Company registration number 07140281 (England and Wales)
CHEMANGLIA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CHEMANGLIA LIMITED
COMPANY INFORMATION
Directors
D Burkill
T Burkill
T A Burkill
B P King
M D Pollard
Company number
07140281
Registered office
Millers Close
Fakenham Industrial Estate
Fakenham
Norfolk
United Kingdom
NR21 8NW
Auditor
Wheawill & Sudworth Limited
Chartered Accountants
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
Bankers
HSBC Bank plc
2 Cloth Hall Street
Huddersfield
West Yorkshire
HD1 2ES
CHEMANGLIA LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
The following pages do not form part of the statutory financial statements
CHEMANGLIA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be the manufacture of cleaning chemicals. However, our business is split into four individual business units: Manufacturing, Janitorial Supplier, Washroom Services and Biovate Hygienics.
Manufacturing
We develop and manufacture innovative performance cleaning and hygiene products for the Industrial, Retail, Healthcare, Institutional, Automotive, Janitorial, Leisure and Specialist industries throughout the UK and Europe.
As an ISO 9001 and 14001 certified company, all our products are manufactured to the highest possible standard at our production facility in East Anglia.
Janitorial Supplier
Trading in this sector for over 30 years we have become one of the East of England's premier cleaning and janitorial supplies distributors.
Supporting our customers with quality products and service to meet their changing requirements.
Washroom Services
We offer a total Washroom service which includes supply, installation and servicing. From cleaning equipment, vending machines, air fresheners, nappy and feminine hygiene bins. Our offering delivers the flexibility our customers require.
We offer a safe and discreet sanitary waste and clinical waste collection disposal service designed to help our customers dispose of their waste in accordance with the law.
Biovate Hygienics
Is the leading manufacturer of certified, naturally derived biological cleaning products. Its mission is to drive sustainable change in commercial cleaning products whilst providing the best service and support to businesses using cleaning products.
Biovate's biotechology range is the next generation of cleaning products. Using a combination of probiotic,enzymes, bio surfactants and plant-based colours and fragrances, we have harnessed the power of nature for maximum cleaning performance with minimum impact on the planet.
Review of the business
Turnover for the year was £13,270,877 compared with £10,387,622 in 2022 which represents 27% growth in line with directors' expectations.
Principal risks and uncertainties
The management of the business and the delivery of the company's strategy are subject to a number of risks.
The main risks and uncertainties facing the company focus on;
In response to the above mentioned risks, the management believes the company is in a strong position at the year end and is well placed to tackle the challenges that the current economic situation presents. We are implementing new systems to provide integrated solutions to our employees, supply chain and customers to ensure effective pricing, recognition of our brands and quality of service to maintain our reputation for high quality solutions to help maintain and grow our market position.
The company also monitors applicable indices and regulations to ensure that we provide high quality products and services that meet all of our customer's needs.
CHEMANGLIA LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
Management monitors the business using the following key performance indicators in the year as follows:
Sales per average employee £159,890 (2022:£133,175)
Operating profit margin 3.13% (2022: 1.98%)
Net profit margin 1.57% (2022: 0.82%)
Average number of employees 83 (2022: 78)
Sales per average employee
Sales per average employee has been satisfactory during the year.
Operating profit
The operating profit performance is in line with expectations for the year.
Net profit
The net profit performance is in line with expectations for the year and in line with our strategic plan.
Headcount
The headcount is in line with ongoing business requirements.
Other information and explanations
Future Developments
The directors consider the results for the year to be satisfactory and expect performance to improve in line with the new strategic model and future business plans.
Operational Developments
During the year production moved into a purpose developed filling facility in order to optimise operation efficiencies through better workflow as well as increasing capacity with the addition of new filling lines and improved warehousing.
The directors expect this new facility to provide additional capacity and opportunities moving forward as well as reducing our cost base by improving machine efficiencies and workflow.
Health and Safety
The company is committed to working in a safe environment and has a tailored programme of training, education and ongoing assessment in place to help us achieve our goals.
Strategy and Future Outlook
The company plans to maintain market position whilst achieving sustainable growth through the following strategies:
providing the highest standard of product, service and delivery to customers at a competitive price
continued expansion into current and new markets
working closely with our customers to develop and improve our product offering
evolving our business structure and plans to meet challenging market demands
T A Burkill
Director
25 September 2024
CHEMANGLIA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £197,063. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D Burkill
T Burkill
T A Burkill
B P King
M D Pollard
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
T A Burkill
Director
25 September 2024
CHEMANGLIA LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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:
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 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.
CHEMANGLIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEMANGLIA LIMITED
- 5 -
Opinion
We have audited the financial statements of Chemanglia Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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.
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.
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.
The financial statements for the prior period to 31 December 2022 were unaudited.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CHEMANGLIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEMANGLIA LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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.
CHEMANGLIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEMANGLIA LIMITED (CONTINUED)
- 7 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;
Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur;
Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations;
Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity;
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
·Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
·Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
·Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
·Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
·Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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.
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.
CHEMANGLIA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHEMANGLIA LIMITED (CONTINUED)
- 8 -
David Butterworth
Senior Statutory Auditor
For and on behalf of Wheawill & Sudworth Limited
25 September 2024
Chartered Accountants
Statutory Auditor
35 Westgate
Huddersfield
West Yorkshire
HD1 1PA
CHEMANGLIA LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
13,270,877
10,387,622
Cost of sales
(9,282,684)
(7,079,729)
Gross profit
3,988,193
3,307,893
Administrative expenses
(3,572,616)
(3,101,830)
Operating profit
3
415,577
206,063
Interest payable and similar expenses
6
(207,253)
(121,317)
Profit before taxation
208,324
84,746
Tax on profit
7
(126,735)
40,899
Profit for the financial year
81,589
125,645
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CHEMANGLIA LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
81,589
125,645
Other comprehensive income
Fair value adjustments reclassified to profit or loss
(2,913)
(3,536)
Total comprehensive income for the year
78,676
122,109
CHEMANGLIA LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
33,533
51,417
Tangible assets
10
3,699,229
2,608,560
3,732,762
2,659,977
Current assets
Stocks
11
1,268,608
1,167,583
Debtors
12
3,808,692
3,755,307
Cash at bank and in hand
1,856
1,268
5,079,156
4,924,158
Creditors: amounts falling due within one year
13
(6,183,064)
(4,683,411)
Net current (liabilities)/assets
(1,103,908)
240,747
Total assets less current liabilities
2,628,854
2,900,724
Creditors: amounts falling due after more than one year
14
(891,632)
(1,174,763)
Provisions for liabilities
Deferred tax liability
17
284,651
157,916
(284,651)
(157,916)
Net assets
1,452,571
1,568,045
Capital and reserves
Called up share capital
19
26,316
26,316
Revaluation reserve
181,782
184,695
Profit and loss reserves
1,244,473
1,357,034
Total equity
1,452,571
1,568,045
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
T A Burkill
Director
Company registration number 07140281 (England and Wales)
CHEMANGLIA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
26,316
188,231
1,395,033
1,609,580
Year ended 31 December 2022:
Profit
-
-
125,645
125,645
Other comprehensive income:
Gains reclassified to profit or loss
-
(3,536)
-
(3,536)
Total comprehensive income
-
(3,536)
125,645
122,109
Dividends
8
-
-
(167,180)
(167,180)
Transfers
-
3,536
3,536
Balance at 31 December 2022
26,316
184,695
1,357,034
1,568,045
Year ended 31 December 2023:
Profit
-
-
81,589
81,589
Other comprehensive income:
Gains reclassified to profit or loss
-
(2,913)
-
(2,913)
Total comprehensive income
-
(2,913)
81,589
78,676
Dividends
8
-
-
(197,063)
(197,063)
Transfers
-
2,913
2,913
Balance at 31 December 2023
26,316
181,782
1,244,473
1,452,571
CHEMANGLIA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,850,712
822,732
Interest paid
(207,253)
(121,317)
Net cash inflow from operating activities
1,643,459
701,415
Investing activities
Purchase of tangible fixed assets
(1,559,225)
(623,103)
Proceeds from disposal of tangible fixed assets
24,205
45,625
Repayment of loans
(49,533)
Net cash used in investing activities
(1,584,553)
(577,478)
Financing activities
Repayment of borrowings
16,547
(226,094)
Repayment of bank loans
315,444
(46,997)
Payment of finance leases obligations
189,263
(105,653)
Dividends paid
(197,063)
(167,180)
Net cash generated from/(used in) financing activities
324,191
(545,924)
Net increase/(decrease) in cash and cash equivalents
383,097
(421,987)
Cash and cash equivalents at beginning of year
(512,055)
(90,068)
Cash and cash equivalents at end of year
(128,958)
(512,055)
Relating to:
Cash at bank and in hand
1,856
1,268
Bank overdrafts included in creditors payable within one year
(130,814)
(513,323)
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Chemanglia Limited is a private company limited by shares incorporated in England and Wales. The registered office is Millers Close, Fakenham Industrial Estate, Fakenham, Norfolk, United Kingdom, NR21 8NW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10% straight line.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
nil
Leasehold improvements
over the term of the respective leases
Plant and machinery
15% reducing balance
Fixtures and fittings
15%/25% reducing balance
Dispensing equipment
33% straight line
Motor vehicles
30% reducing balance
Freehold land and assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest rate. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
1.16
Foreign exchange
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in the foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
105
227
Research and development costs
11,723
6,648
Fees payable to the company's auditor for the audit of the company's financial statements
10,886
Depreciation of owned tangible fixed assets
449,946
321,100
Profit on disposal of tangible fixed assets
(5,595)
(25,629)
Amortisation of intangible assets
17,884
17,884
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was.
2023
2022
Number
Number
83
78
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,124,976
2,250,786
Social security costs
253,494
226,993
Pension costs
63,207
217,952
3,441,677
2,695,731
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
250,580
221,567
Company pension contributions to defined contribution schemes
13,591
11,078
264,171
232,645
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
92,205
79,167
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
84,620
40,903
Interest on invoice finance arrangements
94,834
73,932
179,454
114,835
Other finance costs:
Interest on finance leases and hire purchase contracts
27,799
6,482
207,253
121,317
7
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(41,505)
Deferred tax
Origination and reversal of timing differences
126,735
606
Total tax charge/(credit)
126,735
(40,899)
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 21 -
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
208,324
84,746
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
52,081
16,102
Deferred tax adjustments in respect of prior years
74,654
(57,001)
Taxation charge/(credit) for the year
126,735
(40,899)
8
Dividends
2023
2022
£
£
Interim paid
197,063
167,180
9
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
178,842
Amortisation and impairment
At 1 January 2023
127,425
Amortisation charged for the year
17,884
At 31 December 2023
145,309
Carrying amount
At 31 December 2023
33,533
At 31 December 2022
51,417
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
10
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Dispensing equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,050,000
108,967
1,631,028
610,390
819,270
147,846
4,367,501
Additions
147,561
129,394
199,344
694,048
388,878
1,559,225
Disposals
(104,756)
(104,756)
At 31 December 2023
1,050,000
256,528
1,760,422
809,734
1,513,318
431,968
5,821,970
Depreciation and impairment
At 1 January 2023
8,757
798,234
240,309
596,315
115,326
1,758,941
Depreciation charged in the year
29,288
135,376
109,501
101,988
73,793
449,946
Eliminated in respect of disposals
(86,146)
(86,146)
At 31 December 2023
38,045
933,610
349,810
698,303
102,973
2,122,741
Carrying amount
At 31 December 2023
1,050,000
218,483
826,812
459,924
815,015
328,995
3,699,229
At 31 December 2022
1,050,000
100,210
832,794
370,081
222,955
32,520
2,608,560
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Stocks
2023
2022
£
£
Raw materials and consumables
851,163
913,503
Finished goods and goods for resale
417,445
254,080
1,268,608
1,167,583
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,365,197
1,878,647
Corporation tax recoverable
41,505
41,505
Amounts owed by group undertakings
479,513
774,115
Other debtors
272,661
232,793
Prepayments and accrued income
649,816
828,247
3,808,692
3,755,307
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
297,124
557,002
Obligations under finance leases
139,925
110,194
Invoice finance facilities
15
2,008,503
1,895,837
Trade creditors
2,155,354
1,607,050
Taxation and social security
837,788
168,184
Other creditors
71,999
49,327
Accruals and deferred income
672,371
295,817
6,183,064
4,683,411
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
593,453
400,640
Obligations under finance leases
298,179
138,647
Other borrowings
15
96,119
Taxation and social security
539,357
891,632
1,174,763
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
15
Loans and overdrafts
2023
2022
£
£
Bank loans
759,763
444,319
Bank overdrafts
130,814
513,323
Other loans
2,008,503
1,991,956
2,899,080
2,949,598
Payable within one year
2,305,627
2,452,839
Payable after one year
593,453
496,759
16
Secured indebtedness
The aggregate amount of secured liabilities at the year end totalled £3,337,184 (2022: £3,102,320).
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
284,651
157,916
2023
Movements in the year:
£
Liability at 1 January 2023
157,916
Other
126,735
Liability at 31 December 2023
284,651
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
63,207
217,952
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
11,250
11,250
11,250
11,250
Ordinary B shares of £1 each
11,250
11,250
11,250
11,250
Ordinary C shares of £1 each
1,250
1,250
1,250
1,250
Ordinary D shares of £1 each
1,250
1,250
1,250
1,250
Ordinary E shares of £1 each
1,250
1,316
1,316
1,316
26,250
26,316
26,316
26,316
20
Financial commitments, guarantees and contingent liabilities
The company has provided an unlimited guarantee in support of the bank facilities of an associated company.
21
Related party transactions
Transactions with related parties
Included within debtors are loans to directors of £28,590 (2022: creditors £96,119 ). The loans to directors are unsecured, repayable on demand and interest free.
Included in debtors are a loan to Superformula Holdings Limited of £99,013 (2022: £99,013), a loan to
DTR Hygiene Limited of £272,564 (2022: £262,222 ), a loan to Spectrum Digital Labels Limited of
£58,922 (2022: £412,881), a loan to Tailored Manufacturing Limited of £222,778 (2022: £201,046 ) and a loan to Seasoned and Spiced Limited of £49,013 (2022: £0). These loans are unsecured, repayable on demand and currently interest free. These companies are under common control.
22
Ultimate controlling party
The company is a subsidiary of Superformula Holdings Limited. This company is controlled by D Burkill.
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
81,589
125,645
Adjustments for:
Taxation charged/(credited)
126,735
(40,899)
Finance costs
207,253
121,317
Gain on disposal of tangible fixed assets
(5,595)
(25,629)
Amortisation and impairment of intangible assets
17,884
17,884
Depreciation and impairment of tangible fixed assets
449,946
321,100
Movements in working capital:
(Increase)/decrease in stocks
(101,025)
75,890
(Increase)/decrease in debtors
(3,852)
78,374
Increase in creditors
1,077,777
149,050
Cash generated from operations
1,850,712
822,732
CHEMANGLIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
24
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,268
588
1,856
Bank overdrafts
(513,323)
382,509
(130,814)
(512,055)
383,097
(128,958)
Borrowings excluding overdrafts
(2,436,275)
(331,991)
(2,768,266)
Obligations under finance leases
(248,841)
(189,263)
(438,104)
(3,197,171)
(138,157)
(3,335,328)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210D BurkillT BurkillT A BurkillB P KingM D Pollardfalsefalse071402812023-01-012023-12-3107140281bus:Director12023-01-012023-12-3107140281bus:Director22023-01-012023-12-3107140281bus:Director32023-01-012023-12-3107140281bus:Director42023-01-012023-12-3107140281bus:Director52023-01-012023-12-3107140281bus:RegisteredOffice2023-01-012023-12-3107140281bus:Agent12023-01-012023-12-31071402812023-12-31071402812022-01-012022-12-3107140281core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3107140281core:RetainedEarningsAccumulatedLosses2023-01-012023-12-310714028112023-01-012023-12-3107140281core:RevaluationReserve12022-01-012022-12-3107140281core:RevaluationReserve22022-01-012022-12-310714028132023-01-012023-12-3107140281core:Goodwill2023-12-3107140281core:Goodwill2022-12-31071402812022-12-3107140281core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3107140281core:LeaseholdImprovements2023-12-3107140281core:PlantMachinery2023-12-3107140281core:FurnitureFittings2023-12-3107140281core:ComputerEquipment2023-12-3107140281core:MotorVehicles2023-12-3107140281core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3107140281core:LeaseholdImprovements2022-12-3107140281core:PlantMachinery2022-12-3107140281core:FurnitureFittings2022-12-3107140281core:ComputerEquipment2022-12-3107140281core:MotorVehicles2022-12-3107140281core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3107140281core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3107140281core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3107140281core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3107140281core:CurrentFinancialInstruments2023-12-3107140281core:CurrentFinancialInstruments2022-12-3107140281core:Non-currentFinancialInstruments2023-12-3107140281core:Non-currentFinancialInstruments2022-12-3107140281core:ShareCapital2023-12-3107140281core:ShareCapital2022-12-3107140281core:RevaluationReserve2023-12-3107140281core:RevaluationReserve2022-12-3107140281core:RetainedEarningsAccumulatedLosses2023-12-3107140281core:RetainedEarningsAccumulatedLosses2022-12-3107140281core:ShareCapital2021-12-3107140281core:RevaluationReserve2021-12-3107140281core:RetainedEarningsAccumulatedLosses2021-12-3107140281core:ShareCapitalOrdinaryShares2023-12-3107140281core:ShareCapitalOrdinaryShares2022-12-3107140281core:RevaluationReserve2022-01-012022-12-3107140281core:RevaluationReserve2023-01-012023-12-310714028112022-01-012022-12-31071402812022-12-31071402812021-12-3107140281core:WithinOneYear2023-12-3107140281core:WithinOneYear2022-12-3107140281core:Goodwill2023-01-012023-12-3107140281core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3107140281core:LeaseholdImprovements2023-01-012023-12-3107140281core:PlantMachinery2023-01-012023-12-3107140281core:FurnitureFittings2023-01-012023-12-3107140281core:ComputerEquipment2023-01-012023-12-3107140281core:MotorVehicles2023-01-012023-12-3107140281core:UKTax2023-01-012023-12-3107140281core:UKTax2022-01-012022-12-3107140281core:Goodwill2022-12-3107140281core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3107140281core:LeaseholdImprovements2022-12-3107140281core:PlantMachinery2022-12-3107140281core:FurnitureFittings2022-12-3107140281core:ComputerEquipment2022-12-3107140281core:MotorVehicles2022-12-3107140281bus:PrivateLimitedCompanyLtd2023-01-012023-12-3107140281bus:FRS1022023-01-012023-12-3107140281bus:Audited2023-01-012023-12-3107140281bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP