IRIS Accounts Production v23.2.0.158 04098629 Board of Directors 1.4.22 31.3.23 31.3.23 the manufacture of rubber compounds. true true false true true false false false true false Ordinary 1.00000 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REGISTERED NUMBER: 04098629 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

SPC EUROPE LIMITED

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


SPC EUROPE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr S Hallas
Mr P M Hallas
Mrs M Hallas





REGISTERED OFFICE: 51 Cory Way
West Wilts Trading Estate
Westbury
Wiltshire
BA13 4QT





REGISTERED NUMBER: 04098629 (England and Wales)





AUDITORS: Brosnans
Chartered Accountants
and Statutory Auditors
Birkby House
Bailiff Bridge
Brighouse
West Yorkshire
HD6 4JJ

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS

The company continues to be a 100% owned subsidiary of SPC Corporate limited. Consolidated accounts including the performances of the Spanish subsidiary SPC Jevsa SLU are prepared by SPC Corporate Limited.

The company continues to work alongside it's Spanish subsidiary SPC Jevsa SLU. Both companies have continued to hold a stable position in the market place.

The company along with it's trading subsidiary continues the principal activity of the manufacture of rubber compounds. Turnover for the year was £36,140,925 (2022 - £29,043,590) and pre tax profits were £2,305,579 (2022 - £2,729,290).

Consolidated accounts are presented by the holding company SPC Corporate Limited. The consolidated results show a pre-tax profit of £4,745,684 (2022 - £4,769,056) with net assets at 31 March 2023 of £19,496,125 (2022 - £15,956,566).

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives and policies
The company operates in the UK market and overseas. The company seeks to mitigate exposure to all forms of risk both internal and external.

Customers and suppliers
The company is not wholly dependent on any one supplier or customer.

Foreign exchange
The company endeavours to mitigate the risk of foreign exchange fluctuation by balancing it's buying and selling in foreign currencies. The necessity to buy forward has been negated and under the very rare occurrence for any small requirement, the company will spot purchase on the currency exchange

Credit risk
The company carries out credit checks on customers through one of the leading credit checking agencies. All customers are assigned a credit limit and trading terms which are monitored on an on-going basis.

Laws and regulations
The company complies with all relevant regulations to operate within the law and ISO 14001:2015 and ISO 9001:2015 are established and followed.
The company takes its health, safety and environmental responsibilities very seriously.


SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023


Employees
The average number of employees throughout the year was 81 (2022 - 79).

The company continues to be an Equal Opportunities Employer. In employment related decisions the company complies with anti discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age and physical or mental ability. Disabled people are given full and equal consideration for employment and their development is assisted and encouraged.

ON BEHALF OF THE BOARD:





Mr S Hallas - Director


3 October 2023

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS
Interim dividends per share were paid as follows:
4 April 2022 £430
10 August 2022 £300
1 September 2022 £350
24 November 2022 £250
9 January 2023 £450
31 March 2023 £1,000
£2,780

The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2023 will be £278,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr S Hallas
Mr P M Hallas
Mrs M Hallas

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Brosnans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S Hallas - Director


3 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SPC EUROPE LIMITED

Opinion
We have audited the financial statements of SPC Europe Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SPC EUROPE LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SPC EUROPE LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Audit response to risks identified
In identifying and assessing 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, control environment and business performance;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of provisions and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; 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.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SPC EUROPE LIMITED

We also communicated relevant identified laws and regulations to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Mr Adam John Brosnan (Senior Statutory Auditor)
for and on behalf of Brosnans
Chartered Accountants
and Statutory Auditors
Birkby House
Bailiff Bridge
Brighouse
West Yorkshire
HD6 4JJ

3 October 2023

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

TURNOVER 3 36,140,925 29,043,590

Cost of sales (30,192,927 ) (23,342,297 )
GROSS PROFIT 5,947,998 5,701,293

Administrative expenses (3,602,945 ) (2,970,923 )
2,345,053 2,730,370

Other operating income 18,000 13,328
OPERATING PROFIT 6 2,363,053 2,743,698

Interest receivable and similar income 5,225 2,072
2,368,278 2,745,770

Interest payable and similar expenses 7 (62,699 ) (16,480 )
PROFIT BEFORE TAXATION 2,305,579 2,729,290

Tax on profit 8 (412,992 ) (426,918 )
PROFIT FOR THE FINANCIAL YEAR 1,892,587 2,302,372

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,892,587

2,302,372

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 48,992 71,743
Tangible assets 11 4,425,261 3,590,686
Investments 12 176,156 179,229
4,650,409 3,841,658

CURRENT ASSETS
Stocks 13 4,318,161 4,379,239
Debtors 14 10,806,830 9,475,017
Cash at bank and in hand 2,140,420 1,330,289
17,265,411 15,184,545
CREDITORS
Amounts falling due within one year 15 (9,645,274 ) (8,429,197 )
NET CURRENT ASSETS 7,620,137 6,755,348
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,270,546

10,597,006

CREDITORS
Amounts falling due after more than
one year

16

-

(150,844

)

PROVISIONS FOR LIABILITIES 20 (344,250 ) (134,453 )
NET ASSETS 11,926,296 10,311,709

CAPITAL AND RESERVES
Called up share capital 21 100 100
Retained earnings 22 11,926,196 10,311,609
SHAREHOLDERS' FUNDS 25 11,926,296 10,311,709

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

BALANCE SHEET - continued
31 MARCH 2023



The financial statements were approved by the Board of Directors and authorised for issue on 3 October 2023 and were signed on its behalf by:





Mr S Hallas - Director


SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

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

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2021 100 9,057,237 9,057,337

Changes in equity
Dividends - (1,048,000 ) (1,048,000 )
Total comprehensive income - 2,302,372 2,302,372
Balance at 31 March 2022 100 10,311,609 10,311,709

Changes in equity
Dividends - (278,000 ) (278,000 )
Total comprehensive income - 1,892,587 1,892,587
Balance at 31 March 2023 100 11,926,196 11,926,296

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,137,719 (240,383 )
Interest paid (62,699 ) (16,480 )
Tax paid (326,926 ) (390,877 )
Net cash from operating activities 748,094 (647,740 )

Cash flows from investing activities
Purchase of tangible fixed assets (1,291,852 ) (789,688 )
Sale of tangible fixed assets 20,518 131
Interest received 5,225 2,072
Net cash from investing activities (1,266,109 ) (787,485 )

Cash flows from financing activities
Inter company loan movements 1,453,007 633,439
Capital repayments in year (188,768 ) (180,810 )
Amount repaid to directors (69,984 ) (214,364 )
Equity dividends paid (278,000 ) (1,048,000 )
Net cash from financing activities 916,255 (809,735 )

Increase/(decrease) in cash and cash equivalents 398,240 (2,244,960 )
Cash and cash equivalents at beginning
of year

2

1,330,289

3,575,249

Cash and cash equivalents at end of
year

2

1,728,529

1,330,289

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,305,579 2,729,290
Depreciation charges 470,183 572,860
Profit on disposal of fixed assets (12,333 ) (131 )
Exchange difference on investments (3,935 ) 4,936
Finance costs 62,699 16,480
Finance income (5,225 ) (2,072 )
2,816,968 3,321,363
Decrease/(increase) in stocks 61,078 (2,209,072 )
Increase in trade and other debtors (1,737,899 ) (714,432 )
Decrease in trade and other creditors (2,428 ) (638,242 )
Cash generated from operations 1,137,719 (240,383 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 2,140,420 1,330,289
Bank overdrafts (411,891 ) -
1,728,529 1,330,289
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 1,330,289 3,868,184
Bank overdrafts - (292,935 )
1,330,289 3,575,249


SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 1,330,289 810,131 2,140,420
Bank overdrafts - (411,891 ) (411,891 )
1,330,289 398,240 1,728,529
Debt
Debts falling due within 1 year (195,593 ) 37,924 (157,669 )
Debts falling due after 1 year (150,844 ) 150,844 -
(346,437 ) 188,768 (157,669 )
Total 983,852 587,008 1,570,860

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1. STATUTORY INFORMATION

SPC Europe Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

GOODWILL
Goodwill, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over its estimated useful life of twenty years.

The goodwill was acquired by a wholly owned subsidiary of the Company in 2008. The trade of the subsidiary was hived up during the year and goodwill is being written down on a continuing basis.

INTANGIBLE ASSETS
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Long leasehold - at varying rates on cost
Plant and machinery - at varying rates on cost
Fixtures and fittings - at varying rates on cost
Motor vehicles - 33% on cost
Computer equipment - at varying rates on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

INVESTMENTS IN SUBSIDIARIES
Investments in subsidiary undertakings are recognised at cost.

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

STOCKS
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 21,163,925 20,129,753
Europe 12,420,000 5,971,367
Rest of world 2,557,000 2,942,470
36,140,925 29,043,590

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,732,172 3,295,526
Social security costs 321,631 260,217
Other pension costs 107,575 90,288
4,161,378 3,646,031

The average number of employees during the year was as follows:
2023 2022

Administration 23 23
Production 59 56
82 79

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 285,951 210,458

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 145,692 105,187

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 449,092 550,108
Profit on disposal of fixed assets (12,333 ) (131 )
Goodwill amortisation 22,751 22,751
Auditors' remuneration 11,750 5,960
Net losses/(gains) on foreign currency translations (75,444 ) 4,726

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 12,472 994
Factoring charges 50,227 15,486
62,699 16,480

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 203,195 326,926
Under provision in previous
years - 189
Total current tax 203,195 327,115

Deferred tax 209,797 99,803
Tax on profit 412,992 426,918

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

8. TAXATION - continued

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,305,579 2,729,290
Profit multiplied by the standard rate of corporation tax in the UK
of 19% (2022 - 19%)

438,060

518,565

Effects of:
Expenses not deductible for tax purposes 7,138 7,831
Capital allowances in excess of depreciation (225,041 ) (123,419 )
Underprovision in previous year - 189
relief
Deferred Tax (Credit)/Charge 209,797 99,803
Group relief (16,962 ) (76,051 )
Total tax charge 412,992 426,918

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 278,000 1,048,000

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 April 2022
and 31 March 2023 345,042
AMORTISATION
At 1 April 2022 273,299
Amortisation for year 22,751
At 31 March 2023 296,050
NET BOOK VALUE
At 31 March 2023 48,992
At 31 March 2022 71,743

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

11. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 April 2022 2,534,281 5,790,518 1,038,708
Additions - 931,077 30,689
Disposals - (21,192 ) -
At 31 March 2023 2,534,281 6,700,403 1,069,397
DEPRECIATION
At 1 April 2022 609,770 4,715,133 808,570
Charge for year 89,862 146,099 80,152
Eliminated on disposal - (13,025 ) -
At 31 March 2023 699,632 4,848,207 888,722
NET BOOK VALUE
At 31 March 2023 1,834,649 1,852,196 180,675
At 31 March 2022 1,924,511 1,075,385 230,138

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 April 2022 392,718 208,219 9,964,444
Additions 307,950 22,136 1,291,852
Disposals (85,876 ) - (107,068 )
At 31 March 2023 614,792 230,355 11,149,228
DEPRECIATION
At 1 April 2022 205,315 34,970 6,373,758
Charge for year 109,242 23,737 449,092
Eliminated on disposal (85,858 ) - (98,883 )
At 31 March 2023 228,699 58,707 6,723,967
NET BOOK VALUE
At 31 March 2023 386,093 171,648 4,425,261
At 31 March 2022 187,403 173,249 3,590,686

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 April 2022 179,229
Exchange differences (3,073 )
At 31 March 2023 176,156
NET BOOK VALUE
At 31 March 2023 176,156
At 31 March 2022 179,229

The company's investments at the Balance Sheet date in the share capital of companies include the following:

ATR Compounding Limited
Registered office: SPC UK, Cory Way, West Wilts Trading Estate, Westbury, Wiltshire, BA13 4QT, England
Nature of business: Manufacture of rubber compounds
%
Class of shares: holding
Ordinary £1 shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 100 100

ATR Compounding Limited remained dormant throughout the year.

SPC Jevsa SLU
Registered office: Ploigono Industrial Aquiberia, Calle Zenc, 4-6, 08755 Castellbisbal, Barcelona, Spain
Nature of business: Manufacture of rubber compounds
%
Class of shares: holding
Equity 100.00
2023 2022
£    £   
Aggregate capital and reserves 7,903,240 5,876,084
Profit for the year 1,846,148 1,972,465

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

12. FIXED ASSET INVESTMENTS - continued

SPC Compounding India Private Limited
Registered office: Wing A, Flat No-2, Shriniwas Villa, S No 34/12, Pune 411004
Nature of business: Manufacture of rubber compounds
%
Class of shares: holding
Ordinary 98.80
2023 2022
£    £   
Aggregate capital and reserves (172,472 ) (172,324 )
Loss for the year (3,652 ) (89,160 )

M YSPC Limited
Registered office: Commerce House, 1 Bowring Road, Ramsey, Isle of Man, IM8 2LQ
Nature of business: Aircraft holding and leasing
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves (103,231 ) (79,196 )
Loss for the year (24,035 ) (79,197 )

13. STOCKS
2023 2022
£    £   
Raw materials 3,963,422 4,139,343
Work-in-progress 132,688 104,253
Finished goods 222,051 135,643
4,318,161 4,379,239

Stock recognised as cost of sales in the year amounted to £24,626,603 (2022 - £18,651,861).

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 7,687,595 5,881,024
Amounts owed by group undertakings 2,699,637 3,150,407
Other debtors 3,255 11,176
Director's current account 44,684 -
Prepayments and accrued income 371,659 432,410
10,806,830 9,475,017

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

The directors current account was repaid after the year end.

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 569,560 195,593
Trade creditors 4,778,671 5,204,799
Amounts owed to group undertakings 2,115,782 1,113,544
Corporation tax 13,195 136,926
Social security and other taxes 103,255 89,527
VAT 592,726 250,234
Other creditors - 2,149
Director's current account - 25,300
Accruals and deferred income 1,472,085 1,411,125
9,645,274 8,429,197

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 17) - 150,844

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 411,891 -
Bank loans 157,669 195,593
569,560 195,593

Amounts falling due between two and five years:
Bank loans - 2-5 years - 150,844

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 178,459 178,459
Between one and five years 156,935 335,394
335,394 513,853

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdraft 411,891 -
Bank loans 157,669 346,437
569,560 346,437

The Bank holds a debenture over the assets of the company, and cross guarantees entered into between the company and its subsidiary.

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax charge 344,250 134,453

Deferred
tax
£   
Balance at 1 April 2022 134,453
Accelerated capital allowances 209,797
Balance at 31 March 2023 344,250

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1 100 100

SPC EUROPE LIMITED (REGISTERED NUMBER: 04098629)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

22. RESERVES
Retained
earnings
£   

At 1 April 2022 10,311,609
Profit for the year 1,892,587
Dividends (278,000 )
At 31 March 2023 11,926,196

23. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme during the year were £107,575 (2022 - £90,288). No amounts were outstanding at the balance sheet date.

24. ULTIMATE CONTROLLING PARTY

The company's shares are owned by SPC Corporate Limited.

The company is controlled by the director, Mr S Hallas, by virtue of his majority shareholding SPC Corporate Limited.

The largest group of undertakings for which group accounts have been drawn up is that headed by SPC Corporate Limited which is registered in England and Wales. The consolidated results show a pre-tax profit of £4,745,684 (2022 - £4,769,056) with net assets at 31 March 2023 of £19,496,125 (2022 - £15,956,566).

The company is exempt from it's obligation to prepare group accounts under section 400 of the Companies Act 2006

The consolidated accounts of that group are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

25. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2023 2022
£    £   
Profit for the financial year 1,892,587 2,302,372
Dividends (278,000 ) (1,048,000 )
Adjustment to prior years taxation
Net addition to shareholders' funds 1,614,587 1,254,372
Opening shareholders' funds 10,311,709 9,057,337
Closing shareholders' funds 11,926,296 10,311,709