Company registration number 05770773 (England and Wales)
LIBRA CHEMICALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LIBRA CHEMICALS LIMITED
COMPANY INFORMATION
Directors
G Royle
P Carson
G Cox
D T Kearns
Secretary
D T Kearns
Company number
05770773
Registered office
5 Acorn Business Park
Woodseats Close
Sheffield
United Kingdom
S8 0TB
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
LIBRA CHEMICALS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 18
LIBRA CHEMICALS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The trading subsidiary is Libra Speciality Chemicals Limited. The strategic report below sets out the results for the trading company.

 

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

 

During 2023, the country has continued to see global supply chain issues, continuing high energy costs and a cost of living crisis that has led to tough market conditions placing high demands and pressures on the entire industry. Furthermore, recession in Europe and de stocking within the industry has led to raw material and hence selling prices significantly reducing.

 

Despite this, turnover was £41.8m and PBT was a healthy £2.4m. Cash at bank ended at £4.1m. The capital expenditure was £565k, bringing the total investment over the last 7 years to over £10m. The company is in robust health and ready to capitalise on market recovery.

 

During 2023, we were delighted to have won the Manufacturing and Resource Efficiency Award and the GSK innovation Award at the CIA Chemical Industry Awards 2023. In addition, we won the Manufacturing Company of the Year Award and the International Trade Award at the CIA CNW Awards 2023. There are some 5,900 chemicals businesses in the UK, so we were overjoyed that the industry professionals once again recognised our commitment to continuous improvement.

 

The ongoing strategy is to access new international markets, products and technologies, and to ensure that future growth is achieved efficiently with further added benefits for the Company’s customers, suppliers, employees and shareholders. Libra’s capital expenditure programme will continue in 2024 to facilitate the introduction of yet more environmentally friendly products to the market. These continuing investments in new products and technologies will continue to assist growth going forwards as the global chemical recovers.

 

The Company is fully committed to ongoing improvements in all aspects of the impact of our business on the environment and people. To this end, Libra Speciality Chemicals has implemented an 'anti-pollution' and ‘net zero' drive and has full accreditation to EFfCI, RSPO, ISO9001, ISO14001, OHSAS18001 and top-tier COMAH.

 

On behalf of the Company, we thank our customers, suppliers and staff for their continued commitment, and we look forward to a mutually rewarding year in 2024.

 

There were no subsequent events that could have a significant impact on the results of the Company for 2023.

 

The Company started 2024 with a good performance and anticipates another successful year.

 

LIBRA CHEMICALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The Company has carried out an extensive financial risk management analysis, covering aspects such as currency, interest rates & liquidity, credit and market (supply chain and customer base) risks.

 

Currency

A significant proportion of the Company’s turnover is in Euros & US Dollars. Fluctuations in these currencies could affect the financial performance of the business. Forward contracts are taken out and currency swaps are currently undertaken where necessary to mitigate any such risk.

Interest rates & liquidity

The Company is well funded and working capital flows are managed via the use of KPI’s within the business.

Credit risk

Customers and potential customers are credit checked regularly and given appropriate credit limits based on the financial information available. Credit insurance is also taken out where thought necessary, either due to Company or country risk.

Market risk

Market changes, particularly with regard to commodity prices, can affect the financial performance of the Company. Libra Speciality Chemicals makes use of the market intelligence and trends noticed that it has at it’s disposal, and also by the use of more widely available trade data and journals published by the industry.

 

The Company is in very good health and is well placed to implement the strategic plans agreed by the Board.

 

The Company is focused on developing a long-term horizon for its products and services. As such, the strategic plan includes ongoing capital investment, a widening of the customer base and expansion of the range of products and services on offer. A number of exciting innovations are under development to ensure that the plan is met. Environmental control and health and safety remain at the forefront of all strategic planning initiatives and the Company continues to invest in these crucial areas.

 

Key performance indicators

Libra Speciality Chemicals uses KPI’s to monitor it’s financial performance. These include, but are not limited to;

 

Gross Margin %

The ratio of gross margin to sales, expressed as a % of sales.

 

Gross Margin per Tonne

 

The amount of gross margin generated per each tonne sold.

Debtor days

The level of trade debtors & their ratio to sales, expressed as a number of days.

 

Creditor days

The level of trade creditors & their ratio to purchases, expressed as a number of days.

 

Stock days

The level of stock & their ratio to purchases, expressed as a number of days.

 

EBITDA

Earnings before interest, taxation, depreciation and amortisation.

