Company registration number 03295054 (England and Wales)
SOUDAL (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SOUDAL (UK) LIMITED
CONTENTS
Page
Strategic report
2 - 3
Director's report
4 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
SOUDAL (UK) LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr D A Coorevits
Company number
03295054
Registered office
Soudal House
Unit 1 Centurion Way, Centurion Park
Watling Street
Tamworth
Staffordshire
England
B77 5PN
Auditor
Haslehursts Limited
88 Hill Village Road
Sutton Coldfield
West Midlands
England
B75 5BE
SOUDAL (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

We aim to present a brief but comprehensive review of the performance of our business. Our review is consistent with the size and nature of our business.

 

Despite a shrinking market, we continued on our growth path in all divisions, aided by a major new marketing campaign.

 

In the retail market, we exceeded budget amongst others thanks to several key players further developing their ranges with us and buying into our marketing plans. The professional market as a whole shrank and especially towards the end of the year, the picture was more subdued. Nevertheless, we increased our turnover and volume.

 

Overall, we ended the year considerably higher than the previous year, and higher than budget.

 

Our main asset, our Team, grew further by 20%, again to ensure our continued growth. The 2022 reorganisation has had a marked positive effect.

 

Various initiatives to mitigate our impact on the planet were also introduced, from changing the lighting in the warehouse and office to LEDs to changing most of our car fleet to electric vehicles.

Principal risks and uncertainties

The world seems to be a riskier place in general, but Soudal (UK) has built up its resilience and its agility to be able to handle whatever we are facing with confidence.

Key performance indicators

The directors of the company monitor key performance indicators on an ongoing basis, particularly in relation to sales growth, margins, volumes and costs.

Other information and explanations

2023 has been another record year. Agility and communication with all stakeholders continue to be vital.

Section 172 (1) Statement and Stakeholder Engagement Statement

The directors are fully aware of their responsibilities to promote the success of the Company in accordance with section 172 if the Companies Act 2006.

 

When making decisions, directors have regard to the interests of stakeholders relevant to the Company, as well as the likely consequences of any decision in the long term, the desirability of the Company maintaining a reputation for high standards of business conduct, and employee interests.

 

The Company's key stakeholders include our customers, colleagues, suppliers, communities, regulators and Government and our holding Company.

SOUDAL (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Stakeholder engagement

Customer engagement:

Customer safety and satisfaction are pivotal to the success of our business. Our extensive sales team collects customer feedback in a systematic way to enable us to pre-empt any general issues and to address any specific ones. Our International Code of Conduct stipulates the way we approach our customers, with honesty and integrity. Our continued success is testament to the way we collaborate with our customer base. Our long-term vision is also helping us to maintain customer relationships beyond the transactional

 

Colleague engagement:

An effective people strategy and strong culture are essential for the effective delivery of our strategy and ultimately our performance.

 

Management operates an open-door policy and supports its staff beyond the legally required measures. It has also retained the services of an HR, Employment Law and Health & Safety consultancy to ensure best possible practice. This includes an Employee Assistance Programme offering 24/7 personal advice by a team of specialists. The Company also involves all staff in the results and successes of the Company.

 

In view of the cost-of-living crisis, the Company addressed staff's concerns through special interim measures. It also recognises the importance of upskilling our staff through internal and external training and we have also implemented a practical work-from-home policy.

 

As a result, staff retention and average seniority continue to improve.

 

Supplier engagement:

The main supplier of the Company is the Soudal Group with whom there is daily interaction on all fronts. The Belgian head office of the Group operates as a hub for both internal and external suppliers.

 

Relations with the limited number of local suppliers are cordial and tend to be long-standing. Plans are in place to develop those relationships even further.

 

Community engagement:

Soudal (UK)'s impact on the community is primarily through its range of products aimed at improving the insulation of the building envelope, thereby increasing airtightness and minimising energy use. We also continue to develop our local Team in Tamworth, contributing to the local economy in an increasingly significant way.

