REGISTERED NUMBER: 00352801 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
FOR |
ACCURIDE INTERNATIONAL LIMITED |
REGISTERED NUMBER: 00352801 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
FOR |
ACCURIDE INTERNATIONAL LIMITED |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 August 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 6 |
Report of the Independent Auditors | 8 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
ACCURIDE INTERNATIONAL LIMITED |
COMPANY INFORMATION |
for the year ended 31 August 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mark Ashfield BA FCA |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
Highdown House |
11 Highdown Road |
Leamington Spa |
Warwickshire |
CV31 1XT |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
GROUP STRATEGIC REPORT |
for the year ended 31 August 2024 |
The director presents his strategic report of the company and the group for the year ended 31 August 2024. |
Principal activities |
The group and company are principally engaged in the resale of ball bearing slide mechanisms and other specialist products via a network of distributors throughout Europe. These products are sold into a wide range of market sectors including electronics, industrial, commercial vehicle and furniture industries. Accuride slides are sold under licence from Accuride International Inc., the company's ultimate holding company. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
GROUP STRATEGIC REPORT |
for the year ended 31 August 2024 |
REVIEW OF BUSINESS |
The Consolidated Income Statement and Consolidated Other Comprehensive Income are presented on pages 11 and 12 respectively. |
Our current business model continues to remain effective. However, following the impact of Brexit and the consequent impact on carriage and compliance costs, supply activities into Europe from the UK on a business to business basis were scaled back during the year, with the wider group's business in Germany having now become the principal supplier into European markets. New opportunities remain since launching our eCommerce sales platform and will continue to give new opportunities for growth in Accuride sales across new market areas. |
Turnover has decreased by 2.5% compared to 2023. Whilst there were some price increases passed on, it is anticipated that the decrease in turnover will become more marked following the full year's impact of the rearrangement of operations noted above. |
Profit before tax has increased against the previous year by 252%. However, the majority of this change is due to the lack of year on year change in the fair value remeasurement of the group's and company's investment property. Comparable operating profit, excluding the impact of such fair value changes year on year was a decrease of 37% from £2,376,000 in 2023 to £1,505,000 in 2024. This was due in part to a one off administration charge related to the defined benefit pension scheme, of £305,000. |
The Consolidated Statement of Financial Position remains strong, with a current ratio of 9.7:1 (2023: 5.2:1). |
Pension Scheme |
As more fully described in note 20 to the financial statements, the company, in co-ordination with the Trustees of the company's sponsored defined benefit pension scheme, have determined that the 5 April 1993 Equalisation of Normal Retirement Date was not effective and that the difference between accounting for Equalisation at that date and at the effective date of 5 April 2006 was materially different and required restatement in the 2020 financial statements. In the past the company's parent had agreed to funding the additional deficit over the next 5 years subject to a reduction or limitation if the Scheme reaches 90% funding on an Actuarial Funding basis. |
The annual update of pension asset/ liability is subject to many factors that can vary dramatically as they have over the last 18-48 months. Management relies on the advice of professional actuaries and our attorneys to navigate these assumptions and the resulting computations. The 31 August 2024 computation of the Scheme assets and liabilities determined that there was a net asset of £3.4m as compared to an asset of £10.3m at 31 August 2023. The reduction in the asset has arisen due to the group's decision to begin a "buy in" process in the year, which resulted in a bulk annuity policy being purchased in April 2024, in order to reduce the impact of future volatility. |
The continued impact of changes in global interest rates between the two balance sheet dates, which impact the mid to long term bond rates which in turn drive the choice of a discount rate, limited the changes to the overall scheme liability while assets were adversely affected, as noted above, by the purchase of the annuity policy. |
The assets and liabilities in the Scheme are held in Trust administered by Trustees and, in management's considerations, are not usable for the general benefit of the company. |
Management also notes that the Scheme is closed to new participants and has been for over a decade. |
In the opinion of management, the company should not recognise the pension asset as realisation of the asset depends on the actions of a third party (the trustees of the pension scheme) and therefore the company does not have an unconditional right to the asset. To further support this view, management have analysed the position of the scheme if it were to be valued on a wind up basis instead of through gradual settlement. On a wind up basis the scheme assets as at 31 August 2024 have been assessed to be sufficient to cover the cost of the annuity purchases and related wind up expenses. Currently, the excess amount possibly reverting to the Company is estimated at GBP900,000. Since this amount is subject to dramatic variance due to changes in the Discount Rate applied to the Scheme, the Company has chosen not to record an asset, as the amount is not reasonably assured of collection. |
