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Registered number: 04306904









LAKE CHEMICALS AND MINERALS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
COMPANY INFORMATION


Directors
C H Erbslöh 
S Cartlidge 




Company secretary
A N J Cusk



Registered number
04306904



Registered office
3 Moons Park
Burnt Meadow Road

Moons Moat North Industrial Estate

Redditch

B98 9PA




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

158 Edmund Street

Birmingham

West Midlands

B3 2HB





 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Balance Sheet
10
Company Balance Sheet
11 - 12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15 - 16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 37


 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their Strategic Report for the year ended 31 December 2023.

Business review
 
Lake offers Ultimate Customer Value and sells speciality chemicals, ingredients, and formulations providing real value for manufacturers and brands trading in industrial and life science markets. Sales are in the UK and Ireland, and export sales remain important to future growth.
The investments required to achieve sustained profitable growth over the long term have continued in 2023. Lake has expanded operations to deliver Ultimate Customer Value with key investments extending innovation and manufacturing capability. Value addition starts with innovative concepts arising out of customer engagement with Lake’s technical sales team, supported by Lake Innovation Services. R&D projects lead to innovative formulations and related IP that is a source of income for Lake’s suppliers.
Lake has invested and developed a capable resource of applied scientists and manufacturing process engineers that successfully deliver projects of value to suppliers and customers. Sales development benefitting from this activity focusses on entrepreneurs and brand owners for SMEs lacking capability as well as large manufacturing companies with capacity constraints.
Training colleagues across functions within the business continues to be important and in addition to technical training, Lake has again focussed on the development of Line Managers prior to reaching out to all colleagues in 2023. Strategic alignment and concerted implementation are important to driving sales development and with a strong Line Manager executive team, Lake is well placed to defend existing market share and raise a platform for sustainable growth in the coming years.
The combination of ERP software and colleague growth mindset is enabling productivity enhancements in sales development, warehousing, stock management and supply chain. The application of AI is seen as a key opportunity to enhance business productivity. ESG performance and developing a plan to achieve Net Zero is adding to the value proposition for suppliers and customers and meets important needs of markets to which Lake contributes.
It was particularly pleasing that sales gains post-Covid have been maintained in 2023 in spite of trending decreases in market pricing and enhanced competition in difficult often stagnant markets variable by sector. Lake continues to identify significant growth opportunities and has a track record for developing competent and engaged personnel to implement resilient business development strategies in industrial and life science markets.

Principal risks and uncertainties
 
Supply chains are relatively stable compared to the economy immediately following Covid after taking account of on-going events in eastern Europe and the Red Sea. Economies in or close to recession in late 2023 has decreased raw material input prices and increased competitor activity thereby placing pressure on Lake’s sales growth and profitability. Lake’s speciality solution seeking customer engagement offering wide ranging and tangible value is well placed to maintain and continue business growth.
In addition to collaborating with partners in warehousing and transport, Lake is developing additional in-house capability to ensure high levels of customer service. 
The key to sustainable growth is hiring, developing, and retaining the finest talented professionals and in recent years Lake has made tangible progress. A capable People Success team supports the hiring of performing colleagues who are attracted by Lake’s strong business culture and the enjoyment of participating in a team with a track record of business growth. People Success colleagues continue supporting training and the capability development of individual colleagues by leveraging off investments in Learning Management Systems.
 
Page 1

 
LAKE CHEMICALS AND MINERALS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Variability in foreign currency exchange rates on purchasing costs is a factor that determines short-term profitability and in 2023 variations in currency values were minimised through forward contracts. 

Development and performance
 
Lake is delivering significant growth to suppliers by selling ingredients and raw materials, and, to customers by providing services starting with a product concept and including ingredient supply, R&D, and manufacturing in support of product launches. The real value to suppliers is growth in sales. The tangible value to customers is successful product launches supported by high levels of service and increasing sales.
Implementing a robust, well executed business model and developing sales in diverse industrial and life science markets, and widening geographic activity, creates a resilient business. Investing in a sustainable growth business model takes time and patience. Continuous investment in technical know-how and service capability is developing a leadership position for Lake in markets where decisions rely on an expertise to sell speciality ingredients and raw materials into technical applications.
A Lake business promoting innovation is engaging colleagues, customers, and suppliers to think differently which then offers new opportunities for growth. A high energy, talented team of Lake colleagues who provide expertise in a variety of business activities is driving sales development and supporting revenue growth.
The management team are pleased with Lake’s 2023 performance. Profits exceeded expectations, sales were maintained, and speciality margins realised. Overheads increased in line with employment costs and a return to a higher level of travel and in person marketing operations.
The company has re-invested profits into research and development, agile manufacturing, technical sales, supply chain services and employee training to support strategic growth.

