Document 3eJyO95eqnQX3xrnv3emgMnME

FILE NAME Cape Asbestos CAPE DATE 2021 DOC CAPE192 DOCUMENT DESCRIPTION Annual Report & Financial Statements - Altrad Services Ltd. Legal - Tibbs Case Exhibit 90 Company's Registered Number 3337119 ELCTRONIAY FILED - 2023 Oct 18 1:13 PM - ALTRAD SERVICES LIMITED RICHLAND formerly Cape Industrial Services Limited - ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 COMON PLEAS - 203CP41759 MONDAY MONDAY AB5433TL MONDAY MONDAY MONDAY MONDAY 30/05/2022 36 COMPANIES HOUSE ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED OFFICERS AND PROFESSIONAL ADVISORS DIRECTORS FILED - 2023 John Walsh Padraig Somers Oct REGISTERED OFFICE 18 Building 2 1:13 Fields End Business Park Davey Road PM Thurnscoe - Goldthorpe Rotherham RICHLAND S63 0JF BANKERS - HSBC Bank plc COM ON 4th Floor City Point 29 King Street Leeds LS1 2HL PLEAS INDEPENDENT AUDITORS PLEAS - Ernst & Young LLP 2 St Peter's Square Manchester M2 3EY 203CP41759 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED TABLE OF CONTENTS Page FILED OFFICERS AND PROFESSIONAL ADVISORS - 2023 STRATEGIC REPORT Oct CORPORATE GOVERNANCE REPORT 18 DIRECTORS REPORT AUDITOR'S REPORT 11 1:13 PM O~ - INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF CHANGES IN EQUITY STATEMENT OF FINANCIAL POSITION NOTES TO THE FINANCIAL STATEMENTS O~ N RICHLAND - N N COMON N PLEAS - 203CP41759 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 2021 FILED - The directors present their Strategic Report for the year ended 31 August 2021 2023 Principal activities Oct The Company provides a wide range of critical industrial services including access solutions refractory 18 linings environmental services insulation specialist coating fire protection and associated services focused 1:13 on the energy and natural resource sectors 1:13 Review of the business and future developments PM - The Company's trading performance has improved over the year to 31 August 2021 although turnover RICHLAND decreased to 193,198,000 2020 198,867,000 gross profit increased to 27,337,000 2020 20,322,000 Profit before tax excluding exceptional costs has increased to 19,226,000 2020 2,416,000 After exceptional items there is a profit before tax of 13,450,000 2020 loss of 1,418,000 The increase in profitability has primarily been caused by the recovery from the Covid pandemic - The Company derives the majority of its revenue from maintenance activities much of which is generated COM ON from long term framework agreements Working capital is closely managed with regular reviews of trade and other receivables In the future directors anticipate moderate but stable revenue growth across maintenance contracts which are in relatively mature markets with growth opportunities arising from the nuclear new build sector and selling initiatives across the Altrad Group PLEAS PLEAS Principal risks and uncertainties - The Board of Altrad Investment Authority the ultimate parent company manages risks at a Group level and is committed to enhancing the Group's risk management capability Risk is assessed formally at business segment level through risk workshops and via the maintenance of risk registers The updating of the risk registers is a continuous process involving the identification evaluation and management of risks by 203CP41759 individual managers This enables the early identification of key risks and the taking of action to mitigate the likelihood of loss The principal risks and uncertainties facing the Group are broadly grouped as external competitive operational and commercial and financial The risks and uncertainties facing Altrad Services Limited ASL are considered to be consistent with the Group While these risks are summarised below further details and the Group's mitigating actions can be found in Altrad Investment Authority's Annual Report which does not form part of these financial statements External Altrad Investment Authority's business is diverse and operations in certain locations may be affected by factors outside the Group's control These include changes to political economic and environmental conditions in existing and new territories Coronavirus There remains ongoing uncertainty around the impact of the global pandemic caused by Covid on the global economy The directors remain concerned about the impact on employees suppliers and customers of the Group and are continually assessing the impacts However the directors believe the Company is well placed to trade through the uncertain times caused by the Covid pandemic The safety of employees is our first priority and is at the forefront of our response to the pandemic The directors have taken active measures to ensure the to ensure the Company's people remain safe and healthy which has included the implementation of safety measure and there are regular health and safety meetings to ensure compliance with the measures introduced The Company provides essential services for our customers and the continuation of those services remains a key priority Contingency plans have been implemented in consultation with our clients on whose sites we operate And we are implementing a range of measures to mitigate operational and commercial risks as they emerge 3 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STRATEGIC REPORT continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Principal risks and uncertainties continued 2023 Business sustainability is also kept under continual review and the Company has sufficient liquidity and support available from the wider group should it be required Oct 18 Whilst this outcome is deemed unlikely by the directors the directors acknowledge the general uncertainty 1:13 1:13 created by Covid and as such have obtained a written confirmation of financial support from its ultimate parent undertaking Altrad Investment Authority SAS 125 rue du Mas de Carbonnier 34000 Montpellier France for a period of 12 months from the date of signing these financial statements The directors have PM made relevant enquiries of the group which indicates that Altrad Investment Authority is in a strong financial - position with sufficient amounts of liquid assets available and are therefore satisfied that the ultimate parent RICHLAND undertaking has adequate resource to provide support to the Company if it is needed Ukraine Conflict The Company continues to monitor the ongoing tragic conflict in the Ukraine and the resulting impact on - international relationships to understand the potential effects upon the Company The Company's immediate direct financial exposure to the impact from the conflict is limited as we have no trading relationships with either the Ukraine Russia or Belarus and we do not expect there to be a material impact on trade or the valuation of the Company's assets going forward COMON Brexit PLEAS PLEAS In the UK the economic climate has also been influenced by the potential impact of Brexit since the UK's decision to leave the EU in 2016. Based on the results of the trade negotiations and given that the Company's - business is significantly UK based both interms of customers and supply chains the Board remains confident that there will be minimal disruption to the business and at this time no significant risk factors have been identified which would materially impact the Company Competitive 203CP41759 Altrad Investment Authority operates mainly in the energy and natural resources sectors and the Group's earnings depend on a stable term demand for oil gas and electricity In addition losing certain key clients with which the Group has several contracts could have an adverse effect on ASL's revenues Operational and commercial Health and safety Many of Altrad Investment Authority's operating environments have associated health and safety risks and failure to maintain the highest safety standards on site could result in injury to our employees damage to the environment and a loss of clients as well as damage to ASL's reputation The Company is maintaining a provision in respect of lodged and future industrial disease claims for which the Board of Directors of Cape plc believes the Group to be liable arising on alleged exposure to previously manufactured asbestos products see note 19 Contract and project performance The terms and conditions of the Company's contracts as well as the actual project performance by Altrad Investment Authority subsidiaries could expose it to cost overruns resulting in adverse financial performance Financial The Company has limited exposure to foreign exchange and interest rate risks albeit these are routinely monitored by experienced finance tax and treasury teams at Group level Credit risk is managed by the Company Credit risk is the risk of financial loss to the Group if a customer fails to meet its contractual obligations and arises principally from the Company's receivables from customers The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer The Company has an established credit policy under which each new customer is analysed for credit worthiness before the company's standard payment and delivery terms and conditions are offered The Company's review includes external ratings and in some cases bank references 4 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STRATEGIC REPORT continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Section 172 statement 2023 Altrad Services Limited is a subsidiary of the Altrad Group and its board operates as part of the Altrad Group Oct As part of the wider Altrad Group the directors have acted in a way they consider in good faith promotes 18 the success of the Company for the benefit of its members as a whole and in doing so have given regard 1:13 amongst other matters to 1:13 Business relationships PM We work with some of the world's most respected companies and we pride ourselves on our commitment to - understand their needs working collaboratively to deliver enhancing solutions We build strong sustainable relationships with our clients and with our suppliers which is essential to the term success RICHLAND of our business We manage our key relationships via a structured key account management process KAM process which encourages regular communication and promotes continuous improvement activities - Our people We provide an inclusive environment where our people can bring their whole self to work feel connected and COM ON have the space they need to grow giving everyone an opportunity to reach their full potential We celebrate the importance of having a diverse workforce and our rich diversity helps build the skills ideas and behaviours which characterise our people We provide our people with the opportunity to build progressive careers within an environment that values ingenuity creativity and ambition PLEAS PLEAS Apprentices and graduates - Our Apprentice and Graduate programme provides our people with opportunities to make a real impact within a company who truly cares Our apprentice and graduate intake provides our next generation of people who can take on complex challenges and make a difference in the world through innovation creativity and teamwork 203CP41759 Militaryand Veterans The skills and experience gained in uniform are highly valued at the Company - they are key assets in facing our client's toughest challenges Former members of the military provide skills that are highly valued by the Company From a strong work ethic to strong leadership skills and a focus on teamwork the Company has roles that fit these desirable qualities offenders The Company treats all of its people with respect regardless of their past experiences - we want our people to learn from their past and create a better future Through a programme of learning and development which is structured to meet their needs we offer the support and guidance offenders need to thrive Disabled employees The Company encourages the employment of disabled people and provides a fair and encouraging approach to any such employment applications In the event any of our people become disabled whilst in the service of the Company - we strive to support their needs and every effort is made to continue their employment This may include adapting their work environments transferring them to alternative duties or if required retraining them to undertake new roles People engagement The true value of the Company resides within our people - as such we communicate regularly and via various media We maintain an intranet site that provides employees with the latest company information and utilise the Altrad App to allow them to see updates and news instantaneously We utilise a structured schedule of internal communication which includes regular one meetings townhall meetings operational and management meetings facilitating way conversations and the sharing of ideas throughout our teams ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STRATEGIC REPORT continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Section 172 statement continued 2023 Culture and values Oct Our values define who we are they drive us to succeed and underpin our approach to business They are at 18 the forefront of every decision we make and they define the behaviours of our people Our values of Respect 1:13 Solidarity Courage Humility and Conviviality drive us to be the best we can In the collective our people and our values form our corporate culture which serve the best interests of our shareholders our clients our people our suppliers and other stakeholders ensuring the long success of our business PM - Sustainability and Community RICHLAND We understand the importance of creating a sustainable future it runs throughout our strategy it's part of our culture and it's central to our day to day operations We are committed to making positive impacts for our people our clients and our wider business As we continue to evolve our sustainability strategy we sel challenges for our business our people and our clients to improve working together