Investment property |
The investment property is fully occupied by tenants and is expected to remain so throughout 2025. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
GROUP STRATEGIC REPORT |
for the year ended 31 August 2024 |
The property was revalued by group directors and key management as at 31 August 2024 and has remained unchanged, This was mainly due to relative stability in market conditions in the year with relative flatlining of interest rates and inflation. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risk to our business will be the potential economic consequences of recession due to Central Bank actions. The primary factors are expected to continue to be large spending by the government, increasing interest and the substantial risk of recession. In addition, if interest rates were to be decreased in response to recession, discount rates on pension liabilities would also likely decrease which could eliminate the surplus currently on a wind up basis, an actuarial basis and a GAAP basis. |
Other risks |
An additional risk to our business will be adapting to the changes to working practices from the United Kingdom leaving the European Union. Using existing working practices and established communication channels we are continuing our engagement with our customers and suppliers. This ensures we manage our risk of not complying with ongoing contractual commitments, all relevant government directives are adhered to, and our supply chain and production capabilities are managed appropriately. |
A small financial risk to the group is customer credit, where there is a potential for weaker companies to fail. The group's policy with regard to credit risk is to acquire and review appropriate financial information for all potential customers before sales are made, and to monitor customer credit worthiness on a regular basis. The accounts receivable collection period was 26 days in 2024 (2023: 28 days). |
Going concern |
The director has performed an updated forecast for at least 12 months from the date that the financial statements were signed and these forecasts show that the company will have sufficient liquidity for the going concern period. The key assumptions in these forecasts include a continued reduction in sales. The lack of current and foreseeable need to fund Pension Scheme deficits has significantly diminished associated risks. However, interest rate risk still exists which could materially impact this situation. As a result, the financial statements have been prepared on a going concern basis. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
GROUP STRATEGIC REPORT |
for the year ended 31 August 2024 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Director monitors turnover, gross margin and operating profits as the key performance indicators of the business. |
2024 | 2023 | Movement |
Turnover ('£ ) | 12.392 | 12.707 | -2% |
Gross profit margin (%) | 14.4 | 23.4 | -38% |
Profit before tax ('£ ) | 1,621 | 461 | 252% |
Profit before tax in 2023 included a fair value remeasurement on the group's investment property which resulted in a loss in 2023 of £2,370,000. There was no such change in 2024. |
If the impact of such fair value remeasurements were eliminated, the comparable operating profit year on year would have been £1,505,000 (2023: £2,376,000), a fall of 37%. One off charges in 2024, relating to the pension scheme of £305,000, and a fall in trade related profitability following other strategic changes in the year account for the reduced profit. |
ON BEHALF OF THE BOARD: |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
REPORT OF THE DIRECTOR |
for the year ended 31 August 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 August 2024. |
Results |
The profit for the year, after taxation, amounted to £1,212,000 (2023: £739,000). |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the resale of ball bearing slide mechanisms and other specialist products via a network of distributors throughout Europe. These products are sold into a wide range of market sectors including electronics, industrial, commercial vehicle and furniture industries. Accuride slides are sold under licence from Accuride International Inc., the ultimate parent company of the group. |
DIVIDENDS |
An interim dividend of £100,000 per share on the Ordinary £1 shares was paid on 10 July 2024. The director recommends that no final dividend be paid on these shares. |
No interim dividend was paid on the 3% non-cumulative preference shares £1 shares. The director recommends that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 August 2024 will be £ 4,000,000 . |
DIRECTOR |
S E Jordan was the sole director during the year under review. |
RISK MANAGEMENT OBJECTIVES AND POLICIES |
Foreign exchange risk |
The group primarily sold into international markets, although it will increasingly only be selling into UK markets. It primarily purchases from international markets and it is therefore exposed to currency movements on such transactions. The group's financial risk management objective is broadly to make neither profit nor loss from exposure to currency. The group does not use hedge accounting. |
Credit risk |
Credit risk applies to financial instruments such as trade receivables. The company's policy with regard to credit risk is to acquire and review appropriate financial information for all potential customers before sales are made, and to monitor customer credit worthiness on a regular basis. The accounts receivable collection period is 26 days in 2024 (2023: 28 days). |
Price risk |
