Company registration number 00897588 (England and Wales)
COSTER AEROSOLS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
COSTER AEROSOLS LIMITED
COMPANY INFORMATION
Directors
D Marsilli
B Msellati
D Bennett
Company number
00897588
Registered office
8 Lindrick Way
Barlborough
Derbyshire
S43 4XE
Auditor
Moore NHC Audit Limited
First Floor
73-75 High Street
Stevenage
Hertfordshire
SG1 3HR
Bankers
National Westminister Bank Plc
PO Box 10720
217 Strand
London
WC2R 1AL
Solicitors
Wake Smith Solicitors Limited
No1 Velocity
2 Tenter Street
Sheffield
S1 4BY
COSTER AEROSOLS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 25
COSTER AEROSOLS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Business review

The company's sales territory is primarily the United Kingdom and Europe, additionally securing new territories in Asian markets. Personal consumer spending in the retail sector which is serviced by the aerosol industry continues to be difficult due to strains on household expenses however; the business has seen a stable year on year growth in turnover throughout 2021-2023 despite global economic, political pressures with all expectations of additional growth being outlined in its five-year planning.

 

Margins and supplies have been consistent during 2023 supported by strong networks of local and multinational supplies, through working capital and supplier/customer development projects.

 

Investments in capability, product redevelopment and greener sustainable characteristics will lead to changes in consumer pricing and sustainability market positioning.

Principal risks and uncertainties

The key business risks are a further downturn in consumer demand in the retail markets or the loss of a major customer. A large part of the sales turnover is denominated in Euros and the incoming cash flows cover our currency requirements for matching our payments to suppliers in the Euro zone. The fluctuating value of the Euro has continually affected our exposure of conversion in to Sterling.

Pensions

The Company, in conjunction with the pension fund trustees closed the defined benefit scheme and replaced it with a new defined contribution scheme in 2015. The old scheme of defined benefits will continue to be administered and funded by the Company and the pension fund trustees, and all statutory requirements will be met. The defined benefit scheme closes with a net surplus pension assets of £338,000 following a consolidation of assets in the period.

Key performance indicators (KPIs)

Because the business operates within the overall group structure, it is not appropriate to judge business performance by the conventional external financial analysis ratios and other internal criteria apply. Non-financial performance indicators are used internally in assessing performance in areas such as production performance and quality control. These latter indicators are used when informing employees of performance.

Future developments

The company continues to invest in the future development of it’s people, processes, and systems in line with the overall group strategy to maximise the use of resources and continue to offer value to customers while attracting new business through enhanced capability.

On behalf of the board

D Bennett
Director
17 April 2024
COSTER AEROSOLS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Directors

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

D Marsilli
B Msellati
D Bennett
Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors recommend payment of a final dividend amounting to £1,298,800.

Research and development

The company continued its strategy of investment in its people, through its Coster Cares and CPD training programs, in Quality through additional recruitment and technology, Products & Customers through NPD/R&D and the planning of Infrastructure projects for its next phase of growth in 2024-5. Capital expenditure in this phase includes increases in automation capacity, development of own green energy supplies and multiple new production lines increasing the UK facilities capabilities in supporting it’s current and growing customer base.

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

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.

COSTER AEROSOLS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Going concern

The directors believe that the company has adequate resources and is well placed to manage its business risks

successfully. Therefore the directors continue to adopt the going concern basis of accounting in preparing the

financial statements.

On behalf of the board
D Bennett
Director
17 April 2024
COSTER AEROSOLS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COSTER AEROSOLS LIMITED
- 4 -
Opinion

We have audited the financial statements of Coster Aerosols Limited (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:

COSTER AEROSOLS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COSTER AEROSOLS LIMITED
- 5 -
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.

COSTER AEROSOLS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COSTER AEROSOLS LIMITED
- 6 -
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

 

 

 

 

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

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.

Francis Corbishley (Senior Statutory Auditor)
For and on behalf of Moore NHC Audit Limited
Chartered Accountants
Statutory Auditor
18 April 2024
First Floor
73-75 High Street
Stevenage
Hertfordshire
SG1 3HR
COSTER AEROSOLS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
27,733,951
27,190,287
Change in stocks of finished goods and in work in progress
(996,744)
695,477
Raw materials and consumables
(18,707,545)
(19,911,663)
Staff costs
4
(2,333,027)
(2,278,305)
Depreciation
5
(1,217,772)
(1,244,135)
Other operating expenses
(3,486,835)
(3,538,639)
Operating profit
5
992,028
913,022
Interest receivable and similar income
8
25,000
25,005
Interest payable and similar expenses
9
(166,562)
(89,409)
Profit before taxation
850,466
848,618
Tax on profit
10
(186,867)
(131,009)
Profit for the financial year
663,599
717,609
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(196,000)
(605,250)
Total comprehensive income for the year
467,599
112,359

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

COSTER AEROSOLS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
10,447,838
11,698,785
Current assets
Stocks
13
2,572,835
4,233,640
Debtors
14
8,930,454
11,494,148
Cash at bank and in hand
139,412
201,296
11,642,701
15,929,084
Creditors: amounts falling due within one year
15
(5,360,666)
(7,954,829)
Net current assets
6,282,035
7,974,255
Total assets less current liabilities
16,729,873
19,673,040
Creditors: amounts falling due after more than one year
16
-
0
(3,353,975)
Provisions for liabilities
Provisions
18
100,000
200,000
Deferred tax liability
19
806,159
933,950
(906,159)
(1,133,950)
Net assets excluding pension surplus
15,823,714
15,185,115
Defined benefit pension surplus
20
338,000
509,000
Net assets
16,161,714
15,694,115
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
16,160,714
15,693,115
Total equity
16,161,714
15,694,115
The financial statements were approved by the board of directors and authorised for issue on 17 April 2024 and are signed on its behalf by:
D Bennett
Director
Company registration number 00897588 (England and Wales)
COSTER AEROSOLS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1,000
15,580,756
15,581,756
Year ended 31 December 2022:
Profit
-
717,609
717,609
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(605,250)
(605,250)
Total comprehensive income
-
112,359
112,359
Balance at 31 December 2022
1,000
15,693,115
15,694,115
Year ended 31 December 2023:
Profit
-
663,599
663,599
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(196,000)
(196,000)
Total comprehensive income
-
467,599
467,599
Balance at 31 December 2023
1,000
16,160,714
16,161,714
COSTER AEROSOLS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
486,110
268,340
Interest paid
(166,562)
(89,409)
Income taxes paid
(427,965)
(201,750)
Net cash outflow from operating activities
(108,417)
(22,819)
Investing activities
Purchase of tangible fixed assets
(35,376)
(172,188)
Proceeds from disposal of tangible fixed assets
81,909
-
0
Interest received
-
0
5
Net cash generated from/(used in) investing activities
46,533
(172,183)
Net decrease in cash and cash equivalents
(61,884)
(195,002)
Cash and cash equivalents at beginning of year
201,296
396,298
Cash and cash equivalents at end of year
139,412
201,296
COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Coster Aerosols Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Lindrick Way, Barlborough, Derbyshire, S43 4XE.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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
Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied, net of discounts and Value Added Tax.

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
Research and development expenditure

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

1.5
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:

Freehold property
over 33 years
Plant and machinery
over 5 and 10 years
Fixtures and fittings
over 3 and 10 years
Motor vehicles
over 4 years

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.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
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.

1.7
Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

 

The costs of raw materials and goods for resale are determined on an average cost basis. Average cost is worked out on a yearly basis (January - December). In the case of manufactured finished goods, cost includes all direct expenditure and production overheads based on the normal level of activity.

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.

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.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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 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 profit and loss account, 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.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
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.

1.12
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.

1.13
Retirement benefits

The company contributes to a defined contribution company personal pension plan, the assets of which are held separately from those of the company in individual funds for each member. Contributions to the plans are charged to the statement of comprehensive income as they become payable.

 

The company also previously operated a defined benefit pension scheme. The company recognises a defined net benefit pension asset or liability in the balance sheet as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be settled. The defined benefit asset is measured on a discounted present value basis using a rate determined by reference to market yields at the reporting date on high quality corporate bonds.

1.14
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.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty
Pension assumptions

Reliance has been placed on the figures provided by the Scheme Actuary in determining the pension scheme assets and liabilities.

Stock provisions

Directors have estimated the stock to provide for based on their judgement of slow moving items.

Deferred tax

The directors have used the guidance from the company tax advisors regarding the deferred tax calculation.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
27,733,951
27,190,287
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
24,736,822
23,742,877
Overseas
2,997,129
3,447,410
27,733,951
27,190,287
2023
2022
£
£
Other revenue
Interest income
25,000
25,005

The whole of the turnover is attributable to the principal activity of the company, which is wholly undertaken in the United Kingdom.

