Acorah Software Products - Accounts Production 15.0.600 false true 31 December 2022 1 January 2022 false 5 June 2024 1 January 2023 31 December 2023 31 December 2023 04245089 Mr Khalid Siddiqui Mr Thomas Volkerts Connect Chemicals GmbH true iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 04245089 2022-12-31 04245089 2023-12-31 04245089 2023-01-01 2023-12-31 04245089 frs-core:CurrentFinancialInstruments 2023-12-31 04245089 frs-core:ComputerEquipment 2023-12-31 04245089 frs-core:ComputerEquipment 2023-01-01 2023-12-31 04245089 frs-core:ComputerEquipment 2022-12-31 04245089 frs-core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 04245089 frs-core:FurnitureFittings 2023-12-31 04245089 frs-core:FurnitureFittings 2023-01-01 2023-12-31 04245089 frs-core:FurnitureFittings 2022-12-31 04245089 frs-core:OtherResidualIntangibleAssets 2023-12-31 04245089 frs-core:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 04245089 frs-core:OtherResidualIntangibleAssets 2022-12-31 04245089 frs-core:ShareCapital 2023-12-31 04245089 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 04245089 frs-bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 04245089 frs-bus:FilletedAccounts 2023-01-01 2023-12-31 04245089 frs-bus:SmallEntities 2023-01-01 2023-12-31 04245089 frs-bus:Audited 2023-01-01 2023-12-31 04245089 frs-bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 04245089 1 2023-01-01 2023-12-31 04245089 frs-bus:Director1 2023-01-01 2023-12-31 04245089 frs-bus:Director2 2023-01-01 2023-12-31 04245089 frs-core:CurrentFinancialInstruments 1 2023-12-31 04245089 frs-countries:EnglandWales 2023-01-01 2023-12-31 04245089 2021-12-31 04245089 2022-12-31 04245089 2022-01-01 2022-12-31 04245089 frs-core:CurrentFinancialInstruments 2022-12-31 04245089 frs-core:ShareCapital 2022-12-31 04245089 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 04245089 frs-core:CurrentFinancialInstruments 1 2022-12-31
Registered number: 04245089
Connect Chemicals (UK) Limited
Financial Statements
For The Year Ended 31 December 2023
M C Accountants
Chartered Certified Accountants
19 Market Square
Sandbach
Cheshire
CW11 1AT
Financial Statements
Contents
Page
Balance Sheet 1—2
Notes to the Financial Statements 3—8
Page 1
Balance Sheet
Registered number: 04245089
2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 4 59,779 81,721
Tangible Assets 5 20,079 14,382
79,858 96,103
CURRENT ASSETS
Stocks 6 5,353,591 5,605,399
Debtors 7 1,067,091 2,730,830
Cash at bank and in hand 1,316,679 231,898
7,737,361 8,568,127
Creditors: Amounts Falling Due Within One Year 8 (2,176,936 ) (3,685,735 )
NET CURRENT ASSETS (LIABILITIES) 5,560,425 4,882,392
TOTAL ASSETS LESS CURRENT LIABILITIES 5,640,283 4,978,495
PROVISIONS FOR LIABILITIES
Provisions For Charges - (158,652 )
NET ASSETS 5,640,283 4,819,843
CAPITAL AND RESERVES
Called up share capital 10 31,000 31,000
Profit and Loss Account 5,609,283 4,788,843
SHAREHOLDERS' FUNDS 5,640,283 4,819,843
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These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
Mr Khalid Siddiqui
Director
5th June 2024
The notes on pages 3 to 8 form part of these financial statements.
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Notes to the Financial Statements
1. General Information
Connect Chemicals (UK) Limited Registered number 04245089 is a company limited by shares incorporated in England & Wales. The Registered Office is Winnington Hall, Northwich, Cheshire, CW8 4DU.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.3. Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets represent the purchase of REACH chemical licences. In accordance with the group policy, the cost is amortised to the profit and loss account over its estimated economic life of ten years.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Fixtures & Fittings 15% reducing balance
Computer Equipment 25% reducing balance
2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
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2.7. Financial Instruments
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances and amounts owed from the factoring company, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 
Amounts owed by the factoring company are represented by funds received from customers not yet drawn.
Financial liabilties
Basic financial liabilties, including trade and other creditors, bank loans and overdrafts and amounts owed to factors, 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 receipts discounted at a market rate of interest.
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. Trade creditors are classified as current liabilites 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. 
Amounts owed to factors are represented by funds withdrawn secured on customer invoices. 
Derivatives
Derivatives, including 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 they are included in a hedging arrangement. 
The company does not apply hedge accounting in respect of forward foreign exchange contracts held to manage the cash flow exposures of forecast transactions denominated in foreign currencies.
2.8. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
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2.9. Taxation
Corporation tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
2.10. Pensions
The company operates a pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.11. Operating leases
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
2.12. Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.
2.13. Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
3. Average Number of Employees
Average number of employees, including directors, during the year was: 13 (2022: 10)
13 10
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4. Intangible Assets
Other
£
Cost
As at 1 January 2023 219,424
As at 31 December 2023 219,424
Amortisation
As at 1 January 2023 137,703
Provided during the period 21,942
As at 31 December 2023 159,645
Net Book Value
As at 31 December 2023 59,779
As at 1 January 2023 81,721
5. Tangible Assets
Fixtures & Fittings Computer Equipment Total
£ £ £
Cost
As at 1 January 2023 14,191 13,582 27,773
Additions 3,707 7,069 10,776
As at 31 December 2023 17,898 20,651 38,549
Depreciation
As at 1 January 2023 5,795 7,596 13,391
Provided during the period 1,816 3,263 5,079
As at 31 December 2023 7,611 10,859 18,470
Net Book Value
As at 31 December 2023 10,287 9,792 20,079
As at 1 January 2023 8,396 5,986 14,382
6. Stocks
2023 2022
£ £
Stock 5,353,591 5,605,399
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7. Debtors
2023 2022
£ £
Due within one year
Trade debtors 1,033,635 2,338,341
Prepayments and accrued income 22,468 11,254
Amounts owed from factoring company 10,988 381,235
1,067,091 2,730,830
8. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 386,075 1,180,035
Bank loans and overdrafts - 210,903
Corporation tax 294,392 459,660
Other taxes & social security 16,553 14,485
VAT 108,318 330,228
Other creditors - Shareholder loans 1,293,170 1,200,472
Accruals 52,128 60,620
Amounts owed to group undertakings 26,300 -
Amounts owed to factors - 229,332
2,176,936 3,685,735
Shareholder loans bear interest of 7.5% and are repayable by 31 December 2024.
9. Secured Creditors
The following amounts owed to factors are secured against the book debts of the company.
2023 2022
£ £
Other Creditors - 229,332
10. Share Capital
2023 2022
£ £
Allotted, Called up and fully paid 31,000 31,000
11. Ultimate Parent Undertaking and Controlling Party
The company's immediate and ultimate parent undertaking is Connect Chemicals Holdings GmbH . Connect Chemicals Holdings GmbH is incorporated in Germany. Copies of the group accounts may be obtained from the company secretary. The ultimate controlling party is Connect Chemicals GmbH who controls 100% of the shares of Connect Chemicals (UK) Limited .
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12. Audit Information
The auditors report on the account of Connect Chemicals (UK) Limited for the year ended 31 December 2023 was unqualified
The auditor's report was signed by Jason Leach FCA (Senior Statutory Auditor) for and on behalf of Bennett Brooks & Co Limited , Statutory Auditor
Bennett Brooks & Co Limited
St. George's Court
Winnington Avenue
Northwich
Cheshire
CW8 4EE
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