Company registration number SC355464 (Scotland)
NOBEL NC EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
NOBEL NC EUROPE LIMITED
COMPANY INFORMATION
Directors
D L W Beck
P Viprakasit
Company number
SC355464
Registered office
Elliott House
Kilwinning Road
Irvine
Ayrshire
United Kingdom
KA12 8TG
Auditor
Azets Audit Services
Titanium 1
King's Inch Place
Renfrew
Renfrewshire
United Kingdom
PA4 8WF
NOBEL NC EUROPE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 26
NOBEL NC EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The Group results for the year show a profit before tax of €2.49m (2022: €4.73m) on turnover of €34.62m (2022: €39.74m). At 31 December 2023 the group had net assets of €5.58m (2022: €3.68m).

 

The Group achieved a sales volume of 9,151 tons (9,964 tons – 2022) and was negatively affected in the US market where there was a loss of market share. Freight costs stabilised during the year but increased product costs impacted the profitability of the Company. Despite this, the Group maintained a profitable profile assisted by closely monitored operational costs.

The Directors wish to record their appreciation of the staff, who continue to demonstrate commitment and professionalism whilst contending with any problems arising from the trading conditions.

Future outlook

The directors believe that by focussing on continued operating and efficiency improvements the group will be in a strong position to meet the current uncertainties faced in the economy as a whole.

Principal risks and uncertainties

We believe that the company can meet key business risks of competition, both national and international, and also of retention of key employees.

 

The company's principal financial instruments comprise of cash, intercompany deposits and/or borrowings, the main purpose of which is to provide finance for its normal trading operations and to reduce the impact of foreign currency exchange rate movements on trading results.

 

The company has various other financial instruments such as trade debtors and creditors that arise directly from its trading operations.

 

The main risks arising from the company's financial instruments are liquidity and foreign currency cash flow risks. The company has clear policies for managing each of these risks, as summarised below.

 

Liquidity risk

Liquidity risk is the risk that an organisation may not have, or may not be able to raise, cash funds when needed. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets. Investment is carefully controlled, with authorisation limits operating at different levels up to group board level and with hurdle rates of return and cash payback periods applied as part of the investment appraisal process.

 

The group is financed by group debt and has no external sources of finance. The directors of Nobel NC Europe Limited have obtained confirmation of the continued support from the source of the group funding, Nobel NC Company Limited (company incorporated in Thailand) and are satisfied with the ability of this company to continue to provide such support.

 

Foreign currency cash flow risk

The company buys and sells goods and services denominated in currencies other than Euros. The company manages such receipts and payments through the operation of other denominated currency bank accounts.

NOBEL NC EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

During the period the directors used a number of Key Performance Indicators (KPI's) to monitor the group's business. The financial indicators included sales prices and volumes, variable and fixed costs and working capital levels.

On behalf of the board

D L W Beck
Director
11 March 2024
NOBEL NC EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of the sale of nitrocellulose.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D L W Beck
P Viprakasit
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
D L W Beck
Director
11 March 2024
NOBEL NC EUROPE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NOBEL NC EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOBEL NC EUROPE LIMITED
- 5 -
Opinion

We have audited the financial statements of Nobel NC Europe Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

NOBEL NC EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOBEL NC EUROPE LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

NOBEL NC EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOBEL NC EUROPE LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's 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.

David MacCallum (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
14 March 2024
Chartered Accountants
Statutory Auditor
Titanium 1
King's Inch Place
Renfrew
Renfrewshire
United Kingdom
PA4 8WF
NOBEL NC EUROPE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
Turnover
3
34,617,139
39,735,603
Cost of sales
(30,609,942)
(33,172,636)
Gross profit
4,007,197
6,562,967
Administrative expenses
(1,517,082)
(1,836,338)
Operating profit
4
2,490,115
4,726,629
Interest payable and similar expenses
7
2,512
-
0
Profit before taxation
2,492,627
4,726,629
Tax on profit
8
(587,147)
(447,841)
Profit for the financial year
18
1,905,480
4,278,788
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
NOBEL NC EUROPE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
Fixed assets
Tangible assets
9
54,408
27,371
Current assets
Stocks
12
6,864,401
6,342,953
Debtors
13
6,659,410
7,491,384
Cash at bank and in hand
3,616,626
5,001,247
17,140,437
18,835,584
Creditors: amounts falling due within one year
14
(11,612,079)
(15,185,669)
Net current assets
5,528,358
3,649,915
Net assets
5,582,766
3,677,286
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
18
5,582,765
3,677,285
Total equity
5,582,766
3,677,286
The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
11 March 2024
D L W Beck
Director
Company registration number SC355464 (Scotland)
NOBEL NC EUROPE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
Fixed assets
Tangible assets
9
54,408
27,371
Investments
10
1
1
54,409
27,372
Current assets
Stocks
12
5,336,096
4,720,249
Debtors
13
4,669,300
4,903,808
Cash at bank and in hand
2,787,507
1,494,793
12,792,903
11,118,850
Creditors: amounts falling due within one year
14
(10,836,834)
(12,930,927)
Net current assets/(liabilities)
1,956,069
(1,812,077)
Net assets/(liabilities)
2,010,478
(1,784,705)
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
18
2,010,477
(1,784,706)
Total equity
2,010,478
(1,784,705)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was €3,795,183 (2022 - €1,720,160 profit).

The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
11 March 2024
D L W Beck
Director
Company registration number SC355464 (Scotland)
NOBEL NC EUROPE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Balance at 1 January 2022
1
(601,503)
(601,502)
Year ended 31 December 2022:
Profit and total comprehensive income
-
4,278,788
4,278,788
Balance at 31 December 2022
1
3,677,285
3,677,286
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,905,480
1,905,480
Balance at 31 December 2023
1
5,582,765
5,582,766
NOBEL NC EUROPE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Balance at 1 January 2022
1
(3,504,866)
(3,504,865)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,720,160
1,720,160
Balance at 31 December 2022
1
(1,784,706)
(1,784,705)
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,795,183
3,795,183
Balance at 31 December 2023
1
2,010,477
2,010,478
NOBEL NC EUROPE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
Cash flows from operating activities
Cash generated from operations
22
433,200
1,196,317
Interest paid
2,512
-
0
Income taxes paid
(1,775,150)
-
0
Net cash (outflow)/inflow from operating activities
(1,339,438)
1,196,317
Investing activities
Purchase of tangible fixed assets
(45,183)
(25,546)
Net cash used in investing activities
(45,183)
(25,546)
Net (decrease)/increase in cash and cash equivalents
(1,384,621)
1,170,771
Cash and cash equivalents at beginning of year
5,001,247
3,830,476
Cash and cash equivalents at end of year
3,616,626
5,001,247
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

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

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in Euros, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest €.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Nobel NC Europe Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern

During the year the group reported a profit before tax of €2.49m (2022: €4.73m) and had net assets of €5.58m (2022: €3.68m). The group had net current assets of €5.53m at year end (2022: €3.65m)

 

The group has significant cash reserves, is financed by group debt and has no external sources of finance. The directors of Nobel NC Europe Limited have obtained confirmation of the continued support from the source of group funding, Nobel NC Company Limited (company incorporated in Thailand) and are satisfied with the ability of this company to continue to provide such support.

 

Consequently the directors consider it appropriate that the financial statements are prepared on the going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
33% on cost and 25% on cost
Computer equipment
33% on cost and 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Stock includes purchase cost plus landing and delivery costs incurred. The cost of consignment stock held at third party locations includes freight charges and import duty.

 

Goods in transit at the balance sheet date are included in stock where the risks and rewards of ownership lie with the company.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than euros are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2023
2022
Turnover analysed by geographical market
Europe
23,023,873
21,057,009
United States of America
11,593,266
18,678,594
34,617,139
39,735,603
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
Exchange losses
143,103
304,504
Depreciation of owned tangible fixed assets
18,146
6,240
Operating lease charges
34,088
28,848
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales and administration
11
13
11
13
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
Wages and salaries
767,345
934,134
767,345
934,134
Social security costs
63,873
109,131
63,873
109,131
Pension costs
55,743
76,379
55,743
76,379
886,961
1,119,644
886,961
1,119,644
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the group and company
17,950
16,715
Audit of the financial statements of the company's subsidiaries
12,050
11,235
30,000
27,950
For other services
Taxation compliance services
5,350
4,950
7
Interest receivable
2023
2022
Other finance income:
Other interest
(2,512)
-
8
Taxation
2023
2022
Current tax
UK corporation tax on profits for the current period
574,922
457,408
Adjustments in respect of prior periods
-
0
(321)
Total current tax
574,922
457,087
Deferred tax
Origination and reversal of timing differences
12,225
(9,246)
Total tax charge
587,147
447,841
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 21 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
Profit before taxation
2,492,627
4,726,629
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
586,266
898,060
Tax effect of expenses that are not deductible in determining taxable profit
285
256
Adjustments in respect of prior years
9
-
0
Permanent capital allowances in excess of depreciation
-
0
(1,322)
Foreign exchange differences
-
0
(321)
Adjust closing deferred tax to average rate
732
(2,220)
Movement in deferred tax not recognised
(145)
(446,612)
Taxation charge
587,147
447,841
9
Tangible fixed assets
Group
Fixtures and fittings
Computer equipment
Total
Cost
At 1 January 2023
20,165
188,142
208,307
Additions
-
0
45,183
45,183
At 31 December 2023
20,165
233,325
253,490
Depreciation and impairment
At 1 January 2023
16,181
164,755
180,936
Depreciation charged in the year
1,598
16,548
18,146
At 31 December 2023
17,779
181,303
199,082
Carrying amount
At 31 December 2023
2,386
52,022
54,408
At 31 December 2022
3,984
23,387
27,371
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Tangible fixed assets
(Continued)
- 22 -
Company
Fixtures and fittings
Computer equipment
Total
Cost
At 1 January 2023
20,165
188,142
208,307
Additions
-
0
45,183
45,183
At 31 December 2023
20,165
233,325
253,490
Depreciation and impairment
At 1 January 2023
16,181
164,755
180,936
Depreciation charged in the year
1,598
16,548
18,146
At 31 December 2023
17,779
181,303
199,082
Carrying amount
At 31 December 2023
2,386
52,022
54,408
At 31 December 2022
3,984
23,387
27,371
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
Investments in subsidiaries
11
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
Cost or valuation
At 1 January 2023 and 31 December 2023
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Nobel Trading Limited
(1)
Ordinary
100.00

(1) Elliott House, Kilwinning Road, Irvine, Ayrshire, KA12 8TG

12
Stocks
Group
Company
2023
2022
2023
2022
Finished goods and goods for resale
6,864,401
6,342,953
5,336,096
4,720,249
13
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
Trade debtors
5,383,252
6,570,500
3,861,713
4,018,265
Corporation tax recoverable
763,037
-
0
478,263
-
0
Other debtors
301,946
802,633
220,364
771,870
Prepayments and accrued income
203,083
97,934
100,868
93,356
6,651,318
7,471,067
4,661,208
4,883,491
Deferred tax asset (note 15)
8,092
20,317
8,092
20,317
6,659,410
7,491,384
4,669,300
4,903,808
14
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Trade creditors
327,025
629,401
246,280
313,456
Amounts owed to group undertakings
10,715,896
13,851,189
10,136,167
12,281,275
Corporation tax payable
-
0
437,191
-
0
68,308
Other taxation and social security
14,753
31,961
14,753
31,961
Other creditors
5,326
22,043
5,326
22,043
Accruals and deferred income
549,079
213,884
434,308
213,884
11,612,079
15,185,669
10,836,834
12,930,927
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2022
Group
Timing differences
8,092
20,317
Assets
Assets
2023
2022
Company
Timing differences
8,092
20,317
Group
Company
2023
2023
Movements in the year:
Asset at 1 January 2023
(20,317)
(20,317)
Charge to profit or loss
12,225
12,225
Asset at 31 December 2023
(8,092)
(8,092)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
55,743
76,379

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
Issued and fully paid
Ordinary share of £1 each
1
1
1
1

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
18
Profit and loss reserves
Group
Company
2023
2022
2023
2022
At the beginning of the year
3,677,285
(601,503)
(1,784,706)
(3,504,866)
Profit for the year
1,905,480
4,278,788
3,795,183
1,720,160
At the end of the year
5,582,765
3,677,285
2,010,477
(1,784,706)
19
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
Within one year
35,663
35,641
35,663
35,641
Between two and five years
28,871
67,057
28,871
67,057
64,534
102,698
64,534
102,698
20
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Purchases
Purchases
2023
2022
Group
Entities with control, joint control or significant influence over the group
25,903,290
24,441,504
Company
Entities with control, joint control or significant influence over the company
17,745,458
15,214,695

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
Group
Entities with control, joint control or significant influence over the group
10,715,896
13,851,189
NOBEL NC EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Related party transactions
(Continued)
- 26 -
Company
Entities with control, joint control or significant influence over the company
10,136,167
11,437,626
Other information

The company has taken advantage of the exemption provided by Paragraph 33.1A of Financial Reporting Standard 102 and accordingly has not disclosed any transactions with group undertakings which are included within the consolidated accounts and where 100% of voting rights are controlled within the group.

21
Controlling party

The immediate parent company is Nobel NC Company Limited, a company incorporated in Thailand.

 

The ultimate controlling party is Nitro Chemical Industry Limited, a company incorporated in Thailand, by virtue of its shareholding in Nobel NC Company Limited.

22
Cash generated from group operations
2023
2022
Profit for the year after tax
1,905,480
4,278,788
Adjustments for:
Taxation charged
587,147
447,841
Finance income
(2,512)
-
0
Depreciation and impairment of tangible fixed assets
18,146
6,240
Movements in working capital:
Increase in stocks
(521,448)
(266,125)
Decrease/(increase) in debtors
1,582,786
(2,325,819)
Decrease in creditors
(3,136,399)
(944,608)
Cash generated from operations
433,200
1,196,317
23
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
Cash at bank and in hand
5,001,247
(1,384,621)
3,616,626
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