Company registration number 00207104 (England and Wales)
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
COMPANY INFORMATION
Directors
Mr D S Hall
Mr S M Wilson
Mr M K Jaenicke
Mr S Friedrich
Secretary
Mr S M Wilson
Company number
00207104
Registered office
Station Road
Cramlington
Northumberland
NE23 8AQ
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 28
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON 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 company 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 company operates a quarterly risk management process in order to regularly assess risks and identify counter measures and controls. As part of this process the company 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 Company 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 company 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 company 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
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON 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.
Additional information and explanations
With the exception of foreign exchange, the company does not actively use financial instruments as part of its financial risk management. The Company 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 company is not subject to a price risk or liquidity risk other than as set out below. The company 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 company 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 Company 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 Company and our partners.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON 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 company 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:
• the likely consequences of any decision in the long term;
• the interests of the Company’s employees;
• the need to foster the Company’s business relationships with suppliers, customers and others;
• the impact of the Company’s operations on the community and the environment;
• the desirability of the Company maintaining a reputation for high standards of business conduct; and
• the need to act fairly as between members of the Company.
As can be seen from the activities described elsewhere in this Strategic Report, there are many examples showing the company’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 Company 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.
Mr D S Hall
Director
2 February 2024
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON 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
The main activity of the company during the year was 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 company 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.
Dividends totalling £4,000,000 (2022: £4,750,000) were paid to the immediate parent company, RENOLIT (U.K.) Limited.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D S Hall
Mr S M Wilson
Mr M K Jaenicke
Mr S Friedrich
Supplier payment policy
The company'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 company's contractual and other legal obligations.
Research and development
The company 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 company 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 company’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
The company'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.
Future developments
Over the medium to long term the company will continue to grow the business by remaining focussed on delivering a high quality product with excellent service at competitive prices.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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.
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:
The Intensity Ratio is 784:1 (2022 – 791:1), based on total CO2e per output tonne.
Measures taken to improve energy efficiency
The company 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 Company 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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON 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 LIMITED
(FORMERLY RENOLIT CRAMLINGTON 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 company and of the profit or loss of the company 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RENOLIT UK LIMITED
- 8 -
Opinion
We have audited the financial statements of RENOLIT UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and 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 FRS 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 company's affairs as at 31 December 2023 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RENOLIT UK LIMITED
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RENOLIT UK 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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
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.
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 LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
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)
Profit before taxation
10,909
10,175
Tax on profit
10
(2,257)
(1,701)
Profit for the financial year
8,652
8,474
The income statement has been prepared on the basis that all operations are continuing operations.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
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
14
13,454
13,522
Trade and other receivables
15
14,621
11,512
Cash and cash equivalents
5,290
6,685
33,365
31,719
Current liabilities
16
(8,817)
(8,748)
Net current assets
24,548
22,971
Total assets less current liabilities
37,777
31,969
Provisions for liabilities
Provisions
17
497
1,161
Deferred tax liability
18
1,820
(2,317)
(1,161)
Net assets
35,460
30,808
Equity
Called up share capital
20
10,000
10,000
Share premium account
514
514
Retained earnings
24,946
20,294
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:
Mr S M Wilson
Director
Company Registration No. 00207104
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Retained earnings
Total
Notes
£'000
£'000
£'000
£'000
Balance at 1 January 2022
10,000
514
16,570
27,084
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
8,474
8,474
Dividends
11
-
-
(4,750)
(4,750)
Balance at 31 December 2022
10,000
514
20,294
30,808
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
8,652
8,652
Dividends
11
-
-
(4,000)
(4,000)
Balance at 31 December 2023
10,000
514
24,946
35,460
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
RENOLIT UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Station Road, Cramlington, Northumberland, NE23 8AQ.
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 £1,000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
The financial statements of the company are consolidated in the financial statements of RENOLIT (U.K.) Limited. These consolidated financial statements are available from its registered office; Station Road, Cramlington, Northumberland, NE23 8AQ.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
1.4
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.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
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.
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
1.6
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold buildings
10 years straight line
Plant and machinery
3 to 10 years straight line
Fixtures, fittings and equipment
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 credited or charged to profit or loss.
No depreciation is provided on land and assets under construction.
1.7
Impairment of non-current assets
At each reporting period end date, the company 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).
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
1.8
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.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
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.
1.10
Financial instruments
The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
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. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, 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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 when the company has 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.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.16
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 leases asset are consumed.
1.17
Foreign exchange
Transactions denominated in foreign currency are translated at the rate of exchange ruling at the start of the month the transaction occurred. Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the end of the financial year. Exchange differences arising on retranslation are included in the profit and loss account in the year in which they occur.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
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 company 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 company 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.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Revenue
An analysis of the company's revenue is as follows:
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
2023
2022
£'000
£'000
Other revenue
Interest income
70
64
Royalty income
1,489
1,472
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
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 salary costs, which are also included in note 6.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
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 company
38
36
For other services
Taxation compliance services
5
5
All other non-audit services
3
3
8
8
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production
259
260
Marketing, selling and distribution
50
52
Administration
25
22
Total
334
334
Their aggregate remuneration comprised:
2023
2022
£'000
£'000
Wages and salaries
14,065
13,517
Social security costs
1,493
1,506
Pension costs
3,135
2,914
18,693
17,937
7
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
282
305
Company pension contributions to defined contribution schemes
52
46
334
351
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 22 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£'000
£'000
Remuneration for qualifying services
143
159
Company pension contributions to defined contribution schemes
28
25
There are no key management personnel other than the directors.
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
Other finance costs:
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
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 23 -
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 for the year
2,257
1,701
The company is within a worldwide group. The group is within scope of the pillar two legislation. However based on latest estimates for Renolit Cramlington Limited, they are not expected to be impacted by this legislation and therefore no change is expected to the future effective tax rate as a result.
11
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
Pence
Pence
£'000
£'000
Ordinary
Interim paid
40.00
47.50
4,000
4,750
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
12
Intangible fixed assets
Software
£'000
Cost
At 1 January 2023
1,489
Transfers
28
At 31 December 2023
1,517
Amortisation and impairment
At 1 January 2023
1,412
Amortisation charged for the year
40
At 31 December 2023
1,452
Carrying amount
At 31 December 2023
65
At 31 December 2022
77
13
Property, plant and equipment
Freehold buildings
Plant and machinery
Fixtures, fittings and equipment
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
(98)
(98)
Transfers
(28)
(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
(81)
(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
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Property, plant and equipment
(Continued)
- 25 -
The following land is not depreciated.
2023
2022
£'000
£'000
Freehold
154
154
Within plant and machinery is £10,301,000 (2022 - £5,430,000) in respect of assets under construction, which have not been depreciated.
14
Inventories
2023
2022
£'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
13,454
13,522
15
Trade and other receivables
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade receivables
8,689
7,898
Corporation tax recoverable
374
275
Amounts owed by group undertakings
4,916
2,550
Other receivables
186
226
Prepayments and accrued income
456
336
14,621
11,285
Deferred tax asset (note 18)
227
14,621
11,512
Amounts owed by group undertakings are interest free and repayable on demand.
16
Current liabilities
2023
2022
£'000
£'000
Trade payables
5,136
4,898
Amounts owed to group undertakings
2,619
2,355
Taxation and social security
619
890
Accruals and deferred income
443
605
8,817
8,748
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Current liabilities
(Continued)
- 26 -
Amounts owed to group undertakings are interest free and repayable on demand.
17
Provisions for liabilities
2023
2022
£'000
£'000
Jubilee provision
172
171
Warranty provision
325
990
497
1,161
Movements on provisions:
Jubilee provision
Warranty provision
Total
£'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 1.13, and in note 2.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£'000
£'000
£'000
£'000
Accelerated capital allowances
2,372
-
-
(393)
Other timing differences
(552)
-
-
620
1,820
-
-
227
2023
Movements in the year:
£'000
Asset at 1 January 2023
(227)
Charge to profit or loss
2,047
Liability at 31 December 2023
1,820
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
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).
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary of £1 each
10,000,000
10,000,000
10,000
10,000
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£'000
£'000
Within one year
148
96
Between two and five years
234
168
382
264
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£'000
£'000
Acquisition of property, plant and equipment
117
2,625
23
Related party transactions
Exemption from disclosing group transactions
The company has 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 15 and 16. These balances represent normal trading debtors and creditors.
RENOLIT UK LIMITED
(FORMERLY RENOLIT CRAMLINGTON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
24
Ultimate controlling party
The company is a wholly owned subsidiary of RENOLIT (U.K.) Limited, which is the smallest group into which these accounts are consolidated. The consolidated accounts are publicly available from the registered office: Station Road, Cramlington, Northumberland, NE23 8AQ.
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.
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