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Registered number: 08368439









SOUTHCO SEVERN LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
SOUTHCO SEVERN LTD
 
 
COMPANY INFORMATION


Directors
Philip Kempson 
Rosalind Spinage 
Daniel Bush 




Registered number
08368439



Registered office
Touchpoint
Wainwright Road

Warndon

Worcester

WR4 9FA




Independent auditors
Grant Thornton UK LLP

17th Floor

103 Colmore Row

Birmingham

B3 3AG




Bankers
Bank of America
2 King Edward Street

London

EC1A 1HQ





 
SOUTHCO SEVERN LTD
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Statement of Financial Position
11
Statement of Changes in Equity
12 - 13
Notes to the Financial Statements
14 - 21


 
SOUTHCO SEVERN LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors present their strategic report for the year end 31 December 2024.

Business review
 
The Company is a wholly owned subsidiary of Touchpoint Inc. which is incorporated in the United States of America, and operates as part of the group's European division.
The Company's principal activity is as a holding company. The company holds 99.99% of the share capital of Southco Brasil Componentes Industriais Ltda.
The Directors are not aware, at the date of this report, of any likely major changes to the Company's activities in the next year.

Principal risks and uncertainties
 
The Company's investment is impacted by the performance of the Brazilian economy. An impairment review has been carried out to assess the net assets against the investment held, together with other factors which may cause impairment. No impairment has been deemed necessary.
The management team in the subsidiary company are actively involved in managing risks to the company. 
Liquidity risk:
The Company participates in group centralised treasury facilities.
Foreign currency risk:
Inter-company balances owed are in a currency different to sterling. This gives rise to the risk of currency fluctuations. However, strategic currency trades are performed at a group level and the strategy is therefore to achieve an overall balance in buying and selling currencies across the group.
Credit risk:
The Directors make investment decisions and review company performance through a process of annual budget preparation, and monthly performance reviews. Group instructions direct policy in the areas of credit control and customer risk management. 

Financial key performance indicators
 
The Directors do not apply KPI's to the performance of the Company, which is an investment holding company.
Other key performance indicators:
The Directors monitor the performance of the Company's investments and the wider group and make appropriate decisions based on the results.

Page 1

 
SOUTHCO SEVERN LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors have acted in the way that they considered, in good faith, would be most likely to promote the
success of the Company for the benefit of its member as a whole and this section forms our Section 172
disclosure, describing how, in doing so, the Directors considered the matters set out in section 172(1)(a) to (f) of
the Companies Act 2006. The Directors also took into account the views and interests of a wider set of
stakeholders, including customers, suppliers, employees and Regulators.
The Directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so had regard amongst other matters to:
• the likely consequences of any decision in the long term;
• the need to foster the Company’s business relationships with suppliers, customers and others;
• the impact of the Company’s operations on the community and the environment;
• the impact of the Company’s operations on the Company’s employees;
• the desirability of the Company maintaining a reputation for high standards of business conduct.
In addition, the Company exists within the wider TouchPoint Inc. Group and relationships with other Group
companies including the Company’s shareholder, Southco Manufacturing Limited. are key to the Company’s success.


This report was approved by the board on 29 July 2025 and signed on its behalf.



Daniel Bush
Director

Page 2

 
SOUTHCO SEVERN LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

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

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

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

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

Going concern

Following a review of forecasts, statement of comprehensive income and statement of financial position, the board is satisfied the Company has sufficient financial resources. In addition to this the Company has access to a group revolving credit facility managed by the parent company, TouchPoint Inc. In August 2022, the parent company amended and restated the credit facility to increase it to $400M and extend its expiration date to August 2027. A guarantee from Touchpoint Inc is obtained to cover any shortfall in the Company's cash position to December 2026. As a consequence, the Directors believe that the Company is well placed to manage its business risks successfully.

Results and dividends

The profit for the year, after taxation, amounted to £854,439 (2023 - loss £39,886).

No dividends were paid in the year, or the preceding year.

Qualifying third party indemnity provisions

For the full period and up to the date of the directors’ report being approved, a qualifying third party indemnity provision was in force during the financial year for the benefit of one or more of the directors of the company in accordance with the provisions of the Companies Act of 2006.

Page 3

 
SOUTHCO SEVERN LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Research and Development

The company carried out no research and development in the year, and does not expect to do so in the coming year.

Directors

The directors who served during the year and up to the date of this report were:

Philip Kempson 
Rosalind Spinage 
Daniel Bush
Isobel Gillott (resigned 1 August 2024)
 

Future developments

The Directors believe that the company will continue to maintain its function as a holding company and that the risks that have been identified are being well managed.

