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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditors |
2nd Floor |
28 Rodney Street |
Liverpool |
L1 2TQ |
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 |
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 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Freehold property | - |
Improvements to property | - |
Rental cylinders | - |
Plant and equipment | - |
Fixtures and fittings | - |
Motor vehicles | - |
Office equipment | - |
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 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 | 46,064,812 |
Disposals | ( |
) | (5,044,561 | ) |
Revaluations | 1,423,874 |
At 31 December 2023 | 42,444,125 |
NET BOOK VALUE |
At 31 December 2023 | 42,444,125 |
At 31 December 2022 | 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 |
Registered office: 25-28 North Wall Quay, Dublin 1 D01H104 |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
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 |
Registered office: Second Floor 28 Rodney Street,Liverpool L1 2TQ |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
11. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 33,626,105 | 22,709,426 |
12. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 4,448,492 | 3,692,318 |
Amounts owed by group undertakings | - | - |
VAT | 303,812 | 372,461 |
Deferred tax asset | - | 358,257 | - | 360,321 |
Prepayments | 69,387 | 83,593 |
4,821,691 | 4,506,629 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 4,821,691 | 4,506,629 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Balance at 1 January 2023 | - | (842,348 | ) | ( |
) |
Accelerated capital allowances | - | (16,421 | ) | - | (14,857 | ) |
Revaluation of investments | - | 1,217,026 | - | 1,217,026 |
- | 358,257 |
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 |
Amounts owed to related undertakings | 45,600 | 36,498 | 44,148 | 36,498 |
Tax | 1,799,603 | 790,270 |
Social security and other taxes | 75,814 | 59,241 |
Other creditors | 4,071,120 | 3,622,734 |
Accrued expenses | 533,664 | 421,031 |
8,087,225 | 6,431,581 |
14. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Balance at 1 January 2023 | (358,257 | ) | - | ( |
) |
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 | ( |
) |
Accelerated capital allowances | 81,153 |
Revaluation of investments | 1,461,963 |
Balance at 31 December 2023 |
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: | £ | £ |
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. |