4
Employees

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

2023
2022
Number
Number
Sales, administration and management
17
15
Manufacturing
38
39
Total
55
54
COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,024,879
1,987,839
Social security costs
184,497
187,386
Pension costs
123,651
103,080
2,333,027
2,278,305
5
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
6,359
32,641
Depreciation of owned tangible fixed assets
1,217,772
1,244,135
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
33,320
34,050
For other services
Taxation compliance services
4,595
6,707
Other taxation services
2,000
2,500
All other non-audit services
12,361
27,150
18,956
36,357
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
151,661
144,847
Company pension contributions to defined contribution schemes
17,570
12,535
169,231
157,382

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

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
5
Interest on the net defined benefit asset
25,000
25,000
Total income
25,000
25,005
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
5
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
29,591
20,513
Other interest on financial liabilities
136,971
68,896
166,562
89,409
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
338,574
245,164
Adjustments in respect of prior periods
(23,916)
(16,904)
Total current tax
314,658
228,260
Deferred tax
Origination and reversal of timing differences
(127,791)
(97,251)
Total tax charge
186,867
131,009
COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 18 -

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
850,466
848,618
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
212,617
161,237
Tax effect of expenses that are not deductible in determining taxable profit
3,204
7,723
Tax effect of income not taxable in determining taxable profit
(9,022)
(4,750)
Effect of change in corporation tax rate
(12,583)
-
0
Depreciation on assets not qualifying for tax allowances
171,951
27,140
Under/(over) provided in prior years
(23,916)
(16,904)
Deferred tax adjustments in respect of prior years
(127,791)
(33,622)
Capital allowances super deduction
-
0
(9,815)
Provision movement
(27,593)
-
0
Taxation charge for the year
186,867
131,009
11
Dividends

The proposed final dividend for the year ended 31 December 2023 is £1,298.800 (2022 - £Nil).

2023
2022
Per share
Total
Total
£
£
£
"A" Ordinary
1,298.80
649,400
-
0
"B" Ordinary
1,298.80
649,400
-
0

The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
7,268,458
10,490,588
384,404
23,135
18,166,585
Additions
29,327
2,043
4,006
-
0
35,376
Disposals
-
0
(357,658)
-
0
(23,135)
(380,793)
At 31 December 2023
7,297,785
10,134,973
388,410
-
0
17,821,168
Depreciation and impairment
At 1 January 2023
655,999
5,418,446
370,220
23,135
6,467,800
Depreciation charged in the year
194,659
1,015,260
7,853
-
0
1,217,772
Eliminated in respect of disposals
-
0
(289,107)
-
0
(23,135)
(312,242)
At 31 December 2023
850,658
6,144,599
378,073
-
0
7,373,330
Carrying amount
At 31 December 2023
6,447,127
3,990,374
10,337
-
0
10,447,838
At 31 December 2022
6,612,459
5,072,142
14,184
-
0
11,698,785
13
Stocks
2023
2022
£
£
Raw materials and consumables
1,502,001
2,166,062
Finished goods and goods for resale
1,070,834
2,067,578
2,572,835
4,233,640
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,754,796
9,708,778
Corporation tax recoverable
-
0
16,904
Amounts owed by group undertakings
10,450
1,543,462
Other debtors
12,988
150,445
Prepayments and accrued income
152,220
74,559
8,930,454
11,494,148
COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
17
-
0
630,947
Trade creditors
1,625,083
2,692,976
Amounts owed to group undertakings
1,426,541
983,689
Corporation tax
114,953
245,164
Other taxation and social security
248,588
988,466
Other creditors
1,548,080
2,010,316
Accruals and deferred income
397,421
403,271
5,360,666
7,954,829
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
17
-
0
3,353,975
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
700,457
17
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
-
0
3,984,922
Payable within one year
-
0
630,947
Payable after one year
-
0
3,353,975

The loans from group undertakings are owed to the parent company Coster Tecnologie Speciali SpA. Interest is charged on these loans at 2% and are both repayable on 15 December 2028. Installments are made quarterly for both loans.

 

During the year there was an agreement to settle the loans early, with payments being made on 14 April 2023 and 20 October 2023 and therefore the liability was £nil at the year end.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Provisions for liabilities
2023
2022
£
£
Dilapidations
-
200,000
Legal claim
100,000
-
100,000
200,000
Movements on provisions:
Dilapidations
Legal claim
Total
£
£
£
At 1 January 2023
200,000
-
200,000
Additional provisions in the year
-
100,000
100,000
Reversal of provision
(105,500)
-
(105,500)
Utilisation of provision
(94,500)
-
(94,500)
At 31 December 2023
-
100,000
100,000
19
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
721,659
806,700
Retirement benefit obligations
84,500
127,250
806,159
933,950

The deferred tax liability at the year end has been calculated at an effective tax rate of 25%.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
123,651
103,080

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.

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 22 -
Defined benefit schemes

Coster Aerosols Limited (the Employer) operates a final salary pension scheme, the Coster Aerosols Limited Pension Scheme (the Scheme). The Scheme is a Registered Pension Scheme under Chapter 2 of Part IV of the Finance Act 2004.

The Scheme was closed to future accrual with effect from 28 February 2015.

The assets of the Scheme are held separately from those of the Employer. The value of the insured pensions using the same assumptions as used to value the other liabilities is £7,600 (2022: £8,000).

2023
2022
Key assumptions
%
%
Discount rate
4.6
4.8
Expected rate of increase of pensions in payment
4.2
4.2
Expected rate of salary increases
N/A
N/A
Inflation assumption (RPI)
3.3
3.4
Inflation assumption (CPI)
2.8
2.9
Expected rate of increase in pensions in deferment
2.8
2.9
Mortality assumptions
2023
2022
Years
Years
Members age now - 65 years
- Males
86.6
87.1
- Females
88.7
89.1
Members age now - 45 years
- Males
88.1
88.8
- Females
89.8
90.3

The pensioner mortality assumption for the current and prior year was S3PMA/S3PFA, CMI 2022 projection with 1.5% long-term rate for males and 1% for females.

2023
2022

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
(25,000)
(25,000)
COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 23 -
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(84,000)
3,470,000
Less: calculated interest element
218,000
156,000
Return on scheme assets excluding interest income
134,000
3,626,000
Actuarial changes related to obligations
62,000
(2,819,000)
Total costs
196,000
807,000

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

2023
2022
£
£
Present value of defined benefit obligations
4,183,000
4,126,000
Fair value of plan assets
(4,521,000)
(4,635,000)
Surplus in scheme
(338,000)
(509,000)
2023

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2023
4,126,000
Benefits paid
(198,000)
Actuarial gains and losses
62,000
Interest cost
193,000
At 31 December 2023
4,183,000

The defined benefit obligations arise from plans which are wholly or partly funded.

2023

Movements in the fair value of plan assets

£
Fair value of assets at 1 January 2023
4,635,000
Interest income
218,000
Return on plan assets (excluding amounts included in net interest)
(134,000)
Benefits paid
(198,000)
At 31 December 2023
4,521,000

The actual return on plan assets was £84,000 (2022 - £3,470,000).

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Retirement benefit schemes
(Continued)
- 24 -
2023
2022

Fair value of plan assets at the reporting period end

£
£
Cash
135,630
139,050
Gilts
4,385,370
4,495,950
4,521,000
4,635,000
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary of £1 each
500
500
500
500
"B" Ordinary of £1 each
500
500
500
500
1,000
1,000
1,000
1,000

The "A" and "B" ordinary shares of the company rank pari passu in all respects and, in the view of the parent company's ownership, may be regarded as a single class of shares.

22
Related party transactions

The company has taken advantage of the exemptions conferred by Section 33 of Financial Reporting Standard 102 from the requirement to make disclosures concerning transactions with other group companies.

23
Ultimate controlling party

Coster Aerosols Limited is a wholly owned subsidiary of Coster Tecnologie Speciali S.p.A., a company registered in Italy. The parent company produces group accounts into which Coster Aerosols is consolidated.

 

The registered address is:

Coster Tecnologie Speciali S.p.A.

Via Leonardo Da Vinci, 2

20016 Pero (MI)

Italy

 

Group accounts into which Coster Aerosols Limited is consolidated are publicly available from:

 

Registro Del Impresse

Viale Amerigo Vespucci,

58,

47921 Rimini RN,

Italy

COSTER AEROSOLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
663,599
717,609
Adjustments for:
Taxation charged
186,867
131,009
Finance costs
166,562
89,409
Investment income
(25,000)
(25,005)
Gain on disposal of investment property
(13,358)
-
0
Depreciation and impairment of tangible fixed assets
1,217,772
1,244,135
Pension scheme non-cash movement
-
201,750
Decrease in provisions
(100,000)
-
Movements in working capital:
Decrease/(increase) in stocks
1,660,805
(975,261)
Decrease/(increase) in debtors
2,546,790
(2,947,034)
(Decrease)/increase in creditors
(5,817,927)
1,831,728
Cash generated from operations
486,110
268,340
25
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
201,296
(61,884)
139,412
Borrowings excluding overdrafts
(3,984,922)
3,984,922
-
(3,783,626)
3,923,038
139,412
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