to create a better - tomorrow for everyone The Company has committed to a range of corporate social responsibility CSR and environmental performance targets which includes becoming carbon neutral by 2030 or sooner We contribute to the development of the communities we work in through a number of initiatives ranging from job creation and volunteering opportunities through to sourcing materials from local suppliers where possible and COM ON we also take pridein supporting a number of community and charitable based projects a positive contribution to our local communities to make sure we make PLEAS PLEAS Shareholders - The management team are committed to and openly engage with the Company's shareholders through regular meetings and effective dialogue The shareholders are actively engaged in understanding our strategy culture people and the performance of our shared objectives for the short mid and longer terms On behalf of the Board 203CP41759 John Walsh Director Date 26 May 2022 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED CORPORATE GOVERNANCE REPORT FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Introduction 2023 The Wates Corporate Governance Principles for Large Private Companies serves as the framework to demonstrate how Directors have had regard for the matters set out in section 172 to f of the Oct Companies Act 2006 when performing their duties including how Directors have engaged with and considered the interests of stakeholders including UK employees suppliers customers and those in a principal business relationship with the Company Reporting against the Wates Principles is included in the 18 1:13 Corporate Governance Statement below 1:13 Corporate Governance Statement PM For the year ended 31 August 2021 under The Companies Miscellaneous Reporting Regulations 2018 the - Company has applied the Wates Corporate Governance Principles for Large Private Companies The Directors have set out below an explanation of how the Wates Principles have been applied during the year RICHLAND Principle 1 - Purpose and Leadership The Directors of Altrad Services Limited together with a wider management team the Leadership team - sets the Company's purpose and strategy and are accountable to the Altrad Group Altrad based in Montpellier France COM ON Altrad is a world leader in the provision of Industrial Services and is made up of 42,000 people distributed across 50 countries operating across Europe the Middle East Africa Asia and the Pacific Altrad's strategy is to bring value to its customers by providing diversified quality services with high ethical and safety PLEAS PLEAS standards in several sectors and a term vision of the market and its prospects Altrad's activities range from project engineering to plant maintenance in sectors as varied as oil and gas 28 of sales electrical - energy 11 process industries 25 and construction 36 including the manufacture of wheelbarrows and concrete mixers as well as scaffolding for both sale and rental The Company together with its Altrad affiliates are the UK's leading provider of support services It enhances the lives of millions by supporting some the nation's most vital energy generating assets It uses its ingenuity Leadership 203CP41759 to get ahead solving the nation's infrastructure challenges through innovation creativity and teamwork Principle 2 - composition Although the parent company is not listed on a stock exchange Altrad's commitment to the principles of good governance to guarantee economic performance exemplary administration and management trust and transparency has led it to opt for a governance model that respects the principles of the Autorit^'des March^'s Financiers French financial markets authority The foundations of this governance system are transparency of financial information risk management in accordance with the highest standards and ethical rules strengthening the independence of directors in relation to the President and providing shareholders with the best information and the greatest possible visibility The Company's Leadership team comprises of a Chief Executive Officer Finance Director Director of Business Development & Strategy two Managing Directors Human Resources Director and a Commercial Director The Leadership team has a diverse range of skills expertise and over 175 combined years of experience in the oil & gas petrochemical nuclear and conventional and renewable power generation markets The Leadership team size and composition is regarded as appropriate to the Company's large yet focused business The members of the Leadership team have equal voting rights when making decisions except the CEO who has a casting vote All members have access to the advice and services of Altrad's Legal Counsel and may if they wish take professional advice at the Company's expense The Company is committed to creating an more inclusive environment thereby fostering a more diverse workforce with a greater breadth of experience and perspective including at the most senior levels The Company has demonstrated its commitment to this area by establishing a UK Diversity and Inclusiveness committee in 2020 who set the strategy in this area and who report to the leadership team throughout the . year ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED CORPORATE GOVERNANCE REPORT Continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Principle 3 Leadership responsibilities 2023 Each member of the Leadership team understands what they are accountable and responsible for and reports on a monthly basis The Leadership team is further supported by an Operating Committee that meets Oct monthly The Leadership team whilst ultimately retaining responsibility for UK decision making ensures delegated decision makers are individuals with the most experience and relevant knowledge 18 1:13 1:13 All members of the Leadership team are required to consider any conflicts or potential conflicts and declare them via an ethics and integrity portal as a minimum annually Altrad operates a tolerance approach to unethical business conduct and as a leading global organisation has a responsibility in the global fight against PM bribery and corruption Altrad's business ethics and integrity framework provide a structured and effective - means of managing ethical risks through controls systems training and audit programmes RICHLAND Principle 4 - Opportunity and Risk To ensure Altrad achieves its purpose the Leadership team actively pursues opportunities both reinvestment and development to fuel organic growth and acquiring carefully selected businesses to bolster the - Company's core operations or expand into complementary sectors Altrad's mergers & acquisitions team identify acquisition targets and the potential synergies available and in tandem with the Leadership team COM ON performs comprehensive commercial financial and legal due diligence The Company published it's five year plan Altrad 2026 Strategy in the year which is available to download on its website https://www.altradservices.com/our-approach/?section=strategy . By 2026 the Company and PLEAS PLEAS its affiliates will have grown by 75 in size and will continue to be the leading provider of support services in the UK The growth journey will be driven by three strategic elements Retain via client satisfaction and key - account management Develop by strategic bid management organic growth and new skills & capabilities Acquire through strategic partnerships and acquisitions Risk management involves an acceptance of a reasonable degree of risk which no entrepreneurial business is without within a governance framework that manages the risks to reduce the potential impact Key 203CP41759 business risks are monitored through the Company's matrix organisational structure with several levels of control and management While Altrad maintains a global risk governance framework the Company also has its individual risk management plan This duplication enables a holistic Group approach in combination with localised country or specific assessments The Company monitors and acts to mitigate risks on a weekly basis as required whilst working within the Group formal risk framework Within the Company there is both a responsibility towards and a dependency on the people within the business Their safety and wellbeing are the number one focus The business is unequivocally committed to achieving excellence in safety including supporting an environment and culture where this remains the number one priority throughout our operations The Company defines safety as a condition of being an output of performance which is driven through senior leadership responsibility and accountability The Company's leaders commit to inspire enable and challenge in order to ensure complete dedication to the people within the business This has been continually demonstrated during the current Covid pandemic and these beliefs behaviours and attitudes are integral to the Company's safety model and intrinsically linked to accomplishing optimal safety performance Principle 5 - Remuneration Altrad oversees the remuneration of the Leadership team with market rate coupled with short and long term incentive plans which are aligned to Altrad's stakeholders at both a UK and Group level salaries to ensure retention purpose and the interests of The Leadership team oversees the remuneration of the Company's people with certain changes requiring oversight and sign off by Altrad A large proportion of the Company's people are paid in line with industry standards The Company is committed to creating a culture of excellence that not only enables employees to reach their full potential but also enables the Group to live up to its ambitions ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED CORPORATE GOVERNANCE REPORT Continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED Principle 6 - Stakeholder Relationships and Engagement - 2023 Business relationships The Company works with some of the world's most respected companies and prides itself on its commitment to understand their needs working collaboratively to deliver enhancing Oct solutions The Company builds strong sustainable relationships with its clients and suppliers which are essential to the term success of the business Key relationships are managed via a structured key account management process KAM process which encourages regular communication and promotes 18 1:13 continuous improvement activities 1:13 PM People The Company provides an inclusive environment where its people can bring their whole self to work feel connected and have the space they need to grow giving everyone an opportunity to reach their full - potential The Company celebrates the importance of having a diverse workforce and its rich diversity helps build the skills ideas and behaviours which characterise its people The Company provides its people with RICHLAND the opportunity to build progressive careers within an environment that values ingenuity creativity and ambition - Apprentices and graduates The Apprentice and Graduate programmes provide opportunities to make a real impact within a Company that truly cares The intake from these programmes provides the next generation of people who can take on complex challenges and make a difference in the world through innovation creativity and teamwork COMON Military and Veterans The Company values highly the skills and experience gained in uniform - the PLEAS PLEAS capabilities that result are key assets in addressing client's toughest challenges From a strong work ethic to strong leadership skills and a focus on teamwork the Company has many roles that fit these desirable - qualities offenders The Company treats all of its people with respect regardless of their past experiences The business wants its people to learn from their past and create a better future Through a programme of learning and development structured to meet their needs the Company offers the support and guidance ex- offenders need to thrive 203CP41759 Disabled employees The Company encourages the employment of disabled people and providesa fair and encouraging approach to any such employment applications In the event that any of the people within the Company become disabled whilst in service the business strives to support their needs with every effort being made to continue their employment This may include adapting work environments transfers to alternative duties or if required retraining to undertake new roles People engagement The true value of the business resides within its people as such there are regular and various means and media used for communication An intranet site is maintained that provides the Company's people with the latest information using applications that provide instantaneous news updates There is a structured schedule of internal communication which includes regular one meetings townhall meetings operational and management meetings facilitating way conversations and the sharing of ideas throughout the business's teams Culture and values The Company is defined by its values they drive the business to succeed and underpin its conduct and approach The values are at the forefront of every decision that is made and define the behaviours of the Company's people Values of Respect Solidarity Courage Humility and Conviviality drive the business to be the best it can In the collective the Company's people and values form its corporate culture which serve the best interests of its shareholders its clients its people its suppliers and other stakeholders ensuring the term success of the business Sustainability and Community The Company understands the importance of creating a sustainable future it runs throughout the strategy it's part of the business's culture and it's central to its day to day operations The Company is committed to making positive impacts for its people its clients and the wider business As the Company continues to evolve its sustainability strategy challenges are set for the business its people and its clients to improve working together to create a better tomorrow for everyone The Company has committed to a range of corporate social responsibility CSR and environmental performance targets which includes becoming carbon neutral by 2030 or sooner The Company contributes to the development of the 9 . ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED CORPORATE GOVERNANCE REPORT Continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED Principle 6 - Stakeholder Relationships and Engagement Continued - communities in which it works through a number of initiatives ranging from job creation and volunteering 2023 Oct opportunities through to sourcing materials from local suppliers where possible The Company takes pride in supporting a number of community and charitable based projects to make sure it makes a positive contribution to its local communities 18 Shareholders The Leadership team are committed to and openly engage with Altrad through regular 1:13 meetings and effective dialogue The shareholders are actively engaged in understanding the Company's PM strategy culture and people together with the delivery of shared objectives for the short mid and longer - terms RIC-HLAND COMON PLEAS - 203CP41759 10 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED DIRECTORS REPORT FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 2023 The Directors present their report and the audited financial statements of the Company for the year ended , 31 August 2021 Oct Change of name The company changed its name from Cape Industrial Services Limited to Altrad Services Limited on 1 June 18 2021 1:13 Principal activities PM The Company provides a wide range of critical industrial services focused on the energy and natural resource - sectors RICHLAND Results for the year Revenue for the period was 193,198,000 2020 198,867,000 2020 1,009,000 has been transferred to reserves The profit for the year of 13,381,000 - Dividends COM ON No dividends were paid during 2021 2020 nil Directors The following persons served as Directors during the year and up to the date of signing the financial PLEAS statements - P Somers PLEAS - - Walsh The directors had no beneficial interests in the shares of the company Going concern 203CP41759 The directors have a reasonable expectation that Altrad Services Limited will continue in operational existence for the foreseeable future having received a letter of support from Altrad Investment Authority SAS This letter confirms continuing support for 12 months from the date of signing these financial statements The directors have reviewed the resources of Altrad Investment Authority SAS and have concluded there is sufficient scope and headroom in its resources to adequately support Altrad Services Limited over the next 12 months This has enabled Altrad Services Limited continued adoption of the going concern basis in preparing its financial statements The directors therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements 11 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED DIRECTORS REPORT continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED Coronavirus - 2023 At the date of signing these financial statements the directors have considered the effect of the Coronavirus pandemic on the company with the information available to it and do not believe it will affect Oct the company's ability to continue for the foreseeable future As with most businesses there will be short term practical difficulties which we have addressed and are managing However number of our clients operate in essential industries and as a result we have continued to generate turnover from 18 a significant number of contracts See note 1a for further details 1:13 Qualifying third party indemnity provisions PM As permitted by the Companies Act 2006 all directors are covered by indemnities from the parent - undertaking The directors are indemnified in respect of proceedings which may be brought by third parties and such indemnification was in place throughout the year and up to the date of approval of these Financial RICHLAND Statements Neither these indemnifications nor insurance provides cover in the event that a director or officer is proved to have acted fraudulently or dishonestly The Company has not made any qualifying indemnity provisions - Streamlined Energy and Carbon Reporting COM ON The below table shows the Company's UK energy usage and greenhouse emissions as follows UK Green house gas emissions and energy use data for the period 1 September 2020 to 31 August 2021 2020/21 PLEAS Energy consumption used to calculate emissions kWh PLEAS - 6,581,175 Energy consumption break down kWh * gas + electricity transport fuel Scope 1 emissions in metric tonnes CO2e Gas consumption Owned transport Total Scope 1 161,033 398,944 6,021,199 203CP41759 29.6 > 1,364.5 1,394.2 Scope 2 emissions in metric tonnes CO2e Purchased electricity 93.0 Scope 3 emissions in metric tonnes CO2e Business travel in employee owned vehicles 149.0 gross emissions in metric tonnes CO2e Intensity ratio Tonnes CO2e per 1,000 of revenue 12 1,636.2 0.008 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED DIRECTORS REPORT continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Streamlined Energy and Carbon Reporting continued Quantification and reporting methodology 2023 Oct We have followed the 2020 HM Government Environmental Reporting Guidelines We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2021 UK Government's Conversion Factors for Company Reporting 18 1:13 1:13 Intensity measurement The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee and PM also gross emissions in metric tonnes CO2e per 1,000 of revenue - Measures taken to improve energy efficiency RICHLAND We are in the process of installing smart meters across our biggest consuming sites and we continue to use great video conferencing technology to prevent travel to sites Whilst this has been driven by the Covid pandemic we are reviewing where we can continue this working practice post lock event - Auditors The auditors Ernst & Young LLP have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting COMON So far as each director is aware PLEAS PLEAS there is no relevant audit information of which the Company's auditor is unaware Relevant information is defined as information needed by the Company's auditors in connection with preparing - their report - each director has taken all the steps she ought to have taken as a director taking account of their individual capacity in order to make himself aware of any relevant audit information and to establish that the Company's auditor is aware of that information Directors responsibilities The directors are responsible for preparing the annual report and the financial statements in accordance with applicable United Kingdom laws and regulations 203CP41759 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 Financial Reporting Standard 101 Reduced Disclosure Framework FRS 101 Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period In preparing those financial statements the directors are required to e select suitable accounting policies and then apply them consistently e make judgements and estimates that are reasonable and prudent * present information including accounting policies in a manner that provides relevant reliable comparable and understandable information * provide additional disclosures when compliance with the specific requirements in FRS101 is insufficient to enable users to understand the impact of particular transactions other events and conditions on the company financial position and financial performance e state whether applicable UK Accounting Standards including FRS 101 have been followed subject to any material departures disclosed and explained in the financial statements and * prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business in which case there should be supporting assumptions or qualifications as necessary 13 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED DIRECTORS REPORT Continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED Directors responsibilities continued - The directors are responsible for keeping adequate accounting records that are sufficient to show and explain 2023 Oct the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps 18 for the prevention and detection of fraud and other irregularities 1:13 Under applicable law and regulations the directors are also responsible for preparing a strategic report and PM directors report that comply with that law and those regulations The directors are responsible for the - maintenance and integrity of the corporate and financial information included on the company's website RICHLAND For and on behalf of the Board of Directors - COMON John Walsh Director PLEAS - Date 26 May 2022 203CP41759 14 ELCTRONIAY INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALTRAD SERVICES LIMITED FOR THE YEAR ENDED 31 AUGUST 2021 Opinion FILED - 2023 We have audited the financial statements of Altrad Services Limited for the year ended 31 August 2021 which comprise the Statement of comprehensive income the Statement of financial position the Oct Statement of changes in equity and the related notes 1 to 28 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 FRS 101 Reduced Disclosure Framework United 18 Kingdom Generally Accepted Accounting Practice 1:13 In our opinion the financial statements PM - = give a true and fair view of the Company's affairs as at 31 August 2021 and of its profit for the year then ended RICHLAND e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and - e have been prepared in accordance with the requirements of the Companies Act 2006 Basis for opinion COMON We conducted our audit in accordance with International Standards on Auditing UK ISAs UK and PLEAS 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 203CP41759 Conclusions relating to going concern In auditing the financial statements we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate Based on the work we have performed we have not identified any material uncertainties relating to events or conditions that individually or collectively may cast significant doubt on the Company's ability to continue as a going concern for a period of 12 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 However because not all future events or conditions can be predicted this statement is not a guarantee as to the Company's ability to continue as a going concern Other information The other information comprises the statements and our auditor's report contained within the annual report information included in thereon The directors the annual report other are responsible for the than the financial other information Our opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in this report we do not express any form of assurance conclusion thereon 15 ELCTRONIAY INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALTRAD SERVICES LIMITED FOR THE YEAR ENDED 31 AUGUST 2021continued Other information continued FILED - 2023 Our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or Oct 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 18 1:131:13 misstatement of the other information we are required to report that fact We have nothing to report in this regard PM - Opinions on other matters prescribed by the Companies Act 2006 RICHLAND In our opinion based on the work undertaken in the course of the audit e 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 - e the strategic report and directors report have been prepared in accordance with applicable legal requirements COMON Matters on which we are required to report by exception PLEAS PLEAS 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 directors report We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if in our opinion adequate accounting records have not been kept or returns adequate for our audit have not been 203CP41759 received from branches not visited by us or the financial statements are not in agreement with the accounting records and returns or certain disclosures of directors remuneration specified by law are not made or we have not received all the information and explanations we require for our audit Responsibilities of directors As explained more fully in the directors responsibilities statement set out on page 13 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 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 16 ELCTRONIAY INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALTRAD SERVICES LIMITED FILED FOR THE YEAR ENDED 31 AUGUST 2021 continued - Explanation as to what extent the audit was considered capable of detecting irregularities including 2023 fraud Oct 18 Irregularities including fraud are instances of compliance with laws and regulations We design 1:13 1:13 procedures in line with our responsibilities outlined above to detect irregularities including fraud The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by for example forgery or intentional misrepresentations PM or through collusion The extent to which our procedures are capable of detecting irregularities including - fraud is detailed below However the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management RICHLAND * We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework FRS 101 and the Companies Act 2006 and the relevant direct and indirect tax compliance regulations in the - United Kingdom In addition the Company has to comply with laws and regulations relating to the operations including General Data Protection Regulation COM ON + We understood how Altrad Services Limited is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures in these areas We corroborated our enquiries by reviewing supporting documents including board meeting minutes PLEAS PLEAS + We considered there to be a fraud risk around revenue recognition particularly in respect of contracts