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REGISTERED NUMBER: 02326887 (England and Wales)


























National Refrigerants Ltd and
Subsidiaries

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2023






National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


National Refrigerants Ltd and
Subsidiaries

Company Information
for the Year Ended 31 December 2023







DIRECTORS: C D Carosella
J H Reilly III
P J Mottram





REGISTERED OFFICE: 2nd Floor
28 Rodney Street
Liverpool
L1 2TQ





REGISTERED NUMBER: 02326887 (England and Wales)





AUDITORS: Z L Y & Co Limited
Chartered Certified Accountants
Statutory Auditors
2nd Floor
28 Rodney Street
Liverpool
L1 2TQ

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

REVIEW OF BUSINESS
Despite the many challenges thrown at us during the year by quota and pricing issues we increased our turnover by 5% on 2022. Sales continued to be strong in all areas, and we were again ahead of budget in light of the extremely competitive nature of the market and we were satisfied with the 32% gross margin that we achieved this year.

The company`s profit for the year before taxation was £9,024,700 compared to £ 6,804,874 in 2022.



Key Performance Indicators

We use KPI's, such as gross and net profit margins to review the company and the group's performance during the year.The KPI's were in line with our expectations.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks and uncertainties affecting the company and the group are considered to relate to competition from both national and international producers, environmental legislation, currency exchange rates, product availability and employee retention.

Management are closely monitoring the situations in Ukraine and Israel, even though the direct risk to the company operations and sourcing is low.

FUTURE DEVELOPMENT
We are continuing to expand our UK customer base, in areas not currently serviced.

We aim to attract good quality people and reduce staff turnover by offering opportunities for employees to develop appropriate skills through in-house training and external courses.

ON BEHALF OF THE BOARD:





P J Mottram - Director


10 May 2024

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
Supplying refrigerant gases, together with importing and re-packaging of other refrigerant products.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

C D Carosella
J H Reilly III
P J Mottram

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Report of the Directors
for the Year Ended 31 December 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:




P J Mottram - Director


10 May 2024

Report of the Independent Auditors to the Members of
National Refrigerants Ltd and
Subsidiaries

Opinion
We have audited the financial statements of National Refrigerants Ltd and Subsidiaries (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
National Refrigerants Ltd and
Subsidiaries


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
National Refrigerants Ltd and
Subsidiaries


Auditors' 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 a Report of the Auditors 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:

We identify and assess the risks of material misstatement in 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.

To identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included the following:
- reviewing the nature of the industry and sector, the control environment and the business performance
- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error.
- enquiries of management and other key persons and inspection of the company's documentation of their policies and procedures relating to whether they were aware of any non-compliance and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls in place to mitigate risk of fraud or non-compliance with laws and regulations;
- reading minutes of meetings
- obtained an understanding of the legal and regulatory framework that the company operates in. The laws and regulations we considered included the UK Companies Act, tax legislation, F gas legislation, data protection, employment, environmental and health and safety regulations.

Our procedures to respond to risks identified included:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with laws and regulations;
- enquiring with management concerning any actual or potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships;
- reviewing correspondence with HMRC;
- performing procedures to address the risk of management override of controls. Testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias

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 law and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
National Refrigerants Ltd and
Subsidiaries


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 a Report of the Auditors 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.




Zoe Yap Lee Chin ACCA (Senior Statutory Auditor)
for and on behalf of Z L Y & Co Limited
Chartered Certified Accountants
Statutory Auditors
2nd Floor
28 Rodney Street
Liverpool
L1 2TQ

10 May 2024

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 34,079,079 32,336,469

Cost of sales 23,265,946 21,899,129
GROSS PROFIT 10,813,133 10,437,340

Administrative expenses 3,124,543 2,512,822
7,688,590 7,924,518

Other operating income 1,184 2,767
OPERATING PROFIT 5 7,689,774 7,927,285

Interest receivable and similar income 17,806 21,271
7,707,580 7,948,556
Gain/loss on revaluation of investments (3,047,825 ) (6,405,400 )
4,659,755 1,543,156

