Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false552023-01-01falsetruefalse 02414292 2023-01-01 2023-12-31 02414292 2022-01-01 2022-12-31 02414292 2023-12-31 02414292 2022-12-31 02414292 2022-01-01 02414292 c:Director1 2023-01-01 2023-12-31 02414292 c:Director2 2023-01-01 2023-12-31 02414292 c:Director3 2023-01-01 2023-12-31 02414292 c:RegisteredOffice 2023-01-01 2023-12-31 02414292 d:PlantMachinery 2023-01-01 2023-12-31 02414292 d:PlantMachinery 2023-12-31 02414292 d:PlantMachinery 2022-12-31 02414292 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02414292 d:OfficeEquipment 2023-01-01 2023-12-31 02414292 d:OfficeEquipment 2023-12-31 02414292 d:OfficeEquipment 2022-12-31 02414292 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02414292 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02414292 d:ComputerSoftware 2023-12-31 02414292 d:ComputerSoftware 2022-12-31 02414292 d:CurrentFinancialInstruments 2023-12-31 02414292 d:CurrentFinancialInstruments 2022-12-31 02414292 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02414292 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 02414292 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 02414292 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 02414292 d:UKTax 2023-01-01 2023-12-31 02414292 d:UKTax 2022-01-01 2022-12-31 02414292 d:ShareCapital 2023-01-01 2023-12-31 02414292 d:ShareCapital 2023-12-31 02414292 d:ShareCapital 2022-01-01 2022-12-31 02414292 d:ShareCapital 2022-12-31 02414292 d:ShareCapital 2022-01-01 02414292 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02414292 d:RetainedEarningsAccumulatedLosses 2023-12-31 02414292 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02414292 d:RetainedEarningsAccumulatedLosses 2022-12-31 02414292 d:RetainedEarningsAccumulatedLosses 2022-01-01 02414292 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02414292 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02414292 c:OrdinaryShareClass1 2023-01-01 2023-12-31 02414292 c:OrdinaryShareClass1 2023-12-31 02414292 c:OrdinaryShareClass1 2022-12-31 02414292 c:FRS102 2023-01-01 2023-12-31 02414292 c:Audited 2023-01-01 2023-12-31 02414292 c:FullAccounts 2023-01-01 2023-12-31 02414292 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02414292 d:HirePurchaseContracts d:WithinOneYear 2023-12-31 02414292 d:HirePurchaseContracts d:WithinOneYear 2022-12-31 02414292 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-12-31 02414292 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-12-31 02414292 2 2023-01-01 2023-12-31 02414292 6 2023-01-01 2023-12-31 02414292 d:ComputerSoftware d:OwnedIntangibleAssets 2023-01-01 2023-12-31 02414292 e:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 02414292












OXERRA UK LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
 31 DECEMBER 2023





















 


img6055.png
01483 755 399
hamlyns.com

 
OXERRA UK LIMITED
 

COMPANY INFORMATION


Directors
Kwan Ping David Yu 
Kwan Yau Yu 
Timothy Southgate 




Registered number
02414292



Registered office
Liverpool Road East
Kidsgrove

Stoke-On-Trent

ST7 3AA




Independent auditors
Hamlyns Limited
Chartered Accountants & Statutory Auditors

Sundial House

High Street

Horsell

Woking

GU21 4SU






 
OXERRA UK LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditors' Report
 
 
4 - 7
Statement of Comprehensive Income
 
 
8
Balance Sheet
 
 
9
Statement of Changes in Equity
 
 
10
Notes to the Financial Statements
 
 
11 - 25


 
OXERRA UK LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The company imports and distributes iron oxide pigments for use by the coatings, speciality and construction industries, this is expected to continue into the foreseeable future. During 2023 Oxerra UK has also sold manufactured inorganic pigments on behalf of Oxerra Pigments UK Limited.

Business review
 
The company made a profit after taxation of £442,000 (2022: £923,000). Turnover has increased by 73% to £24,016,000 due to supplying former Venator Pigments customers following the group acquisition of the business. Net assets at 31 December 2023 were £2,443,000 (2022: £1,997,000), the increase being as a result of the profit made by the company in the year. Trade Debtors have increased by £1,737,000 to £4,266,000 as a result of the increased trade. Total internal and external trade creditors have increased by £239,000 to £514,000, again due to an increase in trade.
Development and performance 
Sales Q1 2023 continued to be robust across all key market sectors notably the Construction, Coatings and Plastics Industry. The business's overall market position was further strengthened by the acquisition of Venator's Colour Pigments business 1st April 2023 expanding Oxerra UK's product offering with the addition of two UK based manufacturing sites producing Pigment Disperions and Complex Inorganic Colour Pigments. This expanded portfolio of products opened up new markets for the UK business and enabled a strong sales performance despite a slow down in the UK market 2nd half 2023.

Principal risks and uncertainties
 
The company's principal financial assets are accounts receivable balances from customers and amounts due from fellow group undertakings. The company has policies and procedures in place to limit the risks associated with non payment of customer receipts. The company holds the majority of its receivable balances with trade debtors and, as at the reporting date, there are no cash and cash equivalent balances held with financial institutions. As a result, the directors consider that credit risk is limited. The company sells in foreign currencies and is therefore exposed to some foreign exchange risk; this risk is partially mitigated through purchases in foreign currencies and foreign currency exchange at a group level.

Financial key performance indicators
 
Oxerra's key performance indicators allow the business to measure both the financial value created for its stakeholders and the strategic value in growing the business and delivering on its purpose. The directors consider that the company has the following financial KPI's as a measure of its performance and position:
                                              2023           2022    Change
                                              £'000          £'000       %
Revenues                                    24,016      13,850        73%
Operating Profit                           470            1,141        -59%
Profit After Tax                            442         923        -52%
Equity Shareholders' Funds   2,445          2,003          22%


This report was approved by the board on 12 July 2024 and signed on its behalf.



___________________________
Timothy Southgate
Director

Page 1

 
OXERRA UK LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company in the year under review remained that of the import and export of synthetic iron oxides, organic pigments and food dyes.

Results and dividends

The profit for the year, after taxation, amounted to £441,994 (2022 - £923,242).

Directors

The Directors who served during the year were:

Kwan Ping David Yu 
Kwan Yau Yu 
Timothy Southgate 

Future developments

In 2024 Oxerra UK has begun stocking manufactured inorganic pigments and as a result will increase inventories and overseas revenue.

Page 2

 
OXERRA UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHamlyns Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 12 July 2024 and signed on its behalf.
 





___________________________
Timothy Southgate
Director

Page 3

 
OXERRA UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA UK LIMITED
 

Opinion


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


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 
OXERRA UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA UK LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its 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:


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 Directors' Responsibilities Statement set out on page 2, 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 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.


Page 5

 
OXERRA UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA UK LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are the Companies Act 2006, the reporting framework of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and UK taxation legislation. 
We understood how the company was complying with those frameworks through discussions with management and those charged with governance. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. Based on our understanding of the entity and its environment we identified the following areas as key risks and designed our audit approach as detailed to ensure material misstatements and irregularities would be detected in these areas:
Management over-ride:
We undertook testing of controls and systems to gain assurance these have been operating as expected during the period. We also performed journal testing to test the efficacy of journals posted during the period. Additionally, we have reviewed the disclosures in the accounts and the Directors report to ensure they agree with our findings from the audit testing carried out.
Related parties:
Our testing in this area has followed the requirements of ISA 550 (UK). We have issued the Directors with related party declarations to fill out and sign and have compared the information gathered against our knowledge and used this as one way for identifying potential related party disclosures. We have reviewed the disclosure in the financial statements and ensured this agrees with our findings from our audit work.
Revenue recognition:
The main area of risk identified with Income recognition lies with cut off and completion of income. To ensure this is not materially misstated or manipulated we have carried out substantive testing on income cut off and completion.
Stock:
The main risk area in terms of stock is stock valuation. Substantive testing will be carried out on the stock balance to ensure it is not materially misstated.
 


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


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


Page 6

 
OXERRA UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA UK LIMITED (CONTINUED)


Use of our report
 

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





Oliver Spevack ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
Hamlyns Limited
 
Chartered Accountants
Statutory Auditors
  
Sundial House
High Street
Horsell
Woking
GU21 4SU

12 July 2024
Page 7

 
OXERRA UK LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

  

Turnover
 4 
24,016,220
13,850,210

Cost of sales
  
(21,765,439)
(11,574,841)

Gross profit
  
2,250,781
2,275,369

Distribution costs
  
(706,153)
(611,783)

Administrative expenses
  
(1,075,063)
(522,213)

Operating profit
 5 
469,565
1,141,373

Interest receivable and similar income
 9 
149
203

Profit before tax
  
469,714
1,141,576

Tax on profit
 10 
(27,720)
(218,334)

Profit for the financial year
  
441,994
923,242

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 25 form part of these financial statements.

