REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
MCGEAN-ROHCO (U.K.) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
MCGEAN-ROHCO (U.K.) LIMITED |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Profit or Loss | 9 |
Statement of Profit or Loss and Other Comprehensive Income |
10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
MCGEAN-ROHCO (U.K.) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
The Old Police Station |
Whitburn Street |
Bridgnorth |
Shropshire |
WV16 4QP |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
McGean-Rohco (UK) Limited continues to manufacture for the aviation industry as well as performing toll blending for the general metal finishing industries. It is expected that we will continue to meet our budgeted manufacturing and fiscal targets as well as meeting our legislative requirements as a responsible operator within the chemical Industry. |
Total revenues for the year to 31st December 2023 were £9,787,291 compared to £8,197,431 for the year to 31st December 2022 representing a 19.39% increase. |
Gross profit margins have increased with a 45.39% gross profit margin having been achieved for the financial year compared to 42.01% in the prior year due to the impact of some price increases bringing the profit back to similar levels of prior years. The gross profit margin reflects tight cost controls. The company achieved operating profits of £1,292,835 which as a percentage of turnover is 13.21% compared with £957,335 (11.68%) in 2022. Raw material prices continue to be tightly monitored by the directors. |
Exchange losses of £61,077 are included in the profit and loss account this year, compared to exchange gains of £101,551 for the 2022 year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Business risk |
The potential risks and uncertainties the company faces derive from international politics of the countries with whom we are trading. These uncertainties are mitigated by having a very wide customer base, situated in Europe, Africa, The Middle East and Pakistan. |
Foreign currency risk |
The company conducts significant trade in Euros and US Dollars, as a result it is exposed to fluctuations in foreign currency markets. Management view the currencies as stable and thus the associated risk of fluctuations is low. The company does not utilise derivative financial instruments to reduce the risk associated with foreign currencies. |
Credit risk |
The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the financial statements are net of expected credit losses. |
ANALYSIS OF DEVELOPMENT AND PERFORMANCE FOR THE PERIOD AND AT THE PERIOD END |
The management continues to monitor the company's performance, benchmarking its sales, margins and costs against budget, and prior year. Key changes within the industry can be identified with sales reported by product range. |
Good understanding of our customer needs enables stock turnover to remain high. Debtor days are recorded monthly, with sales managers notified of any slow paying debt. |
ON BEHALF OF THE BOARD: |
Director |
11th April 2024 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31st December 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of the manufacture and sale of chemical additives for the aviation industry and in the toll blending market place. |
DIVIDENDS |
An interim dividend of £2.376 per share was paid on 14th November 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31st December 2023 will be £ |
FUTURE DEVELOPMENTS |
The company continues to trade as suppliers to the aviation industry and in the toll blending market. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
COUNTRY OF INCORPORATION |
The company is incorporated and registered in England and Wales. |
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 UK-adopted international accounting standards. 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. |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCGEAN-ROHCO (U.K.) LIMITED |
Opinion |
We have audited the financial statements of McGean-Rohco (U.K.) Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK. |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with IFRSs as adopted by the UK; 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCGEAN-ROHCO (U.K.) LIMITED |
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 three, 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 |
MCGEAN-ROHCO (U.K.) 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. |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures include the following: |
Enquiring of the directors and senior management. |
Discussing among the engagement team, including the tax team, how and where fraud might occur in the financial statements. |
Obtaining an understanding of the legal and statutory framework that the company operates in.The key laws and regulations we considered in this context include the Companies Act 2006, Tax Legislation and Environmental and Health and Safety legislation. |
Audit response to risks identified |
As a result of performing the above we identified the occurrence of revenue as a key audit matter. |
In addition to the above, our procedures to respond to risks identified included the following: |
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations as detailed above. |
Enquiring of management and the directors and external legal advisors 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. |
Completing focused testing on revenue via a detailed review of a sample of documents supporting revenue recorded during the year. |
In addressing the risk of fraud through management override of controls, reviewing 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. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCGEAN-ROHCO (U.K.) LIMITED |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
The Old Police Station |
Whitburn Street |
Bridgnorth |
Shropshire |
WV16 4QP |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
STATEMENT OF PROFIT OR LOSS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.22 | 31.12.23 |
£ | Notes | £ |
CONTINUING OPERATIONS |
Revenue | 3 |
( |
) | Cost of sales | ( |
) |
GROSS PROFIT |
Other operating income | 4 |
( |
) | Administrative expenses | ( |
) |
OPERATING PROFIT |
(2,953 | ) | Finance costs | 6 | (3,758 | ) |
3,953 | Finance income | 6 | 20,873 |
PROFIT BEFORE INCOME TAX | 7 |
( |
) | Income tax | 8 | ( |
) |
PROFIT FOR THE YEAR |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.22 | 31.12.23 |
£ | £ |
PROFIT FOR THE YEAR |
- | OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
STATEMENT OF FINANCIAL POSITION |
31ST DECEMBER 2023 |
31.12.22 | 31.12.23 |
£ | Notes | £ |
ASSETS |
NON-CURRENT ASSETS |
Owned |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Right-of-use |
Property, plant and equipment | 11, 19 |
CURRENT ASSETS |
Inventories | 12 |
Trade and other receivables | 13 |
Cash and cash equivalents | 14 |
TOTAL ASSETS |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 15 |
Retained earnings | 16 |
TOTAL EQUITY |
LIABILITIES |
NON-CURRENT LIABILITIES |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 18 |
2,140 | Deferred tax | 20 | 6,893 |
CURRENT LIABILITIES |
Trade and other payables | 17 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 18 |
Tax payable |
TOTAL LIABILITIES |
TOTAL EQUITY AND LIABILITIES |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2023 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
31.12.22 | 31.12.23 |
£ | Notes | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
(2,953 | ) | Lease interest paid | (1,687 | ) |
( |
) | Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
( |
) | Purchase of intangible fixed assets |
( |
) | Purchase of tangible fixed assets | ( |
) |
Interest received |
( |
) | Net cash from investing activities | ( |
) |
Cash flows from financing activities |
( |
) | Payment of lease liabilities | ( |
) |
( |
) | Equity dividends paid | ( |
) |
( |
) | Net cash from financing activities | ( |
) |
( |
) | Increase/(decrease) in cash and cash equivalents |
2,330,380 |
Cash and cash equivalents at beginning of year |
2 |
Cash and cash equivalents at end of year |
2 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before income tax |
Depreciation charges |
Finance costs | 3,758 | 2,953 |
Finance income | (20,873 | ) | (3,953 | ) |
1,364,422 | 1,021,758 |
Decrease/(increase) in inventories | ( |
) |
Increase in trade and other receivables | ( |
) | ( |
) |
Increase/(decrease) in trade and other payables | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 2,184,449 | 1,785,269 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,785,269 | 2,330,380 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
McGean-Rohco (U.K.) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparation |
The presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1. |
The financial statements contain information about McGean-Rohco (UK) Limited as an individual company. |
There were no other new standards or interpretations effective for the first time for periods beginning on or after 1 January 2023 that had a significant effect on the company's financial statements. |
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of stock at the date of the financial statements. If in the future such estimates and assumptions which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. Where necessary, the comparatives have been reclassified or extended from the previously reported results to take into account presentational changes. |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Performance obligations and timing of revenue recognition |
The company's revenue is derived from selling goods with revenue recognised at a point in time when control of the goods has transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales, control might also be transferred when delivered either to the port of departure or port of arrival, depending on the specific terms of the contract with a customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occured the company no longer has physical possession, usually will have a present right to payment as a single payment on delivery and retains none of the significant risks and rewards of the goods pertaining to the goods in question. |
Allocating amounts to performance obligations |
For most contracts there is a fixed unit price for each product sold. Therefore there is no judgement involved in allocating the contract price to each unit ordered in such contracts. Where a customer orders more than one product line the company is able to determine the split of the total contract price between each product line by reference to each product's stand alone selling prices, all product lines being sold separately. |
Determining the transaction price |
All of the company's revenue is derived from fixed price contracts so that the amount of revenue to be earned from each contract is determined by reference to those fixed prices. |
Government Grants |
Government grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and that the grants will be received. |
Government grants are recognised in profit or loss on a systematic basis over the periods in which the company recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the company should purchase, construct or otherwise acquire non-current assets, including property, plant and equipment, are recognised as deferred income in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. |
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in profit or loss in the period in which they become receivable. |
Cash and cash equivalents |
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
Property, plant and equipment |
Freehold property | - |
Plant and machinery | - |
Property, plant and equipment are initially recorded at cost of purchase or construction. |
Freehold land is not depreciated. |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Inventories |
Inventories are valued at the lower of cost and net realisable value, including an appropriate proportion of fixed and variable overhead, after making due allowance for obsolete and slow moving items. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date at rates anticipated to be in force at the time of reversal. Deferred tax assets are recognised to the extent that they are more likely than not to be recoverable. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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. |
Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Employee benefit costs |
The company contributes to a defined contribution pension schemes on behalf of employees. Contributions payable to the pension schemes are charged to the income statement in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents include cash at bank and in hand. In the cash flow statement, cash and cash equivalents are shown net of any bank borrowings and overdrafts. |
Creditors payable within one year |
Creditors with no stated interest rate and payable within one year are recorded at transaction price. Any impairments are recognised in the profit and loss account. |
Financial assets |
The company's financial assets, measured at amortised cost, comprise trade and other receivables and cash and cash equivalents in the Statement of Financial Position. |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | REVENUE |
Segmental reporting |
All of the revenue is derived from the manufacture and contractual sale of chemical additives for the aviation industry and in the toll blending market place and the revenue for the financial year is split between the following geographical locations: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom | 1,271,137 | 1,289,029 |
Rest of the World | 8,516,154 | 6,908,402 |
Total revenue | 9,787,291 | 8,197,431 |
4. | OTHER OPERATING INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Rents received | 8,943 | 9,163 |
8,943 | 9,163 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Processing and laboratory work | 11 | 11 |
Administration and selling | 10 | 7 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
The company's key management comprises its directors whose remuneration is disclosed above so that no separate disclosure of key management remuneration is presented. |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
6. | NET FINANCE INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Finance income: |
Interest on taxation | - | 1,045 |
Bank interest | 20,873 | 2,908 |
Finance costs: |
Interest payable |
Leasing | 1,687 | 2,953 |
Net finance income |
7. | PROFIT BEFORE INCOME TAX |
The profit before income tax is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts or finance leases |
Computer software amortisation |
Auditors' remuneration | 12,945 | 13,173 |
Foreign exchange differences | ( |
) |
We use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. £1,250 (2022: £1,200) is included within the audit fee for tax work and £1,250 for accounts work. |
8. | INCOME TAX |
Analysis of tax expense |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
Tax |
Under provision in |
previous years | 1,889 | 12,896 |
Total current tax |
Deferred tax | ( |
) |
Total tax expense in statement of profit or loss |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