The group's business may be affected by fluctuations in the price and supply of raw materials and finished goods. The group employs purchasing policies and practices to mitigate these risks where possible. |
Cash flow risk |
The group's policy is to ensure that it always has sufficient cash to allow it to meet its liabilities when they become due. The risk is managed through budgeting, forecasting, and a regular review of cash requirements. |
DISCLOSURE IN THE STRATEGIC REPORT |
The group's and company's review of business, principal risks and uncertainties and future developments are disclosed within the strategic report. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
REPORT OF THE DIRECTOR |
for the year ended 31 August 2024 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCURIDE INTERNATIONAL LIMITED |
Opinion |
We have audited the financial statements of Accuride International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group's and of the parent company affairs as at 31 August 2024 and of the group's 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. |
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 Auditors' 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCURIDE INTERNATIONAL LIMITED |
Matters on which we are required to report by exception |
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 Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page seven, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The audit process includes an assessment of the group's and entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the group and company must comply in the ordinary course of its business. |
Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. |
As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities 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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACCURIDE INTERNATIONAL LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
Chartered Accountants and Statutory Auditor |
Highdown House |
11 Highdown Road |
Leamington Spa |
Warwickshire |
CV31 1XT |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 August 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
TURNOVER | 4 | 12,391,964 | 12,706,714 |
Cost of sales | 10,609,841 | 9,732,095 |
GROSS PROFIT | 1,782,123 | 2,974,619 |
Distribution costs | 460,261 | 564,141 |
Administrative expenses | 325,912 | 690,381 |
786,173 | 1,254,522 |
995,950 | 1,720,097 |
Other operating income | 508,610 | 656,163 |
Gain/ (loss) on revaluation of |
investment property | - | (2,370,000 | ) |
OPERATING PROFIT | 6 | 1,504,560 | 6,260 |
Interest receivable and similar income | 116,287 | 95,535 |
Other finance income | 19 | - | 359,000 |
116,287 | 454,535 |
PROFIT BEFORE TAXATION | 1,620,847 | 460,795 |
Tax on profit | 7 | 408,666 | (278,138 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,212,181 | 738,933 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 August 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,212,181 | 738,933 |
OTHER COMPREHENSIVE INCOME |
Currency translation differences | (5,216 | ) | 14,716 |
Actuarial (loss)/ gain on defined | 234,000 | (1,209,000 | ) |
benefit pension |
Income tax relating to components of other comprehensive income |
(360,750 |
) |
302,250 |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(131,966 |
) |
(892,034 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,080,215 |
Prior year adjustment | 2,017,209 |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
1,864,108 |
Total comprehensive income attributable to: |
Owners of the parent | 1,080,215 | 1,864,108 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
CONSOLIDATED BALANCE SHEET |
31 August 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 598,690 | 634,788 |
Investments | 11 | - | - |
Investment property | 12 | 10,330,000 | 10,330,000 |
10,928,690 | 10,964,788 |
CURRENT ASSETS |
Stocks | 13 | 3,197,634 | 6,874,077 |
Debtors | 14 | 1,598,900 | 2,355,151 |
Cash at bank and in hand | 5,115,731 | 5,241,746 |
9,912,265 | 14,470,974 |
CREDITORS |
Amounts falling due within one year | 15 | 1,021,389 | 2,791,506 |
NET CURRENT ASSETS | 8,890,876 | 11,679,468 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
19,819,566 |
22,644,256 |
PROVISIONS FOR LIABILITIES | 17 | 95,095 | - |
NET ASSETS | 19,724,471 | 22,644,256 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 80 | 80 |
Other reserves | 19 | 1,605,602 | 1,605,602 |
Retained earnings | 19 | 18,118,789 | 21,038,574 |
SHAREHOLDERS' FUNDS | 19,724,471 | 22,644,256 |
The financial statements were approved by the director and authorised for issue on 4 April 2025 and were signed by: |
S E Jordan - Director |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
COMPANY BALANCE SHEET |
31 August 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Other reserves | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,104,903 | 609,909 |
The financial statements were approved by the director and authorised for issue on |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 August 2024 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 | 80 | 19,174,466 | 1,605,602 | 20,780,148 |
Prior year adjustment | - | 2,017,209 | - | 2,017,209 |
As restated | 80 | 21,191,675 | 1,605,602 | 22,797,357 |
Changes in equity |
Total comprehensive income | - | (153,101 | ) | - | (153,101 | ) |
Balance at 31 August 2023 | 80 | 21,038,574 | 1,605,602 | 22,644,256 |
Changes in equity |
Dividends | - | (4,000,000 | ) | - | (4,000,000 | ) |
Total comprehensive income | - | 1,080,215 | - | 1,080,215 |
Balance at 31 August 2024 | 80 | 18,118,789 | 1,605,602 | 19,724,471 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 August 2024 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 |