with existing or potential commercial disputes and risks around recoverability of revenue recognised We used data analytics tools to perform a correlation analysis between revenue amount recoverable on contract receivables and cash Using the correlation we tested that the flow of transactions is in line with our expectations and identified and tested unusual and unexpected journals which could be evidence of management override of controls We verified the underlying data driving our correlation analysis by tracing a sample of cash transactions selected at random throughout the year to bank 203CP41759 statements to verify the cash entries represent real cash receipts We tested the post year end billing of amount recoverable on contract and performed ageing analysis of the balance as at year end Further in respect of material contracts we have obtained an understanding of the terms of contract and performed month wise gross margin analysis to identify any potential upside or downside to revenue recognised We have also reviewed the project cost report to identify any potential making contracts In addition we considered the risk of management override specifically as a result of manual journals posted at the yearend We incorporated data analytics into our audit approach to assist into our targeted review of manual journals including segregation of duties and journals indicating large or unusual transactions based on our understanding of the business We have tested specific transactions back to source documentation * Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations In addition we completed procedures to conclude on compliance of the disclosures in the financial statements with the requirements of the relevant accounting standards and UK legislation A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at https://www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor's report 17 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALTRAD SERVICES LIMITED EFLICTRLONEIADY FOR THE YEAR ENDED 31 AUGUST 2021 continued - 2023 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 Oct members those matters we are required to state to them in an auditor's report and for no other purpose 18 To the fullest extent permitted by law we do not accept or assume responsibility to anyone other than the 1:13 company and the company's members as a body for our audit work for this report or for the opinions we have formed PM - RIC-HLAND Jamie Dixon Senior Statutory Auditor for and on behalf of Emst & Young LLP Statutory Auditor Manchester Date 26 May 2022 COMON PLEAS PLEAS - 203CP41759 18 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED INCOMESTATEMENT Tumover Cost of sales Gross profit Administrative expenses Other income Other operating expenses FOR THE YEAR ENDED 31 AUGUST 2021 FILED 2021 2020 - Business Performance Exceptional Items Total Business Performance Exceptional Items Total 2023 Notes 000 000 000 000 000 000 Oct 3 193,198 - 193,198 198,867 - 198,867 18 166,039 27,159 11,137 - 166,039 - 27,159 - 11,137 178,545 20,322 20,985 - 178,845 1:13 PM - 20,322 - - 20,985 RICHLAND 5 4,26 845 3,919 - 4,278 845 8,197 7,182 - 7,182 7,835 1,638 9,473 - Profit Loss on 2 ordinary activities before Interest and Taxation Income from other fixed asset investments 12,948 4,278 8,670 4,245 - 4,245 1,316 1,638 2,955 COMON PLEAS - 2,114 - 2,114 Interest receivable 9 and similar Income Interest payable 9 and similar charges Profit / loss before tax 4,612 2,758 . 4,612 1,498 4,256 ' 19,047 5,776 13,271 5,084 2 5,084 203CP41759 3,466 2,196 5,662 2,416 3,834 1,418 Tax 10 1,129 1,097 32 1,699 728 2,427 Profit/ loss for the period 17,918 4,679 13,239 4,115 3,106 1,009 19 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 AUGUST 2021 FILED - , Profit for the period Other comprehensive expense Currency translation differences Net other comprehensive expense to be reclassified to profit or loss in subsequent periods Other comprehensive income expense not to be reclassified to profit or loss in subsequent periods Notes 2021 000 13,239 63 63 2023 2020 000 Oct 1,009 18 1:13 171 PM - 171 RICHLAND - measurement of defined benefit pension plan 22 Tax effect of movements in retirement benefit asset 22 Net other comprehensive income expense not to be reclassified to profit or loss in subsequent periods Other comprehensive income expense for the period net of tax Total comprehensive income expense for the _period COMON 332 73 1,853 1,853 352 PLEAS 259 1,501 PLEAS - 196 1,672 13,435 663 203CP41759 20 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 2023 Notes Issued share capital Retained earnings Total equity 000 000 000 Oct At 1 September 2020 Profit for the year Other comprehensive expense Total comprehensive expense for the year 18 10,000 13,257 3,257 1:13 - 1,009 1,009 + 1,672 1,672 PM - - 663 663 At 31 August 2020 Profit for the period Other comprehensive income Total comprehensive income for the year At 31 August 2021 RICHLAND 10,000 13,920 3,920 - 13,239 13,381 - 196 196 - . 13,435 13,577 10,000 485 9,657 COMON PLEAS - 203CP41759 21 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED STATEMENT OF FINANCIAL POSITION AT 31 AUGUST 2021 Notes 2021 FILED - 2020 current assets 000 000 2023 Tangible assets 122100 8,685 12,898 Oct Right of use assets Intangible assets Investments Deferred tax assets Amounts owed by Group undertakings Total current assets 122100 1,017 122100 4,031 14 5,995 122100 14,883 122100 86,643 121,254 1,615 18 3,090 1:13 5,995 1:13 14,604 73,020 PM - 111,222 Current assets Inventories Trade and other receivables Cash and cash equivalents Total current assets Total assets Current liabilities Creditors Amounts falling due within one year Lease liabilities Provision for industrial disease claims Other provisions Total current liabilities 15 16 17 13 19,23 19,23 19 560 67,954 15,248 83,762 205,016 62,370 408 11,901 1,175 75,854 RICHLAND 889 67,924 41,831 - 110,644 221,866 COMON PLEAS 76,877 769 PLEAS 21,856 - 1,175 100,677 Net current assets Total assets less current liabilities current liabilities Creditors Amounts falling due after more than one year Retirement benefit obligation Lease liabilities Provision for industrial disease claims Other provisions Total current liabilities 7,908 129,162 22 13 19,23 19,23 19 3,745 621 115,115 166 119,647 9,967 203CP41759 121,189 4,527 855 119,556 171 125,109 Net assets liabilities 9,515 3,920 Capital and reserves Called up share capital Profit and loss account Total shareholders funds deficit 21 10,000 485 9,515 10,000 13,920 3,920 These Financial Statements on pages 18 to 53 were approved by the board of directors and signed on its behalf by DAR DAR John Walsh Director Date 26 May 2022 22 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 FILED 1. Accounting policies - Authorisation of financial statements and statement of compliance with FRS 101 2023 Oct The financial statements of Altrad Services Limited the Company for the year ended 31 August 2021 were ' authorised for issue by the board of directors on May 2022 and the balance sheet was signed by the 18 director on behalf of the board of Altrad Services Limited a Company incorporated and domiciled in England 1:13 1:13 and Wales PM These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced - Disclosure Framework FRS 101 and in accordance with applicable accounting standards RICHLAND The Company's financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds 000 except when otherwise indicated - The financial statements contain information about Altrad Services Limited as an individual company and do not contain consolidated financial information as the parent of a group The Company is exempt under section COM ON 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it is included with its subsidiary undertakings in the consolidated financial statements of Cape plc The financial statements of Cape plc can be obtained from the Company Secretary by writing to 47 Esplanade St. Helier Jersey JE1 OBD PLEAS The principal accounting policies adopted by the Company are set out below PLEAS - a Basis of preparation The financial statements are prepared on a going concern basis under the historical cost convention as modified by the revaluation of financial assets and financial liabilities at fair value through profit or loss and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom 203CP41759 The Company has taken advantage of the following disclosure exemptions under FRS 101 e IFR 7 Financial Instruments Disclosures e The requirements of paragraphs 91 to 99 of IFRS 13 Fair value measurement disclosure of valuation techniques and inputs used for fair value measurement of assets and liabilities * The requirements of paragraph 38 of IAS 1 Presentation of financial statements regarding comparative information requirements in respect of - Paragraph 79 a iv of IAS 1 - Paragraph 73 e of IAS 16 Property plant and equipment - Paragraph 118 e of IAS 38 Intangible assets reconciliations between the carrying amount at the beginning and end of the period e = The following paragraphs of IAS 1 Presentation of financial statements - 10 d statement of cash flows - 10 f a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements or when it reclassifies items in its financial statements - 16 statement of compliance with all IFRS - 38A requirement for minimum of two primary statements including cash flow statements - 38B additional comparative information 223 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED 1. Accounting policies continued - a Basis of preparation continued 2023 Oct - 40A requirements for a third statement of financial position - 111 cash flow statement information and 18 1:13 - 134-136 capital management disclosures IAS 7 Statement of cash flow The requirements of paragraph 30 and 31 of IAS 8 Accounting policies changes in PM accounting estimates and errors requirement for the disclosure of information when an entity has not applied - a new IFRS that has been issued but is not yet effective RICHLAND management The requirements of paragraph 17 of IAS 24 Related party disclosures key RICHLAND compensation RICHLAND e The requirements in IAS 24 Related party disclosures to disclose related party transactions RICHLAND entered into between two or more members of a group RICHLAND The disclosure of related party transactions with other wholly owned members of the group headed by Cape plc Going Concern COMON The directors have a reasonable expectation that Altrad Services Limited will continue in operational existence PLEAS PLEAS for the foreseeable future having received a letter of support from Altrad Investment Authority SAS This letter confirms continuing support for 12 months from the date of signing these financial statements The directors have reviewed the resources of Altrad Investment Authority SAS and have concluded there is sufficient scope - and headroom in its resources to adequately support Altrad Services Limited over the next 12 months This has enabled Altrad Services Limited continued adoption of the going concern basis in preparing its financial statements The directors therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements 203CP41759 24 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED 1. Accounting policies continued - a Basis of preparation continued 2023 Oct Changes to accounting policies and disclosures 18 1:13 The Company has applied the following standards for the first time for reporting periods commencing on or after 1 September 2020 PM The Conceptual Framework for Financial Reporting - e IFRS 3 amendments - Business Combinations e IAS 1 and IAS 8 amendments - Definition of material RICHLAND e IFRS 16 amendments - Covid Related Rent Concessions Their adoption has not had any material impact on the disclosure or on the amounts reported in the financial - statements COM ON New and amended standards and interpretations not yet adopted The following standards and interpretations in issue which may have an effect for the Company have not yet been adopted by the Company Effective dates PLEAS Reference to the Conceptual Framework - Amendments to IFRS 3 PLEAS - 1 January 2022 Property Plant and Equipment Proceeds before Intended Use - Amendments to 1 January 2022 Onerous Contracts - Costs of Fulfilling a Contract - Amendments to IAS 37 1 January 2022 Classification of Liabilities as Current or current - Amendments to IAS 1 1 January 2023 203CP41759 Interest Rate Benchmark Reform - Phase 2 IFRS 7 IFRS 4 and IFRS 16 Amendments to IFRS 9 IAS 39 1 January 2021 The Company is currently assessing the impact of these standards and plans to adopt the new standards on the required effective date b Significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below These policies have been consistently applied to all the years presented unless otherwise stated Investments Investments in subsidiaries and joint ventures are held at historical cost less any provision for impairment 25 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED 1. Accounting policies continued - b Significant accounting policies continued 2023 Oct Foreign currencies a Functional and presentational currency 18 1:13 Items included in the financial statements of each of the Company's entities are measured using the currency of the 1:13 primary economic environment in which the entity operates functional currency PM b Transactions and balances - Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the date of the transactions Foreign exchange gains and losses resulting from the settlement of such transactions and from RICHLAND the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement - Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within operating profit COM ON monetary items that are measured in terms of their historic cost in a foreign currency are translated using the exchange rates at the date of their initial transaction PLEAS PLEAS Tangible assets Property