8. | INCOME TAX - continued |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes | 49,500 | 16,438 |
Depreciation in excess of capital allowances | (1,082 | ) | (4,881 | ) |
Deferred tax provision movement | 4,753 | (18,868 | ) |
Under provision in prior year | 1,889 | 12,896 |
Tax expense |
From 1 April 2023 the main corporation tax rate has increased from 19% to 25%. As such the above note includes a blended rate of £23.521%. The directors expect this change to increase future tax liabilities. |
9. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Interim - £2.38 per share | 806,696 | 862,437 |
10. | INTANGIBLE ASSETS |
Computer |
software |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
AMORTISATION |
At 1st January 2023 |
Amortisation for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Freehold | Plant and |
Totals | property | machinery |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Included in freehold property is land amounting to £189,866 (2022: £189,866) which is not depreciated. |
12. | INVENTORIES |
31.12.23 | 31.12.22 |
£ | £ |
Raw materials | 489,878 | 598,591 |
Finished goods |
13. | TRADE AND OTHER RECEIVABLES |
31.12.23 | 31.12.22 |
£ | £ |
Current: |
Trade receivables |
Other receivables | 26,582 | 25,526 |
Prepayments |
14. | CASH AND CASH EQUIVALENTS |
31.12.23 | 31.12.22 |
£ | £ |
Cash in hand |
Bank accounts |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 339,466 | 339,466 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1st January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31st December 2023 |
17. | TRADE AND OTHER PAYABLES |
31.12.23 | 31.12.22 |
£ | £ |
Current: |
Trade payables |
Social security and other taxes |
Amount owed-group undertakings | 148,170 | 147,728 |
Accrued expenses | 466,307 | 293,485 |
Amounts owed-group undertakings are unsecured, non-interest bearing and repayable on demand. |
18. | FINANCIAL LIABILITIES - BORROWINGS |
31.12.23 | 31.12.22 |
£ | £ |
Current: |
Leases (see note 19) | 10,057 | 14,183 |
Non-current: |
Leases (see note 19) | - | 11,996 |
Terms and debt repayment schedule |
1 year or |
less |
£ |
Leases | 10,057 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
19. | LEASING |
Right-of-use assets |
Property, plant and equipment |
31.12.23 | 31.12.22 |
£ | £ |
COST OR VALUATION |
At 1st January 2023 | 68,722 | 68,722 |
Transfer to ownership | (45,722 | ) | - |
23,000 | 68,722 |
DEPRECIATION |
At 1st January 2023 | 45,776 | 32,032 |
Charge for year | 12,981 | 13,744 |
Transfer to ownership | (45,722 | ) | - |
13,035 | 45,776 |
NET BOOK VALUE | 9,965 | 22,946 |
Lease liabilities |
Minimum lease payments fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Gross obligations repayable: |
Within one year | 10,057 | 15,836 |
Between one and five years | - | 12,950 |
10,057 | 28,786 |
Finance charges repayable: |
Within one year | - | 1,653 |
Between one and five years | - | 954 |
- | 2,607 |
Net obligations repayable: |
Within one year | 10,057 | 14,183 |
Between one and five years | - | 11,996 |
10,057 | 26,179 |
MCGEAN-ROHCO (U.K.) LIMITED (REGISTERED NUMBER: 01177941) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
20. | DEFERRED TAX |
31.12.23 | 31.12.22 |
£ | £ |
Balance at 1st January | 2,140 | 21,008 |
Movement in the period | 4,753 | (18,868 | ) |
Balance at 31st December |
The deferred tax balance comprises accelerated capital allowances. |
21. | PENSION COMMITMENTS |
The Company contributes to defined contribution pension schemes designed to provide retirement benefits for employees. The schemes are arranged through an insurance company who are responsible for providing the final pension benefits. Total charge for the year was £178,893 (2022: £164,529). |
22. | ULTIMATE PARENT COMPANY |
The directors consider that the immediate parent company is McGean-Rohco Holdings LLC and that the ultimate parent company is McGean-Rohco Inc, both of 2,910 Harvard Avenue, Cleveland, Ohio, 44105 U.S.A. No publicly available financial statements are required to be filed for these entities. |
23. | CONTINGENT LIABILITIES |
As part of the company's banking arrangements it has access to an overdraft facility with a limit of £500,000. This facility is secured against the property assets of the company. At the balance sheet date the company had a drawn down balance on the facility of £Nil (2022: £Nil). |
24. | RELATED PARTY DISCLOSURES |
During the year the company made purchases of £282,921 (2022: £386,907) from and sales of £47,488 (2022: £93,640) to the ultimate parent company, McGean-Rohco Inc. Royalties of £744,023 (2022: £658,677) were also paid to McGean-Rohco Inc. At the year end the company owed £123,738 (2022: £121,779) to McGean-Rohco Inc, shown as group undertakings. |
During the year management fees of £99,272 (2022: £102,930) were paid to McGean-Rohco Holdings LLC, the immediate parent company. At the year end, the company owed £24,433 (2022: £25,949) to McGean-Rohco Holdings LLC, shown as group undertakings. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is considered to be the directors of the ultimate parent company, McGean-Rohco Inc. |