk is associated with the ability to keep attracting and retaining talents in a very competitive market. We believe Eurazeo UK Limited – with the support of Eurazeo S.E. – needs to stay competitive on compensation as well as foster a positive work culture.
Key Performance indicators
Eurazeo UK Limited main KPI related to its staffing with 39 people employed as at 31 December 2024, increasing by 7 people.
Associated cost base has increased by 26% or £3.6 million mainly due to increase of staff.
Consequently, Eurazeo UK Limited has been increasing revenues by +24% in 2024, reaching £19,011,411 in total revenue. 100% of revenues are provided by its sole client, Eurazeo S.E. and/or its subsidiaries.
Net income for the fiscal year ending 2024 has reached £1,091,736, an increase by £67,508 versus last year.
Cash position was £5,697,185 as at 31 December 2024.
M de Bentzmann
Director
23 April 2025
EURAZEO UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The Eurazeo group is a leading global investment group, dealing in private equity, real estate, private debt and fund of funds expertise. Eurazeo UK Limited is the UK subsidiary and provide support services to the Eurazeo group. The company's performance for the year to 31 December 2024 is shown on page 8. The directors have no plans to change the activities and operations of the company for the foreseeable future.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Hatchwell
R Abello
M de Bentzmann
S K Miller
(Resigned 11 April 2025)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Post reporting date events
The directors have not identified any post balance sheet events that require disclosure in the financial statements.
Statement of directors' responsibilities
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, including FRS 102). 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
EURAZEO UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Going concern
The directors have prepared budgets and forecasts for a period of at least 12 months from the date of approval of the financial statements. Considering the future cash flows that are expected to be generated by the Company through its principal activity and the fact that the Directors obtained confirmation from the parent entity about their intention and ability to provide financial support to the Company, the directors consider that the Company is in a position to continue normal operations, and pay its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.
As a result, the directors are satisfied that the company has adequate resources to continue operating as a going concern for a period of at least 12 months from the date of this report.
Therefore, the financial statements are prepared on a going concern basis.
On behalf of the board
M de Bentzmann
Director
23 April 2025
EURAZEO UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF EURAZEO UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Eurazeo UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
EURAZEO UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF EURAZEO UK LIMITED
- 5 -
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 and 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.
EURAZEO UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF EURAZEO UK LIMITED
- 6 -
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.
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:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
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, revenue recognition (which we pinpointed to the accuracy assertion) and significant one-off or unusual balances.
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
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.
EURAZEO UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF EURAZEO UK LIMITED
- 7 -
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.
Yuvan Deena (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
24 April 2025
Chartered Accountants and Statutory Auditor
30 Old Bailey
London
EC4M 7AU
EURAZEO UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
19,011,411
15,369,920
Administrative expenses
(17,656,774)
(14,037,224)
Other operating income
54,474
54,474
Operating profit
4
1,409,111
1,387,170
Interest receivable and similar income
7
757
900
Profit before taxation
1,409,868
1,388,070
Tax on profit
8
(318,132)
(363,842)
Profit for the financial year
1,091,736
1,024,228
The income statement has been prepared on the basis that all operations are continuing operations.
There was no other comprehensive income in the period.
The notes on pages 11 to 23 form part of these financial statements.
EURAZEO UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
235,225
188,442
Current assets
Debtors falling due after more than one year
10
306,000
319,000
Debtors falling due within one year
10
12,042,502
8,962,920
Cash at bank and in hand
5,697,185
5,920,337
18,045,687
15,202,257
Creditors: amounts falling due within one year
11
(9,530,141)
(7,692,570)
Net current assets
8,515,546
7,509,687
Total assets less current liabilities
8,750,771
7,698,129
Creditors: amounts falling due after more than one year
12
(280,917)
(320,011)
Net assets
8,469,854
7,378,118
Capital and reserves
Called up share capital
15
5,000,000
5,000,000
Profit and loss reserves
3,469,854
2,378,118
Total equity
8,469,854
7,378,118
The notes on pages 11 to 23 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 23 April 2025 and are signed on its behalf by:
M de Bentzmann
Director
Company Registration No. 13052186
EURAZEO UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
5,000,000
1,353,890
6,353,890
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,024,228
1,024,228
Balance at 31 December 2023
5,000,000
2,378,118
7,378,118
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,091,736
1,091,736
Balance at 31 December 2024
5,000,000
3,469,854
8,469,854
The notes on pages 11 to 23 form part of these financial statements.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Eurazeo UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 10 Stratton Street, Mayfair, London, England, W1J 8LG.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for equity-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The immediate parent company is Eurazeo SE, a public company incorporated in France, and this is the largest group for which consolidated accounts are available. Group accounts are available from 1 Rue Georges Berger, Paris, 75017 France.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors have prepared budgets and forecasts for a period of at least 12 months from the date of approval of the financial statements. Considering the future cash flows that are expected to be generated by the Company through its principal activity and the fact that the Directors obtained confirmation from the parent entity about their intention and ability to provide financial support to the Company, the directors consider that the Company is in a position to continue normal operations, and pay its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.
As a result, the directors are satisfied that the company has adequate resources to continue operating as a going concern for a period of at least 12 months from the date of this report.
