Company registration number 01375539 (England and Wales)
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
COMPANY INFORMATION
Directors
Mr D S Hall
Mr S Friedrich
(Appointed 5 June 2023)
Secretary
Mr S M Wilson
Company number
01375539
Registered office
Station Road
Cramlington
Northumberland
NE23 8AQ
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 34
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

After the shocks of recent years which have included BREXIT, COVID and the Ukraine war, and their resultant disruptions to our markets, operations and supply chains, it was pleasing to see the group end a turbulent 2023 with a business performance in line with expectations and set for future growth.

 

The expected drop off in demand following the previous COVID induced boom materialised during 2023 in some of our key markets. Exterior Solutions volumes fell within the UK and Western Europe although not by as much as had perhaps been feared. On the Interior Surfaces side of the business we saw this slow down impact our North American business in particular. On the plus side Exterior Solutions benefitted from significant growth within Eastern Europe – some linked to earthquake reconstruction - and recent product developments such as Premier Matt and Paintflow drove good sales growth for Interior Surfaces. Overall, it was encouraging therefore to see a 5% increase in our year on year turnover.

 

We saw raw material prices peak during the course of 2023 although our PMMA formulations lagged significantly behind the development of PVC and other commodities. After benefitting in previous years from advance energy purchases, we saw a major uplift in costs in this area in 2023 and will see a further major rise as we start 2024. Given this background as well as other inflationary pressures, carefully targeted price increases were required in order to restore profitability to the required levels.

 

In terms of investment, 2023 saw the installation of our new embossing line, Emboss 5. In addition to providing further machine and shift capacity, this machine provides additional functionality and flexibility. At a cost approaching £10m this is a major investment for both the present and future of the site.

Principal risks and uncertainties

The group operates a quarterly risk management process in order to regularly assess risks and identify counter measures and controls. As part of this process the group works with the wider RENOLIT group where appropriate – for example, sourcing and testing alternative raw materials. In addition, the capabilities and expertise spread across the RENOLIT group provides back-up solutions via alternative production facilities, machines and routes.

 

The Group is subject to the usual risks in respect of customer and supplier behaviour and the resultant impact on sales pricing and volumes. A monthly sales and operations planning process helps to continually assess future demand, match this to production capacity and guide raw material purchasing and investment plans.

 

Major external factors to be considered include the ongoing cost of living crisis, Ukraine and Gaza wars, Red Sea disruption, as well as potential impact of elections and changes to government policies over the coming year.

 

The group has noted the results of the recent investigation by the European Chemicals Agency (ECHA) which found that, whilst risks from PVC resin to workers and the environment are adequately controlled, regulatory action may be needed for certain additives. The group continues to monitor for any future REACH restrictions to be placed on any of its raw materials and proactively works to eliminate such substances from its production and processes.

Key performance indicators

 

2023

2022

Revenue £000        

86,753

82,735

Gross Profit Margin

24.9%

23.7%

Operating Profit Margin

12.5%

12.2%

Working Capital / Sales

22.5%

22.9%

ROCE

36.1%

36.2%

Reportable accidents

4

2

 

 

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Given the volatility seen over the course of 2023 it is pleasing to note a 5% increase in turnover coupled with a maintenance of profit margins.

 

From a Health and Safety perspective it was disappointing to see an increase in RIDDOR reportable accidents. However, we were encouraged to see a continued high level of proactive measures and consequent lower overall incident rate. In addition, our measure of severity or potential severity has also seen a significant improvement.

Other information and explanations

With the exception of foreign exchange, the group does not actively use financial instruments as part of its financial risk management. The Group is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through appropriate credit control procedures. The nature of these financial instruments means that the group is not subject to a price risk or liquidity risk other than as set out below. The group undertakes significant sales and purchases in foreign currencies, especially the Euro and US$, which exposes it to foreign exchange rate risk. This risk is managed through the use of Euro and US$ current accounts although group sales in Euros are consistently in excess of purchases. Where appropriate, forward exchange contracts are also considered with a view to further managing exchange risk.

 

We are pleased to report that, following on-site audits, we continue to be certified to ISO50001. Also, our certificate for the ISO9001, ISO14001 and ISO45001 standards was renewed. These standards ensure legal compliance and demonstrate we have systems in place to effectively control health and safety, quality and environmental aspects. We are signatories to Operation Clean Sweep, which is the international initiative from the plastics industry to reduce plastic loss into the environment. In addition, in 2023 we participated in the EU PC Pellet Loss Reporting Survey, this puts in a strong position to have the necessary data when pellet loss reporting becomes mandatory in 2026.

 

Directors' duties and responsibilities

We completed the third year of our ONE RENOLIT 2025 medium term strategy which is focused on our 5 strategic cornerstones – Our People / Operational Excellence / Sales, Market & Service / Products & Innovation / Sustainability. In addition to our local work Cramlington personnel continue to play key roles with strategy implementation across the RENOLIT group. This process helps to coordinate activity across the relevant sites as well as monitor and control progress towards 2025 target states.

 

It is pleasing to report that we have retained the Maintaining Excellence stage of the Better Health at Work Award as we continue with our efforts to improve employee health and wellbeing. Our successful employee assistance programme continues to be promoted to all employees and we also introduced a wellbeing app to provide employees with a further range of services to help them look after themselves. As well as reviewing and updating existing policies where appropriate, we introduced a Menopause Policy for the first time in 2023. We continue to participate in the British Safety Council’s Keep Thriving Campaign and in 2023 we opened our Wellbeing Garden for all employees, to promote regular breaks and fresh air. We also introduced two bee hives on site, maintained by employee volunteers.

 

We continuously aim to ensure we make a positive impact on our local community through providing charitable donations for local worthy causes and by volunteering, with our 2023 nominated charity being the “People’s Kitchen”. We introduced a Volunteering Policy, allowing all employees paid time off to volunteer at a charity of their choice. Community initiatives included employee donations of tins of soup for a homeless shelter, Easter eggs for the Cramlington Youth Project, and toys for the Christmas Cash for Kids appeal. In addition, we hosted visits from the local high school to support students with their studies and aim to continue to foster our relationship with local schools going forward.

 

The Group relies on good working relationships with customers and suppliers and relies on these to ensure success. As a group we have a reputation for reliability, trustworthiness, open mindedness and cooperation with customers and suppliers alike. These qualities are highly valued by the group and our partners.

 

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Promoting the success of the company

The Board of Directors consider that they have acted in good faith to promote the long-term success of the group for the benefit of its members as a whole. In doing so the Board have regard to their stakeholders and those matters set out in Section 172 of the Companies Act 2006:

 

As can be seen from the activities described elsewhere in this Strategic Report, there are many examples showing the group’s commitment to, and consideration for, its stakeholders (employees, customers, suppliers, regulators, shareholder, local community and society as a whole). Similar regard has been taken and continues to be taken in our medium and long term business planning.

 

Stakeholder engagement and consideration takes place across a wide spectrum of meetings and committees (eg Health & Safety, Energy & Environment, Community, Union), employee surveys and briefs, customer and supplier visits and satisfaction metrics, as well as regular dialogue with regulatory authorities and our shareholder.

 

The Board acts and makes decisions to promote the long term sustainable success of the group for the benefit of its members, whilst also seeking to contribute to the economy and communities we operate in. This approach is actively encouraged and fostered by the Board throughout all levels of the organisation.

 

On behalf of the board

Mr D S Hall
Director
2 February 2024
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

RENOLIT (UK) Limited is a dormant intermediate holding company. The principal activity of the group continued to be that of the manufacture and sale of flexible decorative surface materials. The main product area continues to be decorative laminates made primarily from PVC films. End uses for these products include kitchen and bedroom cabinet doors, window frames, mobile home and caravan interiors. The group also distributes PVC waterproofing membranes and products, principally for the single ply roofing market.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £4,000,000 (2022 £4,750,000). The directors do not recommend payment of a further dividend.

Directors

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

Mr M T Kundel
(Resigned 5 June 2023)
Mr D S Hall
Mr S Friedrich
(Appointed 5 June 2023)
Supplier payment policy

The group's current policy concerning the payment of trade payables is to:

- Settle the terms of payment with suppliers when agreeing the terms of each transaction;

- Ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts;

and

- Pay in accordance with the group's contractual and other legal obligations.

Research and development

The group continues to investigate new production methods and materials to both improve the quality and performance of existing products and provide opportunities for the introduction of new products.

Disabled persons

The group gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

 

Where existing employees become disabled, it is the group's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

Employee involvement

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the group's performance.

