Company registration number 02090336 (England and Wales)
BUFA COMPOSITES UK LTD.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BUFA COMPOSITES UK LTD.
COMPANY INFORMATION
Directors
Mr E J Putwain
Mr P S Burrows
Mr L Kempf
Mr R Ramke
Company number
02090336
Registered office
Factory Lane
Brantham
Manningtree
CO11 1NT
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
Bankers
HSBC Bank plc
12 Tavern Street
Ipswich
Suffolk
IP1 3AZ
Solicitors
Birketts LLP incorporating Wollastons L.L.P
Brierly Place
New London Road
Chelmsford
Essex
CM2 0AP
BUFA COMPOSITES UK LTD.
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
BUFA COMPOSITES UK LTD.
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

The company is pleased to again announce a profit for the year ended December 2023 of £2,130,094 (2022: £2,846,725)

 

2023 was a dynamic year. The first 6 months reflected high demand and restricted availability of raw materials, although we were successful meeting our customer demands thanks to our robust supply chain, and close cooperation with our main suppliers. The last half of the year saw levelling demand and easing of availability. The business strengthened further with the available benefits & synergies from the parent group.

 

In 2023 we further reinforced our commitment to ongoing quality improvements, with the successful recertification of ISO 9001, 14001 and 45001.

 

Also in the year Bufa Group was recognised with certification of Eco Vadis, securing a ‘Gold’ result.

 

Additional product lines were added during the year, increasing our ‘complete package’ offering to existing customers and also enabling access to previously restricted industry opportunities.

 

Our strategy of delivering tangible benefits to customers and vendors is contributing in our ability to increase lines per order. This strategy continues to prove a successful model for both our dedicated manufacturing customers, and also the distribution market.

 

We made further investments in our manufacturing processes, including additional and replacement machinery, decanting and process lines and we also successfully introduced a new EPOS system.

 

Training remains a critical element for us in investing in the ‘upskilling’ of staff. This includes internal application training and formal external education.

Principal risks and uncertainties

Bufa continually monitors all product manufacturing costs and continues to offer its customers assistance in being more efficient and streamlining costs. Throughout 2023 the supply and pricing for most products and raw materials, has been an ongoing challenge.

 

We have worked very closely with our key customers to secure firm forward orders, to enable us to secure the required raw materials and required production slots to manufacture and continue to supply reliably with confidence. This strategy has proven successful, and we will endeavour also to drive this in 2024.

 

BUFA COMPOSITES UK LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The companies KPIs for the year ended 31 December 2023 are as follows:

 

                     2023         2022

                     £         £

Turnover          44,465,867     41,657,291

Turnover                 40,813,033     44,465,867

Profit                 2,130,094     2,846,725

 

                    Number Number

Debtor Days                 72         72

Stock Days                 80         64

Creditor Days                 71         69

 

Debtor Days have remained consistent, with no changes to Credit terms being offered during the year. Credit control is being closely monitored combined with the Credit Insurance protection for the existing customer base. Stock days has increased as expected given our intention to increase holding of certain stock groups. Creditors days have remained fairly consistent following the efficient handling of cash flow.

On behalf of the board

Mr E J Putwain
Director
15 February 2024
BUFA COMPOSITES UK LTD.
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the supply and distribution of materials for use in the composites industry.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,500,000. The directors do not recommend payment of a final 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 E J Putwain
Mr P S Burrows
Mr L Kempf
Mr R Ramke
Financial instruments
Liquidity risk

The company maintains an unutilised overdraft facility and an unutilised bank guarantees facility to provide financial liquidity. A first fixed charge is held over all trade and other debts and a first floating charge is held over all other assets in relation to these facilities.

Price risk

The company has risk exposure linked to the price of Crude Oil, and as such has no control over its pricing. Every effort is made to secure raw materials at the lowest level but these costs are solely controlled by supply and demand, and is outside the scope of the company's control.

Credit risk

The company continues to apply its credit procedures prior to offering any credit terms by using financial information obtained from credit bureaus, where possible, and regularly monitoring and reviewing its exposure. The extension of credit to customers is subject to strict credit protocol and management approval.

Research and development

The business continues to develop and assist its customer base, by working with them in improving and enhancing their current technology, in order to make their products  and production more efficient and cost effective.

Future developments

The continuation, and ongoing development of projects, and identification of new products and processes. This reflects the evolving demands of legislation, and the current and future demands of our Customers’ end markets. This also includes the development of recyclable and renewable products, combined with other technical advances.