Interest payable and similar expenses 6 (4,364,945 ) (5,261,718 )
PROFIT BEFORE TAXATION 9,024,700 6,804,874

Tax on profit 7 4,535,429 1,222,702
PROFIT FOR THE FINANCIAL YEAR 4,489,271 5,582,172

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 6,504,502 6,546,641
Investments 10 42,444,035 46,064,722
48,948,537 52,611,363

CURRENT ASSETS
Stocks 11 33,626,105 22,709,426
Debtors 12 4,821,691 4,506,629
Cash at bank and in hand 8,254,579 8,430,538
46,702,375 35,646,593
CREDITORS
Amounts falling due within one year 13 8,087,225 6,431,581
NET CURRENT ASSETS 38,615,150 29,215,012
TOTAL ASSETS LESS CURRENT
LIABILITIES

87,563,687

81,826,375

PROVISIONS FOR LIABILITIES 14 1,228,213 -
NET ASSETS 86,335,474 81,826,375

CAPITAL AND RESERVES
Called up share capital 15 3,596,228 3,596,228
Other reserves 100,398 80,570
Retained earnings 82,638,848 78,149,577
SHAREHOLDERS' FUNDS 86,335,474 81,826,375

The financial statements were approved by the Board of Directors and authorised for issue on 10 May 2024 and were signed on its behalf by:





P J Mottram - Director


National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 4,999,174 4,900,013
Investments 10 42,444,125 46,064,812
47,443,299 50,964,825

CURRENT ASSETS
Stocks 11 25,084,624 18,794,518
Debtors 12 10,672,357 7,529,172
Cash at bank and in hand 8,110,744 7,810,432
43,867,725 34,134,122
CREDITORS
Amounts falling due within one year 13 7,114,321 5,624,166
NET CURRENT ASSETS 36,753,404 28,509,956
TOTAL ASSETS LESS CURRENT
LIABILITIES

84,196,703

79,474,781

PROVISIONS FOR LIABILITIES 14 1,182,795 -
NET ASSETS 83,013,908 79,474,781

CAPITAL AND RESERVES
Called up share capital 15 3,596,228 3,596,228
Retained earnings 79,417,680 75,878,553
SHAREHOLDERS' FUNDS 83,013,908 79,474,781

Company's profit for the financial year 3,539,127 4,338,473

The financial statements were approved by the Board of Directors and authorised for issue on 10 May 2024 and were signed on its behalf by:





P J Mottram - Director


National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   

Balance at 1 January 2022 3,596,228 72,567,405 - 76,163,633

Changes in equity
Total comprehensive income - 5,582,172 80,570 5,662,742
Balance at 31 December 2022 3,596,228 78,149,577 80,570 81,826,375

Changes in equity
Increase in share capital - - 19,828 19,828
Total comprehensive income - 4,489,271 - 4,489,271
Balance at 31 December 2023 3,596,228 82,638,848 100,398 86,335,474

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2022 3,596,228 71,540,080 75,136,308

Changes in equity
Total comprehensive income - 4,338,473 4,338,473
Balance at 31 December 2022 3,596,228 75,878,553 79,474,781

Changes in equity
Total comprehensive income - 3,539,127 3,539,127
Balance at 31 December 2023 3,596,228 79,417,680 83,013,908

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (3,020,406 ) 5,044,651
Tax paid (1,939,626 ) (2,829,091 )
Net cash from operating activities (4,960,032 ) 2,215,560

Cash flows from investing activities
Purchase of tangible fixed assets (1,897,478 ) (2,526,233 )
Sale of tangible fixed assets 1,542,492 1,156,584
Sale of fixed asset investments 5,092,323 -
Interest received 17,806 21,271
Net cash from investing activities 4,755,143 (1,348,378 )

Cash flows from financing activities
Related undertakings 9,102 (502,394 )
Net cash from financing activities 9,102 (502,394 )

(Decrease)/increase in cash and cash equivalents (195,787 ) 364,788
Cash and cash equivalents at beginning of
year

2

8,430,538

7,985,180
Effect of foreign exchange rate changes 19,828 80,570
Cash and cash equivalents at end of year 2 8,254,579 8,430,538

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 9,024,700 6,804,874
Depreciation charges 540,976 397,647
Profit on disposal of fixed assets (143,852 ) (76,675 )
Currency exchange gains/(losses) (106,754 ) 5,261,718
Loss/Gain on revaluation of investments 3,047,825 995,826
Profit on disposal of investment (47,762 ) -
Finance costs (4,364,945 ) (5,261,718 )
Finance income (17,806 ) (21,271 )
7,932,382 8,100,401
Increase in stocks (10,916,679 ) (3,342,424 )
Increase in trade and other debtors (673,319 ) (198,415 )
Increase in trade and other creditors 637,210 485,089
Cash generated from operations (3,020,406 ) 5,044,651

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 8,254,579 8,430,538
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 8,430,538 7,985,180


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 8,430,538 (175,959 ) 8,254,579
8,430,538 (175,959 ) 8,254,579
Total 8,430,538 (175,959 ) 8,254,579

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

National Refrigerants Ltd and Subsidiaries is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying value 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 revision and future periods where the revision affects both current and future periods.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on the financial statements.

Accruals
As part of the month end process, management are required to estimate requirements for accruals. These estimates are arrived at based on their knowledge of the business coupled with post year end information identifying expenses incurred relating to the previous financial period.

Stock
In arriving at the valuation of stock it may be necessary for management to make an assessment of the carrying value of stock items and, where applicable, make a provision to amend this value to a more accurate level. These provisions are arrived at using management's knowledge and understanding of the business and the industry in which it operates and focuses on potentially obsolete or old items for which the full value may no longer be recoverable.

Turnover
Turnover is the amount derived from the provision of goods and services, recognised at the point of despatch when the right to consideration has been earned, falling within the company's ordinary activities after deduction of trade discounts and value added tax.

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 2% on cost
Rental cylinders - 10% on cost
Plant and equipment - 15% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on cost
Office equipment - 25% on cost

Tangible fixed assets are initially recorded at cost.

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

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.

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.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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

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

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

Investments
Investments in shares are included at fair value.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 24,045,788 24,901,733
Europe 10,033,291 7,356,740
Rest of the world - 77,996
34,079,079 32,336,469

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,435,213 1,927,986
Social security costs 232,795 185,410
Other pension costs 57,063 47,617
2,725,071 2,161,013

The average number of employees during the year was as follows:
2023 2022

Production 42 34
Administration 11 10
Directors 3 3
56 47

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 339,330 305,610

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 339,330 305,610

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of gas tanks 664,456 642,661
Other operating leases 122,225 99,062
Depreciation - owned assets 540,976 397,647
Profit on disposal of fixed assets (191,614 ) (76,675 )
Auditors' remuneration 21,478 20,409
Auditors' remuneration for non audit work 6,353 4,840

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Foreign exchange gains/losses (4,364,945 ) (5,261,718 )

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 2,948,959 2,423,307

Deferred tax:
Accelerated capital allowances 124,507 16,421
Revaluation of investments 1,461,963 (1,217,026 )
Total deferred tax 1,586,470 (1,200,605 )
Tax on profit 4,535,429 1,222,702

UK corporation tax has been charged at 23.52 % (2022 - 19 %).

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 9,024,700 6,804,874
Profit multiplied by the standard rate of corporation tax in the UK of
23.520 % (2022 - 19 %)

2,122,609

1,292,926

Effects of:
Expenses not deductible for tax purposes 810,759 1,232,552
Capital allowances in excess of depreciation - (47,678 )
Depreciation in excess of capital allowances 40,236 -
Utilisation of tax losses (24,645 ) (54,493 )
Accelerated capital allowance 1,586,470 (1,200,605 )
Total tax charge 4,535,429 1,222,702

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.

The parent company's profit for the financial year was £3,539,127 (2022 - £4,338,473).

9. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Rental Plant and
property property cylinders equipment
£    £    £    £   
COST
At 1 January 2023 4,620,558 398,954 635,003 3,274,477
Additions 112,500 13,326 1,382,595 135,131
Disposals - - (1,444,744 ) (58,203 )
At 31 December 2023 4,733,058 412,280 572,854 3,351,405
DEPRECIATION
At 1 January 2023 1,049,548 7,948 19,016 1,405,358
Charge for year 93,911 8,030 51,213 354,922
Eliminated on disposal - - (46,414 ) (58,203 )
At 31 December 2023 1,143,459 15,978 23,815 1,702,077
NET BOOK VALUE
At 31 December 2023 3,589,599 396,302 549,039 1,649,328
At 31 December 2022 3,571,010 391,006 615,987 1,869,119

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Office
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 111,373 24,495 89,142 9,154,002
Additions 246,260 - 7,666 1,897,478
Disposals (9,231 ) (5,000 ) (5,322 ) (1,522,500 )
At 31 December 2023 348,402 19,495 91,486 9,528,980
DEPRECIATION
At 1 January 2023 55,358 6,625 63,509 2,607,362
Charge for year 19,778 4,873 8,249 540,976
Eliminated on disposal (9,231 ) (5,000 ) (5,012 ) (123,860 )
At 31 December 2023 65,905 6,498 66,746 3,024,478
NET BOOK VALUE
At 31 December 2023 282,497 12,997 24,740 6,504,502
At 31 December 2022 56,015 17,870 25,633 6,546,640

Company
Freehold Rental Plant and
property cylinders equipment
£    £    £   
COST
At 1 January 2023 4,620,558 630,047 1,974,440
Additions 112,500 1,375,793 74,035
Disposals - (1,435,916 ) (58,203 )
At 31 December 2023 4,733,058 569,924 1,990,272
DEPRECIATION
At 1 January 2023 1,049,548 18,990 1,305,301
Charge for year 93,911 50,979 155,361
Eliminated on disposal - (46,183 ) (58,203 )
At 31 December 2023 1,143,459 23,786 1,402,459
NET BOOK VALUE
At 31 December 2023 3,589,599 546,138 587,813
At 31 December 2022 3,571,010 611,057 669,139

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Company

Fixtures
and Motor Office
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 73,067 24,495 69,854 7,392,461
Additions 245,561 - 3,308 1,811,197
Disposals (9,231 ) (5,000 ) (5,322 ) (1,513,672 )
At 31 December 2023 309,397 19,495 67,840 7,689,986
DEPRECIATION
At 1 January 2023 49,917 6,625 62,067 2,492,448
Charge for year 12,024 4,873 4,845 321,993
Eliminated on disposal (9,231 ) (5,000 ) (5,012 ) (123,629 )
At 31 December 2023 52,710 6,498 61,900 2,690,812
NET BOOK VALUE
At 31 December 2023 256,687 12,997 5,940 4,999,174
At 31 December 2022 23,150 17,870 7,787 4,900,013

10. FIXED ASSET INVESTMENTS

Group
Listed
investments
£   
COST OR VALUATION
At 1 January 2023 46,064,722
Disposals (5,044,561 )
Revaluations 1,423,874
At 31 December 2023 42,444,035
NET BOOK VALUE
At 31 December 2023 42,444,035
At 31 December 2022 46,064,722

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. FIXED ASSET INVESTMENTS - continued

Group

Cost or valuation at 31 December 2023 is represented by:

Listed
investments
£   
Valuation in 2023 1,423,874
Valuation in 2022 (995,826 )
Valuation in 2021 (659,414 )
Valuation in 2020 2,529,549
Valuation in 2019 1,321,014
Cost 38,824,838
42,444,035

If fixed asset investment had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 38,824,838 43,869,399

Fixed asset investment were valued on an open market basis on 31 December 2023 by J P Morgan Chase & Co .
Company
Shares in
group Listed
undertakings investments Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 90 46,064,722 46,064,812
Disposals - (5,044,561 ) (5,044,561 )
Revaluations - 1,423,874 1,423,874
At 31 December 2023 90 42,444,035 42,444,125
NET BOOK VALUE
At 31 December 2023 90 42,444,035 42,444,125
At 31 December 2022 90 46,064,722 46,064,812

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. FIXED ASSET INVESTMENTS - continued

Company

Cost or valuation at 31 December 2023 is represented by:

Shares in
group Listed
undertakings investments Totals
£    £    £   
Valuation in 2023 - 1,423,874 1,423,874
Valuation in 2022 - (995,826 ) (995,826 )
Valuation in 2021 - (659,414 ) (659,414 )
Valuation in 2020 - 2,529,549 2,529,549
Valuation in 2019 - 1,321,014 1,321,014
Cost 90 38,824,838 38,824,928
90 42,444,035 42,444,125

If fixed asset investments had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 38,824,928 43,869,489

Fixed asset investments were valued on an open market basis on 31 December 2023 by J P Morgan Chase & Co .