Therefore, the financial statements are prepared on a going concern basis.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue relates solely to management fee income from connected group companies. Revenue is recognised on a quarterly basis once the underlying expenses have been assessed.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the course of the lease term
Fixtures and fittings
25% straight line
Computers
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through the statement of income, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of income.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of income.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Share-based payments
Equity-settled share-based payments are measured at market value at the grant date which is also deemed to be the fair value. The market value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest.The fair value for share based compensation are determined by Eurazeo SE's stock price on the date of grant.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
The company participates in a group share-based payment plan operated by its parent company. The company recognises and measures its share-based payment expense on the basis of a reasonable allocation of the expense recognised for the group. The allocation is based on the number of employees benefitting from the share-based payment plan employed by each group entity.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Share based payments
The company has issued share-based payments to employees. The cost of such awards is measured at fair value at the date of grant and this expense is recognised on a straight-line basis over the vesting period. The determined fair value is a source of management estimation based on the performance and vesting conditions of the shares.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Support to group companies
19,011,411
15,369,920
2024
2023
£
£
Turnover analysed by geographical market
Europe
19,011,411
15,369,920
2024
2023
£
£
Other revenue
Interest income
757
900
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(15,281)
9,792
Fees payable to the company's auditor for the audit of the company's financial statements
31,415
25,500
Depreciation of owned tangible fixed assets
92,990
56,987
Share-based payments
350,032
770,083
Operating lease charges
697,447
688,395
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
37
32
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
9,339,362
7,731,769
Social security costs
1,366,780
995,862
Pension costs
420,936
331,862
11,127,078
9,059,493
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,829,653
1,234,540
Company pension contributions to defined contribution schemes
48,300
45,390
1,877,953
1,279,930
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
1,314,487
752,702
Company pension contributions to defined contribution schemes
25,200
24,240
The highest paid director has exercised share options during the year.
During the year one director exercised share options and two directors were granted share options.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
757
900
2024
2023
Investment income includes the following:
£
£
Interest on financial assets measured at fair value through profit or loss
757
900
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
377,000
515,842
Adjustments in respect of prior periods
(71,868)
Total current tax
305,132
515,842
Deferred tax
Origination and reversal of timing differences
13,000
(152,000)
Total tax charge
318,132
363,842
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,409,868
1,388,070
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
352,467
326,474
Tax effect of expenses that are not deductible in determining taxable profit
43,667
32,395
Adjustments in respect of prior years
(71,868)
375
Permanent capital allowances in excess of depreciation
(11,696)
4,627
Other permanent differences
13,000
(152,000)
Share based payment charge
(12,214)
127,905
Under/(over) provided in prior years
(940)
Timing differences
931
1,817
Remuneration
3,845
23,189
Taxation charge for the year
318,132
363,842
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
146,981
22,434
128,223
297,638
Additions
92,546
47,227
139,773
At 31 December 2024
146,981
114,980
175,450
437,411
Depreciation and impairment
At 1 January 2024
52,217
9,292
47,687
109,196
Depreciation charged in the year
23,208
28,745
41,037
92,990
At 31 December 2024
75,425
38,037
88,724
202,186
Carrying amount
At 31 December 2024
71,556
76,943
86,726
235,225
At 31 December 2023
94,764
13,142
80,536
188,442
10
Debtors
2024
2023
£
£
Amounts falling due within one year:
Trade debtors
30,937
40,937
Amounts owed by group undertakings
7,676,892
6,799,151
Other debtors
104,007
70,291
Prepayments and accrued income
4,230,666
2,052,541
12,042,502
8,962,920
2024
2023
£
£
Amounts falling due after more than one year:
Deferred tax asset
306,000
319,000
Total debtors
12,348,502
9,281,920
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
36,440
139,129
Amounts owed to group undertakings
1,754
Corporation tax
111,010
47,699
Liability for share based payments
1,347,370
1,393,455
Other creditors
76,405
38,605
Accruals and deferred income
7,958,916
6,071,928
9,530,141
7,692,570
12
Creditors: amounts falling due after more than one year
2024
2023
£
£
Accruals and deferred income
280,917
320,011
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Share based payments
306,000
319,000
2024
Movements in the year:
£
Asset at 1 January 2024
(319,000)
Charge to profit or loss
13,000
Asset at 31 December 2024
(306,000)
The deferred tax asset set out above is expected to reverse within 12 months and relates to timing differences on share based payment and deferred bonuses.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
420,936
331,862
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
5,000,000 Ordinary shares of £1 each
5,000,000
5,000,000
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £2,008,072 (2023: £2,540,350).
2024
2023
£
£
Within one year
662,700
552,250
Between two and five years
1,345,372
1,988,100
2,008,072
2,540,350
17
Events after the reporting date
There are no post balance sheet events to disclose.
18
Related party transactions
The company has taken advantage of the exemption given in FRS 102 Section 33. This exemption permits non-disclosure of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such member.
19
Ultimate controlling party
The directors consider the immediate parent undertaking to be Eurazeo SE, a company incorporated in France. Eurazeo SE is the smallest and largest group for which consolidated accounts including Eurazeo UK Limited are prepared. The consolidated financial statements of Eurazeo SE are publicly available.
EURAZEO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
20
Share based payments
The share based payments relate to a free share plan agreement to certain employees of Eurazeo UK Limited which grants them options for shares in Eurazeo SE, the company's parent.
During the year 28,679 shares were granted for a value of 51 Euros per share.
During the year 8,048 share options were vested.
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