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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: K B Gilkes
R K Gilkes
E E Marchant





SECRETARY: E E Marchant





REGISTERED OFFICE: 6 Ducketts Wharf
South Street
Bishops Stortford
Hertfordshire
CM23 3AR





REGISTERED NUMBER: 01625837 (England and Wales)





AUDITORS: Gravita Essex Limited
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:





R K Gilkes - Director


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.

K B Gilkes
R K Gilkes
E E Marchant

Other changes in directors holding office are as follows:

P S Cartwright ceased to be a director after 31st December 2023 but prior to the date of this report.

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:





R K Gilkes - Director


30th August 2024

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.




Barry Grant Chernoff FCA FCCA (Senior Statutory Auditor)
for and on behalf of Gravita Essex Limited
Chartered Certified Accountants and
Statutory Auditors
Treviot House
186-192 High Road
Ilford
Essex
IG1 1LR

30th August 2024

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 274,553 1,021,856
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 46,561 64,482
Investments 12 3,267,599 3,267,599
3,314,160 3,332,081

CURRENT ASSETS
Stocks 13 1,406,653 1,956,439
Debtors 14 1,840,674 2,019,583
Cash at bank and in hand 423,277 861,588
3,670,604 4,837,610
CREDITORS
Amounts falling due within one year 15 4,250,778 4,931,825
NET CURRENT LIABILITIES (580,174 ) (94,215 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,733,986

3,237,866

CREDITORS
Amounts falling due after more than one
year

16

(180,556

)

(333,334

)

PROVISIONS FOR LIABILITIES 20 (9,494 ) (16,250 )
NET ASSETS 2,543,936 2,888,282

CAPITAL AND RESERVES
Called up share capital 21 100,000 100,000
Retained earnings 22 2,443,936 2,788,282
SHAREHOLDERS' FUNDS 2,543,936 2,888,282

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 30th August 2024 and were signed on its behalf by:





R K Gilkes - Director


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 100,000 2,295,779 2,395,779

Changes in equity
Dividends - (411,518 ) (411,518 )
Total comprehensive income - 904,021 904,021
Balance at 31st December 2022 100,000 2,788,282 2,888,282

Changes in equity
Dividends - (571,300 ) (571,300 )
Total comprehensive income - 226,954 226,954
Balance at 31st December 2023 100,000 2,443,936 2,543,936

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to property - Straight line over the life of the lease
Fixtures and fittings - 25% on reducing balance and 25% on cost
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

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
20 22

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 56,505 98,695 155,200
Additions - 5,876 5,876
At 31st December 2023 56,505 104,571 161,076
DEPRECIATION
At 1st January 2023 52,946 37,772 90,718
Charge for year 2,698 21,099 23,797
At 31st December 2023 55,644 58,871 114,515
NET BOOK VALUE
At 31st December 2023 861 45,700 46,561
At 31st December 2022 3,559 60,923 64,482

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 3,267,599
NET BOOK VALUE
At 31st December 2023 3,267,599
At 31st December 2022 3,267,599

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Zanos Limited
Registered office: 6 Ducketts Wharf, South Street, Bishops Stortford, Hertfordshire, CM23 3AR
Nature of business: Sale of chemicals
%
Class of shares: holding
Ordinary 100.00

Agnichem Limited
Registered office: 6 Ducketts Wharf, South Street, Bishop's Stortford, Hertfordshire, England, CM23 3AR
Nature of business: Sale of chemicals
%
Class of shares: holding
Ordinary 100.00

Zanos B.V
Registered office: Wardenaarstraat 36, 1951 XR Velsen-Noord, Netherlands
Nature of business: Sale of chemicals
%
Class of shares: holding
Ordinary 100.00


13. STOCKS

Group Company
2023 2022 2023 2022
£    £    £    £   
Raw materials 1,834,170 2,827,391 1,406,653 1,956,439

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 1,459,284 1,607,375
Amounts owed by group undertakings - - 175,017 174,917
Other debtors 804 177,170 804 176,186
Directors' loan accounts - 655 - 655
Prepayments and accrued income 278,764 67,417 205,569 60,450
2,302,370 2,744,038 1,840,674 2,019,583

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 1,531,063 1,259,218
Trade creditors 1,836,433 2,421,009 1,357,892 1,731,327
Amounts owed to group undertakings - - 680,135 128,129
Tax 251,755 455,567 196,624 344,701
PAYE 18,070 18,724 18,070 18,724
VAT 325,770 426,921 196,407 268,077
Other creditors 160,995 1,084,629 161,018 1,084,629
Directors' loan accounts 21,690 1,020 21,690 1,020
Accruals and deferred income 99,183 111,491 87,879 96,000
4,580,979 6,126,267 4,250,778 4,931,825

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 17) 180,556 333,334 180,556 333,334

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 1,364,396 1,017,544
Bank loans 166,667 241,674 166,667 241,674
1,867,083 1,606,906 1,531,063 1,259,218
Amounts falling due between one and two years:
Bank loans - 1-2 years 166,667 166,667 166,667 166,667
Amounts falling due between two and five years:
Bank loans - 2-5 years 13,889 166,667 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 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

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 16,250
Released during year (6,756 )
Balance at 31st December 2023 9,494

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
29,000 Ordinary A £1 29,000 29,000
25,000 Ordinary B £1 25,000 25,000
26,000 Ordinary C £1 26,000 26,000
11,000 Ordinary D £1 11,000 11,000
9,000 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 2,788,282
Profit for the year 226,954
Dividends (571,300 )
At 31st December 2023 2,443,936


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.