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

Subsidiaries

National Refrigerants Suppliers Limited
Registered office: 25-28 North Wall Quay, Dublin 1 D01H104
Nature of business: Sale of refrigerant gases
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 3,734,408 2,682,840
Profit for the year 1,031,739 1,396,911

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. FIXED ASSET INVESTMENTS - continued

National Cylinder Testing Ltd
Registered office: Second Floor 28 Rodney Street,Liverpool L1 2TQ
Nature of business: Cylinder testing and recertification
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves (412,752 ) (331,157 )
Loss for the year (81,595 ) (153,212 )


11. STOCKS

Group Company
2023 2022 2023 2022
£    £    £    £   
Stocks 33,626,105 22,709,426 25,084,624 18,794,518

12. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 4,448,492 3,692,318 3,081,753 3,021,565
Amounts owed by group undertakings - - 5,133,825 1,708,625
VAT 303,812 372,461 349,405 189,126
Deferred tax asset - 358,257 - 360,321
Prepayments 69,387 83,593 57,374 74,452
4,821,691 4,506,629 8,622,357 5,354,089

Amounts falling due after more than one year:
Amounts owed by group undertakings - - 2,050,000 2,175,083

Aggregate amounts 4,821,691 4,506,629 10,672,357 7,529,172

Deferred tax asset
Group Company
2023 2022 2023 2022
£    £    £    £   
Balance at 1 January 2023 - (842,348 ) - (841,848 )
Accelerated capital allowances - (16,421 ) - (14,857 )
Revaluation of investments - 1,217,026 - 1,217,026
- 358,257 - 360,321

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 1,561,424 1,501,807 1,083,214 1,436,306
Amounts owed to related undertakings 45,600 36,498 44,148 36,498
Tax 1,799,603 790,270 1,644,622 344,273
Social security and other taxes 75,814 59,241 68,224 53,948
Other creditors 4,071,120 3,622,734 3,868,145 3,369,096
Accrued expenses 533,664 421,031 405,968 384,045
8,087,225 6,431,581 7,114,321 5,624,166

14. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Balance at 1 January 2023 (358,257 ) - (360,321 ) -
Accelerated capital allowances 124,507 - 81,153 -
Revaluation of investments 1,461,963 - 1,461,963 -
1,228,213 - 1,182,795 -

Group
Deferred
tax
£   
Balance at 1 January 2023 (358,257 )
Accelerated capital allowances 124,507
Revaluation of investments 1,461,963
Balance at 31 December 2023 1,228,213

Company
Deferred
tax
£   
Balance at 1 January 2023 (360,321 )
Accelerated capital allowances 81,153
Revaluation of investments 1,461,963
Balance at 31 December 2023 1,182,795

National Refrigerants Ltd and
Subsidiaries (Registered number: 02326887)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,596,228 Ordinary £1 3,596,228 3,596,228

16. RELATED PARTY DISCLOSURES

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Sales - 77,796
Purchases 1,921,232 2,989,483
Amounts due to related parties 45,600 36,498

17. SUBSEQUENT EVENTS

The directors have considered the uncertainty of the ongoing global problem due to the Covid-19 issue and are confident that any risks will be mitigated.

The directors have been closely monitoring the situations in Ukraine and Israel, even though the direct risk to the company operations and sourcing is low.

There have been no significant events effecting the company since the financial year end.

18. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is John H Reilly III, by virtue of owning, directly of indirectly, 57% of the issued share capital.

19. CAPITAL COMMITMENTS

At the year end there were capital commitments of £316,631 which were contracted for but have not been provided for in the financial statements.