REGISTERED NUMBER: 01625837 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31st December 2023 |
for |
Stort Chemicals Limited |
REGISTERED NUMBER: 01625837 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31st December 2023 |
for |
Stort Chemicals Limited |
Stort Chemicals Limited (Registered number: 01625837) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31st December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
Stort Chemicals Limited |
Company Information |
for the Year Ended 31st December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants and |
Statutory Auditors |
Treviot House |
186-192 High Road |
Ilford |
Essex |
IG1 1LR |
Stort Chemicals Limited (Registered number: 01625837) |
Group Strategic Report |
for the Year Ended 31st December 2023 |
The directors present their strategic report for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The directors consider the following traditional measures to be the key financial performance indicators; |
2023 | 2022 | Change % |
Turnover | 14,419,541 | 17.861.492 | -19.3% |
Gross profit | 2,828,302 | 3,865,814 | -26.8% |
Profit before tax (less exceptional items) |
420,097 |
1,313,474 |
-68.0% |
Retained earnings | 1,143,551 | 1,442,635 | -20.7% |
Current assets as % of current liabilities |
104.14% |
107.99% |
-3.9% |
This has been driven partly by the dramatic decline is sales of the resin used in driveways highlighted in last years accounts which accounted for nearly £2m of sales in 2022 (driven by the DIY sector booming in the pandemic) and a decline in demand in H2 2023 across all sectors as the global economy stuttered. |
Demand in many of our key sectors (coatings, composites, flavours and fragrances) has started to recover in Q1 2024 and we are on budget in terms of sales and profit. |
PRINCIPAL RISKS AND UNCERTAINTIES |
We have not been immune to the challenges facing the global economy in 2023, mainly driven by the conflicts in Ukraine and the Far East however we are well-positioned operationally and financially to meet these challenges. |
FUTURE DEVELOPMENTS |
The Directors remain confident that sustained growth is achievable. |
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity, and cash flow risks arising from trading activities which are only conducted in multiple currencies. The company does not enter into any hedging transactions. |
ON BEHALF OF THE BOARD: |
30th August 2024 |
Stort Chemicals Limited (Registered number: 01625837) |
Report of the Directors |
for the Year Ended 31st December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company and the group in the year under review was that of chemical sales. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st December 2023 will be £ 571,300 . |
The directors do not recommend payment of a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
Donations of £1,101 (2022: £6,357 ) were made to non political parties & charities. |
STRATEGIC REPORT |
The Directors have chosen in accordance with S414c of the Companies Act to set out in the strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the Directors' report. It has done so in respect of future development and financial instruments. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Stort Chemicals Limited (Registered number: 01625837) |
Report of the Directors |
for the Year Ended 31st December 2023 |
AUDITORS |
The auditors, Gravita Essex Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Stort Chemicals Limited |
Opinion |
We have audited the financial statements of Stort Chemicals Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Stort Chemicals Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Stort Chemicals Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud and error; and to respond appropriately to these risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned in accordance with the ISA's (UK). |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations our procedures included the following: |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006 and the UK corporate taxation laws. |
- We obtained an understanding of how the company are complying with the with those legal and regulatory frameworks by making enquiries with the company directors. We corroborated our inquiries through our review of the board minutes and other information provided to the audit team. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud |
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process |
- Challenging assumptions and judgements made by management in its significant accounting estimates |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account collaborations |
- Assessing the extent of compliance with the relevant laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants and |
Statutory Auditors |
Treviot House |
186-192 High Road |
Ilford |
Essex |
IG1 1LR |
Stort Chemicals Limited (Registered number: 01625837) |
Consolidated |
Income Statement |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 14,419,541 | 17,861,492 |
Cost of sales | 11,591,240 | 13,995,679 |
GROSS PROFIT | 2,828,301 | 3,865,813 |
Administrative expenses | 2,255,756 | 2,497,052 |
OPERATING PROFIT | 5 | 572,545 | 1,368,761 |
Interest receivable and similar income | 27 | 10 |
572,572 | 1,368,771 |
Interest payable and similar expenses | 6 | 152,475 | 55,298 |
PROFIT BEFORE TAXATION | 420,097 | 1,313,473 |
Tax on profit | 7 | 145,544 | 291,617 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 274,553 | 1,021,856 |
Stort Chemicals Limited (Registered number: 01625837) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 274,553 | 1,021,856 |
OTHER COMPREHENSIVE INCOME |
Exchange differences on retranslating |
of subsidiary undertaking | (2,336 | ) | 10,563 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(2,336 |
) |
10,563 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
272,217 |
1,032,419 |
Total comprehensive income attributable to: |
Owners of the parent | 272,217 | 1,032,419 |
Stort Chemicals Limited (Registered number: 01625837) |
Consolidated Balance Sheet |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 1,190,772 | 1,327,503 |
Tangible assets | 11 | 53,156 | 75,036 |
Investments | 12 | - | - |
1,243,928 | 1,402,539 |
CURRENT ASSETS |
Stocks | 13 | 1,834,170 | 2,827,391 |
Debtors | 14 | 2,302,370 | 2,744,038 |
Cash at bank and in hand | 634,112 | 1,044,517 |
4,770,652 | 6,615,946 |
CREDITORS |
Amounts falling due within one year | 15 | 4,580,979 | 6,126,267 |
NET CURRENT ASSETS | 189,673 | 489,679 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,433,601 |
1,892,218 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(180,556 |
) |
(333,334 |
) |
PROVISIONS FOR LIABILITIES | 20 | (9,494 | ) | (16,250 | ) |
NET ASSETS | 1,243,551 | 1,542,634 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100,000 | 100,000 |
Retained earnings | 22 | 1,143,551 | 1,442,634 |
SHAREHOLDERS' FUNDS | 1,243,551 | 1,542,634 |
The financial statements were approved by the Board of Directors and authorised for issue on 30th August 2024 and were signed on its behalf by: |
R K Gilkes - Director |
Stort Chemicals Limited (Registered number: 01625837) |
Company Balance Sheet |
31st December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 226,954 | 904,021 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Stort Chemicals Limited (Registered number: 01625837) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31st December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 | 100,000 | 821,733 | 921,733 |
Changes in equity |
Dividends | - | (411,518 | ) | (411,518 | ) |
Total comprehensive income | - | 1,032,419 | 1,032,419 |
Balance at 31st December 2022 | 100,000 | 1,442,634 | 1,542,634 |
Changes in equity |
Dividends | - | (571,300 | ) | (571,300 | ) |
Total comprehensive income | - | 272,217 | 272,217 |
Balance at 31st December 2023 | 100,000 | 1,143,551 | 1,243,551 |
Stort Chemicals Limited (Registered number: 01625837) |
Company Statement of Changes in Equity |
for the Year Ended 31st December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2023 |
Stort Chemicals Limited (Registered number: 01625837) |
Consolidated Cash Flow Statement |
for the Year Ended 31st December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 657,709 | 1,151,731 |
Tax paid | (371,268 | ) | (93,692 | ) |
Net cash from operating activities | 286,441 | 1,058,039 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (46,675 | ) | - |
Purchase of tangible fixed assets | (5,876 | ) | (16,105 | ) |
Acquisition of assets | - | (46,500 | ) |
Interest received | 27 | 10 |
Net cash from investing activities | (52,524 | ) | (62,595 | ) |
Cash flows from financing activities |
New loans in year | - | 500,000 |
Loan repayments in year | (227,785 | ) | (99,995 | ) |
Amount introduced by directors | 22,583 | 32,204 |
Amount withdrawn by directors | (1,258 | ) | (21,821 | ) |
Factoring charges | (69,303 | ) | (57,387 | ) |
Interest paid | (137,320 | ) | (55,298 | ) |
Equity dividends paid | (571,300 | ) | (411,518 | ) |
Net cash from financing activities | (984,383 | ) | (113,815 | ) |
(Decrease)/increase in cash and cash equivalents | (750,466 | ) | 881,629 |
Cash and cash equivalents at beginning of year |
2 |
(320,715 |
) |
(1,162,001 |
) |
Effect of foreign exchange rate changes | 4,877 | (40,343 | ) |
Cash and cash equivalents at end of year | 2 | (1,066,304 | ) | (320,715 | ) |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31st December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 420,097 | 1,313,473 |
Depreciation charges | 211,163 | 217,358 |
Loss on disposal of fixed assets | - | 16,825 |
Factoring and bank trading facility chgs | 69,303 | 57,387 |
Foreign exchange | (7,213 | ) | 48,216 |
Finance costs | 152,475 | 55,298 |
Finance income | (27 | ) | (10 | ) |
845,798 | 1,708,547 |
Decrease/(increase) in stocks | 993,221 | (205,907 | ) |
Decrease/(increase) in trade and other debtors | 441,013 | (348,172 | ) |
Decrease in trade and other creditors | (1,622,323 | ) | (2,737 | ) |
Cash generated from operations | 657,709 | 1,151,731 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 634,112 | 1,044,517 |
Bank overdrafts | (1,700,416 | ) | (1,365,232 | ) |
(1,066,304 | ) | (320,715 | ) |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,044,517 | 473,619 |
Bank overdrafts | (1,365,232 | ) | (1,635,620 | ) |
(320,715 | ) | (1,162,001 | ) |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31st December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,044,517 | (410,405 | ) | 634,112 |
Bank overdrafts | (1,365,232 | ) | (335,184 | ) | (1,700,416 | ) |
(320,715 | ) | (745,589 | ) | (1,066,304 | ) |
Debt |
Debts falling due within 1 year | (241,674 | ) | 75,007 | (166,667 | ) |
Debts falling due after 1 year | (333,334 | ) | 152,778 | (180,556 | ) |
(575,008 | ) | 227,785 | (347,223 | ) |
Total | (895,723 | ) | (517,804 | ) | (1,413,527 | ) |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31st December 2023 |
1. | STATUTORY INFORMATION |
Stort Chemicals Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
Basis of consolidation |
The group financial statements consolidate the accounts of Stort Chemicals Limited and all its subsidiary undertakings drawn up to 31 December each year. |
Intercompany balances and turnover and profits arising on trading between group companies are excluded. |
The individual accounts of Stort Chemicals Limited have also adopted the following disclosure exemptions: |
- the requirement to present a statement of cash flows and related notes |
- financial instrument disclosures |
- related party disclosures |
Significant judgements and estimates |
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. |
The directors consider that there are no significant judgements or estimates in the preparation of these financial statements. |
Turnover |
Turnover represents the total invoice value, excluding value added tax, of sales made and commissions earned during the year. Sales and commissions on sales are recognised at the point at which goods are despatched to the customer. |
Goodwill |
After initial recognition, goodwill is measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised evenly over their estimated useful life of ten years. |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and estimated sales price, after making due allowance for obsolete and slow moving items. Cost is calculated on an average unit cost basis, the average for each product line being re-calculated each time the product is purchased. Slow moving stock is routinely identified by the Directors and its value written down to an estimated net realisable value once all known opportunities to sell the item have been exhausted. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors & creditors |
Short term debtors are measured at transaction price, less any impairment. |
Short term creditors are measured at transaction price. |
Fixed asset investments |
Fixed asset investments are stated at cost less provisions for permanent diminution in value. |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include deposits held at call with banks. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 13,004,993 | 16,122,435 |
Europe | 737,033 | 1,026,308 |
Rest of world | 677,515 | 712,749 |
14,419,541 | 17,861,492 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 627,031 | 698,873 |
Social security costs | 72,341 | 78,309 |
Other pension costs | 64,853 | 61,856 |
764,225 | 839,038 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 4 | 4 |
Sales | 7 | 7 |
Admin | 9 | 11 |
Payments made to key management personnel for the group and company amounted to £253,604 (2022:£168,178) |
2023 | 2022 |
£ | £ |
Directors' remuneration | 54,551 | 57,700 |
Directors' pension contributions to money purchase schemes | 34,061 | 27,075 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 68,393 | 66,598 |
Depreciation - owned assets | 27,756 | 33,955 |
Loss on disposal of fixed assets | - | 16,825 |
Goodwill amortisation | 183,406 | 183,406 |
Auditors' remuneration | 47,500 | 45,000 |
Foreign exchange differences | (10,098 | ) | 74,424 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 51,181 | 8,419 |
Bank facility interest | 76,172 | 41,790 |
Other interest payable | 25,122 | 5,089 |
152,475 | 55,298 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 152,299 | 290,395 |
Deferred tax | (6,755 | ) | 1,222 |
Tax on profit | 145,544 | 291,617 |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 420,097 | 1,313,473 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
105,024 |
249,560 |
Effects of: |
Expenses not deductible for tax purposes | 10,386 | 5,421 |
Depreciation in excess of capital allowances | 51,084 | 40,591 |
Difference in tax rates with foreign subsidiaries | (5,122 | ) | (5,177 | ) |
Tax apportionment | (9,073 | ) | - |
Deferred tax | (6,755 | ) | 1,222 |
Total tax charge | 145,544 | 291,617 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Exchange differences on retranslating |
of subsidiary undertaking | (2,336 | ) | - | (2,336 | ) |
(2,336 | ) | - | (2,336 | ) |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Exchange differences on retranslating |
of subsidiary undertaking | 10,563 | - | 10,563 |
10,563 | - | 10,563 |
Factors that may affect future tax charges |
There are no significant factors that may affect future tax charges. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
9. | DIVIDENDS |
Dividends voted for the year amounted to £571,300 (2022: £411,518). |
The aggregate amount of dividends that the company is liable to pay at the balance sheet date was nil. |
Dividends proposed after the year end until the date of approval of the accounts amounted to £303,608 (2022: £432,550). |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1st January 2023 | 1,822,439 | 50,884 | 1,873,323 |
Additions | - | 46,675 | 46,675 |
At 31st December 2023 | 1,822,439 | 97,559 | 1,919,998 |
AMORTISATION |
At 1st January 2023 | 545,820 | - | 545,820 |
Amortisation for year | 183,406 | - | 183,406 |
At 31st December 2023 | 729,226 | - | 729,226 |
NET BOOK VALUE |
At 31st December 2023 | 1,093,213 | 97,559 | 1,190,772 |
At 31st December 2022 | 1,276,619 | 50,884 | 1,327,503 |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2023 | 56,505 | 98,694 | 22,250 | 10,315 | 187,764 |
Additions | - | 5,876 | - | - | 5,876 |
Disposals | - | - | - | (2,060 | ) | (2,060 | ) |
At 31st December 2023 | 56,505 | 104,570 | 22,250 | 8,255 | 191,580 |
DEPRECIATION |
At 1st January 2023 | 52,946 | 37,772 | 14,679 | 7,331 | 112,728 |
Charge for year | 2,698 | 21,099 | 1,892 | 2,067 | 27,756 |
Eliminated on disposal | - | - | - | (2,060 | ) | (2,060 | ) |
At 31st December 2023 | 55,644 | 58,871 | 16,571 | 7,338 | 138,424 |
NET BOOK VALUE |
At 31st December 2023 | 861 | 45,699 | 5,679 | 917 | 53,156 |
At 31st December 2022 | 3,559 | 60,922 | 7,571 | 2,984 | 75,036 |
Company |
Improvements | Fixtures |
to | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 6 Ducketts Wharf, South Street, Bishops Stortford, Hertfordshire, CM23 3AR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 6 Ducketts Wharf, South Street, Bishop's Stortford, Hertfordshire, England, CM23 3AR |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Wardenaarstraat 36, 1951 XR Velsen-Noord, Netherlands |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Raw materials | 1,834,170 | 2,827,391 |
