ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
For the Period Ended
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Scapa UK Limited
Company Information
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Scapa UK Limited
Contents
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Scapa UK Limited
Strategic Report
For the Period Ended 31 December 2021
The Directors present the Strategic Report for the period ended 31 December 2021.
During the period, the entity was a subsidiary of Scapa Group Limited (formerly Scapa Group PLC). On the 15 April 2021 the Group was acquired by Schweitzer-Mauduit International Inc. (NYSE: SWM), a leading global materials company, with an acquisition of 100% of the share capital following a Board recommended Scheme of Arrangement. Following the acquisition by SWM Inc, the financial year end for Scapa UK Limited was changed to December (formerly March) to align with the ultimate parent company of SWM Inc, and as such these financial statements have been prepared on the basis of 9 months ending 31 December 2021. The company continues to be managed at the Scapa Group Limited level. The Company’s principal activity is the manufacture of adhesive foams and specialist tape into the industrial market. Review of developments and performance during the year The Company’s turnover for the 9 months ending 31 December 2021 was £19,106,000 (March 2021: £26,761,000) which is around 5% lower than the prior year on a 9 months run rate basis and is broadly a result of the phasing of the company’s activities. The Company delivered an operating profit totaling £1,000 (March 2021: £1,120,000 profit), with the reduction partly as a result of the fall in volume but the company was also impacted by price inflation for raw materials and the rising cost of utilities as a result of the macro-economy. These figures are seen as the key performance indicators of the business. The Company operates a post retirement defined contribution scheme for qualifying employees and it also carries post-retirement benefit liabilities relating to defined benefit schemes that are now closed for new members and future accrual. These pension schemes are disclosed in detail in note 28. On behalf of the Company, the directors would like to thank all employees for their tremendous commitment, determination and dedication that enables the Company to maintain positive momentum. SWM Inc. has made a disclosure in accordance with the UK Modern Slavery Act 2015 which incorporates the requirements under the California Transparency in Supply Chains Act 2010. This can be found on the SWM Inc. website at www.swmintl.com Modern Slavery Act. Review of position at year end As at 31 December 2021 the Company had net assets of £10,331,000 (March 2021: £7,939,000).
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Scapa UK Limited
Strategic Report (continued)
For the Period Ended 31 December 2021
Future developments The Company strategy is to position itself to react quickly to change and take advantage of opportunities as they emerge to maximise profit margin and cash flow. The directors are confident the future prospects of the Company are positive and believe that the Company is well placed to meet challenging external economic conditions. The management team continue to address the requirement to become ever more competitive and efficient whilst focusing on strong cash management, with inflationary pressures being addressed via price increases. Environment, Health and Safety (EHS) The Health and Safety of our employees continues to be the utmost priority for the business alongside the protection of the environment in which we work. This philosophy extends to everyone who may be affected by our activities. The company senior managers supported by the Group Head of EHS, ensure that adequate resources are available to successfully deploy and measure operational health, safety and environmental improvement plans. EHS Programs and Performance
∙Implementation of a company wide enterprise EHS software solution for EHS incident management.
∙Targeted risk assessment programme employing a dedicated risk manager.
∙Implementation of environmental software solution for management and tracking of emissions data.
∙Contribution of emissions data to the Group wide CDP (Carbon Disclosure) report.
∙Implementation of the Global Safety Management System
∙Deployment of the Group safety culture survey with over 80% participation at a site level.
∙Certification to ISO 140001. 2 audits completed without any major non-conformances.
What has the Group done on reducing Green House Gases emissions to date:
∙There is an active Climate Change Agreement in place which sets defined sector reduction targets.
∙Tracking of energy, waste and water usage as a KPI for the business and a site specific reduction target.
∙Large scale project to replace lighting for new LED fittings.
∙Introduction of a procurement policy to only purchase energy efficient equipment.
∙Investment in sub metering to gain a better understanding of energy usage.
∙Targeted projects including scaled back usage of energy intense equipment on site (example; variable operation of the reduced thermal oxidiser in line with emissions risks).
The Group continues to assess opportunities to further reduce Green House Gases.
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Scapa UK Limited
Strategic Report (continued)
For the Period Ended 31 December 2021
The Company is a wholly owned subsidiary of Schweitzer-Mauduit International Inc. (NYSE: SWM). The directors of SWM International Inc manage the Group's risks at a Group level, rather than at an individual subsidiary level. The principal risks and uncertainties of SWM International Inc. which include those of the Company, are discussed in the business review in the Group’s annual report which does not form part of this report.
The key risks for the Company are: Economic and political risk: The Company’s activities expose it to political and economic uncertainty, e.g. Covid and trade relations, which affects market and financial stability. This is managed by regular risk assessments completed on macro-economic impact on key business areas, e.g. Supply Chain, Tax and People. Authorised Economic Operator status in place for key freight providers and the implementation of a regional alternative dual-sourcing strategy for key suppliers. Foreign exchange risk: The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchanges rates. The net exposure is reduced as some sales and purchasing transactions are in foreign currency where appropriate. Credit risk: The Company’s principal financial assets are bank balances and trade and other receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheets are net of allowances for doubtful receivables. The Company has no significant concentration of credit risk with exposure spread over a number of counterparties and perform regular credit checks and monitoring on all significant customers. Pension risk: The Company operates a number of pension schemes which include a defined benefit scheme. The pension funds’ liabilities are partially matched with a portfolio of assets, which leaves potential risk around the amount of the liabilities as a result of changes in life expectancy, inflation, future salary increases, risks regarding the value of investments, the returns derived from such investments and the Pension Protection Fund levy. In addition, actions by the Pension Regulators or the Trustees and/or any material revisions to the existing pension legislation could require increased contributions by the Company to the pension funds. The pension trustees, in consultation with the Company, regularly review the scheme’s investments strategy to mitigate the volatility of liabilities and to diversify investment risk and the Company takes professional advice regarding options to manage potential volatility. The asset back arrangement entered into provides certainty over contribution levels for a twenty-five-year period. Loss of major customer: The Company operates in a competitive market which is a continuing risk to the Company and could result in the loss of sales to its competitors. The Company manages this risk by providing a high standard of service to its customers, responding quickly to customers’ requirements and maintaining strong relationships with them. Raw material pricing: The risk of increasing raw material prices and commodity market rises are a continuing risk to the Company and could impact on gross margins in the future. The Company seeks to minimise the impact of increasing prices by utilising the Group’s global supply chain function and using multi sourcing arrangements for its key materials. Liquidity risk In order to maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments, the Company reviews its cash flow requirements on an on-going basis. Use of inter group borrowings is available as necessary.
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Scapa UK Limited
Strategic Report (continued)
For the Period Ended 31 December 2021
Financial risk The Company is exposed to various financial risks, e.g. foreign exchange risk and interest rate risk. Foreign exchange risk arises primarily from recognised assets and liabilities. The directors consider that there is currently no necessity for a strategy to mitigate this, as the numbers are not material to the business. As part of the wider Group, the Company has access to financial support from SWM Intl, reducing any exposure to liquidity and interest rate risk.
The company's financial key performance indicators have been discussed above in the review of developments and performance during the year section.
No non-financial KPIs have been presented as there are none monitored at the Scapa UK Limited level. Non-financial KPIs are only monitored on a Group basis.
This report was approved by the board and signed on its behalf.
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Scapa UK Limited
Directors' Report
For the Period Ended 31 December 2021
The directors present their report and the financial statements for the period ended 31 December 2021.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £2,348k (March 2021 - loss £114k).
The directors do not recommend the payment of a dividend. (March 2021: £nil)
The directors who served during the period were:
Please see the paragraph included in the Strategic Report.
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Scapa UK Limited
Directors' Report (continued)
For the Period Ended 31 December 2021
On March 28, 2022, Schweitzer-Mauduit International Inc. entered into an Agreement and Plan of Merger to combine with Neenah, Inc. ("Neenah") to form Mativ Holdings Inc., a speciality materials company incorporated in Delaware, in an all-stock merger of equals (the "Merger Agreement"), to create a global leader in speciality materials, accelerate growth and innovation, as well as achieve cost synergies. The Merger was approved by the shareholders of both Schweitzer-Mauduit International Inc. and Neenah on June 29, 2022 and was consummated on July 6, 2022. Under the terms of the Merger Agreement, which was unanimously approved by the board of directors of both companies, Neenah merged into a directly owned subsidiary of Schweitzer-Mauduit International Inc., with Neenah surviving the Merger as a direct, wholly-owned subsidiary of Mativ Holdings Inc.
Following the Merger, the Group became aware of a cyber-attack against certain systems within the Group’s network environment. The attack temporarily affected operations and caused delays in execution of sales transactions at some locations. In addition, the Group incurred financial costs to investigate and remediate the incident, some of which are expected to be mitigated by insurance. During the incident, the attackers accessed and exfiltrated Group data, including some personally identifying information of certain Group employees. The Group believes it has contained the incident, which only affected certain systems, and it has restored operations and notified affected individuals. The Group has put in place remediation measures designed to help prevent future similar attacks, and has proactively undertaken to implement certain other enhancements to its security system.
The auditors, Hurst Accountants Limited, were appointed in the period and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Scapa UK Limited
Independent Auditors' Report to the Members of Scapa UK Limited
We have audited the financial statements of Scapa UK Limited (the 'Company') for the period ended 31 December 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Scapa UK Limited
Independent Auditors' Report to the Members of Scapa UK Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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Scapa UK Limited
Independent Auditors' Report to the Members of Scapa UK Limited (continued)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
- Identifying, evaluating, and complying with laws and regulations - Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Scapa UK Limited
Independent Auditors' Report to the Members of Scapa UK Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, 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, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
Lancashire Gate
21 Tiviot Dale
SK1 1TD
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Scapa UK Limited
Statement of Comprehensive Income
For the Period Ended 31 December 2021
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Scapa UK Limited
Registered number: 03261510
Balance Sheet
As at
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Scapa UK Limited
Registered number: 03261510
Balance Sheet (continued)
As at 31 December 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 41 form part of these financial statements.
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Scapa UK Limited
Statement of Changes in Equity
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Scapa UK Limited is a private company limited by share capital incorporated in England, number 03261510. The address of the registered office and principal place of business is 997 Manchester Road, Ashton Under Lyne, Manchester, OL7 0ED.
The nature of the company's operation and its principal activity is the manufacture of adhesive foams and specialist tape into the industrial market.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements for the period ended 31 December 2021 are for a 9 month period. The period end changed from 31 March to 31 December to align with the ultimate parent company. Therefore, the comparative amounts are not entirely comparable.
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
Lease payments included in the measurement of the lease liability comprise:
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
Defined benefit pension plan
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Impairment of financial assets
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
2.Accounting policies (continued)
Financial liabilities
Fair value through profit or loss
At amortised cost
Critical judgements in applying the Company's accounting policies In process of applying the Company's accounting policies, which are described above, the directors have made the following judgement that has the most significant effect on the amounts recognised in the financial statements (apart from those involving estimations, which are dealt with below) and has been particularly complex or involving subjective assessments: The Pension scheme, when measured under IAS 19, resulted in a surplus of £4.4m and the recognition of this surplus was assessed in-line with IFRIC 14. This states that the pension surplus can be recognised in the accounts if the Company can demonstrate an unconditional right to a refund in the circumstances specified in IFRIC 14. As the Company cannot demonstrate an unconditional right to a refund, no surplus has been recognised for the defined benefit scheme in the Company accounts.
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
3.Judgements in applying accounting policies (continued)
Defined benefit pension scheme Accounting for retirement benefit schemes under IAS 19 (revised) requires an assessment of the future benefits payable in accordance with the actuarial assumptions. The future assumptions in relation to the discount rate applied in the calculation of scheme liabilities which are set out in note 28, represent a key source of uncertainty for the Company. The Company also applies sensitivities to these assumptions to assess the financial impact; these sensitivities are set out in note 28.
Analysis of turnover by destination:
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
12.Taxation (continued)
Corporation tax main rates are due to increase to 25% in the tax year commencing 1 April 2023 for companies whose profits exceed £250k. A tapered rate will be introduced for profits above £50k up to the £250k limit.
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Page 28
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
15.Tangible fixed assets (continued)
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Page 32
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Page 33
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Page 35
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Profit and loss account
At 31 December 2021, the Company had capital commitments, which were contracted for but not provided for in these financial statements of £25k (March 2021: £50k).
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Defined contribution scheme
The Company operated a defined contribution scheme in the UK. Employer's contributions are charged to the profit and loss account as incurred. The total pension cost for the Company in respect of this scheme for the period ended 31 December 2021 was £194k (March 2021: £254k). Outstanding contributions as at 31 December 2021 totalled £6k (March 2021: £5k). Defined benefit scheme
The Company operates a Defined Benefit Pension Scheme.
The Company is a sponsoring employer to the Scapa Group Limited Pension Scheme, which has the assets and liabilities of former UK employees. The scheme has been closed to new members and future accrual since 2007/08 and is wholly funded by the sponsoring employers, Scapa Group Limited and Scapa UK Limited. The assets of the scheme are held separately from the Company under Trust and both the assets and liabilities are held on a nonsectionalised basis. These scheme is managed by a professional trustee.
Scheme assets are stated at their market value as at 31 December 2021. The next formal triennial valuation is due 1 April 2023 and will be completed no later than 30 September 2024. The expected investment returns have been calculated using the weighted average of the expected investment returns for the different asset classes. The expected return on investments for the UK scheme is set out in the table in this note. The assumptions relating to UK longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality tables, with adjustments to reflect actual experience. For the period to 31 December 2021, the IAS 19 calculations have been performed using standard actuarial tables known as S2PA. Future improvements in mortality have been allowed for using the core CMI 2020 model, with a long-term rate of improvement of 1.25% per annum. In the current period these tables have been adjusted with a loading to reflect the geographic membership profile of the scheme. During the year to March 2016 a postcode mortality exercise was conducted on the scheme's membership. The results of this exercise showed that a best estimate adjustment to the base table used by the formal triennial actuarial valuation was 115% for all members. This assumption, reducing the expected longevity of members, has been used in the disclosures.
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
28.Pension commitments (continued)
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
28.Pension commitments (continued)
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
28.Pension commitments (continued)
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Scapa UK Limited
Notes to the Financial Statements
For the Period Ended 31 December 2021
Following the Merger, the Group became aware of a cyber-attack against certain systems within the Group’s network environment. The attack temporarily affected operations and caused delays in execution of sales transactions at some locations. In addition, the Group incurred financial costs to investigate and remediate the incident, some of which are expected to be mitigated by insurance. During the incident, the attackers accessed and exfiltrated Group data, including some personally identifying information of certain Group employees. The Group believes it has contained the incident, which only affected certain systems, and it has restored operations and notified affected individuals. The Group has put in place remediation measures designed to help prevent future similar attacks, and has proactively undertaken to implement certain other enhancements to its security system.
The Company’s immediate parent company is Porritts & Spencer Limited, a company incorporated in England and Wales.
Following the acquisition of Scapa Group Limited by Schweitzer-Mauduit International Inc (SWM Intl.) on 15 April 2021, SWM Intl. was considered the controlling party from this date. Copies of the consolidated financial statements of SWM Intl. may be obtained from its registered office, from the Company Secretary, Schweitzer-Mauduit International Inc., 100 North Point, Center East, Suite 600 Alpharetta, Georgia, 30022-8246, USA. In July 2022, SWM Intl. merged with Neenah Inc. to form Mativ Holdings Inc. From this date, the ultimate parent undertaking and controlling party is now Mativ Holdings Inc.
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