Prior year adjustment | - | - |
As restated |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 August 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2024 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 August 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,032,064 | 2,827,660 |
Tax paid | (222,514 | ) | (244,485 | ) |
Net cash from operating activities | 3,809,550 | 2,583,175 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (52,316 | ) | (91,121 | ) |
Sale of tangible fixed assets | 464 | - |
Interest received | 116,287 | 95,535 |
Net cash from investing activities | 64,435 | 4,414 |
Cash flows from financing activities |
Equity dividends paid | (4,000,000 | ) | - |
Net cash from financing activities | (4,000,000 | ) | - |
(Decrease)/increase in cash and cash equivalents | (126,015 | ) | 2,587,589 |
Cash and cash equivalents at beginning of year |
2 |
5,241,746 |
2,654,157 |
Cash and cash equivalents at end of year | 2 | 5,115,731 | 5,241,746 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 August 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,620,847 | 460,795 |
Depreciation charges | 72,777 | 52,261 |
Loss on disposal of fixed assets | 4,970 | - |
Loss on revaluation of fixed assets | - | 2,370,000 |
Contributions to defined benefit pension | (71,000 | ) | (850,000 | ) |
Foreign exchange adjustments | (5,216 | ) | 14,716 |
Pension administration costs | 305,000 | - |
Asset reclassifications | 10,203 | - |
Finance income | (116,287 | ) | (454,535 | ) |
1,821,294 | 1,593,237 |
Decrease in stocks | 3,676,443 | 1,255,835 |
Decrease/(increase) in trade and other debtors | 375,015 | (350,489 | ) |
(Decrease)/increase in trade and other creditors | (1,840,688 | ) | 329,077 |
Cash generated from operations | 4,032,064 | 2,827,660 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2024 |
31.8.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 5,115,731 | 5,241,746 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 5,241,746 | 2,654,157 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.23 | Cash flow | At 31.8.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,241,746 | (126,015 | ) | 5,115,731 |
5,241,746 | (126,015 | ) | 5,115,731 |
Total | 5,241,746 | (126,015 | ) | 5,115,731 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 August 2024 |
1. | STATUTORY INFORMATION |
Accuride International Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards. The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year. |
The financial statements have been prepared in the group's functional currency, pound sterling. All figures have been rounded to the nearest pound, except where indicated. |
Basis of consolidation |
The consolidated financial statement present the results of Accuride International Limited and its own subsidiary undertakings as if they form a single entity. Intercompany transactions and balances within this group of companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Consolidated Balance Sheet, the acquiree's identifiable assets and liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations and included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with Accuride International Inc. or with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of returns, rebates, VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the group and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on delivery of the goods. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant & machinery | - |
Fixtures & fittings | - |
Motor vehicles | - |
Assets under construction | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
The assets' residual values, useful lives and depreciation methods are reviewed annually and adjusted prospectively if appropriate, if there is an indication of a significant change since the last reporting date. |
Investment property |
Investment property is shown at its most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Consolidated Statement of Comprehensive Income. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
Defined contribution pension plan |
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. |
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals and as a liability in the Consolidated Balance Sheet. The assets of the plan are held separately from the group in independently administered funds. |
Defined benefit pension plan |
The group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. |
The asset/ (liability) recognised in the Consolidated Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets (if any) at the reporting date out of which the obligations are to be settled. |
The defined benefit obligation is calculated using the projected unit credit method. Annually, the group and company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate'). |
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the group's policy for similarly held assets. This includes the use of appropriate valuation techniques. |
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to the Consolidated Statement of Comprehensive Income. These amounts together with the return in plan assets, less amounts included in net interest, are disclosed as 'actuarial gains/ (losses) on defined benefit pension scheme' within the Consolidated Statement of Comprehensive Income. |
The cost of the defined benefit plan, recognised in the Consolidated Statement of Comprehensive Income, except where included in the cost of an asset, comprises: |
a) the increase in net pension benefit liability arising from employee service during the period; and |
b) the cost of plan introductions, benefit changes, curtailments and settlements. |
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in the Consolidated Statement of Comprehensive Income as an 'Other finance expense'. |
Financial instruments |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Consolidated Statement of Comprehensive Income. |
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 3 months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The group and company make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the actual related results. The estimates and assumption that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
1) Defined benefit pension scheme liability |
The financial statements include a net defined benefit pension scheme liability of £Nil (2023: £Nil), comprising assets of £26,964,000 (2023: £34,689,000) and liabilities of £23,548,000 (2023: £24,315,000). These liabilities represent the costs expected to be incurred in making payments to current and past employees who are members of the scheme. |
For the reasons given below, management have not recognised the cumulative pension scheme asset of £3,416,000 (2023: £10,374,000). |
The valuation of the pension scheme asset/(liability) is determined on an actuarial basis using the projected unit method discounted at a rate using the current rate of return on high quality corporate bonds of equivalent term and currency to the liability. Assumptions are made about the mortality of the beneficiaries of the pension scheme and future rates of inflation. The assumptions underlying this calculation are discussed in more detail in note 20. |
During the year, the pension scheme remained in a net asset position. In the opinion of management, the company should not recognise the pension asset as realisation of the asset depends on the actions of a third party (the trustees of the pension scheme) and therefore the company does not have an unconditional right to the asset. To further support this view, management have analysed the position of the scheme if it were to be valued on a wind up basis instead of through gradual settlement. On a wind up basis the scheme assets as at 31 August 2024 have been assessed to be sufficient to cover the cost of the annuity purchases and related wind up expenses. Currently, the excess amount possibly reverting to the Company is estimated at GBP900,000. Since this amount is subject to dramatic variance due to changes in the Discount Rate applied to the Scheme, the Company has chosen not to record an asset, as the amount is not reasonably assured of collection. |
2) Investment property valuation |
The financial statements include an investment property held at valuation, which is a significant estimate. In order to arrive at a reliable estimate, the group directors and key management may make use of professional valuers or else make their own assessments. However, significant changes to the assumptions underlying the calculations, or significant changes in market conditions could result in significant changes to the carrying value of investment property over the next financial year. |
3) Stock provisions |
The group has recognised provisions for the impairment of stock. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical assessment and other reasonable factors including: stock value and ageing, quantities on hand, usage and changes in the market. The valuation of stock in note 13 is net of the provision for the impairment of stock. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 4,341,192 | 4,820,070 |
Europe | 7,074,309 | 6,757,246 |
Rest of the World | 976,463 | 1,129,398 |
12,391,964 | 12,706,714 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,443,870 | 1,632,417 |
Social security costs | 176,106 | 239,112 |
Other pension costs | 364,821 | 65,095 |
1,984,797 | 1,936,624 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Employees |
2024 | 2023 |
£ | £ |
Director's remuneration | - | - |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 72,777 | 51,261 |
Loss on disposal of fixed assets | 4,970 | - |
Auditor's remuneration - audit, taxation and statutory financial statements preparation |
31,500 |
31,500 |
Foreign exchange differences | 187,623 | (6,300 | ) |
Other operating lease expenditure | 42,000 | 49,000 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 293,085 | 259,735 |
Adjustment re previous year | 17,548 | - |
Total current tax | 310,633 | 259,735 |
Deferred tax | 98,033 | (537,873 | ) |
Tax on profit | 408,666 | (278,138 | ) |
UK corporation tax has been charged at 25 % (2023 - 25 %). |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,620,847 | 460,795 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
405,212 |
115,199 |
Effects of: |
Expenses not deductible for tax purposes | 924 | 3,267 |
Income not taxable for tax purposes | - | (89,750 | ) |
Capital allowances in excess of depreciation | (3,299 | ) | (6,436 | ) |
Adjustments to tax charge in respect of previous periods | 17,548 | - |
Rate change adjustment | - | (32,681 | ) |
Other tax adjustments | (11,719 | ) | (267,737 | ) |
Total tax charge/(credit) | 408,666 | (278,138 | ) |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Currency translation differences | (5,216 | ) | - | (5,216 | ) |
Actuarial (loss)/ gain on defined | 234,000 | (360,750 | ) | (126,750 | ) |
benefit pension |
228,784 | (360,750 | ) | (131,966 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Currency translation differences | 14,716 | - | 14,716 |
Actuarial (loss)/ gain on defined | (1,209,000 | ) | 302,250 | (906,750 | ) |
benefit pension |
(1,194,284 | ) | 302,250 | (892,034 | ) |
In 2024 the UK corporation tax rate remained at 25% and is set to remain so for the foreseeable future. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 4,000,000 | - |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant & | Fixtures |
property | machinery | & fittings |
£ | £ | £ |