 

LIBRA CHEMICALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Promoting the success of the company

Section 172 statement

 

In accordance with section 172 of the Companies Act 2006, each of our directors acts in the way that each, in good faith would promote the success of the company for the benefit of its members as a whole. The directors have taken into consideration, amongst other matters:

•    the likely consequences of any decisions in the long-term;

•    the interests of the company’s employees;

•    the need to foster the company’s business relationships with suppliers, customers and others;

•    the impact of the company’s operations of the community and environment;

•    the desirability of the company maintaining a reputation for high standards of business conduct; and

•    the need to act fairly between members of the company.

 

The Board acknowledge that every decision it makes will not necessarily result in a positive outcome for all of the Company’s stakeholders. By considering the Company’s purpose, vision and values, together with its strategic priorities and having a process in place for decision making, the Board does however aim to make sure that its decisions are consistent.

 

Stakeholder engagement

 

The Board believe that considering our stakeholders in key business decisions is not only the right thing to do, but is fundamental to our ability to drive value creation. The Board seeks to understand the respective interest of such stakeholder groups through various methods, including direct engagement by Board members; receiving of reports and updates from members of management who engage with such groups; and coverage in our Board papers of relevant stakeholder interests with regards to proposed courses of action. The directors consider the following to be the Company’s key stakeholders:

 

Employees

 

The strength of our business is built on the hard work and dedication of our employees. The Board recognises that the implementation of an effective people strategy and strong culture underpin the effective delivery of the company strategy.

 

Employees are kept informed of performance and strategy through regular presentations and updates from members of the Board. These updates are further supported by newsletters and management briefings. The directors attend key business meetings throughout the year, including weekly trading meetings. An anonymous employee whistleblowing line is also in place, allowing employees to raise any concerns in confidence. We have a cultural value of Bravery. Everybody should feel brave enough to challenge what is not right and what can be improved, whether this be peer to peer or your line manager.

 

Key focus of the Board includes employee health and well-being, personal development, pay and benefits.

 

Customers

 

The profitability of the business is underpinned by providing effective partnerships with customers to understand their needs and requirements. In recognition of this a core principle of the business is to be customer centric, building relationships and engaging at a local and national level, providing a high level of service through the expert knowledge of our employees and ensuring a quality product.

 

Suppliers

 

The Board recognizes that relationships with suppliers are important to the Company’s long-term success and is briefed on supplier feedback and issues on a regular basis. The Board seeks to balance the benefit of maintaining these strong relationships along with the need to obtain value for money for our investors and desired quality and service for our customers. Engagement with suppliers is primarily through our Supply Chain Director. Key areas of focus include innovation, product development, health and safety and sustainability.

LIBRA CHEMICALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Communities

 

The Board supports the initiatives with regards to reducing the adverse impacts on the environment and engages with the communities in which we operate. Key areas of focus include how we can support local causes and issues, create opportunities to recruit and develop local people and help to look after the environment. We partner with local charities at a site level to raise awareness and funds. The key issues and themes across local communities are reported back to the Board.

 

Government and regulations

 

We engage with the government and regulators through a range of industry consultations, forums, and meetings to communicate our views to policy makers relevant to our business. Key areas of focus are compliance with laws and regulations, health and safety and product safety. The Board is updated on legal and regulatory developments and takes these into account when considering future actions.

 

Investors

 

The Group relies on our shareholders and providers of debt funding as essential sources of capital to further our business objectives. Investor involvement in the decision-making process includes representation on the company Board. The company has open dialogue with all investors through regular meetings which cover a wide range of topics including financial performance, strategy, outlook and governance.

On behalf of the board

D T Kearns
Director
20 September 2024
LIBRA CHEMICALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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 a holding company.

Directors

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

G Royle
P Carson
G Cox
D T Kearns
Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

 

2023
2022
Energy consumption
kWh
kWh
Total energy consumption in the year
8,466,894
8,282,549
2023
2022
Emissions of CO2 equivalent
tCO2e
tCO2e
- Total emissions in the year
1,594.00
1,531.00
Intensity ratio
kWh Energy consumption per employee
117.596
120.037
tCO2e per employee
22.1
21.80
Intensity measurement

The chosen intensity measurement ratio is tCO2e per employee.

LIBRA CHEMICALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Measures taken to improve energy efficiency

Libra Speciality Chemicals invested over £4 million in new plant over the last few years to efficiently manufacture low-salt betaines, in a move that also increased total betaine capacity. The investment was supported by the Lloyds Bank Clean Growth Finance Initiative, which lends to businesses on the basis of investing to reduce their environmental impact.

This transformational investment will help create a new generation of environmentally friendly, renewable plant-based cleaning products that are sulphate-free, energy efficient and reduce waste. Libra is committed to 'Green Chemistry', seeking ever-better environmental and sustainable solutions for everyday products.

Libra has commenced its medium-term Carbon Neutral (and ultimately Nett Zero) project and its current intent is to begin the Scope 3 evaluation process by working with our top 20 suppliers to evaluate the carbon footprint associated with their supplied products and understand how that can be reduced or minimised.

We have engaged consultants to advise, establish, and to steer us on a pathway to Carbon Neutral. This pathway includes the analysis of all current operations which has already identified and quantified the Libra carbon footprint. Libra have developed a Carbon Neutral timeline and within this timeline have begun to identify and deliver steps which are critical to enable carbon reduction to achieve the target.

As part of this, we have partnered with a specific electricity company so that 100% of our electricity is from renewable sources, such as wind and solar. They refer to this as 'dark green' electricity and their fuel mix is zero carbon and 100% renewable, compared to the UK average of 38.7% renewable. In addition, a number of energy saving/efficiency initiatives have been identified and these are currently being worked through and evaluated.

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.

LIBRA CHEMICALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
On behalf of the board
D T Kearns
Director
20 September 2024
LIBRA CHEMICALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LIBRA CHEMICALS LIMITED
- 8 -
Opinion

We have audited the financial statements of Libra Chemicals 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 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:

LIBRA CHEMICALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LIBRA CHEMICALS LIMITED (CONTINUED)
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. We have nothing to report in respect of the following matters 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

LIBRA CHEMICALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LIBRA CHEMICALS LIMITED (CONTINUED)
- 10 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

To address the risks of fraud through management bias and override controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

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.

Paul Winwood
Senior Statutory Auditor
For and on behalf of BHP LLP
20 September 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
LIBRA CHEMICALS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Turnover
-
-
Interest receivable and similar income
2,211,002
2,140,000
Profit before taxation
2,211,002
2,140,000
Tax on profit
-
0
-
0
Profit for the financial year
2,211,002
2,140,000

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

LIBRA CHEMICALS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
3
5,390,721
5,390,721
Current assets
Cash at bank and in hand
1
1
Creditors: amounts falling due within one year
5
(1,499,848)
(1,499,848)
Net current liabilities
(1,499,847)
(1,499,847)
Total assets less current liabilities
3,890,874
3,890,874
Capital and reserves
Called up share capital
7
13,803
13,803
Share premium account
1,575,013
1,575,013
Capital redemption reserve
6,483
6,483
Profit and loss reserves
2,295,575
2,295,575
Total equity
3,890,874
3,890,874
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
D T Kearns
Director
Company Registration No. 05770773
LIBRA CHEMICALS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
13,802
1,575,013
6,483
2,295,575
3,890,873
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
2,140,000
2,140,000
Issue of share capital
7
1
-
0
-
-
1
Dividends
-
-
-
(2,140,000)
(2,140,000)
Balance at 31 December 2022
13,803
1,575,013
6,483
2,295,575
3,890,874
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
2,211,002
2,211,002
Dividends
-
-
-
(2,211,002)
(2,211,002)
Balance at 31 December 2023
13,803
1,575,013
6,483
2,295,575
3,890,874
LIBRA CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Libra Chemicals Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Acorn Business Park, Woodseats Close, Sheffield, United Kingdom, S8 0TB.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

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

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Libra Chemicals Limited is a subsidiary of GRI Libra Limited and the results of Libra Chemicals Limited are included in the consolidated financial statements of GRI Libra Limited which are available from the registered office.

1.2
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.3
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.

1.4
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

LIBRA CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

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 trade and other payables, 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 receipts discounted at a market rate of interest.

 

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

LIBRA CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

1.5
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.

1.6
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.

1.7
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
Employees

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

2023
2022
Number
Number
Total
4
4

There was no directors' remuneration in the year (2022 - £nil)

LIBRA CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Fixed asset investments
2023
2022
£
£
Investments
5,390,721
5,390,721

 

Movements in fixed asset investments
Shares
£
Cost or valuation
At 1 January 2022 & 31 December 2022
5,390,721
Carrying amount
At 31 December 2023
5,390,721
At 31 December 2022
5,390,721
4
Subsidiaries

These financial statements are separate company financial statements for Libra Chemicals Limited.

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

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Libra Speciality Chemicals Limited
England and Wales
Chemical products
Ordinary
100.00
5
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
1,499,848
1,499,848
6
Financial Instruments

All debt instruments and financial liabilities are measured on amortised cost. Equity instruments are measured at cost less impairment.

LIBRA CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
69,012 Ordinary shares of 20p each
13,803
13,803

In addition to the above, the company has issued 1,437 E Ordinary shares, 1,437 F Ordinary shares and 1,437 G Ordinary shares each with a par value of 0.01 pence per share. The shares have no voting rights or rights to redemption.

8
Parent company

The ultimate parent company is GRI Libra Limited, a company registered in England and Wales. GRI Libra Limited prepares group financial statements and copies can be obtained from GRI Libra Limited's registered office.

 

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