Financial key performance indicators
 
Turnover in 2023 increased by 4.5% from 2022 and Gross Profit decreased by 3.9%. Operating Profit decreased by 22.9% and reached 4.9% of sales. This financial performance is measured to be positive when taken in the context of a challenging economy.
Management of working capital continues to be important whilst investing in capability to support strategic growth. Achieving an acceptable return on investments is an important focus for 2024 and beyond.


This report was approved by the board on 26 March 2024 and signed on its behalf.



S Cartlidge
Director

Page 2

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,049,510 (2022 - £1,388,413).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

C H Erbslöh 
S Cartlidge 

Future developments

Details of the Group's future developments are included in the Strategic Report.

Research and development activities

Details of the Group's research and development activities are included in the Strategic Report.

Page 3

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

Details of post balance sheet events affecting the Group have been disclosed in note 33.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 26 March 2024 and signed on its behalf.
 





S Cartlidge
Director

Page 4

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED
 

Opinion


We have audited the financial statements of Lake Chemicals and Minerals Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 5

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)


Other information


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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

Page 6

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)



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 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilites, 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.
Based on our understanding of the Group and Company and industry in which it operates, key laws and regulations that we identified included:

Companies Act;
Tax legislation;
Health and safety and employment legislation;
Medicines and Healthcare Products Regulatory Agency (MHRA); and
Medical Regulation Acts.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

Management bias in respect of accounting estimates and judgements made;
Management override of controls; and
Posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the financial statements.

Our procedures included, but were not limited to:

Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular obsolete and slow moving stock provisions.

It is the primary responsibility of management, with oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.





Page 7

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


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 2006Our 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.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
158 Edmund Street
Birmingham
West Midlands
B3 2HB

28 March 2024
Page 8

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
27,100,995
25,929,526

Cost of sales
  
(20,574,987)
(19,136,453)

Gross profit
  
6,526,008
6,793,073

Administrative expenses
  
(5,337,342)
(5,149,136)

Other operating income
 5 
150,988
93,139

Operating profit
 6 
1,339,654
1,737,076

Interest receivable and similar income
 10 
363
196

Interest payable and similar expenses
 11 
(220,501)
(222,372)

Profit before tax
  
1,119,516
1,514,900

Tax on profit
 12 
(70,006)
(126,487)

Profit for the financial year
  
1,049,510
1,388,413

Profit for the year attributable to:
  

Owners of the parent company
  
1,049,510
1,388,413

  
1,049,510
1,388,413

The notes on pages 18 to 37 form part of these financial statements.

Page 9

 
LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
136,696
136,865

Tangible assets
 15 
1,521,237
1,362,295

  
1,657,933
1,499,160

Current assets
  

Stocks
 17 
6,209,302
6,707,105

Debtors: amounts falling due within one year
 18 
4,028,032
4,619,514

Cash at bank and in hand
 19 
1,259,943
104,472

  
11,497,277
11,431,091

Creditors: amounts falling due within one year
 20 
(5,719,438)
(6,416,922)

Net current assets
  
 
 
5,777,839
 
 
5,014,169

Total assets less current liabilities
  
7,435,772
6,513,329

Creditors: amounts falling due after more than one year
 21 
(183,333)
(383,333)

Provisions for liabilities
  

Deferred taxation
 24 
(351,000)
(146,000)

Other provisions
 25 
-
(140,000)

  
 
 
(351,000)
 
 
(286,000)

Net assets
  
6,901,439
5,843,996


Capital and reserves
  

Called up share capital 
 26 
50,000
50,000

Foreign exchange reserve
 27 
(2,029)
(9,962)

Profit and loss account
 27 
6,853,468
5,803,958

  
6,901,439
5,843,996


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 March 2024.


S Cartlidge
Director

The notes on pages 18 to 37 form part of these financial statements.