plant and machinery and fixtures and fittings are stated at cost net of accumulated depreciation and any provision for impairment Cost comprises purchase cost together with any incidental costs of acquisition Interest is - * capitalised on qualifying assets as defined by IAS 23 Borrowing Costs Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives with the exception that no depreciation is provided on freehold land The assets residual values and useful economic lives are reviewed and adjusted as appropriate at the date 203CP41759 of each statement of financial position The following useful economic life is applied - freehold buildings - 50 years - leasehold land and buildings - the shorter of 50 years and the period of the lease - plant and machinery - 3 to 15 years ~ fixtures and fittings - 3 to 10 years _ right of use assets - the shorter of the assets useful economic life and the lease period on a straight line basis Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within operating profit before other items in the consolidated income statement When valued assets are sold the amounts included in other reserves are transferred to retained earnings The Company assesses at each reporting date whether its property plant and equipment may be impaired If any such indication exists the Company makes an estimate of the asset's recoverable amount An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use In assessing value in use the estimated future cash flows attributable to the asset are discounted to their present value using a pre discount rate that reflects current market assessments of the time value of money and the risks specific to the asset Intangible assets Intangible assets relate to software are valued initially at cost and are amortised over their useful economic life which is generally three years 26 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED 1. Accounting policies continued - b Significant accounting policies continued 2023 Oct Assets held for sale 18 Assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell 18 Disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction 1:13 rather than through continuing use This condition is regarded as met only when the sale is highly probable and the disposal group is available for sale in its present condition Management must be committed to the sale which should PM PM be expected to qualify for recognition as a completed sale within one year from the date of classification - Leases held under IFRS 16 The Company recognises right assets at the commencement date of the lease i.e. the date the underlying RIRCIHCLHLAANNDD asset is available for use Right assets are measured at cost less any accumulated depreciation andRICHLAND RICHLAND impairment losses and adjusted for any measurement of lease liabilities The cost of right assets includes RICHLAND the amount of lease liabilities recognised initial direct costs incurred and lease payments made at or before the COMMON commencement date less any lease incentives received Unless the Company is reasonably certain to obtain COMMON ownership of the leased asset at the end of the lease term the recognised right assets are depreciated on a COMMON straight basis over the shorter of its estimated useful life and the lease term Right assets are subject to COMMON impairment COMMON PLEAS At the commencement date of the lease the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term The lease payments include fixed payments including in PLEAS substance fixed payments less any lease incentives receivable variable lease payments that depend on an index - rate and amounts expected to be paid on residual value guarantees The lease payments also include the exercise CASE price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for CASE terminating a lease if the lease term reflects the Company exercising the option to terminate The variable lease # 203CP401759 payments that do not depend on an index or a rate are recognised as an expense in the period on which the event 2023CP4001759 or condition that triggers the payment occurs In calculating the present value of lease payments the Company uses the incremental borrowing rate at the lease 2023CP401759 commencement date if the interest rate implicit in the lease is not readily determinable After the commencement 2200233CCPP440017157959 date the amount of lease payments is increased to reflect the accretion of interest and reduced for the lease payments made In addition the carrying amount of lease liabilities is remeasured if thereis a modification change a 2023CP4001759 in the lease term a changein thesubstance fixed lease payments or a changein the assessment to purchase the underlying asset The Company applies the short lease recognition exemption to its short leases of machinery and equipment i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option It also applies the lease of low value assets recognition exemption to leases that are considered low value i.e. below 5,000 Lease payments on short term leases and leases of low value assets are recognised as expense on a straight basis over the lease term Leases previously held under IAS 17 The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception of the lease The arrangement is or contains a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets even if that right is not explicitly specified in an arrangement Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases Payments made under operating leases net of any incentives received from the lessor are charged to the consolidated income statement on a straight line basis over the period of the lease The Company leases certain property plant and equipment Leases of property plant and equipment where the Company has substantially all of the risks and rewards of ownership are classified as finance leases Finance 27 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 1. Accounting policies continued 2023 b Significant accounting policies continued Oct leases are capitalised at the lease's commencement at the lower of the fair value of the leased asset and the present 18 value of the minimum lease payments 18 Each finance lease payment is allocated between the liability and finance charges The corresponding rental 1:13 obligations net of finance charges are included in borrowings The interest element of the finance cost is charged PM to the consolidated income statement over the lease period so as to produce a constant periodic rate of interest on ~ the remaining balance of the liability for each period Property plant and equipment acquired under finance leases RICHLAND is depreciated over the term of the lease or the useful economic life if shorter RICHLAND Provisions Provisions are recognised when the Company has a present obligation either legal or constructive as a result of a - past event it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate COM ON can be made of the amount of the obligation Provisions are measured at the present value of the expenditures expected to be required to settle the obligation COMMON applying a tax discount rate that reflects current risks specific to the liability Where there is appropriate insurance COMMON PLEAS in place the benefit of any insurance reimbursement is recognised only when virtually certain There is a history of claims being made against the Company for compensation arising from alleged exposure to PLEAS - products previously manufactured which contained asbestos Where the Company has deemed that is appropriate to do so settlement has been made Provision has been made for the costs which the Company is expected to incur CASE in respect of lodged and future industrial disease claims to the extent that such costs can be reliably estimated 203CP4 1759 The provision includes the cost of claims that are made under the Scheme of Arrangement see note 23 and other industrial disease claims see note 19 for details of the industrial disease claims provision Inventories Inventories which include raw materials and consumables are stated at the lower of cost and net realisable value Cost is determined using the first first method Net realisable value is the estimated selling price in the ordinary 2023CP4001759 course of business less selling expenses Allowance is made for obsolete and slow moving items based on annual usage Revenue recognition Revenue is recognised in accordance with IFRS 15 - Revenue from Contracts with Customers Revenue is shown net of value added tax returns rebates and discounts and after eliminating sales within the Group Claims on customers are claims made for work outside of contractual terms and as such are only recognised in revenue once accepted by the customer Construction contracts The Company has adopted IFRS 15 using a modified retrospective approach of adoption with the date of initial application being 1 January 2018 The Company's revenue streams are not considered particularly complex in nature IFRS 15 requires the identification of separate performance obligations within the contract For those contracts where the Company provides a single discipline within a maintenance contract the identification of the performance obligations has not had an impact on the revenue recognition as maintenance contracts are accounted for on an earned value basis For those disciplinary construction contracts under IFRS 15 revenue must be recognised separately for each performance obligation identified The nature of the disciplinary construction contracts is such that each discipline provided is highly interdependent upon the others and as a result could be classed as one performance obligation therefore there has been no material impact on the recognition of IFRS 15 28 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED - 1. Accounting policies continued 2023 b Significant accounting policies continued _ Oct Taxation Current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been 18 1:13 enacted or substantively enacted and are expected to apply to the accounting period in accordance with IAS 12- 12- Taxation and IFRIC 23 Uncertainty over Income Tax treatments PM Deferred income tax is recognised using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements However deferred RICHLAND tax liabilities are not recognised if they arise from the initial recognition of goodwill deferred income tax is not RICHLAND accounted for if it arises from initial recognition of an assel or liability in a transaction other than a business RICHLAND combination that at the time of the transaction affects neither accounting nor taxable profit or loss Deferred income RICHLAND tax is determined using tax rates and laws that have been enacted or substantively enacted by the date of the RICHLAND statement of financial position and are expected to apply when the related deferred income tax asset is realised or COMMON the deferred income tax liability is settled COM ON Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised PLEAS PLEAS Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that - the temporary difference will not be reversed in the foreseeable future Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assels and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis 203CP41759 Employee benefits The Company operates both defined benefit and defined contribution pension schemes Defined contribution pension schemes A defined contribution pension scheme is a scheme to which the Company makes fixed contributions with no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to settle its postemployment benefits The pension expense for defined contribution schemes represents contributions payable in the year Defined benefit pension schemes The liability recognised in the consolidated statement of financial position in respect of the defined benefit scheme is the present value of the defined benefit obligation at the period end date less the fair value of the plan assets The defined benefit scheme is closed to new participants The defined benefit obligation is calculated annually by independent actuaries using the projected unit method and this valuation is updated at the date of the statement of financial position The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability Current and past service costs and finance costs are charged to operating profit In addition interest on the net defined benefit pension obligation is recognised in profit or loss calculated using the discount rate used to measure the pension obligation Actuarial gains and losses arising from new valuations and from updating the latest actuarial valuation to reflect conditions at the date of the statement of financial position are recognised in full in the consolidated statement of comprehensive income The pension schemes deficits or surpluses to the extent that any surpluses are considered recoverable are recognised in full and presented on the face of the consolidated statement of financial position 29 1. Accounting policies Company's Registered Number 3337119 ELCTRONIAY ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED continued - b Significant accounting policies continued 2023 Under IFRIC 14 the recoverability of a surplus must be assessed against the minimum funding requirements of the Oct pension scheme 18 Borrowings 1:13 Borrowings are recognised initially at fair value net of transaction costs incurred Borrowings are subsequently PM carried at amortised cost any difference between the proceeds net of transaction costs and the redemption value PM is recognised in the consolidated income statement over the period of the borrowings using the effective interest method Issue costs together with finance costs are charged to the consolidated income statement over the term ofRICHLAND RICHLAND the borrowings and represent a constant proportion of the balance of capital repayments outstanding Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the date of the statement of financial