 

Regulators and government

Soudal has always been at the forefront when it comes to the introduction of new regulations, having been involved in the development of some of them, and continues to do so.

 

 

On behalf of the board

Mr D A Coorevits
Director
29 July 2024
SOUDAL (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be the distribution of sealants, PU foams and adhesives manufactured by the Soudal Group for the UK professional, consumer and industrial markets.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £869,050. The director does not recommend payment of a further dividend.

Director

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

Mr D A Coorevits
Future developments

The business strategy is to re-invest profits back into the group to allow the business to grow further.

Auditor

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

SOUDAL (UK) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Energy and carbon report

The Companies (Director’s Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 implement the government’s policy on Streamlined Energy and Carbon Reporting (SECR). The Company is required to report its energy usage and carbon emissions in accordance with these regulations.

 

The period covered for the SECR report is 1st January 2023 to 31st December 2023.

 

Under the requirements of SECR, an unquoted large company must report on the following:

 

 

Soudal (UK) Energy Use (1st January 2023 to 31st December 2023)

 

Emissions Breakdown by Scope (tCO2e)     2023    2022    % Change

            

Scope 1                    82    119    -31.30%

Scope 2                    65    20    224.00%

            

Total                    147    139    5.50%

Intensity Metric (tCO2e/£m turnover)    1.62    1.80

 

Methodology

 

The Company has used the main requirements of the Greenhouse Gas Protocol Corporate Standard to calculate our emissions, along with the UK Government GHG Conversion Factors for Company Reporting 2023. Any estimates included in our total are derived from actual data extrapolated to cover missing periods.

 

Data Sources

 

The data was collected from various sources as detailed below:

 

 

Energy Efficiency Actions taken in 2023:

 

 

Longer term initiatives under consideration

 

 

 

SOUDAL (UK) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr D A Coorevits
Director
29 July 2024
SOUDAL (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUDAL (UK) LIMITED
- 7 -
Opinion

We have audited the financial statements of Soudal (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The 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:

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 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 director's 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 director 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 director is 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:

SOUDAL (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUDAL (UK) LIMITED (CONTINUED)
- 8 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the company’s legal and regulatory framework and the industry in which it operates. We considered the risk of acts by the company that might have contravened applicable laws and regulations, including fraud. Our audit procedures were designed to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by way of forgery, intentional representations or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and third party company representatives. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

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.

SOUDAL (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUDAL (UK) LIMITED (CONTINUED)
- 9 -
Stuart Penfold
Senior Statutory Auditor
For and on behalf of Haslehursts Limited
29 July 2024
Chartered Accountants
Statutory Auditor
88 Hill Village Road
Sutton Coldfield
West Midlands
England
B75 5BE
SOUDAL (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
84,125,076
73,507,651
Cost of sales
(76,827,084)
(67,701,948)
Gross profit
7,297,992
5,805,703
Administrative expenses
(5,321,054)
(4,079,437)
Operating profit
4
1,976,938
1,726,266
Interest receivable and similar income
7
38,682
1,910
Profit before taxation
2,015,620
1,728,176
Tax on profit
8
(495,828)
(325,973)
Profit for the financial year
1,519,792
1,402,203

The income statement has been prepared on the basis that all operations are continuing operations.