Page 10

 
LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
129,707
128,007

Tangible assets
 15 
1,521,237
1,362,295

Investments
 16 
91
91

  
1,651,035
1,490,393

Current assets
  

Stocks
 17 
6,196,994
6,482,373

Debtors: amounts falling due within one year
 18 
4,212,640
5,028,694

Cash at bank and in hand
 19 
1,232,646
99,726

  
11,642,280
11,610,793

Creditors: amounts falling due within one year
 20 
(5,688,643)
(6,398,622)

Net current assets
  
 
 
5,953,637
 
 
5,212,171

Total assets less current liabilities
  
7,604,672
6,702,564

  

Creditors: amounts falling due after more than one year
 21 
(183,333)
(383,333)

Provisions for liabilities
  

Deferred taxation
 24 
(351,000)
(146,000)

Other provisions
 25 
-
(140,000)

  
 
 
(351,000)
 
 
(286,000)

Net assets
  
7,070,339
6,033,231


Capital and reserves
  

Called up share capital 
 26 
50,000
50,000

Profit and loss account brought forward
 27 
5,983,231
4,454,134

Profit for the year
  
1,037,108
1,529,097

Profit and loss account carried forward
  
7,020,339
5,983,231

  
7,070,339
6,033,231


Page 11

 
LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 March 2024.




S Cartlidge
Director

The notes on pages 18 to 37 form part of these financial statements.

Page 12

 
LAKE CHEMICALS AND MINERALS LIMITED
 

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


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
50,000
2,781
4,415,545
4,468,326


Comprehensive income for the year

Profit for the year
-
-
1,388,413
1,388,413

Foreign exchange translation
-
(12,743)
-
(12,743)



At 1 January 2023
50,000
(9,962)
5,803,958
5,843,996


Comprehensive income for the year

Profit for the year
-
-
1,049,510
1,049,510

Foreign exchange translation
-
7,933
-
7,933


At 31 December 2023
50,000
(2,029)
6,853,468
6,901,439


The notes on pages 18 to 37 form part of these financial statements.

Page 13

 
LAKE CHEMICALS AND MINERALS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
50,000
4,454,134
4,504,134


Comprehensive income for the year

Profit for the year
-
1,529,097
1,529,097



At 1 January 2023
50,000
5,983,231
6,033,231


Comprehensive income for the year

Profit for the year
-
1,037,108
1,037,108


At 31 December 2023
50,000
7,020,339
7,070,339


The notes on pages 18 to 37 form part of these financial statements.

Page 14

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,049,510
1,388,413

Adjustments for:

Amortisation of intangible assets
48,908
31,483

Depreciation of tangible assets
233,011
160,176

Loss on disposal of tangible assets
2,875
-

Interest paid
220,501
222,372

Interest received
(363)
(196)

Taxation charge
70,006
126,487

Decrease/(increase) in stocks
497,803
(366,426)

Decrease/(increase) in debtors
591,482
(383,125)

Increase/(decrease) in creditors
155,574
(92,443)

(Decrease) in provisions
(140,000)
(315,000)

Corporation tax (paid)
(22,894)
(281,331)

Net cash generated from operating activities

2,706,413
490,410


Cash flows from investing activities

Purchase of intangible fixed assets
(48,653)
(38,815)

Purchase of tangible fixed assets
(394,828)
(730,366)

Interest received
363
196

Net cash from investing activities

(443,118)
(768,985)
Page 15

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of bank loans
(200,000)
(200,000)

Repayment of other loans
(687,323)
(22,026)

Interest paid
(220,501)
(222,372)

Net cash used in financing activities
(1,107,824)
(444,398)

Net increase/(decrease) in cash and cash equivalents
1,155,471
(722,973)

Cash and cash equivalents at beginning of year
104,472
827,445

Cash and cash equivalents at the end of year
1,259,943
104,472


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,259,943
104,472

1,259,943
104,472


The notes on pages 18 to 37 form part of these financial statements.

Page 16

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

104,472

1,155,471

1,259,943

Debt due after 1 year

(383,333)

200,000

(183,333)

Debt due within 1 year

(3,350,231)

687,323

(2,662,908)


(3,629,092)
2,042,794
(1,586,298)

The notes on pages 18 to 37 form part of these financial statements.

Debt due after 1 year consists of bank loans as detailed in note 21.
Debt due within 1 year consists of bank and other loans as detailed in note 20.