position - COMMON General and specific borrowing costs directly attributable to the acquisition construction or production of qualifying COMMON assets which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets until such time as the assets are substantially ready for their intended use or COMMON sale expenditure PLEAS Investment income earned on the temporary investment of specific borrowings pending their qualifying assets is deducted from the borrowing costs eligible for capitalisation on - All other borrowing costs are recognised in profit or loss in the period in which they are incurred Loans and receivables Loans and receivables are derivative financial assets with fixed or determinable payments that are not quoted 203CP41759 in an active market They are included in current assets except for maturities greater than twelve months after the date of the statement of financial position date These are classified as current assets The Company's loans and receivables comprise of trade and other receivables in the consolidated statement of financial position Trade debtors Trade receivables are initially recognised and carried at fair value and subsequently measured at amortised cost less any provision for impairment The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows Trade creditors Trade payables are recognised initially at fair value and subsequently measured at amortised cost Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held on call with banks Share capital Ordinary shares are classified as equity Financial risk factors . The Company's activities expose it to a variety of financial risks market risk including currency cash flow interest rate and fair value interest rate risks credit risk and liquidity risk The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial performance 30 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 1. Accounting policies continued b Significant accounting policies continued 2023 Oct Foreign exchange 1:13 The Company is exposed to foreign currency risk in two key currencies The movements in exchange rates against 18 1:13 Sterling for these two currencies are detailed below 2021 2020 PM Closing Average Closing Average - USD 1.38 1.36 1.33 1.27 EUR 1.16 1.14 1.12 1.11 RICHLAND c Significant judgements and estimates - Certain of the Company's accounting policies described in note 1 section b require critical accounting estimates that involve subjective judgements and the uncertain and susceptible to change use of assumptions some of which may relate to matters that are inherently COMON Judgements PLEAS Areas of judgement that have the most significant effect on the amounts recognised in the financial statements are PLEAS - ) Revenue recognition of maintenance contracts and assessment of term contract performance The Company generally accounts for maintenance contracts on a time and material basis this method requires accurate estimates of materials consumed and other judgements The Company generally accounts for term construction contracts using the percentage of completion method as performance of the contract progresses This method requires judgement to determine accurate estimates of the extent of progress towards contract completion 203CP41759 and may involve estimates of the total contract costs remaining costs to completion total revenues contract risks and other judgements ii Carrying value of property plant and equipment Assessing whether property plant and equipment may be impaired requires a review for indicators of impairment and where such indicators exist an estimate of the asset's recoverable amount by reference to value in use Management are required to exercise significant judgement in reviewing for and identifying asset indicators of impairment and subsequently calculating value in use iii Trade and other receivables The Company provides for likely recovery of receivables to the extent that the carrying value is more than the present value of expected future cash flows Assessing the value of the provision requires significant management judgement and review of individual receivables based upon individual customer creditworthiness current economic trends and analysis of historical bad debts iv Deferred tax assets The Company recognises deferred tax assets on all applicable temporary differences where it is probable that future taxable profits will be available for utilisation This requires management to make judgements and assumptions regarding the amount of deferred tax that can be recognised based on the magnitude and likelihood of future taxable profits v Defined benefit pension plans The cost and the obligation of the Company's defined benefit pension plan is based on a number of selection assumptions These include the discount rate inflation rate salary growth longevity and expected return on the assets of the plan 31 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO FINANCIAL STATEMENTS continued f~ FILED FOR THE YEAR ENDED 31 AUGUST 2021 1. Accounting policies continued - c Significant judgements and estimates continued 2023 Differences arising from actual experience or future changes in assumptions will be reflected in future periods The Oct effect of changing these assumptions is described in note 22 18 Estimates 1:13 PM The key assumptions affected by future uncertainty that have a significant risk of causing material adjustment to the carrying value of assets and liabilities within the next financial year are - ) Onerous contracts RICHLAND Provision is made for future losses on term contracts where it is considered that the contract costs are likely to exceed revenues in future years Estimating future losses involves assumptions of contract performance targets and likely levels of future cost escalation over time - ii Income tax COM ON The company can be subject to routine tax audits and also a process whereby tax computations are discussed and agreed with the appropriate authorities Whilst the ultimate outcome of such tax audits and discussions cannot be determined with certainty management estimates the level of required tax provisions on the basis of professional advice and the nature of current discussions with the tax authority concerned PLEAS PLEAS - 203CP41759 32 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 2. Profit / loss on ordinary activities before investment income interest and taxation 2021 2020 2023 Profit / loss on ordinary activities before investment income interest and taxation is stated after charging Services provided by the company's auditors - Fees payable for audit of the company's Financial Statements Cost of inventories recognised as expenses Depreciation on tangible fixed assets ~ - owned assets - right of use assets Amortisation of intangible assets 000 127 15,685 4,983 900 922 000 Oct 18 123 1:13 13,054 PM - 3,856 897 RICHLAND .393 - COMON 3. Revenue a Disaggregation of revenue Revenue from external customers is derived from maintenance and construction support services These are not PLEAS PLEAS split out as discipline services are provided to all customers Disaggregation of revenue below is therefore shown by location of the generating entity - 2021 000 2020 000 UK Total Revenue from continuing operations ; Timing of revenue recognition At a point in time Over time 193,198 198,867 203CP41759 193,198 193,198 - 198,867 198,867 - 193,198 198,867 33 3. Revenue continued ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - b Assets and Liabilities related to contracts with customers 2023 following Oct The group has recognised the assets and liabilities related to contracts with customers 18 Amounts recoverable on contracts Loss Allowance 2021 000 16,130 - 1:13 2020 000 18,251 PM _ Total Contract Assets Payments received on account Total Contract Liabilities 16,130 6,114 6,114 18,251 RICHLAND 8,132 - 8,132 COM ON Amounts recoverable on contracts represents the gross amounts due from customers for contract work Payments received on account represents gross amounts due to customers for contract work PLEAS PLEAS ) Significant changes in contract assets and liabilities During the accounting period there have not been any significant changes to contract assets and liabilities - ii Revenue recognised in relation to contract liabilities The following table shows how much of the revenue recognised in the current reporting period related to carriedforward contract liabilities and how much relates to performance obligations that were satisfied in a prior year Revenue recognised that was included in payments received on account at the beginning of the period Revenue recognised from performance obligations satisfied in prior periods 203CP41759 2021 000 8,132 2020 000 7,149 - - 34 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THEFINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 4. Other operating income/ expenses 2021 000 IDC provision charged to the Income Statement IDC - other expenses Pension past service costs 4,668 - 206 FILED - 2020 2023 000 Oct 18 3,231 1:13 1:13 200 PM - - Restructuring costs Scaffolding depreciation Other expenses 1,173 1,335 814 3,847 - RICHLAND - 2,195 Other operating expense included in profit from ordinary activities 5. Other income 8,196 COMON 9,473 PLEAS PLEAS - 2021 000 2020 000 Government grants Research and development expenditure credit Other income 623 7,182 222 845 - 7,182 203CP41759 During the year the Company has received Government grants under the Job Retention Scheme as a result of the Covid pandemic for operations in the United Kingdom as part of a Government initiative to provide immediate financial support to businesses There are no unfulfilled conditions or other contingencies attached to these grants The Company did not benefit directly from any other forms of Government assistance Access to the grants has been made possible by retaining these staff Other income from Government grants in the year is presented below the gross profit line However the majority of the associated payroll cost is within Cost of Sales above the gross profit line To aid comparison with the prior year we have shown below the net position of the grant and associated payroll cost 2021 000 2020 000 Turnover Cost of sales Other income related to cost of sales 193,198 165,860 623 198,867 178,545 6,891 Total % 27,961 14.5 27,213 13.7 35 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 6. Directors emoluments The emoluments of the directors of the company were Aggregate emoluments Contributions to defined contribution pension schemes included in the above 2021 000 537 12 FILED - 2023 Oct 2020 000 18 394 1:13 PM 40 - RICHLAND No directors were remunerated by the immediate parent company Cape Intermediate Holdings Limited during the year 2020 nil - No directors 2020 nil accrued retirement benefits under the Group's defined benefit pension scheme during the year COMON Highest paid director PLEAS 2021 000 PLEAS 2020 - 000 Aggregate emoluments Contributions to defined contribution pension schemes included in the above 280 12 7. Employees The average monthly number of persons employed by the company including directors during the period was as follows Female Male 2021 No. 164 2,145 271 - 203CP41759 2020 No. 186 2,497 2,309 2,683 36 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 8. Employee costs The aggregate payroll costs of these persons were as follows Wages and salaries Social security costs Other pension costs 2021 000 116,854 12,992 3,079 FILED - 2023 Oct 2020 000 18 131,189 1:13 13,217 PM 2,507 - RICHLAND 132,925 146,913 - On 1 June 2021 all employees were transferred to Altrad Employments Services Limited a company which is COM ON considered to be a related party Employee benefit expenses are incurred by Altrad Employment Services Limited and recharged to the company The average headcount for the year has reduced as a result of transferring employees to Altrad Employment Services Limited 9. Interest Interest receivable and similar income 2021 000 PLEAS - 2020 000 Interest receivable from Group companies Pension scheme interest receivable Interest receivable from third parties Interest receivable and similar income Interest payable and similar charges Interest payable to third parties Unwind of discount on IDC provision Pension scheme interest payable Lease interest 2,033 1,895 2,579 - 4,612 3,177 12 5,084 203CP401759 81 1,498 2,650 27 192 2,196 3,235 39 Interest payable and similar charges 4,256 5,662 37 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 10.Tax on profit / loss on ordinary activities Current tax 2021 000 United Kingdom - Corporation tax at 19 2020 19 - Adjustment in respect of previous years 300 85 FILED - 2020 2023 000 Oct 18 742 1:13 24 PM - Total current tax charge credit Deferred tax - United Kingdom - Origination and reversal of timing differences - Adjustment in respect of previous years - Impact of change in law and rate Total deferred tax credit Tax charge credit in the income statement 385 1,655 298 2,306 353 32 718 RIC-HLAND 608 841 1,476 COMON 1,709 PLEAS PLEAS - 2,427 Included in the tax charge of 32,000 2020 credit of 2,427,000 is a tax credit of 1,097,000 2020 credit of 728,000 relating to exceptional and other items The local tax rate is applied to the underlying costs or income however certain exceptional costs due to their very nature will not have an associated tax charge or credit The overall effective rate applied to these costs will vary year upon year depending on the nature of the cost 203CP41759 38 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED 10.Tax on profit / loss on ordinary activities continued - The tax assessed for the year differs from that resulting from applying the standard rate of corporation tax in the 2023 UK of 19 2020 19 The differences are explained below Oct 2021 000 2020 18 1:13 000 1:13 Profit Loss on ordinary activities before tax 13,271 1,418 PM - Profit Loss on ordinary activities multiplied by the standard rate of corporation tax in the UK of 19 2020 19 Effects of Adjustment to tax in respect of previous years Expenses not deductible for tax purposes Movement in deferred tax not recognised Income not taxable Change in tax rates Total tax charge credit reported in the income statement 2,521 383 201 . 187 806 2,080 32 RICHLAND 269 817 - 537 - 402 1,476 COMON 2,427 PLEAS - Legislation has been enacted to increase the UK corporation tax rate to 25 from 1 April 2023. balances have been recognised at the rate at which they are expected to unwind Deferred tax 203CP41759 39 Company's Registered Number 3337119 ALTRAD SERVICES LIMITED ELCTRONIAY NOTES TO THE FINANCIAL STATEMENTS continued FILED FOR THE YEAR ENDED 31 AUGUST 2021 - 11. Tangible assets Cost or valuation At 1 September 2020 Exchange adjustments Additions at cost Transfers out to other asset classes Disposals Land and buildings 000 Plant machinery fixtures and Fittings 000 Assets under Construction 000 2023 Oct Total 18 1:13 000 1:13 5,769 - 215 38,017 8 1,436 - 146 PM 1,441 45,227 - - 8 1,368 2,804 RICHLAND 1,861 - 1,861 361 - At 31 August 2021 Accumulated depreciation At 1 September 2020 Exchange adjustments Charged during the year Transfers out to other assets classes Disposals 5,554 2,598 - 174 - 73 39,299 29,731 , 8 4,809 - 115 948 45,801 COMON - 32,329 - 8 PLEAS - 4,983 PLEAS - - - - 188 At 31 August 2021 2,699 34,417 - 37,116 Net book values At 31 August 2021 At 31 August 2020 203CP41759 2,855 3,171 4,882 8,286 948 8,685 1,441 12,898 Notes The net book value of land and buildings comprises Freehold Short leasehold 2021 000 2,290 565 2020 000 2,411 760 2,855 3,171 The net book value of land and buildings includes 2,855,000 2020 3,171,00o0f depreciable assets 40 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued 12. Intangible assets FOR THE YEAR ENDED 31 AUGUST 2021 Cost or valuation At 1 September 2020 Additions at cost Transferred in from other asset classes At 31 August 2021 Accumulated depreciation At 1 September 2020 Transferred in from other asset classes Charged during the year FILED - 2023 Oct Total software 000 18 1:13 4,298 1:13 2 1,861 PM - 6,161 RICHLAND 1,208 - 922 At 31 August 2021 Net book values At 31 August 2021 At August 2020 2,130 COMON 4,031 PLEAS PLEAS - 3,090 13. Leases Right assets Asset held under finance leases previously recognised On adoption of IFRS 16 203CP41759 Land & Buildings 000 - Plant & Machinery 000 - Total 000 - 1,124 | 1,194 2,318 At1 September 2019 1,124 1,194 2,318 Additions Depreciation charge for the year : 215 194 682 194 897 At 31 August 2020 909 706 1,615 Additions Disposals Depreciation charge in the year - 212 328 26 688 328 26 900 At 31 August 2021 697 320 1,017 The Company leases many assets principally it leases office and site properties for its operations around the UK as well as many vehicles and other equipment The leases of property are typically between 1 and 20 years in length while leases of vehicles and equipment are typically between 1 and 4 years in length and in some cases the Company has options to purchase the assets at the end of the lease term 41 s 13. Leases continued ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - Lease Liabilities Current current 2021 000 408 621 2020 2023 000 Oct 769 18 855 1:13 Lease Liabilities included in the statement 1,029 1,624 PM - Finance lease liability previously recognised Additional lease liabilities on adoption of IFRS 16 Lease liabilities as at 1 September 2021 2020 RICHLAND 000 000 - 2,253 - 1,624 2,253 . Additions Disposals Payments Interest expense Revaluation Lease liabilities as at 31 August COMON 118 26 883 194 - 862 27 39 169 1,029 - 1,624 PLEAS CASE Some of the Company's leases contain extension or termination options exercisable by the Company up to one year before the end of the contract period Where practicable the Company seeks to include extension and CASE termination options in new leases to provide operational flexibility These extension and termination options are 2023CP401759 typically only exercisable by the Company and not by the lessors 203CP401759 The Company assesses at lease commencement whether it is reasonably certain to exercise the extension or termination option significant event or The Company reassesses whether it is reasonably there is a significant change in circumstances certain to exercise the options if there is a 203CP401759 42 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 2023 14. Investments Shares in subsidiary undertakings Cost Aggregate amounts provided Disposals 2021 000 5,995 - - 2020 Oct 000 18 1:13 1:13 5,995 - - PM - Net book value The company's principal investments are 5,995 5,995 RIC-HLAND Subsidiary venture Altrad York Linings Limited formerly York Linings International Limited 100 COM ON Nature of the business Industrial Services Country of registration United Kingdom PLEAS Ship Support Services Limited 50 Socar Cape LLC 49 Cape International Holdings Pte Limited 10 Industrial Services Industrial Services Holding company PLEAS United Kingdom Azerbaijan Singapore The shareholdings in the subsidiary undertakings are in ordinary shares and are held directly by the company The shareholdings in the subsidiary undertakings are indicated in brackets after the company name above 203CP41759 In respect of the subsidiary companies in which the company holds shares or has advanced loans in the opinion of the directors the fair value of the total net assets of these companies is not less than the net amount at which they are stated in its balance sheet 15. Inventories 2021 000 2020 000 Raw materials and consumables 560 889 43 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 16. Debtors Trade debtors Amounts recoverable on contracts Amounts owed by Group undertakings Other debtors Prepayments 2021 000 19,840 16,130 27,164 2,280 2,540 2023 Oct 2020 000 18 1:13 1:13 17,347 18,251 22,452 PM 6,304 - 3,570 RICHLAND 67,954 67,924 - The amounts owed by Group undertakings are unsecured and will be repaid as and when agreed between the applicable parties COMON PLEAS 17. Creditors Amounts falling due within one year PLEAS 2021 - 2020 000 000 Trade creditors Amounts owed to Group undertakings UK corporation tax payable Taxation and social security costs Payments received on account Other creditors Accruals and deferred income 12,843 26,383 1,200 7,100 6,114 162 8,568 8,159 15,912 203CP41759 787 25,492 8,132 2,409 15,986 Total current liabilities 62,370 76,877 The amounts owed to Group undertakings are unsecured and will be repaid as and when agreed between the applicable parties 18. Amounts owed by group undertakings Amount owed by group undertakings 2021 000 86,643 2020 000 73,020 The amounts owed by and to Group undertakings are unsecured Interest is paid at a rate of 2.95 44 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 19. Provisions for liabilities IDC Other At September 2020 000 141,412 1,346 142,758 Provision Charged 000 6,762 - 6,762 2023 of Provision Provision discount ' 000 1,498 20,557 ' 31 Oct August '-18 1:13 - ' 127,0-16 1:13 ' 1,498 20,577 - ' PM 128,3-57 - Ageing of provisions Current 000 2021 current 000 Total 000 Current 000 2020 current 000 Total RICHLAND - 000 IDC Other 11,901 166 12,067 115,115 1,175 116,290 127,016 1,341 128,357 21,856 1,175 23,031 119,556 171 119,727 141,412 1,346 142,758 COMON PLEAS PLEAS Industrial disease claim provision To the extent that such costs can be reliably estimated as at 31 August 2021 a provision has been made for the - costs which the Group is expected to incur in respect of lodged and future industrial disease claims for which the Board believes the Group to be liable arising from alleged exposure to previously manufactured asbestos products notwithstanding the matters disclosed under note 22 Industrial disease claims provision and contingent liabilities The most recent full actuarial valuation was completed in August 2019 and the next full valuation is scheduled to be completed in respect of the period up to 31 August 2022. The amount of the provision is based on historic patterns 203CP41759 of claim numbers and monetary settlements as well as published tables of projected disease incidence Key assumptions made in assessing the appropriate level of provision include the period over which future claims can be expected the nature of claims received the rate at which claims will be filed the rate of successful resolution as well as future trends in both compensation payments and legal costs Management monitors claims received on an ongoing basis as well as any other factors which would require a change to the assumptions or trigger a full actuarial review in the current year When determining the appropriate level of provision the Board has considered various potential threatened and actual claim types and has relied on appropriate legal and other professional advice The total industrial disease claims provision at 31 August 2021 was 127.0 million 31 August 2020 141.4 million The provision for industrial disease claims is discounted at a rate of 1.06 2020 1.33 being the appropriate riskfree rate as at the balance sheet date over the term of the liabilities being approximately 31 years 45 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 20. Deferred tax assets Provided Accelerated capital allowances Other timing differences Losses Net deferred tax asset 2021 000 3,810 1,010 10,063 14,883 Net deferred taxation 2021 000 FILED - 2023 Oct 2020 000 18 1:13 1:13 3,643 1,523 9,438 PM - 14,604 RICHLAND 2020 - 000 . At 1 September Amount credited to profit and loss account Amount debited credited to other comprehensive income At 31 August 14,604 352 73 14,883 COMON 12,543 1,709 352 PLEAS PLEAS 14,604 - At 31 August 2021 the company had 2.5m unrecognised tax losses 31 August 2020 3.4m 21. Called up share capital Allotted and fully paid 10,000,000 2020 10,000,000 ordinary shares of each 203CP41759 2021 000 10,000 2020 000 10,000 46 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED - 2023 22. Pensions The Company operates defined benefit schemes and defined contribution schemes for the employees The assetsOct of both the defined benefit and defined contribution schemes are held in trustee administered funds The Board of Oct Trustees is responsible for the administration of the plan assets and for the definition of the investment strategy.cstratoegy.co The Company operates one final salary defined benefit scheme the Cape plc Staff Pension and Life Assurance 1:13 Scheme The latest full valuation of the defined benefit scheme was assessed by independent qualified actuaries 1:13 as at 6 April 2019 using the projected unit method The valuation showed that the assets of the main defined benefit PM scheme had a market value of 159.2 million and was 97 funded Included within the assets balance is an amount - of 81.8 million in respect of insurance policies covering pensioner liabilities The next full valuation is due to be RICHLAND prepared as at 6 April 2022 Pension benefits The amounts recognised in the statement of financial position are determined as follows Present value of funded obligations Fair value of plan assets Restriction of surplus Net liability in the statement of financial position before any adjustment for deferred tax RIC-HLAND 2021 COMMON 2020 COMMON 000 000 COMMON 137,527 135,836 159,246 154,278 PLEAS 21,719 25,464 18,442 22,969 3,745 = 4,527 CASE CASE In accordance with IFRIC 14 the Group must consider the minimum funding requirements of the pension scheme CASE This has resulted in the recognised surplus on the main scheme being reduced to nil at 31 August 2021 31 August 2020 nil This has also resulted in the interest income being restricted to nil The net liability at 31 August 2021 2023CP401759 comprises the net present value of committed payments under the 2019 triennial valuation 2023CP4001759 2021 2020 2023CP401759 000 000 2023CP401759 The amounts recognised in the income statement are as follows Service cost Administrative expenses 389 2023CP4001759 2023CP40 1759 405 Interest expenses 2,260 2,669 Interest income on plan assets Restriction of interest income in accordance with IFRIC 14 2,579 = 3,177 390 566 Past service costs 206 - Total 666 463 The amount recognised in the statement of comprehensive income measurement of net defined benefit obligation Adjustment for restriction on the assets recognised Movement in deferred tax Total 2,437 7,067 2,105 5,214 73 352 259 = 1,501 47 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FILED FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 22. Pensions continued The movement in the fair value of plan assets over the year is as follows Beginning of year Interest income on plan assets measurement of plan assets Employer contributions Administrative expenses Benefits paid End of year 2021 000 154,278 2,579 7,511 1,116 389 5,849 159,246 2023 Oct 2020 000 18 158,308 1:13 3,177 499 - 814 RICHLAND 405 RICHLAND = 7,117 RICHLAND 154,278 RICHLAND The movement in the defined benefit obligation over the year is as follows Beginning of year Interest expense Actuarial gain experience adjustments Actuarial losses - changes in financial assumptions Benefits paid Past service costs End of year The principal actuarial assumptions used were as follows Discount rate Future salary increases Future pension increases CPI Inflation rate RPI Inflation rate Post retirement mortality rate 2021 000 135,836 2,260 - 5,074 5,849 206 137,527 2021 1.70 3.90 3.30 2.70 3.40 1.00 COMMON +9 2020 000 COMMON 133,716 COM ON 2,669 PLEAS - PLEAS 6,568 CASE = 7,117 CASE CASE 135,836 2023CP401759 2023CP401759 2023CP4001759 2023CP4001759 2023CP40 1759 2020 203CP401759 1.70 3.55 3.00 2.15 3.05 1.00 A quantitative sensitivity analysis for these significant assumptions as at 31 August 2021 is as shown below Assumption Sensitivity level Impact on defined benefit obligation Impact on plan assets Impact or net pension asset Discount rate Future salary increases Future pension increases Inflation rate % % increase decrease m Em % % increase decrease m m % % increase decrease m m % % increase decrease Em Em 20.2 9.9 10.3 23.8 11.3 12.5 0.6 . 0.6 0.5 13.3 - 8.1 0.5 5.2 11.7 6.9 4.8 4.9 0.8 4.1 4.4 0.7 3.7 48 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 22. Pensions continued 2023 The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined Oct benefit obligation and the plan assets as a result of reasonable changes in key assumptions occurring at the end of 18 the reporting period The sensitivities of changes in any of the principal actuarial assumptions are calculated in 18 isolation holding all other assumptions constant Limitations of the methods and assumptions used include using a 1:13 roll forward approach by using the results of the last full triennial revalutation prepared to 6 April 2019 rather than 1:13 a full valuation of all assets and liabilities at the end of the current financial period PM - A quantitative sensitivity analysis for these significant assumptions as at 31 August 2020 is as shown below Assumption Sensitivity level Impact on defined benefit obligation Impact on plan assets Impact on net pension asset Mortality rate Discount rate % % increase decrease m m 20.0 10.3 9.7 23.5 11.7 11.8 Future salary increases % % increase decrease m m 0.5 - 0.5 0.4 0.4 Future pension increases % increase Em % decrease m 13.2 8.2 5.0 11.5 7.2 4.3 RICHLAND Inflation rate % % - increase decrease m m 4.4 4.0 COMON 0.7 0.7 PLEAS 3.7 3.3 PLEAS - Assumptions regarding future mortality experience are based on advice in accordance with published statistics and scheme experience pensioner The average remaining life expectancyin years of a balance sheet dateis as follows retiring at age 65 on the Male Female 203CP41759 2021 23.1 24.7 2020 23.3 24.8 24.8 24.8 2023CP4001759 The average remaining life expectancy in years of a pensioner retiring at age 65 20 years after the balance sheet date for the main scheme is as follows 2021 2020 Male Female 24.1 25.9 24.4 26.0 49 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 22. Pensions continued Plan assets are comprised as follows Quoted Diversified growth funds Corporate bonds asset credit linked gilts Fixed interest gilts Bonds Equities Unquoted Insurance annuities Property Cash _ Total 2021 000 - 18,974 12,032 24,084 3,345 12,083 - 70,518 81,775 4,522 2,431 88,728 159,246 FILED - 2023 Oct 2020 18 000 1:13 - PM 28,406 - 10,838 RICHLAND 10,427 3,119 10,666 - - 63,456 84,699 COMON 3,847 PLEAS 2,276 PLEAS 90,822 - 154,278 Risk exposure to the Company Since the pension liability is adjusted to inflation rate the pension plan is exposed to UK inflation interest rate risks 203CP41759 and changes in the life expectancy for pensioners As the plan assets relating to the main scheme include investments in quoted equity shares of entities in the manufacturing and consumer products sector the Company is also exposed to equity market risk More than 50 of the plans assets are invested in insurance annuities Insurance annuities effectively mitigate the risk from changing inflation rates Any asset investment carries a counter party risk 23. Industrial disease claim provision and contingent liabilities The Board considers that the provision of 127.0 million for industrial disease claims as at 31 August 2021 31 August 2020 141.4 million captures all expected material industrial disease scheme liabilities for which the Board believes the Group may become liable at the balance sheet date The Group continues to receive claims from both individuals and insurance companies in connection with historical alleged exposure to asbestos Where claims are determined to have merit the costs are provided for and claims are settled in the ordinary course otherwise claims are defended As legal precedent in the area of industrial disease claims continues to evolve new developments and new types of claims give rise to inherent uncertainty in both the future level of asbestos disease claims and of the legal and other costs arising from such claims If any such claims were to be successful it might lead to future claims against the Group which may result in significant , additional liability over and above that recognised under the current provision 50 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 24. The Scheme of Arrangement 2023 On 14 June 2006 the Scheme became effective and binding upon the following 13 companies Oct Cape Intermediate Holdings Limited formerly Cape Intermediate Holdings plc 18 1:13 Cape Building Products Limited Cape Calsil Systems Limited Cape Contracts International Limited PM Cape Durasteel Limited - Cape East Limited Altrad Services Limited formerly Cape Industrial Services Limited RICHLAND Cape Industries Limited Cape Insulation Limited Cape Specialist Coatings Limited - Predart Limited Somewatch Limited COM ON Somewin Limited The Cape Scheme is a sanctioned scheme established to provide recompense for individual claimants in COMMON respect of asbestos industrial diseases contracted as a result of Cape's historic use of asbestos in PLEAS manufacturing processes and who are unable to recover under insurance policies The cape Scheme also provides PLEAS a structural protection for the Group's trading stakeholders The detailed terms of the Scheme are set out in the Scheme itself PLEAS a copy of which has been filed with the Registrar CASE of Companies which is also available from the scheme managers Crestbridge Limited 47 Esplanade St. Helier CASE 203CP401759 Jersey Je1 OBD as are the Articles of Association of Cape Intermediate Holdings Limited CIH Cape Claims 2023CP401759 Services Limited CCS and Cape plc and a number of other ancillary agreements The effect of the Scheme as a 2023CP401759 whole can be summarised as follows 2023CP40 1759203CP401759 a While Scheme creditors retain their rights against Scheme companies and may bring proceedings against 2023CP40 1759 Scheme companies for declaratory relief to determine whether they have a claim and if so of what amount 2023CP401759 their rights subject as provided in sub paragraphs k and m below are only enforceable against CCS unde2r023CP401759 the terms of the Scheme guarantee b CCS was funded in the first instance with a sum of 40 million which represented what was considered to be a sufficient sum to discharge CCS's liabilities to Scheme creditors payable over at least eight years from 1 January 2006. The use of these funds is restricted to the payment of established Scheme claims and Scheme creditor costs c The sum of 40 million was not calculated by reference to an estimate of the likely amount of Scheme claims It simply represented the aggregate of the amount that Cape was able to raise from its shareholders and the level of debt which Cape could reasonably maintain for the purposes of the Scheme Of fundamental importance to the Scheme are the provisions as to topping up of that sum described below d Every three years an assessment of the projected Scheme claims against Scheme companies payable by CCS over the following nine years is undertaken by reference to which there will be established the Funding Requirement e the event that an assessment reveals a shortfall between the Scheme assets and the Funding Requirement Cape will top up CCS's funding over the following three years provided that sufficient cash is available Cape's obligation being limited to 70 per cent of the Cape Group's consolidated adjusted operational cash flow including for example adjustments to take account of acquisitions an element of capital expenditure and repayment of borrowing facilities During 2021 a top up of 2.0 million was made to the Scheme 2020 2.0 million 51 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED - 24. f The Scheme of Arrangement continued Should Cape not be able to meet its top up obligation in any one year shortfall in the next year again subject to sufficient cash being available 2023 it will be required to make good the Oct 18 1:13 g Alongside the Funding Requirement there is the Scheme Funding Requirement which will be assessed every year by reference to projected Scheme claims against Scheme companies payable by CCS over the next six w years PM h If at any time the ratio of the Scheme assets to the Scheme Funding Requirement the Scheme Funding RICHLAND Percentage falls below 60 per cent CCS will have the ability to reduce the percentage the Payment RICHLAND Percentage of each established claim which it pays to Scheme creditors until such time as the Scheme RICHLAND Funding Percentage is restored to 60 per cent RICHLAND ) Cape plc is permitted to pay dividends provided that at the time of payment ) the Scheme Funding Percentage COMMON in relation to the last preceding financial year was certified to be not less than 110 per cent ii the Directors of COMMON Cape plc certify that they anticipate that the Scheme Funding Percentage for the current and following financial COMMON year will be not less than 110 per cent and iii the Payment Percentage has not at any time within the previous 40 business days been below 100 per cent Any distribution which Cape plc proposes to make to its COMMON shareholders may not without the consent of the Scheme Shareholder exceed the greater of ( 50 per cent of PLEAS the consolidated adjusted operating profit of the Cape Group for the last preceding Financial Year and ii the PLEAS aggregate of any permitted dividends made in the preceding financial year This restriction therefore places a PLEAS cap on the amount of dividends that Cape plc may pay in any one year CASE j There have been established special voting shares the Scheme Shares in CCS CIH and Cape plc which CASE are held by an independent third party the Scheme Shareholdeorn trust for Scheme creditors The Scheme # Shares have special rights which are designed to enable the Scheme Shareholder to protect the interests of Scheme creditors 203CP4 1759 k In the case of certain Scheme creditors Recourse Scheme Creditors who are those Scheme creditors whose claims are in whole or in part the subject of a contract of insurance Recourse Scheme Claims their rights to enforce their Recourse Scheme Claims against a relevant Scheme Company will revive in certain circumstances These circumstances are where the relevant Scheme Company is insolvent or where there 2023CP4001759 has been a specified reduction in the Payment Percentage and if the Scheme creditor was able to bring about the insolvency of the relevant Scheme Company he would be able to recover greater compensation from the FSCS Financial Services Compensation Scheme or in certain circumstances from a solvent insurer than is available from CCS at that time under the Scheme There will be a specified reductionif either ) the Payment Percentage has been reduced below 100 per cent but above 50 per cent and the Scheme creditor has not been paid in full after 12 months or ii the Payment Percentage is reduced to 50 per cent or below ) Each Scheme Company will agree to hold on trust for any Scheme creditor concerned the proceeds of any policy of insurance or any compensation received from the FSCS referable to that Scheme claim m The restriction described in sub paragraph a above will not apply to proceedings to enforce the right to confer under paragraph ) above and n There are provisions contained in two reimbursement agreements which preserve certain rights of proof by CCS and Cape plc respectively in any insolvency of Cape plc or any of the other Scheme companies 52 ELCTRONIAY Company's Registered Number 3337119 ALTRAD SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 AUGUST 2021 FILED FILED - 2023 24.The Scheme of Arrangement continued 0 In support of the above on 6 May 2011 CIH Cape plc and CCS entered into a new Guarantee and Funding Agreement whereby Cape plc agreed to make to make certain additional funding available to CIH in connection with CIH's commitments under the Funding Agreement as well as to guarantee all present and future paymencto obligations of Cape plc and CCS under the Funding Agreement In addition a Scheme Share in Cape plc referred to in paragraph ( above was issued to the Scheme Shareholder which has similar rights to the co Scheme Shares in CIH and CCS and which will afford the Scheme Shareholder substantially the same rights PM PM to those provided by the Scheme Shares in CIH and CCS - RICHLAND 25. Related Party Transactions As at the year there was a net balance of nil owed by joint ventures 2020 56,728 owed to joint ventures - These amounts are unsecured have no fixed date of repayment and are repayable on demand Sales to joint ventures during the year amount to nil 2020 208,470 26. Exceptional Items COMON 2021 2020 PLEAS 000 000 PLEAS IDC provision credited / charged to the Income Statement - 3,250 - - Pension past service cost 206 * Restructuring costs IDC unwind of provision Covid related redundancy costs 400 660 203CP41759 1,498 422 5,776 2,196 978 3,834 27. Post balance sheet events On 1 December 2021 the Company purchased the scaffolding assets of Altrad NSG Limited and Altrad Support Services Limited at a price equal to their net book value From this date the Company will charge a rental cost for the scaffolding assets to Altrad NSG Limited and Altrad Support Services Limited On 1 April 2022 the Company purchased the scaffolding assets of Altrad Energy Support Services Limited at a price equal to their net book value From this date the Company will charge a rental cost for the scaffolding assets to Altrad Energy Support Services Limited 28. Ultimate parent undertaking The immediate parent undertaking is Cape Intermediate Holdings Limited a company registered in England and Wales The ultimate parent undertaking of Altrad Services Limited is Altrad Investment Authority SAS a company registered in France Copies of the financial statements of Altrad Investment Authority SAS can be obtained from the Company Secretary 125 Rue du Mas de Carbonnier 34000 Montpellier France 53