At the year end the value of Group raw materials was impaired by £137,189 (2022: £95,322). The impairment was made within Stort Chemicals Limited (2022: £13,495). There was no impairment in Zanos Limited (2022: £81,827), Agnichem Limited (2022: nil) or Zanos B.V (2022: £nil). |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,022,802 | 2,498,796 |
Amounts owed by group undertakings | - | - |
Other debtors | 804 | 177,170 |
Directors' loan accounts | - | 655 | - | 655 |
Prepayments and accrued income | 278,764 | 67,417 |
2,302,370 | 2,744,038 |
Trade debtors are used as security for the amount owed for the bank trading facility. The factored debts amounted to £1,898,723 (2022: £2,035,642) for the group and £1,354,924 (2022: £1,424,472) for the company at the year end. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 1,867,083 | 1,606,906 |
Trade creditors | 1,836,433 | 2,421,009 |
Amounts owed to group undertakings | - | - |
Tax | 251,755 | 455,567 |
PAYE | 18,070 | 18,724 |
VAT | 325,770 | 426,921 | 196,407 | 268,077 |
Other creditors | 160,995 | 1,084,629 |
Directors' loan accounts | 21,690 | 1,020 | 21,690 | 1,020 |
Accruals and deferred income | 99,183 | 111,491 |
4,580,979 | 6,126,267 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 180,556 | 333,334 |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,700,416 | 1,365,232 |
Bank loans | 166,667 | 241,674 |
1,867,083 | 1,606,906 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 166,667 | 166,667 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 13,889 | 166,667 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 136,291 | 136,091 |
Between one and five years | 342,182 | 365,392 |
In more than five years | 226,666 | 302,667 |
705,139 | 804,150 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Owed to bank trading facility | 1,955,245 | 1,865,232 | 1,364,397 | 1,517,544 |
The bank trading facility is secured by a fixed and floating charge over the assets of the company to which the debts relate.. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 9,494 | 16,250 | 9,494 | 16,250 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 16,250 |
Released during year | (6,756 | ) |
Balance at 31st December 2023 | 9,494 |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2023 |
Released during year | (6,756 | ) |
Balance at 31st December 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 29,000 | 29,000 |
Ordinary B | £1 | 25,000 | 25,000 |
Ordinary C | £1 | 26,000 | 26,000 |
Ordinary D | £1 | 11,000 | 11,000 |
Ordinary E | £1 | 9,000 | 9,000 |
100,000 | 100,000 |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st January 2023 | 1,442,634 |
Profit for the year | 274,553 |
Dividends | (571,300 | ) |
Foreign exchange differences | (2,336 | ) |
At 31st December 2023 | 1,143,551 |
Company |
Retained |
earnings |
£ |
At 1st January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31st December 2023 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the year ended 31st December 2023 and the year ended 31st December 2022: |
Director 1 |
2023 | 2022 |
£ | £ |
Amounts Advanced | 223,014 | 161,000 |
Amounts Repaid | (238,700 | ) | (161,000 | ) |
Director 2 |
2023 | 2022 |
£ | £ |
Amounts Advanced | 94,232 | 113,404 |
Amounts Repaid | (96,304 | ) | (124,204 | ) |
Director 3 |
2023 | 2022 |
£ | £ |
Amounts Advanced | 162,013 | 132,000 |
Amounts Repaid | (165,579 | ) | (131,584 | ) |
Loans to Directors are repayable on demand. Interest is charged on loans at the official rate set by HMRC. |
Stort Chemicals Limited (Registered number: 01625837) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31st December 2023 |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Details of directors' advances, credits and guarantees are given within Note 23. Dividends of £478,000 were distributed to the directors in the year (2022: £384,584) |
Dividends of £93,300 were distributed to close family of the directors in the year (2022: £26,934). |
25. | ULTIMATE CONTROLLING PARTY |
At the balance sheet date Mr K B Gilkes had a controlling interest of 54% of the company's issued share capital (2022: 54%). |
26. | SUBSIDIARY EXEMPT FROM AUDIT |
Agnichem Limited is consolidated within the group financial statements. The company is exempt from audit under S479A of the Companies Act. |