Page 17

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Lake Chemicals and Minerals Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office and the registered number are given in the company information of these financial statements. The nature of the Group's operations and principal activities are described in the Strategic Report on page 1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The financial statements are presented in sterling which is the functional currency of the Group and rounded to the nearest £.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

After making enquires and considering the principal risks and uncertainties the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The directors have undertaken extensive financial modelling to consider the current uncertainty in the UK and global markets and has taken appropriate steps to safeguard the future operations and finances of the Group. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.

Page 18

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
                                                                                                                                                                     Exchange gains and losses are taken into account in arriving at operating profit.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is normally recognised on the despatch of goods.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the period of the lease.

 
2.7

Research and development

Expenditure on research activities is recognised in the Consolidated Statement of Comprehenisve Income as an expense as it is incurred.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to Consolidated Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

 
2.9

Finance costs

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

Page 19

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is amortised on a straight line basis over a useful economic life of 5 years.
Website development costs are amortised on a straight line basis over a useful economic life of 3 years.

Page 20

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Consolidated Statement of Comprehensive Income during the period in which they are incurred.

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.


Leasehold property improvements           - 11%
Fixtures and fittings    - 10-25%
Office equipment    - 10-33.3%
Computer equipment    - 33.3-50%
Warehouse equipment   - 20%
Laboratory and kitchen equipment  - 11-12%

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income.

 
2.16

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.17

Cash and cash equivalents

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

 
2.18

Creditors

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

Page 21

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group 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.

 
2.20

Financial instruments

Derivative financial instruments ("derivatives") are used to manage risks arising from changes in foreign currency exchange rates relating to the purchase of overseas sourced products. In accordance with the Group's foreign exchange policy, the Group does not enter into derivatives for speculative purposes. Derivatives are stated at their fair value, being the estimated amount that the Group would receive or pay to terminate them at the balance sheet date based on prevailing foreign currency exchange rates. However the fair value of derivatives was not material so derivatives have not been recognised in these Financial Statements.
                                                                                                                                                                   Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument previously recognised in equity is retained in equity until the hedged transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is then transferred to the Consolidated Statement of Comprehensive Income.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
                                                                                                                                                                            In preparing these financial statements, the directors have made the following judgements:
                                                                                                                                                                     
Carrying value of stocks
                                                                                                                                                                               Management review the market value of and demand for its stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. Management use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company's products and achievable selling prices.
                                                                                                                                                                                                                                       These estimates are, on the whole, sufficiently reliable.

Page 22

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

The whole of the turnover is attributable to the principal activities of the Group.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
25,119,351
24,241,007

Rest of Europe
1,620,779
1,537,522

Rest of the World
360,865
150,997

27,100,995
25,929,526



5.


Other operating income

2023
2022
£
£

Commissions received
140,455
93,139

Government grants receivable
5,533
-

Research and development commission
5,000
-

150,988
93,139



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
233,011
160,176

Amortisation of intangible fixed assets
48,908
31,483

Operating lease rentals
294,743
243,221


7.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
20,500
25,100

Page 23

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,047,963
2,966,355
2,944,168
2,876,088

Social security costs
377,311
368,367
360,670
358,211

Cost of defined contribution scheme
99,800
94,542
99,800
94,542

3,525,074
3,429,264
3,404,638
3,328,841


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Average number of employees
71
69
68
66


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
217,465
239,043

Group contributions to defined contribution pension schemes
30,000
30,000

247,465
269,043


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £217,465 (2022 - £239,043).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £30,000 (2022 - £30,000).


10.


Interest receivable

2023
2022
£
£


Bank interest receivable
363
196

Page 24

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank and other loan interest payable
220,501
222,372


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
134,000
150,000

Adjustments in respect of previous periods
(268,994)
(102,513)


Total current tax
(134,994)
47,487

Deferred tax


Origination and reversal of timing differences
39,923
79,000

Adjustments in respect of previous periods
165,077
-

Total deferred tax
205,000
79,000


Taxation on profit on ordinary activities
70,006
126,487
Page 25

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 24% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,119,516
1,514,900


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24% (2022 - 19%)
268,684
287,831

Effects of:


Expenses not deductible for tax purposes
2,280
7,061

Fixed asset differences
3,288
(14,914)

Adjustments to tax charge in respect of prior periods
(268,994)
(102,513)

Adjustments to tax charge in respect of prior periods - deferred tax
165,077
19,367

Research and development enhanced expenditure
(97,351)
(111,150)

Unrelieved tax losses carried forward
-
26,526

Remeasurement of deferred tax for changes in tax rates
2,396
14,279

Differences in tax rates
(5,374)
-

Total tax charge for the year
70,006
126,487


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £1,037,108 (2022 - £1,529,097).

Page 26

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets

Group





Website development
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2023
-
172,815
503,999
676,814


Additions
48,653
-
-
48,653


Foreign exchange movement
-
89
-
89



At 31 December 2023

48,653
172,904
503,999
725,556



Amortisation


At 1 January 2023
-
35,950
503,999
539,949


Charge for the year
15,702
33,206
-
48,908


Foreign exchange movement
-
3
-
3



At 31 December 2023

15,702
69,159
503,999
588,860



Net book value



At 31 December 2023
32,951
103,745
-
136,696



At 31 December 2022
-
136,865
-
136,865

The aggregate amount of research and development expenditure recognised as an expense during the year amounted to £450,000 (2022: £569,815).



Page 27

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
           14.Intangible assets (continued)

Company




Website development
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2023
-
163,152
503,999
667,151


Additions
48,653
-
-
48,653



At 31 December 2023

48,653
163,152
503,999
715,804



Amortisation


At 1 January 2023
-
35,145
503,999
539,144


Charge for the year
15,702
31,251
-
46,953



At 31 December 2023

15,702
66,396
503,999
586,097



Net book value



At 31 December 2023
32,951
96,756
-
129,707



At 31 December 2022
-
128,007
-
128,007

Page 28

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets

Group and Company






Leasehold improvements
Fixtures and fittings
Computer equipment
Warehouse equipment
Total

£
£
£
£
£



Cost 


At 1 January 2023
392,308
556,320
156,427
662,297
1,767,352


Additions
15,054
-
40,074
339,700
394,828


Disposals
-
-
(11,500)
(38,991)
(50,491)



At 31 December 2023

407,362
556,320
185,001
963,006
2,111,689



Depreciation


At 1 January 2023
-
138,335
93,601
173,121
405,057


Charge for the year
44,986
54,519
33,909
99,597
233,011


Disposals
-
-
(8,625)
(38,991)
(47,616)



At 31 December 2023

44,986
192,854
118,885
233,727
590,452



Net book value



At 31 December 2023
362,376
363,466
66,116
729,279
1,521,237



At 31 December 2022
392,308
417,985
62,826
489,176
1,362,295

Details of assets subject to security are provided in note 20.

Page 29

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2023
91



At 31 December 2023
91






Net book value



At 31 December 2023
91



At 31 December 2022
91


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Ubichem (UK) Limited (Dormant)
Ordinary
100%
Lake Chemical Trustees Limited (Dormant)
Ordinary
100%
Salutivia Limited (Dormant)
Ordinary
100%
Elenzia Limited (Dormant)
Ordinary
100%
Lake Chemicals and Minerals (Ireland) Limited
Ordinary
100%

The registered office of all subsidiary undertakings is the same as Lake Chemicals and Minerals Limited as disclosed in these financial statements except for Lake Chemicals and Minerals Ireland Limited which is 6E KCR Estate, Kimmage, Dublin 12.

Page 30

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Finished goods and goods for resale
6,209,302
6,707,105
6,196,994
6,482,373


Impairment losses totaling £82,883 (2022 - £82,742) were recognised in the Consolidated Statement of Comprehensive Income during the year. Impairment losses arose due to certain items of stock which were deemed to be obsolete or slow moving in nature, with a specific impairment loss being recognised for items which were past their expiry date at year end.
                                                                                                                                                                                                                       Details of assets subject to security are provided for in note 20.


18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,661,350
4,109,351
3,643,616
4,081,578

Amounts owed by group undertakings
-
-
211,079
439,094

Other debtors
10,861
34,117
10,771
34,027

Prepayments and accrued income
355,821
476,046
347,174
473,995

4,028,032
4,619,514
4,212,640
5,028,694



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,259,943
104,472
1,232,646
99,726


Page 31

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank and other loans
2,662,908
3,350,231
2,662,908
3,350,231

Trade creditors
2,363,231
2,149,956
2,355,908
2,142,496

Corporation tax
15,006
172,894
15,006
172,894

Other taxation and social security
285,217
218,272
270,928
211,836

Other creditors
270,685
343,584
267,214
343,584

Accruals and deferred income
122,391
181,985
116,679
177,581

5,719,438
6,416,922
5,688,643
6,398,622


Secured creditors
Included in bank and other loans is the Group's invoice discounting facilities totalling £2,462,908 (2022: £3,150,231) which are secured by fixed and floating charges over the assets of the Group, which have first call over certain of the Group's trade debtors. The value of trade debtors securing the facilities at 31 December 2023 was £3,310,709 (2022: £3,204,172).