Engagement with suppliers, customers and others

The company has no suppliers or customers, but continues to engage with inter-company partners and to foster a strong working relationship.

Disclosure of information to auditors

The directors confirm that:
 
so far as the directors are aware, there is no relevant audit information of which the Company's auditor is unaware, and

the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsGrant Thornton UK LLPwill be proposed for reappointment in accordance with section 489 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by
section 415A of the Companies Act 2006.

Page 4

 
SOUTHCO SEVERN LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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





Daniel Bush
Director

Date: 29 July 2025

Page 5

 
SOUTHCO SEVERN LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTHCO SEVERN LTD
 


Opinion

We have audited the financial statements of Southco Severn 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 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;
the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the cost of living crisis, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.

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

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Page 6

 
SOUTHCO SEVERN LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTHCO SEVERN LTD
 


Other information

The other information comprises the information included in the annual report and accounts, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report and accounts. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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 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.

Matter on which we are required to report under the Companies Act 2006

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

Matters on which we are required to report by exception

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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Page 7

 
SOUTHCO SEVERN LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTHCO SEVERN LTD
 


Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: 

We identified UK-adopted international accounting standards, FRS102, Companies Act 2006, Tax legislation, Employment Law, Health and Safety Act, Data Protection Act, Modern Slavery Act, Streamlined Energy and Carbon Reporting (SECR), UK Bribery Act and General Data Protection Regulation, as laws and regulations being significant in the context of the entity;
We obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework through researching relevant laws and regulations within the industry in which the company operates in as well as the overarching company laws within their competitive environments;
We inquired with management to confirm whether there are any instances of non-compliance with laws and regulations. In addition to this, testing over a sample of legal and professional costs was completed to check that there were no indicators of potential additional liabilities.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included:
°Identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud. 
°Identifying and testing journal entries, in particular journals with specific risk criteria.
°Completion of audit procedures to conclude on the compliance of disclosures in the annual report and financial statements with a applicable financial reporting requirements. 
°Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item.
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; 
The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s work:
°understanding of, and practical experience with, audit engagements of a similar nature and complexity, through appropriate training and participation. 
°knowledge of the industry in which the client operates.

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.
Page 8

 
SOUTHCO SEVERN LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SOUTHCO SEVERN LTD
 


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 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.







Sreekanth Gaddamanugu 
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Birmingham




29/07/2025
Page 9

 
SOUTHCO SEVERN LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Administrative expenses
  
(1,587)
(4,141)

Other operating income
  
1,273,135
393,985

Operating profit
 4 
1,271,548
389,844

Interest payable and similar expenses
 6 
(417,109)
(429,730)

Profit/(loss) before tax
  
854,439
(39,886)

Profit/(loss) for the financial year
  
854,439
(39,886)

The notes on pages 14 to 21 form part of these financial statements. All amounts relate to continuing activities.

Page 10

 
SOUTHCO SEVERN LTD
REGISTERED NUMBER: 08368439

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 8 
5,222,752
5,222,752

  
5,222,752
5,222,752

Current assets
  

Cash at bank and in hand
 9 
786
1,558

  
786
1,558

Creditors: amounts falling due within one year
 10 
(28,264,826)
(29,120,037)

Net current liabilities
  
 
 
(28,264,040)
 
 
(29,118,479)

Total assets less current liabilities
  
(23,041,288)
(23,895,727)

  

Net liabilities
  
(23,041,288)
(23,895,727)


Capital and reserves
  

Called up share capital 
 12 
2
2

Profit and loss account
 13 
(23,041,290)
(23,895,729)

  
(23,041,288)
(23,895,727)


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




Daniel Bush
Director

Date: 29 July 2025

The notes on pages 14 to 21 form part of these financial statements.

Page 11

 
SOUTHCO SEVERN LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024
2
(23,895,729)
(23,895,727)


Comprehensive income for the year

Profit for the year
-
854,439
854,439


At 31 December 2024
2
(23,041,290)
(23,041,288)


The notes on pages 14 to 21 form part of these financial statements.

Page 12

 
SOUTHCO SEVERN LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
2
(23,855,843)
(23,855,841)


Comprehensive income for the year

Loss for the year
-
(39,886)
(39,886)


At 31 December 2023
2
(23,895,729)
(23,895,727)


The notes on pages 14 to 21 form part of these financial statements.