Page 8

 
OXERRA UK LIMITED
REGISTERED NUMBER: 02414292

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
-
2,811

Tangible assets
 12 
1,470
3,283

  
1,470
6,094

Current assets
  

Stocks
 14 
5,946,514
4,638,389

Debtors: amounts falling due within one year
 15 
6,506,490
2,529,557

Cash at bank and in hand
 16 
1,361,050
537,427

  
13,814,054
7,705,373

Creditors: amounts falling due within one year
 17 
(11,370,683)
(5,708,620)

Net current assets
  
 
 
2,443,371
 
 
1,996,753

Total assets less current liabilities
  
2,444,841
2,002,847

  

Net assets
  
2,444,841
2,002,847


Capital and reserves
  

Called up share capital 
 20 
212,577
212,577

Profit and loss account
 21 
2,232,264
1,790,270

  
2,444,841
2,002,847


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 July 2024.




___________________________
Timothy Southgate
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
OXERRA UK LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
212,577
867,028
1,079,605


Comprehensive income for the year

Profit for the year

-
923,242
923,242


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
923,242
923,242


Total transactions with owners
-
-
-



At 1 January 2023
212,577
1,790,270
2,002,847


Comprehensive income for the year

Profit for the year

-
441,994
441,994


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
441,994
441,994


Total transactions with owners
-
-
-


At 31 December 2023
212,577
2,232,264
2,444,841


The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
OXERRA UK LIMITED
 

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

1.


General information

Oxerra UK Limited, formally Cathay Industries (UK) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address are shown below:
Registered number: 02414292
Registered office address: Liverpool Road East, Kidsgrove, Stoke-On-Trent, England, ST7 3AA
Oxerra UK Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions availale to it in respect of its financial statements. Exemptions have been taken in relation to presentation of a cash flow statement, financial instruments, intra-group transactions and remuneration of key management personnel. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.3

Going concern

The directors have gained assurances from the ultimate parent undertaking, Cathay Pigments (Holdings) Limited, that continued financial support will be provided.
The ultimate parent company has shown its commitment to the directors that it will provide continuous and sufficient financial resources to the company for the forseeable future, being a period of at least 12 months from approval of these financial statements. This will ensure liabilities are met as they fall due and will enable Oxerra UK Limited to carry on its business.
The Board of Directors have concluded that the business will continue to demonstrate strong sales growth and increased levels of profitability throughout 2023. 
Demand for the company's products across all key market sectors (construction, coatings, plastics & specialities) remains strong and is further supported by the development and introduction of new technology and product ranges.
Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Page 11

 
OXERRA UK LIMITED
 

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

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pound Sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

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

Sale of goods

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

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 12

 
OXERRA UK LIMITED
 

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

2.Accounting policies (continued)

 
2.7

Pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
The recognition of deferred tax assets is based on forecasts of future taxable profit.  The measurement of future taxable profit for the purpose of determining whether or not to recognise deferred tax assets depends on many factors, including the company's ability to generate such profits and the implementation of effective tax planning strategies.  The occurrence or non-occurence of such events in the future may lead to significant changes in the measurement of deferred tax assets.

 
2.9

Intangible assets

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

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Computer software is being amortised evenly over its estimated useful life of five years.

Page 13

 
OXERRA UK LIMITED
 

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

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
Straight line over 3-4 years
Office equipment
-
Straight line over 3-4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

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

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

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 14

 
OXERRA UK LIMITED
 

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

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly
Page 15

 
OXERRA UK LIMITED
 

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

2.Accounting policies (continued)


2.17
Financial instruments (continued)

traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are
Page 16

 
OXERRA UK LIMITED
 

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

2.Accounting policies (continued)


2.17
Financial instruments (continued)

settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Companys accounting policies, which are described in note 2, 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 
The directors have not made any critical accounting judgements in the process of applying the company's accounting policies, that could have a significant effect on the amounts recognised in the parent company Financial Statements.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Turnover
24,016,220
13,850,210

24,016,220
13,850,210


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(37,348)
111,079

Page 17

 
OXERRA UK LIMITED
 

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

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,000
10,650


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
224,718
177,888

Social security costs
19,687
15,487

Cost of defined contribution scheme
13,521
8,509

257,926
201,884


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


        2023
        2022
            No.
            No.







Average number of employees
5
5


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
129,450
106,670

129,450
106,670



9.


Interest receivable

2023
2022
£
£


Other interest receivable
149
203

149
203

Page 18

 
OXERRA UK LIMITED
 

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

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
27,720
218,334


27,720
218,334


Total current tax
27,720
218,334

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
469,714
1,141,576


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
117,429
216,899

Effects of:


Capital allowances for year in excess of depreciation
(1,075)
1,435

Other differences leading to an increase (decrease) in the tax charge
(243)
-

Group relief
(88,391)
-

Total tax charge for the year
27,720
218,334


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
OXERRA UK LIMITED
 

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

11.


Intangible assets




Computer software

£



Cost


At 1 January 2023
33,925



At 31 December 2023

33,925



Amortisation


At 1 January 2023
31,114


Charge for the year on owned assets
2,811



At 31 December 2023

33,925



Net book value



At 31 December 2023
-



At 31 December 2022
2,811



Page 20

 
OXERRA UK LIMITED
 

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

12.


Tangible fixed assets





Plant and machinery
Office equipment
Total

£
£
£



Cost


At 1 January 2023
6,400
5,001
11,401


Additions
-
414
414



At 31 December 2023

6,400
5,415
11,815



Depreciation


At 1 January 2023
4,215
3,903
8,118


Charge for the year on owned assets
1,559
668
2,227



At 31 December 2023

5,774
4,571
10,345



Net book value



At 31 December 2023
626
844
1,470



At 31 December 2022
2,185
1,098
3,283

Page 21

 
OXERRA UK LIMITED
 

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

13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
75,300



At 31 December 2023

75,300



Impairment


At 1 January 2023
75,300



At 31 December 2023

75,300



Net book value



At 31 December 2023
-



At 31 December 2022
-

The investment relates to a 100% shareholding in a subsidiary.


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
5,946,514
4,638,389

5,946,514
4,638,389



15.


Debtors

2023
2022
£
£


Trade debtors
4,265,700
2,519,959

Amounts owed by group undertakings
2,236,726
-

Prepayments and accrued income
360
5,894

Deferred taxation
3,704
3,704

6,506,490
2,529,557


Page 22

 
OXERRA UK LIMITED
 

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

16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,361,050
537,427

1,361,050
537,427



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
513,885
274,878

Amounts owed to group undertakings
10,678,723
4,543,427

Corporation tax
27,820
217,485

Other taxation and social security
113,043
487,080

Other creditors
3,962
6,831

Accruals and deferred income
33,250
178,919

11,370,683
5,708,620



18.


Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:


2023
2022
£
£


Within one year
-
10,000

Between 1-5 years
-
7,500

-
17,500


19.


Deferred taxation




2023


£






At beginning of year
3,704



At end of year
3,704

Page 23

 
OXERRA UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
19.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
3,704
3,704

3,704
3,704

Page 24

 
OXERRA UK LIMITED
 

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

20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



212,577 (2022 - 212,577) Ordinary Shares shares of £1.00 each
212,577
212,577



21.


Reserves

Profit and loss account

Reserves as at 1 January 2023 were £1,790,270. The profit for the year is £441,994 resulting in reserve as at 31 December 2023 being £2,232,264.


22.


Contingent liabilities

At 31 December 2023 the company had given a guarantee to HM Revenue & Customs in respect of duty deferment to the sum of £100,000 (2022: £100,000).


23.


Pension commitments

Pension commitments at the year end were £13,487 (2022: £8,509)


24.


Ultimate Controlling party

The ultimate parent undertaking as at the year end was Cathay Pigments Holdings Limited, a company incorporated in the British Virgin Islands. The registered business address is Suite 901A, 9/F, China Chem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong.
The smallest and largest group preparing consolidated accounts including the results of Oxerra UK Limited is Cathay Pigments Holdings Limited.


25.


Related party transactions

The Company has taken advantage of the exemption available to group companies within FRS 102 Section 33 'Related Party Disclosures' which allows it not to disclose transactions with its related parties. 


Page 25