21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
183,333
383,333
183,333
383,333




Page 32

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank and other loans
2,662,908
3,350,231
2,662,908
3,350,231

Amounts falling due 1-2 years

Bank loans
183,333
200,000
183,333
200,000

Amounts falling due 2-5 years

Bank loans
-
183,333
-
183,333


2,846,241
3,733,564
2,846,241
3,733,564



23.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at amortised cost
4,932,154
4,247,940
5,098,112
4,654,425


Financial liabilities

Financial liabilities measured at amortised cost
(5,602,548)
(6,409,089)
(5,586,042)
(6,397,225)


Financial assets measured at amortised cost comprise of trade and other debtors, amounts owed by group undertakings and cash at bank and in hand.


Financial liabilities measured at amortised cost comprise of bank and other loans, trade and other creditors and accruals and deferred income.

Page 33

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Deferred taxation


Group



2023


£






At beginning of year
(146,000)


Charged to the consolidated statement of comprehensive income
(205,000)



At end of year
(351,000)

Company


2023


£






At beginning of year
(146,000)


Charged to the statement of comprehensive income
(205,000)



At end of year
(351,000)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(361,000)
(162,000)
(361,000)
(162,000)

Short-term timing differences
10,000
16,000
10,000
16,000

(351,000)
(146,000)
(351,000)
(146,000)

Page 34

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Provisions


Group and Company



Other provisions

£





At 1 January 2023
140,000


Utilised in year
(140,000)



At 31 December 2023
-

Other provisions relates to specific products and their performance. The payments due in respect of the brought forward provision are measured at the present value of future cash outflows which are expected to be payable in quarterly installments between January 2021 and December 2023.


26.


Share capital

2023
2022
£
£
Authorised, allotted, called up and fully paid



50,000 (2022 - 50,000) Ordinary shares of £1.00 each
50,000
50,000



27.


Reserves

Foreign exchange reserve

This reserve records all foreign exchange gains and losses on the translation of the financial statements of subsidiary undertakings denoted in foreign currencies.

Profit and loss account

This reserve records the accumulation of profits and losses in the current and prior periods in the normal course of the business.


28.


Capital commitments




At 31 December 2023 the Group and Company had capital commitments as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Contracted for but not provided in these financial statements
84,367
103,024
84,367
103,024

Page 35

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.


Pension commitments

The Group contributes to defined contributions pension schemes on behalf of employees. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £99,800 (2022: £94,542). Contributions totaling £11,025 (2022: £10,584) were payable to the fund at the Balance Sheet date and are included in other creditors.


30.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
365,036
315,919
365,036
315,919

Later than 1 year and not later than 5 years
676,751
754,424
676,751
754,424

Later than 5 years
270,000
360,000
270,000
360,000

1,311,787
1,430,343
1,311,787
1,430,343


31.


Forward contracts

At the year end, as part of its normal trading activities, the Group had entered into an agreement for the forward purchasing of $1,500,000 (2022: $800,000) and €325,000 (2022: €nil).

Page 36

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

32.


Related party transactions


Sales to related parties 
Purchases from related parties 
Interest
Debtor balance (DR)
Creditors balance (CR)
£
£
£
£
£

2023
39,425
148,498
-
-
4,989
2022
5,770
160,537
-
-
24,028

Nature of related parties
Related parties represent companies which are under common control by way of shareholding and/or directorships and group undertakings.
Terms and conditions of transactions with related parties
Sales and purchases with related parties are made at normal market prices. Outstanding trading balances with related parties are unsecured, interest free and settlement is expected within 60 days of invoice date.
Related party disclosure exemption
The Company has taken advantage of the exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the Group.
                                                                                                                                                                               
Key management personnel
The directors consider that only the board of directors are key management personnel and amounts paid to these individuals during the year is disclosed in note 9.


33.


Post balance sheet events

On 16 February 2024 the Group entered into a new 10 year property lease agreement with a minimum commitment period of 5 years. The minimum amount of rentals committed to under this lease agreement totals £460,000.


34.


Controlling party

There is no ultimate controlling party. 

 
Page 37