Auditor

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

BUFA COMPOSITES UK LTD.
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of directors' responsibilities

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:

 

 

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.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr E J Putwain
Director
15 February 2024
BUFA COMPOSITES UK LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BUFA COMPOSITES UK LTD.
- 5 -
Opinion

We have audited the financial statements of BUFA Composites UK Ltd. (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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.

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:

BUFA COMPOSITES UK LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUFA COMPOSITES UK LTD.
- 6 -
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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

BUFA COMPOSITES UK LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUFA COMPOSITES UK LTD.
- 7 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the Profit and Loss Account and (ii) the accounting policy for revenue recognition valuation. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty, this specifically included Health & Safety Regulations and the ISO requirements for continued certification.

As a result of performing the above, we identified revenue recognition and adherence to laws and regulations as the key audit matters related to the potential risk of fraud.

 

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

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.

Robert Hall
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
15 February 2024
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
BUFA COMPOSITES UK LTD.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
40,813,033
44,465,867
Cost of sales
(33,235,207)
(36,440,488)
Gross profit
7,577,826
8,025,379
Distribution costs
(1,177,035)
(1,230,587)
Administrative expenses
(3,665,451)
(3,337,626)
Operating profit
4
2,735,340
3,457,166
Interest receivable and similar income
7
32,116
4,107
Interest payable and similar expenses
8
(9,209)
(1,404)
Profit before taxation
2,758,247
3,459,869
Tax on profit
9
(628,153)
(613,144)
Profit for the financial year
2,130,094
2,846,725

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BUFA COMPOSITES UK LTD.
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
877,371
1,131,710
Current assets
Stocks
12
4,076,842
4,183,379
Debtors
13
6,851,151
7,646,583
Cash at bank and in hand
1,737,335
1,982,140
12,665,328
13,812,102
Creditors: amounts falling due within one year
14
(7,112,203)
(8,093,772)
Net current assets
5,553,125
5,718,330
Total assets less current liabilities
6,430,496
6,850,040
Provisions for liabilities
Deferred tax liability
15
48,630
98,268
(48,630)
(98,268)
Net assets
6,381,866
6,751,772
Capital and reserves
Called up share capital
17
225,800
225,800
Share premium account
18
74,586
74,586
Profit and loss reserves
6,081,480
6,451,386
Total equity
6,381,866
6,751,772

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 15 February 2024 and are signed on its behalf by:
Mr E J Putwain
Director
Company registration number 02090336 (England and Wales)
BUFA COMPOSITES UK LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
225,800
74,586
6,776,492
7,076,878
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
2,846,725
2,846,725
Dividends
10
-
-
(3,171,831)
(3,171,831)
Balance at 31 December 2022
225,800
74,586
6,451,386
6,751,772
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
2,130,094
2,130,094
Dividends
10
-
-
(2,500,000)
(2,500,000)
Balance at 31 December 2023
225,800
74,586
6,081,480
6,381,866
BUFA COMPOSITES UK LTD.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,073,444
4,266,590
Interest paid
(9,209)
(1,404)
Income taxes paid
(747,091)
(596,199)
Net cash inflow from operating activities
2,317,144
3,668,987
Investing activities
Purchase of tangible fixed assets
(94,065)
(275,690)
Interest received
32,116
4,107
Net cash used in investing activities
(61,949)
(271,583)
Financing activities
Dividends paid
(2,500,000)
(3,171,831)
Net cash used in financing activities
(2,500,000)
(3,171,831)
Net (decrease)/increase in cash and cash equivalents
(244,805)
225,573
Cash and cash equivalents at beginning of year
1,982,140
1,756,567
Cash and cash equivalents at end of year
1,737,335
1,982,140
BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

BUFA Composites UK Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is Factory Lane, Brantham, Manningtree, CO11 1NT.

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 £.

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

1.2
Going concern

At 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.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

1.4
Tangible fixed assets

Tangible fixed assets 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:

Leasehold improvements
term of lease on a straight line basis
Plant and equipment
4 years on a straight line basis
Fixtures and fittings
4 years on a straight line basis
Computers
2 years on a straight line basis
Motor vehicles
4 years on a straight line basis

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.

The cost of fixed assets is their purchase cost. Reviews are carried out periodically of the estimated useful economic lives of individual productive assets, taking account of commercial and technological obsolescence as well as normal wear and tear.

BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

1.6
Stocks

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.