COST |
At 1 September 2023 | 1,917,154 | 532,153 | 714,083 |
Additions | - | - | 26,503 |
Disposals | (8,993 | ) | (14,283 | ) | (21,160 | ) |
Reclassification/transfer | - | - | 10,300 |
At 31 August 2024 | 1,908,161 | 517,870 | 729,726 |
DEPRECIATION |
At 1 September 2023 | 1,532,464 | 413,695 | 611,617 |
Charge for year | 350 | 14,555 | 48,898 |
Eliminated on disposal | (4,547 | ) | (14,282 | ) | (20,173 | ) |
Reclassification/transfer | - | - | 20,136 |
At 31 August 2024 | 1,528,267 | 413,968 | 660,478 |
NET BOOK VALUE |
At 31 August 2024 | 379,894 | 103,902 | 69,248 |
At 31 August 2023 | 384,690 | 118,458 | 102,466 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Assets |
Motor | under |
vehicles | construction | Totals |
£ | £ | £ |
COST |
At 1 September 2023 | 69,351 | 367 | 3,233,108 |
Additions | - | 25,813 | 52,316 |
Disposals | (22,482 | ) | - | (66,918 | ) |
Reclassification/transfer | - | (367 | ) | 9,933 |
At 31 August 2024 | 46,869 | 25,813 | 3,228,439 |
DEPRECIATION |
At 1 September 2023 | 40,544 | - | 2,598,320 |
Charge for year | 8,974 | - | 72,777 |
Eliminated on disposal | (22,482 | ) | - | (61,484 | ) |
Reclassification/transfer | - | - | 20,136 |
At 31 August 2024 | 27,036 | - | 2,629,749 |
NET BOOK VALUE |
At 31 August 2024 | 19,833 | 25,813 | 598,690 |
At 31 August 2023 | 28,807 | 367 | 634,788 |
Freehold property includes land with a book value of £380,000 (2023: £380,000) which is not depreciated. |
Company |
Assets |
Freehold | Plant & | Fixtures | under |
property | machinery | & fittings | construction | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
Reclassification/transfer |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold property includes land with a book value of £380,000 (2023: £380,000) which is not depreciated. |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 33 Avenue Pierre Brossolette 94000, Creteil |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Via Tonale 7/1120099 Sesto San Giovanni, Milan |
Nature of business: |
% |
Class of shares: | holding |
Accuride International SRL ceased trading from 31 August 2024 and is currently being wound up. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 September 2023 |
and 31 August 2024 | 10,330,000 |
NET BOOK VALUE |
At 31 August 2024 | 10,330,000 |
At 31 August 2023 | 10,330,000 |
Fair value at 31 August 2024 is represented by: |
£ |
Valuation in 2024 | 5,169,000 |
Cost | 5,161,000 |
10,330,000 |
If investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 5,161,000 | 5,161,000 |
Aggregate depreciation | (4,662,000 | ) | (4,621,000 | ) |
Investment property was valued on open market basis on 31 August 2024 by the group's directors and key management . |
Company |
Total |
£ |
FAIR VALUE |
At 1 September 2023 |
and 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
Fair value at 31 August 2024 is represented by: |
£ |
Valuation in 2024 | 5,169,000 |
Cost | 5,161,000 |
10,330,000 |
Investment property was valued on an open market basis basis on 31 August 2024 by the group's directors and key management . |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
13. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 754,537 | 824,709 |
Finished goods | 2,443,097 | 6,049,368 |
3,197,634 | 6,874,077 |
An impairment provision of £253,000 (2023: £431,000) has been recognised against stock at the year end. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 876,557 | 961,003 |
Amounts owed by group undertakings | 380,170 | 561,951 |
Tax | - | 17,548 |
VAT | 232,210 | 301,999 |
Deferred tax asset | - | 363,688 | - | 363,688 |
Prepayments and accrued income | 109,963 | 148,962 |
1,598,900 | 2,355,151 |
Deferred tax asset |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Accelerated capital allowances | - | (48,145 | ) | - | (48,145 | ) |
Defined benefit pension | - | 411,833 | - | 411,833 |
- | 363,688 |
All debtors are financial assets that are debt instruments measured at amortised cost. |
Amounts owed by group undertakings are unsecured, repayable under normal commercial arrangements and carry no interest. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 608,014 | 458,158 |
Amounts owed to group undertakings | 31,550 | 1,839,323 |
Tax | 83,764 | 13,193 |
Social security and other taxes | - | 42,246 |
Accruals and deferred income | 298,061 | 438,586 |
1,021,389 | 2,791,506 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
All creditors are financial liabilities measured at amortised cost. |
Amounts owed to group undertakings are unsecured, repayable under normal commercial arrangements and carry no interest. |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 42,000 | 42,000 |
Between one and five years | 1,000 | 43,000 |
43,000 | 85,000 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
Minimum lease receipts fall due on investment property leased out under non-cancellable operating leases as follows:- |
Group | 2024 | 2023 |
£'000 | £'000 |
Within one year | 962 | 739 |
Between one and five years | 3,975 | 2,395 |
Over five years | 1,018 | 1,617 |
5,955 | 4,751 |
Company | 2024 | 2023 |
£'000 | £'000 |
Within one year | 962 | 739 |
Between one and five years | 3,975 | 2,395 |
Over five years | 1,018 | 1,617 |
5,955 | 4,751 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 36,595 | - | 36,595 | - |
Defined benefit pension | 58,500 | - | 58,500 | - |
95,095 | - | 95,095 | - |
Group |
Deferred |
tax |
£ |
Balance at 1 September 2023 | (363,688 | ) |
Charge to Income Statement during year | 98,033 |
Charge/ (credit) to OCI | 360,750 |
Balance at 31 August 2024 | 95,095 |
Company |
Deferred |
tax |
£ |
Balance at 1 September 2023 | ( |
) |
Charge to Income Statement during year |
Charge/(credit) to OCI | 360,750 |
Balance at 31 August 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 40 | 40 |
3% non-cumulative preference |
shares | £1 | 40 | 40 |
80 | 80 |
All ordinary shares rank pari passu with respect to voting rights, the rights to distribution of dividends and the repayment of capital. |
The 3% non-cumulative preference shares carry no voting rights and are not redeemable. On a winding up they entitle the holders to repayment of capital paid up on shares only and have priority over ordinary shareholders. The payment of a dividend is at the discretion of the director. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
19. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 September 2023 | 21,038,574 | 1,605,602 | 22,644,176 |
Profit for the year | 1,212,181 | 1,212,181 |
Dividends | (4,000,000 | ) | (4,000,000 | ) |
Currency translation differences | (5,216 | ) | - | (5,216 | ) |
Actuarial loss net of deferred tax | (126,750 | ) | - | (126,750 | ) |
At 31 August 2024 | 18,118,789 | 1,605,602 | 19,724,391 |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 September 2023 | 21,368,487 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Actuarial loss net of deferred tax | (126,750 | ) | - | (126,750 | ) |
At 31 August 2024 | 18,346,640 |
Retained earnings |
This reserve represents all current and prior year retained profits and losses as well as other gains and losses recognised in the Statement of Consolidated Income. |
Other reserves |
This reserve represents the nominal value of shares repurchased by the company. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
20. | EMPLOYEE BENEFIT OBLIGATIONS |
Defined contribution scheme |
The group and company operates a defined pension contribution scheme in respect of certain employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the group company and amounted to £60,000 (2023: £66,000). There were outstanding contributions of £7,175 (2023: £8,535) at the year end. |
Defined benefit scheme |
The company's and group's defined benefit pension scheme was closed to new entrants with effect from 31January 2008. In addition, members are no longer able to accrue any future benefits on or after that date. Therefore, the scheme provides deferred and immediate pension benefits. |
The assets of the pension scheme are held separately from those of the company and group and are administered by the pension scheme Trustees. The market value of the assets is based on valuation statements as at 31 August 2024 as provided by the scheme company of £26,964,000 (2023: £34,689,000) and includes an estimate of the net current assets at that date. Given that the scheme is in a net asset position the administrators have processed a restriction to cap the asset value at that of the associated liabilities within the scheme. |
The FRS 102 liabilities have been based on the preliminary results of the actuarial valuation of the scheme as at 31 August 2023, adjusted to 31 August 2024. |
In July 2020 the UK Government announced that the statutory minimum level of revaluation and increases on pensions in payment would in the future be calculated using the Consumer Prices Index ("CPI") rather than the Retail Prices Index ("RPI"). In the scheme, revaluations of deferred pensions and pension increases in payment on GMP accrued from 6 April 1988 are in line with the statutory minimum, and therefore as assumption about future rates of CPI has been made in order to value the scheme's benefits. The assumption regarding future CPI rates is lower than for RPI rates. |
The company and group made contributions to the scheme of £71,000 (2023: £850,000). The current service cost pension charge for the year was £Nil (2023: £Nil). |
In 2024, in line with the group's strategy to reduce its risk exposure to future volatility in the valuation of pension liabilities and associated cash flow obligations, the group effected the beginning of a "buy in" process, whereby the pension scheme has purchased a bulk annuity policy, with the majority of the defined benefit scheme's assets now residing in this annuity policy. Administration costs associated with this transaction amounted to £305,000 (2023: £Nil). |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
- |
(359,000 |
) |
Past service cost | - | - |
Administration expenses | 305,000 | - |
305,000 | (359,000 | ) |
Actual return on plan assets | 1,209,000 | 1,534,000 |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening defined benefit obligation | 24,315,000 | 27,374,000 |
Interest cost | 1,209,000 | 1,175,000 |
Administration expenses | 305,000 | - |
Actuarial losses/(gains) | 1,496,000 | (3,306,000 | ) |
Benefits paid | (3,777,000 | ) | (928,000 | ) |
23,548,000 | 24,315,000 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening fair value of scheme assets | 24,315,000 | 27,374,000 |
Contributions by employer | 71,000 | 850,000 |
Interest income | 1,209,000 | 1,534,000 |
Benefits paid | (3,777,000 | ) | (928,000 | ) |
Derecognition of surplus | 6,958,000 | (2,834,000 | ) |
Return on plan assets (excluding interest income) |
(5,228,000 |
) |
(1,681,000 |
) |
23,548,000 | 24,315,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Return on plan assets (excluding interest income) |
(5,228,000 |
) |
(1,681,000 |
) |
Actuarial gains/(losses) & restriction to net assets |
5,462,000 |
472,000 |
234,000 | (1,209,000 | ) |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
UK equities | 5.90% | 38.20% |
Overseas equities | 4.20% | 29.10% |
UK Government Fixed Interest | - | 3.80% |
UK Government Index Linked | - | 20.20% |
UK corporate bonds | - | 8.10% |
Annuity policies | 87.10% | - |
Cash | 2.80% | 0.60% |
100.00% | 100.00% |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2024 | 2023 |
Discount rate | 4.80% | 5.35% |
Future pension increases | 3.00% | 2.50% |
Inflation assumption (RPI) | 3.10% | 3.20% |
Inflation assumption (CPI) | 2.40% | 2.50% |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Mortality rates |
- for a male aged 65 now | 21.2 | 21.3 |
- at 65 for a male aged 45 now | 22.4 | 22.6 |
- for a female aged 65 now | 23.2 | 23.7 |
- at 65 for a female aged 45 now | 24.6 | 25.2 |
No employees of the company were members of the defined benefit scheme. |
Defined benefit pension scheme - normal retirement date equalisation |
On 17 May 1990, the European Courts of Justice decided in the Barber Decision that pension benefits constituted pay and therefore could not be provided on a sex discriminatory basis. Consistent with most schemes at the time, the Accuride scheme provided normal retirement for women at 60 but required men to retire at 65. This decision was clarified and affirmed in further cases before the European Court. The result of the collective decisions was that from 19 May 1990 until a pension equalised benefits, the disadvantaged sex was to receive the more favourable treatment. This is commonly referred to as the "Barber Window". Therefore, until equalisation was implemented, females were to be allowed to build up pension until the same age as men (65 in the case of the scheme) but males who retired were entitled to have their pension earned from 17 May 1990 until equalisation, calculated on the basis of the females' earlier normal retirement date ("NRD"), which was 60 in the scheme. |
In 1993, the Trustees and the company took the decision that they needed to equalise NRD for both sexes to 65. Both parties issued definitive statements and notices to the employees explaining the circumstances and the changes in the scheme benefits. the understanding at the time was that this closed the Barber Window and made the equalisation effective on 5 April 1993. |
Recently, as a result of routine review of the scheme rules, the Trustees discovered that the scheme rules require that in order to change benefits, such a change needed to comply with the amendment powers under the scheme's then governing trust documentation. At that time, the Definitive Trust Deed and Rules were dated 20 May 1985 (as amended 15 July 1988 by Deed of Amendment). This required an agreement by both the company and the Trustees and, at a minimum, an Amendment to the Deed signed by both parties. |
Initially, the Trustees and company reviewed historical records to determine if a deed or amendment was executed. None relating to the equalisation at 5 April 1993 was located. However, the complete rewrite of the deed signed 5 April 2006 did appropriately memorialise the equalisation of NRD for men and women. |
The Trustees and the company consulted legal counsel. Legal counsel has informed the parties that in decisions subsequent to Barber the courts have ruled that strict compliance to the terms of the scheme must be adhered to in order to perfect the equalisation. The Trustees launched a thorough due diligence exercise which included a second document search for documents in their possession, interviews with former Trustees, company officials and advisors, both legal and actuarial advisors. These efforts did not produce any further information. |
Ultimately, the company has concluded that deed amendments from the late 1990's which refer to the 1985 Scheme Deed and Rules mentioned above as the governing deed indicate that no such Scheme Deed modification as executed until 2006. |
During the 2020 financial year, the company instructed the scheme actuaries to prepare revised expense calculations and actuarial disclosures to properly present the 2020 financial statements, which additionally resulted in a restatement of the 2019 financial statements for the impact of additional expense resulting from the revised view of the equalisation effective date. |
Guaranteed Minimum Pensions ("GMP") offered in lieu of government payments are included in this scheme. HRM Pension Regulation has recently been offered to clarify how these payments should be equalised. This requirement is clear with or without a deed amendment. This amount has also been included in greater equalisation adjustments recorded in these financial statements. |
ACCURIDE INTERNATIONAL LIMITED (REGISTERED NUMBER: 00352801) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 August 2024 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
There are no gain contingencies to be disclosed or gains recorded at this time to offset the losses but the company is still reviewing possible offsets to this expense. |
At the date of approval of the financial statements, the finalisation of the increase in scheme liabilities is ongoing. Currently, the increase in liabilities recorded represents management's best estimate of the expected impacts under FRS 102 Section 28 - Employee Benefits. |
The director of the company has assessed this and does not consider this to represent a material uncertainty as at the date of approval of the financial statements. |
21. | RELATED PARTY DISCLOSURES |
During the year, the company and group made purchases of £9,415 (2023: £21,234) from Accuride Japan Ltd, a company in which the ultimate parent company holds a 50% stake. At the year end the company and group owed £Nil (2023: £21,234) to Accuride Japan Ltd. |
Key management personnel are considered to be the directors, whose remuneration is disclosed in the preceding notes to these financial statements. |
22. | ULTIMATE CONTROLLING PARTY |
The immediate and the ultimate holding company and controlling party is Accuride International Inc, a company incorporated in the state of California, in the United States of America. The consolidated financial statements of this group are not available to the public. |