The group's policy is to consult and discuss with employees, through unions and at meetings, matters likely to affect employees' interests.

 

Information of matters of concern to employees is given through presentations, monthly briefs and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Future developments

Over the medium to long term the group will continue to grow the business by remaining focussed on delivering a high quality product with excellent service at competitive prices.

Auditor

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

Energy and carbon report

We have considered the recommendations of The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which implement the government’s policy on Streamlined Energy and Carbon reporting (SECR) when preparing this report. The figures reported relate to our subsidiary RENOLIT Cramlington Limited as RENOLIT (UK) Limited does not trade.

 

Total electricity and gas usage has been extracted from supplier invoices and adjustment made where periods were not coterminous with the reporting period.

 

The total kWh has been multiplied by 0.20707kg (electric) (2022 - 0.19338kg) and 0.18293kg (gas) (2022 - 0.19338kg) of CO2 to derive the total CO2e emissions for the Company as a whole. The multipliers have been extracted from the UK Government GHG Conversion Factors for Company Reporting 2023.

 

The fuel for transport usage has been derived from litres purchased converted to kWh, the total volume has been multiplied by 0.25192 (2022 - 0.25321) for diesel, 0.24171 (2022 - 0.24157) for petrol and 0.20707 (2022 - Not applicable) for electric to derive the total CO2e emissions for the Company as a whole. The multipliers have been extracted from the Carbon Trust Energy and Conversion 2023 update.

Intensity measurement

Energy consumption and greenhouse gas emissions for the year ended 2022:

 

2023

 

2022

 

‘000 kWh

‘000 Kg

 

‘000 kWh

‘000 Kg

Electric

13,464

2,788

 

13,286

2,569

Gas

19,944

3,648

 

20,341

3,713

Fuel for transport

270

66

 

286

72

 

33,678

6,502

 

33,913

6,354

The Intensity Ratio is 784:1 (2022 – 791:1), based on total CO2e per output tonne.

Measures taken to improve energy efficiency

The group is committed to reducing its impact on the environment with energy saving measures coordinated and targeted through the Sustainability cornerstone of our RENOLIT 2025 strategic plan as well as Energy & Environment Steering Committee. Via this process 2023 saw the group agree an exclusivity agreement for the proposed supply and installation of solar panels during 2024. Improvements to production performance drive day to day energy efficiency and our Operational Excellence teams continue to play a key role in this area. Energy efficiency is considered as a matter of course as new equipment is required and old equipment is replaced with energy efficient alternatives where possible.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
On behalf of the board
Mr D S Hall
Director
2 February 2024
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -

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

 

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

 

 

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

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RENOLIT UK HOLDING LIMITED
- 8 -
Opinion

We have audited the financial statements of RENOLIT (U.K.) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RENOLIT UK HOLDING LIMITED
- 9 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RENOLIT UK HOLDING LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Needham (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
2 February 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£'000
£'000
Revenue
3
86,753
82,735
Cost of sales
(65,134)
(63,146)
Gross profit
21,619
19,589
Distribution costs
(1,510)
(1,479)
Administrative expenses
(10,745)
(9,471)
Other operating income
1,489
1,472
Operating profit
4
10,853
10,111
Investment income
8
70
64
Finance costs
9
(14)
-
0
Profit before taxation
10,909
10,175
Tax on profit
10
(2,257)
(1,701)
Profit for the financial year
8,652
8,474
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Non-current assets
Intangible assets
12
65
77
Property, plant and equipment
13
13,164
8,921
13,229
8,998
Current assets
Inventories
15
13,454
13,522
Trade and other receivables
16
14,621
11,512
Cash and cash equivalents
5,290
6,685
33,365
31,719
Current liabilities
17
(8,817)
(8,748)
Net current assets
24,548
22,971
Total assets less current liabilities
37,777
31,969
Provisions for liabilities
Provisions
18
497
1,161
Deferred tax liability
19
1,820
-
0
(2,317)
(1,161)
Net assets
35,460
30,808
Equity
Called up share capital
21
1,700
1,700
Retained earnings
33,760
29,108
Total equity
35,460
30,808
The financial statements were approved by the board of directors and authorised for issue on 2 February 2024 and are signed on its behalf by:
02 February 2024
Mr D S Hall
Director
Company registration number 01375539 (England and Wales)
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Non-current assets
Investments
14
27,839
27,839
Equity
Called up share capital
21
1,700
1,700
Retained earnings
26,139
26,139
Total equity
27,839
27,839

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £4,000,000 (2022 - £4,750,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 2 February 2024 and are signed on its behalf by:
02 February 2024
Mr D S Hall
Director
Company Registration No. 01375539
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Retained earnings
Total
Notes
£'000
£'000
£'000
Balance at 1 January 2022
1,700
25,384
27,084
Year ended 31 December 2022:
Profit and total comprehensive income
-
8,474
8,474
Dividends
11
-
(4,750)
(4,750)
Balance at 31 December 2022
1,700
29,108
30,808
Year ended 31 December 2023:
Profit and total comprehensive income
-
8,652
8,652
Dividends
11
-
(4,000)
(4,000)
Balance at 31 December 2023
1,700
33,760
35,460
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Retained earnings
Total
Notes
£'000
£'000
£'000
Balance at 1 January 2022
1,700
26,139
27,839
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
4,750
4,750
Dividends
11
-
(4,750)
(4,750)
Balance at 31 December 2022
1,700
26,139
27,839
Year ended 31 December 2023:
Profit and total comprehensive income
-
4,000
4,000
Dividends
11
-
(4,000)
(4,000)
Balance at 31 December 2023
1,700
26,139
27,839
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
27
8,013
8,051
Income taxes paid
(309)
(999)
Net cash inflow from operating activities
7,704
7,052
Investing activities
Purchase of intangible assets
-
(28)
Purchase of property, plant and equipment
(5,197)
(1,198)
Proceeds from disposal of property, plant and equipment
28
4
Interest received
70
64
Net cash used in investing activities
(5,099)
(1,158)
Financing activities
Dividends paid to equity shareholders
(4,000)
(4,750)
Net cash used in financing activities
(4,000)
(4,750)
Net (decrease)/increase in cash and cash equivalents
(1,395)
1,144
Cash and cash equivalents at beginning of year
6,685
5,541
Cash and cash equivalents at end of year
5,290
6,685
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

RENOLIT (U.K.) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Station Road, Cramlington, Northumberland, NE23 8AQ.

 

The group consists of RENOLIT (U.K.) Limited and all of its subsidiaries.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

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

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company RENOLIT (U.K.) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Turnover represents revenue from sales of products, after deduction of Value Added Tax and is recognised on dispatch.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Royalty income is recognised on an accruals basis and included within other operating income.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
3 to 10 years straight line
1.9
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold land and buildings
10 years straight line
Plant and equipment
3 to 10 years straight line
Fixtures and fittings
3 to 10 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

 

No depreciation is provided on land and assets under construction.

1.10
Non-current investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.11
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

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

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables bank loans and loans from fellow group, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The costs of long-term employee benefits are recognised as a liability and an expense and recognised over the period to which they relate.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

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

1.20
Leases

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

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

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

Inventories

Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete inventories. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

Inventory overhead cost absorption

The group converts raw materials to finished goods. Inventory values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.

Depreciation of tangible assets

Depreciation policies have been set according to management's experience and judgement of the useful lives of the assets in each category, something which is reviewed annually.

 

The group incurs expenditure on creating tangible fixed assets for use in the primary trade. The cost is determined by reference to the direct attributable costs which bring the fixed asset to working condition for its intended use, with costs being incurred over several months. Management believe it is possible to segregate these costs into identifiable projects, and as such no depreciation is charged on that project until it is bought into use. This expenditure is therefore capitalised as a fixed asset and depreciated in line with the relevant depreciation policy.

Warranty provision

Warranty provisions are calculated as a percentage of the average annual sales figures, based upon group wide historic warranty claims data, and included as an expense within sales.

3
Revenue
2023
2022
£'000
£'000
Revenue analysed by class of business
Sale of goods
86,753
82,735
2023
2022
£'000
£'000
Revenue analysed by geographical market
UK and Channel Islands
48,386
48,563
Rest of Europe
32,317
27,295
Rest of the World
6,050
6,877
86,753
82,735
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Revenue
(Continued)
- 25 -
2023
2022
£'000
£'000
Other revenue
Interest income
70
64
Royalty income
1,489
1,472
4
Operating profit
2023
2022
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
7
(527)
Research and development costs
694
724
Depreciation of owned property, plant and equipment
909
1,644
Profit on disposal of property, plant and equipment
(11)
(4)
Amortisation of intangible assets
40
275
Operating lease charges
175
106

Research and development costs include staff costs, which are also disclosed in note 6.

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
1
1
Audit of the financial statements of the company's subsidiaries
37
35
38
36
For other services
Taxation compliance services
5
5
All other non-audit services
3
3
8
8

Costs in respect of the audit of the group and company financial statements are borne by the subsidiary.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
259
260
-
-
Marketing, selling and distribution
50
52
-
-
Administration
23
20
-
-
Directors
2
2
2
2
Total
334
334
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Wages and salaries
14,065
13,517
-
0
-
0
Social security costs
1,493
1,506
-
-
Pension costs
3,135
2,914
-
0
-
0
18,693
17,937
-
0
-
0
7
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
144
159
Company pension contributions to defined contribution schemes
28
25
172
184

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration of directors of Renolit (UK) Limited is borne by the fully owned trading subsidiary of which they are also statutory directors.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
8
Investment income
2023
2022
£'000
£'000
Interest income
Interest on bank deposits
70
15
Other interest income
-
49
Total income
70
64
9
Finance costs
2023
2022
£'000
£'000
Unwinding of discount on provisions
14
-
10
Taxation
2023
2022
£'000
£'000
Current tax
UK corporation tax on profits for the current period
286
1,450
Adjustments in respect of prior periods
(76)
202
Total current tax
210
1,652
Deferred tax
Origination and reversal of timing differences
2,047
49
Total tax charge
2,257
1,701

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£'000
£'000
Profit before taxation
10,909
10,175
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
2,564
1,933
Tax effect of expenses that are not deductible in determining taxable profit
10
7
Adjustments in respect of prior years
(76)
202
Effect of change in corporation tax rate
162
-
Permanent capital allowances in excess of depreciation
(71)
(69)
Patent box
(341)
(303)
Other tax adjustments
9
(69)
Taxation charge
2,257
1,701
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 28 -

The Renolit (UK) group falls within the scope of the Pillar Two legislation as a result of the worldwide group which is it a part of. Based on the latest estimates of the worldwide tax position, the UK subgroup is not expected to be impacted as a result of Pillar Two.

11
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
£'000
£'000
Pence
Pence
Interim paid
235
279
4,000
4,750
12
Intangible fixed assets
Group
Goodwill
Software
Total
£'000
£'000
£'000
Cost
At 1 January 2023
10,753
1,489
12,242
Transfers
-
0
28
28
At 31 December 2023
10,753
1,517
12,270
Amortisation and impairment
At 1 January 2023
10,753
1,412
12,165
Amortisation charged for the year
-
0
40
40
At 31 December 2023
10,753
1,452
12,205
Carrying amount
At 31 December 2023
-
0
65
65
At 31 December 2022
-
0
77
77
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
13
Property, plant and equipment
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£'000
£'000
£'000
£'000
Cost
At 1 January 2023
6,494
41,857
2,703
51,054
Additions
10
5,161
26
5,197
Disposals
-
0
(98)
-
0
(98)
Transfers
-
0
(28)
-
0
(28)
At 31 December 2023
6,504
46,892
2,729
56,125
Depreciation and impairment
At 1 January 2023
6,187
33,736
2,210
42,133
Depreciation charged in the year
39
701
169
909
Eliminated in respect of disposals
-
0
(81)
-
0
(81)
At 31 December 2023
6,226
34,356
2,379
42,961
Carrying amount
At 31 December 2023
278
12,536
350
13,164
At 31 December 2022
307
8,121
493
8,921
The company had no property, plant and equipment at 31 December 2023 or 31 December 2022.

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Freehold
154
154
-
0
-
0

Within plant and machinery is £10,301,000 (2022 - £5,430,000) in respect of assets under construction, which have not been depreciated.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
24
-
0
-
0
27,839
27,839
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 30 -
Movements in non-current investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 January 2023 and 31 December 2023
27,839
Carrying amount
At 31 December 2023
27,839
At 31 December 2022
27,839
15
Inventories
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Raw materials and consumables
5,697
4,756
-
-
Work in progress
2,340
2,083
-
-
Finished goods and goods for resale
5,417
6,683
-
0
-
0
13,454
13,522
-
-
16
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade receivables
8,689
7,898
-
0
-
0
Corporation tax recoverable
374
275
-
0
-
0
Amounts owed by group undertakings
4,916
2,550
-
-
Other receivables
186
226
-
0
-
0
Prepayments and accrued income
456
336
-
0
-
0
14,621
11,285
-
-
Deferred tax asset (note 19)
-
0
227
-
0
-
0
14,621
11,512
-
-
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
17
Current liabilities
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Trade payables
5,136
4,898
-
0
-
0
Amounts owed to group undertakings
2,619
2,355
-
0
-
0
Other taxation and social security
619
890
-
-
Accruals and deferred income
443
605
-
0
-
0
8,817
8,748
-
0
-
0
18
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Jubilee provision
172
171
-
-
Warranty provision
325
990
-
-
497
1,161
-
-
Movements on provisions:
Jubilee provision
Warranty provision
Total
Group
£'000
£'000
£'000
At 1 January 2023
171
990
1,161
Additional provisions in the year
1
-
1
Utilisation of provision
-
(665)
(665)
At 31 December 2023
172
325
497

Further information on the above provisions can be found in accounting policy 1.17 and note 2.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
19
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£'000
£'000
£'000
£'000
Accelerated capital allowances
2,372
-
-
(393)
Other timing differences
(552)
-
-
620
1,820
-
-
227
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£'000
£'000
Asset at 1 January 2023
(227)
-
Charge to profit or loss
2,047
-
Liability at 31 December 2023
1,820
-
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
3,135
2,914

The company operates the RENOLIT Group Personal Pension Scheme. Pension costs charged in respect of the scheme amounted to £3,135,000 (2022 - £2,914,000), with £10,000 (2022 - £174,000) accrued at the balance sheet date. The costs charged in the accounts as detailed above include death in service life assurance payments of £378,000 (2022 - £368,000).

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
1,700,000
1,700,000
1,700
1,700
RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
22
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Within one year
148
96
-
-
Between two and five years
234
168
-
-
382
264
-
-
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Acquisition of property, plant and equipment
117
2,625
-
-
24
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Renolit Cramlington Limited
England
Ordinary
100.00

The subsidiary registered office address is the same as this company's registered office address.

RENOLIT UK HOLDING LIMITED
(FORMERLY RENOLIT (U.K.) LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
25
Related party transactions

The company and the group have taken advantage of the disclosure exemptions of Section 33.1A of FRS 102 which permit it to not present details of its transactions with members of the group headed by JM Industriebeteiligungen GmbH & Co. KGaA where relevant group companies are all wholly owned. Details of outstanding balances as at the year end are given in notes 17 and 18. These balances represent normal trading debtors and creditors.

26
Controlling party

The company is a wholly owned subsidiary of RENOLIT SE, a company incorporated in Germany.

 

The ultimate parent is JM Industriebeteiligungen GmbH & Co. KGaA, a company incorporated in Germany, which is the largest group into which these accounts are consolidated.

 

Both Renolit SE and JM Industriebeteiligungen GmbH & Co. KGaA have a Registered Office of Horchheimer Strasse 50, 67547 Worms, Germany.

 

RENOLIT (U.K.) Limited is the smallest group into which these accounts are consolidated and the consolidated accounts are publicly available from the registered office; Station Road, Cramlington, Northumberland, NE23 8AQ.

27
Cash generated from group operations
2023
2022
£'000
£'000
Profit for the year after tax
8,652
8,474
Adjustments for:
Taxation charged
2,257
1,701
Finance costs
14
-
0
Investment income
(70)
(64)
Gain on disposal of property, plant and equipment
(11)
(4)
Amortisation and impairment of intangible assets
40
275
Depreciation and impairment of property, plant and equipment
909
1,644
(Decrease)/increase in provisions
(678)
32
Movements in working capital:
Decrease/(increase) in inventories
68
(3,095)
(Increase)/decrease in trade and other receivables
(3,237)
3,796
Increase/(decrease) in trade and other payables
69
(4,708)
Cash generated from operations
8,013
8,051
28
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£'000
£'000
£'000
Cash at bank and in hand
6,685
(1,395)
5,290
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