Page 13

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Southco Severn Ltd is a private company limited by shares and is incorporated in England and Wales. Its
registered head office is located at Touchpoint, Wainwright Road, Worcester, WR4 9FA. The principal activity of the Company is as a holding company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The company has taken advantage of the FRS 102 disclosure exemptions available to qualifying entities. On this basis, the company has taken advantage of the exemption, under paragraph 1.12(b), from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, TouchPoint Inc, includes the company’s cash flows in its consolidated financial statements 
The company is a wholly owned subsidiary of Touchpoint Inc. It is included in the consolidated financial statements of Touchpoint Inc, which are publicly available. The company is exempt by virtue of section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements. The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is TouchPoint Inc. The registered address of the ultimate parent undertaking is 2595 Interstate Dr., Ste. 103. Harrisburg, PA, 17110.

The following principal accounting policies have been applied:

  
2.2

Going concern

In forming their going concern assessment the Directors have obtained a letter of support from its immediate parent undertaking, Southco Manufacturing Limited, and from its ultimate parent company and ultimate controlling party, Touchpoint Inc, who have agreed to provide financial support to the Company for a period of 12 months from the approval of these financial statements. As a result of this the Directors have a reasonable expectation that Southco Severn Ltd has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

 
2.3

Finance costs

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

Page 14

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each Statement of Financial Position date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.5

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

  
2.6

Foreign currency translation

Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange
rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the
translation at period-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the Statement of comprehensive income except when deferred in other
comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are
presented in the Statement of comprehensive income within 'finance income or costs'. All other
foreign exchange gains and losses are presented in the Statement of comprehensive income within
'other operating income'.

 
2.7

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Financial instruments

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

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

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

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

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

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical
accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
Management considers the only significant estimate to be the evaluation of whether the Company's investments are impaired. At each reporting date investments are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

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SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Operating profit

The operating profit is stated after crediting:

2024
2023
£
£

Gain on foreign exchange
1,273,135
393,985


5.


Auditors' remuneration

The audit fee in relation to services provided to Southco Severn Limited amounting to £17,101 (2003:£15,450) has been borne by its parent company Southco Manufacturing Limited. This includes expenses incurred in performing the audit.





6.


Interest payable and similar expenses

2024
2023
£
£


Loans from group undertakings
417,109
429,730

417,109
429,730


7.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
-
-
Page 17

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
7.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
854,439
(39,886)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
213,610
(9,381)

Effects of:


Effects of group relief/ other reliefs
(213,610)
9,381

Total tax charge for the year
-
-


Factors that may affect future tax charges

At the time of signing of the Directors' report, there were no proposed future changes to the rate of
Corporation Tax. The Company continues to monitor legislation to remain informed of future changes to
tax rates.

Page 18

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
23,671,278



At 31 December 2024

23,671,278



Impairment


At 1 January 2024
18,448,526



At 31 December 2024

18,448,526



Net book value



At 31 December 2024
5,222,752



At 31 December 2023
5,222,752

Each year the value of the net investment in the Brazilian subsidiary is compared to its net assets revalued at the balance date. An impairment charge is then made to bring these two values into line.


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Southco Brasil Componentes Industriais Ltds (Principal activity of manufacturing)
Brazil
Ordinary
99.99%

The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Southco Brasil Componentes Industriais Ltds
5,833,871
(208,923)

Page 19

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
786
1,558

786
1,558



10.


Creditors: Amounts falling due within one year

2024
2023
£
£

Amounts owed to group undertakings
28,264,826
29,120,037

28,264,826
29,120,037



11.


Financial instruments

2024
2023
£
£

Financial assets


Cash and cash equivalents
786
1,558


Financial liabilities


Financial liabilities measured at amortised cost
28,264,826
29,120,037


Cash and cash equivalents comprise cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.


Financial liabilities measured at amortised cost comprise amounts owed to group undertakings.


12.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2 (2023 - 2) Ordinary shares of £1.00 each
2
2

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. All shares hold the same voting rights.


Page 20

 
SOUTHCO SEVERN LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Reserves

Profit and loss account

Reserves represent current year profits and the accumulation of historic profits, net of dividends paid, of which there are nil for both 2024 and 2023.


14.


Related party transactions

Related party transactions in the current period consist only of amounts owed to the parent company. Amounts owed to Southco Manufacturing Limited at 31 December 2024 amounted to £28,264,826  (2023: £29,120,037). This amount includes a loan and associated interest, and it is at arms’ length. Amounts owed to group companies are repayable on demand.


15.


Post Balance Sheet events

There have been no significant events affecting the Company since the year end.


16.


Controlling party

At 31 December 2024, the immediate parent company was Southco Manufacturing Limited, which is
incorporated in the United Kingdom.
The ultimate parent undertaking, controlling party and the smallest and largest group to consolidate these financial statements is TouchPoint Inc incorporated in the United States of America. Copies of the TouchPoint Inc consolidated financial statements can be obtained from the Company Secretary at 2595 Interstate Dr., Ste. 103. Harrisburg, PA, 17110.

Page 21