1.7
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.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors 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.

BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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 company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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 profit and loss account 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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less tax.

 

Deferred tax assets are recognised only to the extent that the directors have considered that it is more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured on an undiscounted basis at the rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the Balance Sheet Date.

1.11
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 fixed assets.

 

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.

1.12
Retirement benefits

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

BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.13
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 company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
40,787,193
44,447,733
Rendering of services
19,132
12,819
Group handling recharges
6,708
5,315
40,813,033
44,465,867
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
39,754,969
44,123,255
Rest of Europe
1,054,999
339,047
Rest of World
3,065
3,565
40,813,033
44,465,867
2023
2022
£
£
Other revenue
Interest income
32,116
4,107
BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(41,876)
62,192
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
19,000
Depreciation of owned tangible fixed assets
348,404
345,135
Operating lease charges
302,260
182,424
5
Employees

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

2023
2022
Number
Number
Distribution
31
32
Administration
5
4
Total
36
36

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,879,926
1,759,139
Social security costs
215,335
235,686
Pension costs
66,936
61,018
2,162,197
2,055,843
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
326,021
321,900
Company pension contributions to defined contribution schemes
19,504
18,486
345,525
340,386

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
194,178
197,075
Company pension contributions to defined contribution schemes
11,232
11,232

Two directors have received remuneration during the year for services provided to the company.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
32,116
4,107
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
32,116
4,107
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
9,209
1,404
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
677,791
634,069
Deferred tax
Origination and reversal of timing differences
(46,700)
(15,903)
Changes in tax rates
(2,938)
(5,022)
Total deferred tax
(49,638)
(20,925)
Total tax charge
628,153
613,144
BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 19 -

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
£
£
Profit before taxation
2,758,247
3,459,869
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
648,740
657,375
Tax effect of expenses that are not deductible in determining taxable profit
21,710
6,715
Research and development tax credit
(39,359)
(45,924)
Effect of change of rate on deferred taxation
(2,938)
(5,022)
Taxation charge for the year
628,153
613,144
10
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
11.07
14.05
2,500,000
3,171,831
BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,740,362
1,394,771
79,061
514,441
10,912
3,739,547
Additions
-
0
14,157
826
79,082
-
0
94,065
Disposals
-
0
-
0
-
0
-
0
(10,912)
(10,912)
At 31 December 2023
1,740,362
1,408,928
79,887
593,523
-
0
3,822,700
Depreciation and impairment
At 1 January 2023
973,136
1,195,203
79,035
349,551
10,912
2,607,837
Depreciation charged in the year
99,809
86,460
415
161,720
-
0
348,404
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(10,912)
(10,912)
At 31 December 2023
1,072,945
1,281,663
79,450
511,271
-
0
2,945,329
Carrying amount
At 31 December 2023
667,417
127,265
437
82,252
-
0
877,371
At 31 December 2022
767,226
199,568
26
164,890
-
0
1,131,710
12
Stocks
2023
2022
£
£
Raw materials and consumables
1,212,941
1,119,309
Finished goods and goods for resale
2,863,901
3,064,070
4,076,842
4,183,379
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,663,025
7,521,420
Amounts owed by group undertakings
2,296
33,983
Other debtors
37,113
25,594
Prepayments and accrued income
148,717
65,586
6,851,151
7,646,583
BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Debtors
(Continued)
- 21 -

The company maintains an unutilised overdraft facility and an unutilised bank guarantees facility to provide financial liquidity. As at 31 December 2023 these facilities were £1,000,000 (2022 - £1,000,000) and £200,000 (2022 - £200,000) respectively. A first fixed charge is held over all trade and other debts and a first floating charge is held over all other assets in relation to these facilities.

14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,160,978
5,739,359
Amounts owed to group undertakings
498,560
350,811
Corporation tax
108,769
178,069
Other taxation and social security
555,588
973,703
Other creditors
12,826
12,161
Accruals and deferred income
775,482
839,669
7,112,203
8,093,772
15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
98,630
146,322
Short term timing differences
(50,000)
(48,054)
48,630
98,268
2023
Movements in the year:
£
Liability at 1 January 2023
98,268
Credit to profit or loss
(46,700)
Effect of change in tax rate - profit or loss
(2,938)
Liability at 31 December 2023
48,630
BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,936
61,018

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
225,800
225,800
225,800
225,800
18
Share premium account

The share premium reserve contains the premium arising on issue of equity shares net of issue expenses.

19
Operating lease commitments

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
£
£
Within one year
297,069
216,034
Between two and five years
909,137
627,053
In over five years
128,462
255,132
1,334,668
1,098,219
20
Related party transactions
Remuneration of key management personnel

There are no key management personnel other than the directors.

Transactions with related parties

Due to the company being a wholly owned subsidiary of a European group, incorporated in Germany, the company has taken the available exemption from the reporting of the group transactions.

BUFA COMPOSITES UK LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
21
Ultimate parent company

The ultimate parent company is BUFA GmbH & Co. KG, a company incorporated in Germany. The immediate parent company is BUFA Composites International GmbH which owns 100% of the company's issued share capital.

The group of companies for which group accounts are prepared is that headed by BUFA GmbH & Co. KG, the Company’s ultimate undertaking and controlling party. The accounts of this company are held at Stubbenweg 40, 26125 Oldenburg, Germany it's registered office.

22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,130,094
2,846,725
Adjustments for:
Taxation charged
628,153
613,144
Finance costs
9,209
1,404
Investment income
(32,116)
(4,107)
Depreciation and impairment of tangible fixed assets
348,404
345,135
Movements in working capital:
Decrease in stocks
106,537
206,258
Decrease in debtors
795,432
299,631
Decrease in creditors
(912,269)
(41,600)
Cash generated from operations
3,073,444
4,266,590
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,982,140
(244,805)
1,737,335
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr E J PutwainMr P S BurrowsMr L KempfMr R Ramkefalsetrue020903362023-01-012023-12-3102090336bus:Director12023-01-012023-12-3102090336bus:Director22023-01-012023-12-3102090336bus:Director32023-01-012023-12-3102090336bus:Director42023-01-012023-12-3102090336bus:RegisteredOffice2023-01-012023-12-3102090336bus:Agent12023-01-012023-12-31020903362023-12-31020903362022-01-012022-12-3102090336core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102090336core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31020903362022-12-3102090336core:LeaseholdImprovements2023-12-3102090336core:PlantMachinery2023-12-3102090336core:FurnitureFittings2023-12-3102090336core:ComputerEquipment2023-12-3102090336core:MotorVehicles2023-12-3102090336core:LeaseholdImprovements2022-12-3102090336core:PlantMachinery2022-12-3102090336core:FurnitureFittings2022-12-3102090336core:ComputerEquipment2022-12-3102090336core:MotorVehicles2022-12-3102090336core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3102090336core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3102090336core:CurrentFinancialInstruments2023-12-3102090336core:CurrentFinancialInstruments2022-12-3102090336core:ShareCapital2023-12-3102090336core:ShareCapital2022-12-3102090336core:SharePremium2023-12-3102090336core:SharePremium2022-12-3102090336core:RetainedEarningsAccumulatedLosses2023-12-3102090336core:RetainedEarningsAccumulatedLosses2022-12-3102090336core:ShareCapital2021-12-3102090336core:SharePremium2021-12-3102090336core:RetainedEarningsAccumulatedLosses2021-12-31020903362022-12-31020903362021-12-3102090336core:LeaseholdImprovements2023-01-012023-12-3102090336core:PlantMachinery2023-01-012023-12-3102090336core:FurnitureFittings2023-01-012023-12-3102090336core:ComputerEquipment2023-01-012023-12-3102090336core:MotorVehicles2023-01-012023-12-310209033612023-01-012023-12-310209033612022-01-012022-12-3102090336core:UKTax2023-01-012023-12-3102090336core:UKTax2022-01-012022-12-3102090336bus:OrdinaryShareClass12023-01-012023-12-3102090336bus:OrdinaryShareClass12022-01-012022-12-3102090336core:LeaseholdImprovements2022-12-3102090336core:PlantMachinery2022-12-3102090336core:FurnitureFittings2022-12-3102090336core:ComputerEquipment2022-12-3102090336core:MotorVehicles2022-12-3102090336core:WithinOneYear2023-12-3102090336core:WithinOneYear2022-12-3102090336core:BetweenTwoFiveYears2023-12-3102090336core:BetweenTwoFiveYears2022-12-3102090336core:MoreThanFiveYears2023-12-3102090336core:MoreThanFiveYears2022-12-3102090336bus:PrivateLimitedCompanyLtd2023-01-012023-12-3102090336bus:FRS1022023-01-012023-12-3102090336bus:Audited2023-01-012023-12-3102090336bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP