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REGISTERED NUMBER: 01177941 (England and Wales)







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: Mr L Hennah
Mr D L Whitney Jnr (USA)
Mr D M Wehner (USA)





SECRETARY: Mr T J Lipscombe





REGISTERED OFFICE: Qualcast Road
Lower Horseley Fields
Wolverhampton
West Midlands
WV1 2QP





REGISTERED NUMBER: 01177941 (England and Wales)





AUDITORS: Stanton Ralph & Co Limited
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 £ 806,696 .

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.

Mr L Hennah
Mr D L Whitney Jnr (USA)
Mr D M Wehner (USA)

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:



Mr D M Wehner (USA) - Director


11th April 2024

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.




Mr A C Ralph FCA CTA (Senior Statutory Auditor)
for and on behalf of Stanton Ralph & Co Limited
Chartered Accountants
Statutory Auditor
The Old Police Station
Whitburn Street
Bridgnorth
Shropshire
WV16 4QP

11th April 2024

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
8,197,431 Revenue 3 9,787,291

(4,753,388 ) Cost of sales (5,344,538 )
3,444,043 GROSS PROFIT 4,442,753

9,163 Other operating income 4 8,943
(2,495,871 ) Administrative expenses (3,158,861 )
957,335 OPERATING PROFIT 1,292,835

(2,953 ) Finance costs 6 (3,758 )

3,953 Finance income 6 20,873
958,335 PROFIT BEFORE INCOME TAX 7 1,309,950

(187,669 ) Income tax 8 (363,173 )
770,666 PROFIT FOR THE YEAR 946,777

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
£    £   

770,666 PROFIT FOR THE YEAR 946,777

- OTHER COMPREHENSIVE INCOME -

770,666
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

946,777

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
98,578 Intangible assets 10 75,845
448,732 Property, plant and equipment 11 449,727
Right-of-use
22,946 Property, plant and equipment 11, 19 9,965
570,256 535,537
CURRENT ASSETS
709,213 Inventories 12 671,173
1,606,858 Trade and other receivables 13 1,745,039
1,785,269 Cash and cash equivalents 14 2,184,449
4,101,340 4,600,661
4,671,596 TOTAL ASSETS 5,136,198
EQUITY
SHAREHOLDERS' EQUITY
339,466 Called up share capital 15 339,466
2,785,703 Retained earnings 16 2,925,784
3,125,169 TOTAL EQUITY 3,265,250
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
11,996 Interest bearing loans and borrowings 18 -
2,140 Deferred tax 20 6,893
14,136 6,893
CURRENT LIABILITIES
1,449,354 Trade and other payables 17 1,622,556
Financial liabilities - borrowings
14,183 Interest bearing loans and borrowings 18 10,057
68,754 Tax payable 231,442
1,532,291 1,864,055
1,546,427 TOTAL LIABILITIES 1,870,948
4,671,596 TOTAL EQUITY AND LIABILITIES 5,136,198


The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 11th April 2024 and were signed on its behalf by:





Mr D M Wehner (USA) - Director


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 339,466 2,877,474 3,216,940

Changes in equity
Dividends - (862,437 ) (862,437 )
Total comprehensive income - 770,666 770,666
Balance at 31st December 2022 339,466 2,785,703 3,125,169

Changes in equity
Dividends - (806,696 ) (806,696 )
Total comprehensive income - 946,777 946,777
Balance at 31st December 2023 339,466 2,925,784 3,265,250

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
574,889 Cash generated from operations 1 1,437,483
- Interest paid (2,071 )
(2,953 ) Lease interest paid (1,687 )
(191,045 ) Tax paid (195,732 )
380,891 Net cash from operating activities 1,237,993

Cash flows from investing activities
(35,658 ) Purchase of intangible fixed assets -
(18,728 ) Purchase of tangible fixed assets (36,869 )
3,953 Interest received 20,873
(50,433 ) Net cash from investing activities (15,996 )

Cash flows from financing activities
(13,132 ) Payment of lease liabilities (16,121 )
(862,437 ) Equity dividends paid (806,696 )
(875,569 ) Net cash from financing activities (822,817 )

(545,111 ) Increase/(decrease) in cash and cash equivalents 399,180

2,330,380
Cash and cash equivalents at beginning
of year

2

1,785,269


1,785,269
Cash and cash equivalents at end of
year

2

2,184,449

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 1,309,950 958,335
Depreciation charges 71,587 64,423
Finance costs 3,758 2,953
Finance income (20,873 ) (3,953 )
1,364,422 1,021,758
Decrease/(increase) in inventories 38,040 (33,523 )
Increase in trade and other receivables (138,181 ) (398,935 )
Increase/(decrease) in trade and other payables 173,202 (14,411 )
Cash generated from operations 1,437,483 574,889

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

2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - 2% on cost
Plant and machinery - 10% on cost

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

31.12.2331.12.22
££
Rents received8,9439,163
8,9439,163

5. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 1,287,608 1,265,833
Social security costs 164,799 148,689
Other pension costs 178,893 164,529
1,631,300 1,579,051

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
21 18

31.12.23 31.12.22
£    £   
Directors' remuneration 150,179 139,748
Directors' pension contributions to money purchase schemes 31,857 29,347

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

Money purchase schemes 1 1

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
20,873 3,953
Finance costs:
Interest payable 2,071 -
Leasing 1,687 2,953
3,758 2,953

Net finance income 17,115 1,000

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 5,344,538 4,753,388
Depreciation - owned assets 35,874 35,590
Depreciation - assets on hire purchase contracts or finance leases 12,981 13,744
Computer software amortisation 22,733 15,089
Auditors' remuneration 12,945 13,173
Foreign exchange differences 61,077 (101,551 )

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 356,531 193,641
Under provision in
previous years 1,889 12,896
Total current tax 358,420 206,537

Deferred tax 4,753 (18,868 )
Total tax expense in statement of profit or loss 363,173 187,669

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 1,309,950 958,335
Profit multiplied by the standard rate of corporation tax in the UK
of 23.521% (2022 - 19%)

308,113

182,084

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 363,173 187,669

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

31.12.2331.12.22
££
Ordinary shares of £1 each
Interim - £2.38 per share806,696862,437


10. INTANGIBLE ASSETS
Computer
software
£   
COST
At 1st January 2023
and 31st December 2023 113,667
AMORTISATION
At 1st January 2023 15,089
Amortisation for year 22,733
At 31st December 2023 37,822
NET BOOK VALUE
At 31st December 2023 75,845
At 31st December 2022 98,578

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 1,732,903 905,858 827,045
Additions 36,869 - 36,869
At 31st December 2023 1,769,772 905,858 863,914
DEPRECIATION
At 1st January 2023 1,261,225 498,687 762,538
Charge for year 48,855 14,319 34,536
At 31st December 2023 1,310,080 513,006 797,074
NET BOOK VALUE
At 31st December 2023 459,692 392,852 66,840
At 31st December 2022 471,678 407,171 64,507

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 181,295 110,622
671,173 709,213

13. TRADE AND OTHER RECEIVABLES

31.12.23 31.12.22
£    £   
Current:
Trade receivables 1,598,955 1,474,122
Other receivables 26,582 25,526
Prepayments 119,502 107,210
1,745,039 1,606,858

14. CASH AND CASH EQUIVALENTS

31.12.23 31.12.22
£    £   
Cash in hand 1,024 1,024
Bank accounts 2,183,425 1,784,245
2,184,449 1,785,269

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: £    £   
339,466 Ordinary £1 339,466 339,466

16. RESERVES
Retained
earnings
£   

At 1st January 2023 2,785,703
Profit for the year 946,777
Dividends (806,696 )
At 31st December 2023 2,925,784


17. TRADE AND OTHER PAYABLES

31.12.23 31.12.22
£    £   
Current:
Trade payables 958,701 967,317
Social security and other taxes 49,378 40,824
Amount owed-group undertakings 148,170 147,728
Accrued expenses 466,307 293,485
1,622,556 1,449,354

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 6,893 2,140

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 the company made sales of £4,924 (2022:£50,817) to and purchases of £Nil (2022:£nil) from a fellow subsidiary undertaking, McGean-Rohco Singapore Pte Ltd. At the year end the company owed £Nil (2022: £Nil) to McGean-Rohco Singapore Pte Ltd, 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.