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REGISTERED NUMBER: 01408896 (England and Wales)












SPECIALTY COATING SYSTEMS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


SPECIALTY COATING SYSTEMS LIMITED

COMPANY INFORMATION
for the year ended 31 December 2023







DIRECTORS: D Ellis
T T Bender





REGISTERED OFFICE: Unit A1
Kingswey Business Park
Forsyth Road
WOKING
Surrey
GU21 5SA





REGISTERED NUMBER: 01408896 (England and Wales)





AUDITOR: Shaw Gibbs Audit Ltd
264 Banbury Road
Oxford
Oxfordshire
OX2 7DY

SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 4 965,664 506,908
Investments 5 2,505,699 2,505,699
3,471,363 3,012,607

CURRENT ASSETS
Stocks 462,400 260,555
Debtors 6 3,141,019 3,273,903
Cash at bank and in hand 694,542 988,359
4,297,961 4,522,817
CREDITORS
Amounts falling due within one year 7 (666,991 ) (317,769 )
NET CURRENT ASSETS 3,630,970 4,205,048
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,102,333

7,217,655

CREDITORS
Amounts falling due after more than one
year

8

(1,372,106

)

(2,251,111

)

PROVISIONS FOR LIABILITIES 10 (108,607 ) (77,221 )
NET ASSETS 5,621,620 4,889,323

CAPITAL AND RESERVES
Called up share capital 11 2,122,501 2,122,501
Share premium 12 400 400
Retained earnings 12 3,498,719 2,766,422
SHAREHOLDERS' FUNDS 5,621,620 4,889,323

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 August 2024 and were signed on its behalf by:




D Ellis - Director


SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023

1. STATUTORY INFORMATION

Specialty Coating Systems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - Straight line over the life of the lease
Plant and machinery - at varying rates on cost
Fixtures and fittings - 10% on cost
Computer equipment - 33% on cost, 20% on cost and 10% on cost

The company has a policy of not capitalising chillers and computer equipment (other than servers), unless they are part of a specific project.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stock is valued on the weighted average cost basis.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Any differences arising from converting the opening reserves of any foreign branches to the rates of exchange ruling at the balance sheet date, have been taken to reserves.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Exemption from preparing group accounts
In accordance with Section 401 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts, as it is a wholly-owned subsidiary of another company incorporated outside the EEA.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 70 (2022 - 72 ) .

SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 901,447 1,858,050 187,450 146,154 3,093,101
Additions 349,281 181,526 30,051 1,220 562,078
Exchange differences (4,881 ) (17,634 ) (1,163 ) (1,289 ) (24,967 )
At 31 December 2023 1,245,847 2,021,942 216,338 146,085 3,630,212
DEPRECIATION
At 1 January 2023 868,660 1,448,176 136,865 132,491 2,586,192
Charge for year 11,018 74,267 10,016 3,563 98,864
Exchange differences (4,689 ) (13,388 ) (1,163 ) (1,268 ) (20,508 )
At 31 December 2023 874,989 1,509,055 145,718 134,786 2,664,548
NET BOOK VALUE
At 31 December 2023 370,858 512,887 70,620 11,299 965,664
At 31 December 2022 32,787 409,874 50,585 13,663 506,909

5. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 2,505,699
NET BOOK VALUE
At 31 December 2023 2,505,699
At 31 December 2022 2,505,699

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

Specialty Coating Systems (Ireland) Ltd
Registered office: outside of the United Kingdom
Nature of business: to provide custom coating services
%
Class of shares: holding
Ordinary 100.00

Comelec S.A.
Registered office: outside of the United Kingdom
Nature of business: to provide custom coating services
%
Class of shares: holding
Ordinary 100.00

SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

5. FIXED ASSET INVESTMENTS - continued

Specialty Coating Systems (Ireland) Ltd is incorporated in the Republic of Ireland and provides custom coating services in that region.

Comelec SA is incorporated in Switzerland and provides custom coating services in that region.

6. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 1,189,261 837,064
Amounts owed by group undertakings 106,201 109,506
Other debtors 5,261 8,842
Czech Republic Tax 16,416 21,016
VAT 19,742 16,308
Prepayments 56,189 42,047
1,393,070 1,034,783

Amounts falling due after more than one year:
Amounts owed by group undertakings 1,747,949 2,239,120

Aggregate amounts 3,141,019 3,273,903

Included in amounts falling due after more than one year is €800,000 due from a fellow subsidiary which is actually due within one one year but the directors believe that repayment will not be made until over one year. The remaining amounts owed by group undertakings is owed by the company's subsidiary. All amounts owed by group undertakings have been guaranteed by another group member.

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 110,734 33,112
Amounts owed to group undertakings 18,396 -
UK Tax 52,096 -
Social security and other taxes 49,507 38,396
Other creditors 42,588 41,236
VAT creditor 47,152 45,906
Accrued expenses 346,518 159,119
666,991 317,769

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Amounts owed to group undertakings 1,352,106 2,231,111
Other creditors 20,000 20,000
1,372,106 2,251,111

SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 316,897 308,310
Between one and five years 849,052 962,456
In more than five years 697,981 892,767
1,863,930 2,163,533

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 108,607 77,221

Deferred
tax
£   
Balance at 1 January 2023 77,221
Provided during year 31,386
Balance at 31 December 2023 108,607

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,122,501 Ordinary £1.00 2,122,501 2,122,501

12. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 2,766,422 400 2,766,822
Profit for the year 752,098 752,098
Exchange difference (19,801 ) - (19,801 )
At 31 December 2023 3,498,719 400 3,499,119

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditor was unqualified.

Lance Redman (Senior Statutory Auditor)
for and on behalf of Shaw Gibbs Audit Ltd

SPECIALTY COATING SYSTEMS LIMITED (REGISTERED NUMBER: 01408896)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 December 2023

14. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The consolidated financial statements of Coatings Holding Inc, within which the company is included, can be obtained from the following address:

Coatings Holding Inc.,
7645 Woodland Drive,
Indianapolis,
IN 46278
USA

15. ULTIMATE CONTROLLING PARTY

The immediate parent company is Coatings Holding Inc., a company based in the USA, and the ultimate parent company, which is also the ultimate controlling party is Kisco Ltd, a company based in Japan.

In accordance with Section 401 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts, as it is a wholly-owned subsidiary of another company incorporated outside the EEC.