SOUDAL (UK) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
203,998
190,277
Current assets
Stocks
11
4,107,678
4,500,107
Debtors
12
17,741,261
18,309,375
Cash at bank and in hand
3
4
21,848,942
22,809,486
Creditors: amounts falling due within one year
13
(19,406,149)
(21,018,417)
Net current assets
2,442,793
1,791,069
Total assets less current liabilities
2,646,791
1,981,346
Provisions for liabilities
Deferred tax liability
14
49,907
35,204
(49,907)
(35,204)
Net assets
2,596,884
1,946,142
Capital and reserves
Called up share capital
16
2
2
Profit and loss reserves
17
2,596,882
1,946,140
Total equity
2,596,884
1,946,142
The financial statements were approved and signed by the director and authorised for issue on 29 July 2024
Mr D A Coorevits
Director
Company registration number 03295054 (England and Wales)
SOUDAL (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
2
8,543,937
8,543,939
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,402,203
1,402,203
Dividends
9
-
(8,000,000)
(8,000,000)
Balance at 31 December 2022
2
1,946,140
1,946,142
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,519,792
1,519,792
Dividends
9
-
(869,050)
(869,050)
Balance at 31 December 2023
2
2,596,882
2,596,884
SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Soudal (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Soudal House, Unit 1 Centurion Way, Centurion Park, Watling Street, Tamworth, Staffordshire, England, B77 5PN.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Jonelinvest NV, a Belgium resident company. These consolidated financial statements are available from its registered office, Everdongenlaan 18-20, B-2300 Turnhout, Belgium.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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 dispatch 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.

1.4
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.

SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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:

Leasehold land and buildings
Depreciated over the term of the lease
Plant and equipment
20% straight line on cost
Fixtures and fittings
10% straight line on cost
Computers
25% straight line on cost
Motor vehicles
25% straight line 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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
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.

1.7
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.

1.8
Financial instruments

The company 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 company's statement of financial position 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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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 company 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 income statement 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 company’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 income statement, 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 when the company has 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.

1.11
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.

1.12
Retirement benefits

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

1.13
Foreign exchange

Transactions in currencies other than pounds sterling 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 in the period are included in profit or loss.

SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.14

Short term debtors and creditors

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

 

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
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation and residual values

The Director has reviewed the asset lives and associated residual values of all fixed asset calculations and has concluded that asset lives and residual values are appropriate.

Customer rebate provisions

The Director has reviewed the contractual terms of customer rebate contracts and has concluded that the provision made is an accurate reflection of the rebate creditor outstanding at the end of the financial year.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Distribution of sealants, PU foams and adhesives
84,125,076
73,507,651
2023
2022
£
£
Other revenue
Interest income
38,682
1,910
SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(571)
(2,058)
Depreciation of owned tangible fixed assets
61,625
43,919
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,500
9,050
6
Employees

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

2023
2022
Number
Number
Warehouse
10
10
Administration
49
40
Total
59
50

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,788,933
2,114,732
Social security costs
274,572
245,313
Pension costs
102,840
76,661
3,166,345
2,436,706
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
38,682
-
0
Other interest income
-
0
1,910
Total income
38,682
1,910
SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
468,194
318,606
Adjustments in respect of prior periods
12,931
(2,327)
Total current tax
481,125
316,279
Deferred tax
Origination and reversal of timing differences
14,703
9,694
Total tax charge
495,828
325,973

On 1st April 2023, the Corporation tax rate in the UK increased from 19% to 25%. The effective tax rate calculated for the financial year year is 23.52% and is based on 90 days chargeable at 19%, and 275 days chargeable at 25%.

