Company registration number 04776118 (England and Wales)
MATRIX CHEMIE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MATRIX CHEMIE LIMITED
COMPANY INFORMATION
Directors
K Polotnianka
D M Brooke
C Mullaney
Company number
04776118
Registered office
Unit 6 Turnberry Park
Gildersome
Morley
Leeds
LS27 7LE
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
MATRIX CHEMIE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
MATRIX CHEMIE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

2023 saw an easing of raw material availability and a softening of unit prices. Coupled with consumer spending changes because of continuing high inflation and interest rate increases, this made for a challenging trading year.

Matrix Chemie continues to access new products and customers and in 2023 has focused on increasing the product mix at key accounts.

Our ongoing commitment to quality assurance, environmental control and sustainability continues.

We sincerely thank our dedicated staff and all customers and suppliers for their support and commitment.

Principal risks and uncertainties

The Company has carried out an extensive financial risk management analysis, covering aspects such as currency, interest rates & liquidity, credit and market (supply chain and customer base) risks.

 

Currency

A significant proportion of the Company’s turnover is in Euros & US Dollars. Fluctuations in these currencies could affect the financial performance of the business. Forward contracts are taken out and currency swaps are currently undertaken where necessary to mitigate any such risk.

 

Interest rates & liquidity

The Company is well funded and working capital flows are managed via the use of KPI’s within the business.

 

Credit risk

Customers and potential customers are credit checked regularly and given appropriate credit limits based on the financial information available. Credit insurance is also taken out where thought necessary, either due to Company or country risk.

 

Market risk

Market changes, particularly with regard to commodity prices, can affect the financial performance of the Company. Matrix Chemie makes use of the market intelligence and trends noticed that it has at it’s disposal, and also by the use of more widely available trade data and journals published by the industry.

 

 

The Company is in very good health and is well placed to implement the strategic plans agreed by the Board.

 

The Company is focused on developing a long-term horizon for its products and services. As such, the strategic plan includes ongoing capital investment, a widening of the customer base and expansion of the range of products and services on offer. A number of exciting innovations are under development to ensure that the plan is met. Environmental control and health and safety remain at the forefront of all strategic planning initiatives and the Company continues to invest in these crucial areas.

 

MATRIX CHEMIE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

Matrix Chemie uses KPI’s to monitor it’s financial performance. These include, but are not limited to;

 

Gross Margin %

The ratio of gross margin to sales, expressed as a % of sales.

 

Debtor Days

The level of trade debtors & their ratio to sales, expressed as a number of days.

 

Creditor days

The level of trade creditors & their ratio to purchases, expressed as a number of days.

 

Stock days

The level of stock & their ratio to purchases, expressed as a number of days.

 

EBITDA

Earnings before interest, taxation, depreciation and amortisation.

 

 

On behalf of the board

K Polotnianka
Director
18 July 2024
MATRIX CHEMIE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of international trader and distributor of chemical products for the personal care, home care, water treatment and industrial applications industries.

Results and dividends

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

Ordinary dividends were paid amounting to £283,567. The directors do not recommend payment of a final dividend.

Directors

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

K Polotnianka
D M Brooke
C Mullaney
Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
K Polotnianka
Director
18 July 2024
MATRIX CHEMIE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

MATRIX CHEMIE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MATRIX CHEMIE LIMITED
- 5 -
Opinion

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MATRIX CHEMIE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MATRIX CHEMIE LIMITED (CONTINUED)
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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.

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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures 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, for example, forgery or intentional misrepresentations, or through collusion.

 

We focussed on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of client's operation of controls within the year, in particular, stock controls, and review of expenses, such as legal costs. There are inherent limitations in the audit procedures described 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.

 

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated 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.

MATRIX CHEMIE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MATRIX CHEMIE LIMITED (CONTINUED)
- 7 -

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.

Jamie Williams
Senior Statutory Auditor
For and on behalf of BHP LLP
19 July 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
MATRIX CHEMIE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
16,565,363
20,697,933
Cost of sales
(14,678,983)
(18,360,742)
Gross profit
1,886,380
2,337,191
Administrative expenses
(955,866)
(887,638)
Operating profit
4
930,514
1,449,553
Interest receivable and similar income
7
1,511
356
Interest payable and similar expenses
8
(5,982)
(3,726)
Profit before taxation
926,043
1,446,183
Tax on profit
9
(221,139)
(269,452)
Profit for the financial year
704,904
1,176,731

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MATRIX CHEMIE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
24,980
35,171
Current assets
Stocks
12
436,350
1,092,711
Debtors
13
7,146,484
7,326,561
Cash at bank and in hand
1,451,379
1,774,443
9,034,213
10,193,715
Creditors: amounts falling due within one year
14
(3,540,907)
(5,131,937)
Net current assets
5,493,306
5,061,778
Net assets
5,518,286
5,096,949
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
5,518,186
5,096,849
Total equity
5,518,286
5,096,949

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 18 July 2024 and are signed on its behalf by:
K Polotnianka
Director
Company registration number 04776118 (England and Wales)
MATRIX CHEMIE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
3,920,118
3,920,218
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,176,731
1,176,731
Balance at 31 December 2022
100
5,096,849
5,096,949
Year ended 31 December 2023:
Profit and total comprehensive income
-
704,904
704,904
Dividends
10
-
(283,567)
(283,567)
Balance at 31 December 2023
100
5,518,186
5,518,286
MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Matrix Chemie Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 6 Turnberry Park, Gildersome, Morley, Leeds, LS27 7LE.

1.1
Accounting convention

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

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

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

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 Jeto Holdings Limited. These consolidated financial statements are available from its registered office, Unit 6 Turnberry Park, Gildersome, Morley, Leeds, LS27 7LE.

1.2
Going concern

At the time of approving the financial statements, the directors have trueprepared forecasts and cashflows for a period of at least twelve months from the signing date of these financial statements. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue 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.

MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.

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

Fixtures, fittings & equipment
10-33% straight line

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

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

 

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

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.

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

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.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

Impairment of financial assets

Financial assets 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. The impairment loss 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.

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.

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

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases

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

1.15
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.

MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements
Stock

Stock is valued at the lower of cost and net realisable value. The directors must ascertain that the provisions included have been properly calculated and reflect the true recoverable stock value as at the period end.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Trade and distribution of chemical products
16,565,363
20,697,933
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
1,587,537
1,871,630
Europe
9,412,756
14,529,888
Rest of the World
5,565,070
4,296,415
16,565,363
20,697,933
2023
2022
£
£
Other significant revenue
Interest income
1,511
356
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(6,015)
(73,716)
Fees payable to the company's auditor for the audit of the company's financial statements
13,500
12,428
Depreciation of owned tangible fixed assets
14,402
8,137
Operating lease charges
1,690
1,494
MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Employees

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

2023
2022
Number
Number
Administrative staff
11
11

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
553,372
512,598
Social security costs
57,636
55,085
Pension costs
28,836
27,568
639,844
595,251
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
278,409
277,955
Company pension contributions to defined contribution schemes
20,528
20,528
298,937
298,483

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
139,282
139,035
Company pension contributions to defined contribution schemes
10,264
10,264
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,511
356
MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,724
3,726
Other interest on financial liabilities
4,258
-
0
5,982
3,726
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
220,512
269,452
Adjustments in respect of prior periods
627
-
0
Total current tax
221,139
269,452

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
926,043
1,446,183
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
217,805
274,775
Tax effect of expenses that are not deductible in determining taxable profit
557
46
Change in unrecognised deferred tax assets
2,123
(2,996)
Adjustments in respect of prior years
627
-
0
Group relief
-
0
(929)
Fixed asset differences
153
(1,444)
Remeasurement of deferred tax for changes in tax rate
(126)
-
0
Taxation charge for the year
221,139
269,452
10
Dividends
2023
2022
£
£
Interim paid
283,567
-
0
MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 January 2023
156,905
Additions
4,211
At 31 December 2023
161,116
Depreciation and impairment
At 1 January 2023
121,734
Depreciation charged in the year
14,402
At 31 December 2023
136,136
Carrying amount
At 31 December 2023
24,980
At 31 December 2022
35,171
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
436,350
1,092,711
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,961,326
2,717,121
Amounts owed by group undertakings
4,030,424
4,030,424
Other debtors
126,143
549,016
Prepayments and accrued income
28,591
30,000
7,146,484
7,326,561

Amounts owed by group undertakings are interest free and repayable on demand.

MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
617,902
1,745,244
Trade creditors
2,536,640
2,806,794
Amounts owed to group undertakings
83,567
-
0
Corporation tax
138,512
216,702
Other taxation and social security
22,759
72,886
Other creditors
100,000
-
0
Accruals and deferred income
41,527
290,311
3,540,907
5,131,937

The invoice discounting facility disclosed as other borrowings is secured by a fixed and floating charge over all assets.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,836
27,568

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.

Contributions amounting to £4,545 (2022: £4,397) were payable to the scheme and are included in creditors due within one year.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
17
Operating lease commitments
Lessee

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
17,783
24,106
Between two and five years
-
0
17,783
17,783
41,889
MATRIX CHEMIE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Related party transactions
Transactions with related parties

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

Accountancy services
2023
2022
£
£
Other related parties
26,220
24,440

 

2023
2022
Amounts due to related parties
£
£
Other related parties
2,185
2,080
Other information

The company has taken advantage of the exemption in accordance with Section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking to which it is party to the transactions.

19
Directors' transactions

During the year, one director received £26,220 (2022: £24,440) for the provision of accountancy services to the company.

20
Ultimate controlling party

The immediate parent company is Matrix Chemie Holdings Limited, a company registered in England and Wales.

 

The ultimate parent company is Jeto Holdings Limited. Jeto Holdings Limited prepares group financial statements and copies can be obtained from that company's registered office.

 

K Polotnianka and D M Brooke are the ultimate controlling parties by reference to their shareholdings in Jeto Holdings Limited.

 

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