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
2,015,620
1,728,176
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
474,074
328,353
Tax effect of expenses that are not deductible in determining taxable profit
(2,572)
5,654
Tax effect of income not taxable in determining taxable profit
-
0
(363)
Adjustments in respect of prior years
12,931
(2,327)
Permanent capital allowances in excess of depreciation
(3,308)
(15,038)
Deferred tax movement
14,703
9,694
Taxation charge for the year
495,828
325,973
9
Dividends
2023
2022
£
£
Final paid
869,050
8,000,000
SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
147,553
30,788
130,483
59,675
24,950
393,449
Additions
21,716
-
0
27,767
25,863
-
0
75,346
At 31 December 2023
169,269
30,788
158,250
85,538
24,950
468,795
Depreciation and impairment
At 1 January 2023
54,644
25,648
52,695
52,426
17,759
203,172
Depreciation charged in the year
21,730
3,568
22,913
8,424
4,990
61,625
At 31 December 2023
76,374
29,216
75,608
60,850
22,749
264,797
Carrying amount
At 31 December 2023
92,895
1,572
82,642
24,688
2,201
203,998
At 31 December 2022
92,909
5,140
77,788
7,249
7,191
190,277
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
4,107,678
4,500,107
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
17,616,447
17,574,190
Amounts owed by group undertakings
33,375
31,862
Other debtors
12,363
669
Prepayments and accrued income
79,076
702,654
17,741,261
18,309,375
SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
856,510
538,148
Amounts owed to group undertakings
12,939,998
15,018,024
Corporation tax
192,194
112,045
Other taxation and social security
2,404,452
2,622,547
Other creditors
2,583,814
2,333,452
Accruals and deferred income
429,181
394,201
19,406,149
21,018,417
14
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
49,907
35,204
2023
Movements in the year:
£
Liability at 1 January 2023
35,204
Charge to profit or loss
14,703
Liability at 31 December 2023
49,907
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
102,840
76,661

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
SOUDAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
1,946,140
8,543,937
Profit for the year
1,519,792
1,402,203
Dividends declared and paid in the year
(869,050)
(8,000,000)
At the end of the year
2,596,882
1,946,140
18
Operating lease commitments

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

2023
2022
£
£
Within one year
544,247
512,756
Between two and five years
1,182,828
1,520,564
In over five years
-
0
19,327
1,727,075
2,052,647
19
Ultimate controlling party

The ultimate parent company is Jonelinvest NV, a Belgium resident company.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr D A Coorevitsfalsefalse032950542023-01-012023-12-3103295054bus:Director12023-01-012023-12-3103295054bus:RegisteredOffice2023-01-012023-12-31032950542023-12-31032950542022-01-012022-12-3103295054core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103295054core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31032950542022-12-3103295054core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3103295054core:PlantMachinery2023-12-3103295054core:FurnitureFittings2023-12-3103295054core:ComputerEquipment2023-12-3103295054core:MotorVehicles2023-12-3103295054core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103295054core:PlantMachinery2022-12-3103295054core:FurnitureFittings2022-12-3103295054core:ComputerEquipment2022-12-3103295054core:MotorVehicles2022-12-3103295054core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103295054core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103295054core:CurrentFinancialInstruments2023-12-3103295054core:CurrentFinancialInstruments2022-12-3103295054core:ShareCapital2023-12-3103295054core:ShareCapital2022-12-3103295054core:RetainedEarningsAccumulatedLosses2023-12-3103295054core:RetainedEarningsAccumulatedLosses2022-12-3103295054core:ShareCapital2021-12-3103295054core:RetainedEarningsAccumulatedLosses2021-12-3103295054core:RetainedEarningsAccumulatedLosses2022-12-3103295054core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3103295054core:PlantMachinery2023-01-012023-12-3103295054core:FurnitureFittings2023-01-012023-12-3103295054core:ComputerEquipment2023-01-012023-12-3103295054core:MotorVehicles2023-01-012023-12-3103295054core:UKTax2023-01-012023-12-3103295054core:UKTax2022-01-012022-12-310329505412023-01-012023-12-310329505412022-01-012022-12-3103295054core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103295054core:PlantMachinery2022-12-3103295054core:FurnitureFittings2022-12-3103295054core:ComputerEquipment2022-12-3103295054core:MotorVehicles2022-12-31032950542022-12-3103295054core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3103295054core:WithinOneYear2023-12-3103295054core:WithinOneYear2022-12-3103295054core:BetweenTwoFiveYears2023-12-3103295054core:BetweenTwoFiveYears2022-12-3103295054core:MoreThanFiveYears2023-12-3103295054core:MoreThanFiveYears2022-12-3103295054bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103295054bus:FRS1022023-01-012023-12-3103295054bus:Audited2023-01-012023-12-3103295054bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP