34 false false false false true false false false false false false true false false false false false false 2023-04-01 Sage Accounts Production Advanced 2023 - FRS102_2023 1,243,224 1,094,686 90,227 28,972 119,199 xbrli:pure xbrli:shares iso4217:GBP NI032489 2023-04-01 2024-03-31 NI032489 2024-03-31 NI032489 2023-03-31 NI032489 2022-04-01 2023-03-31 NI032489 2023-03-31 NI032489 2022-03-31 NI032489 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-04-01 2024-03-31 NI032489 core:LandBuildings core:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 NI032489 core:PlantMachinery 2023-04-01 2024-03-31 NI032489 core:FurnitureFittings 2023-04-01 2024-03-31 NI032489 core:MotorVehicles 2023-04-01 2024-03-31 NI032489 bus:RegisteredOffice 2023-04-01 2024-03-31 NI032489 bus:OrdinaryShareClass1 2023-04-01 2024-03-31 NI032489 bus:LeadAgentIfApplicable 2023-04-01 2024-03-31 NI032489 bus:Director1 2023-04-01 2024-03-31 NI032489 bus:Director3 2023-04-01 2024-03-31 NI032489 bus:Director4 2023-04-01 2024-03-31 NI032489 bus:Director5 2023-04-01 2024-03-31 NI032489 core:WithinOneYear 2024-03-31 NI032489 core:WithinOneYear 2023-03-31 NI032489 core:AfterOneYear 2024-03-31 NI032489 core:AfterOneYear 2023-03-31 NI032489 core:NetGoodwill 2024-03-31 NI032489 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-03-31 NI032489 core:LandBuildings core:OwnedOrFreeholdAssets 2023-03-31 NI032489 core:PlantMachinery 2023-03-31 NI032489 core:FurnitureFittings 2023-03-31 NI032489 core:MotorVehicles 2023-03-31 NI032489 core:LandBuildings core:OwnedOrFreeholdAssets 2024-03-31 NI032489 core:PlantMachinery 2024-03-31 NI032489 core:FurnitureFittings 2024-03-31 NI032489 core:MotorVehicles 2024-03-31 NI032489 core:DeferredTaxation 2023-04-01 2024-03-31 NI032489 core:UKTax 2023-04-01 2024-03-31 NI032489 core:UKTax 2022-04-01 2023-03-31 NI032489 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 NI032489 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 NI032489 bus:AllOrdinaryShares 2023-04-01 2024-03-31 NI032489 bus:AllOrdinaryShares 2022-04-01 2023-03-31 NI032489 core:RetainedEarningsAccumulatedLosses 2023-03-31 NI032489 core:RetainedEarningsAccumulatedLosses 2022-03-31 NI032489 core:RetainedEarningsAccumulatedLosses 2024-03-31 NI032489 core:RetainedEarningsAccumulatedLosses 2023-03-31 NI032489 core:ShareCapital 2024-03-31 NI032489 core:ShareCapital 2023-03-31 NI032489 core:AcceleratedTaxDepreciationDeferredTax 2024-03-31 NI032489 core:AcceleratedTaxDepreciationDeferredTax 2023-03-31 NI032489 core:LandBuildings core:OwnedOrFreeholdAssets 2023-03-31 NI032489 core:PlantMachinery 2023-03-31 NI032489 core:FurnitureFittings 2023-03-31 NI032489 core:MotorVehicles 2023-03-31 NI032489 core:DeferredTaxation 2023-03-31 NI032489 core:DeferredTaxation 2024-03-31 NI032489 bus:LeadAgentIfApplicable 2022-04-01 2023-03-31 NI032489 bus:HighestPaidDirector 2023-04-01 2024-03-31 NI032489 bus:HighestPaidDirector 2022-04-01 2023-03-31 NI032489 bus:MediumEntities 2023-04-01 2024-03-31 NI032489 bus:Audited 2023-04-01 2024-03-31 NI032489 bus:Medium-sizedCompaniesRegimeForAccounts 2023-04-01 2024-03-31 NI032489 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 NI032489 bus:FullAccounts 2023-04-01 2024-03-31 NI032489 bus:OrdinaryShareClass1 2024-03-31 NI032489 bus:OrdinaryShareClass1 2023-03-31 NI032489 core:NetGoodwill 2023-04-01 2024-03-31 NI032489 core:OfficeEquipment 2023-04-01 2024-03-31 NI032489 core:OfficeEquipment 2023-03-31 NI032489 core:OfficeEquipment 2024-03-31
COMPANY REGISTRATION NUMBER: NI032489
Central Chemical Supplies Limited
Financial Statements
Year ended
31 March 2024
Central Chemical Supplies Limited
Financial Statements
Year ended 31 March 2024
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13
Central Chemical Supplies Limited
Strategic Report
Year ended 31 March 2024
The directors present the strategic report for the year ended 31st March 2024.
Principle activities
The principal activity of the company during the year was the manufacture and wholesale of industrial chemicals .
Review of the business
During the year, reported turnover decreased to £16,889,931 from £18,927,990 (2023). The gross profit percentage has increased to 24.11% from 16.86% (2023) which reflects a stabilisation of production input costs and a return to more normal trading conditions. Despite the decline in turnover and owing to the improved gross profit percentage the company successfully increased its net profit before tax to £1,485,945 from £1,258,355 (2023). This represents an increase in net profit of 18.09%. We continue to drive new business opportunities whenever they arise.
Principal risks and uncertainties
The director consider the principal risks and uncertainties to be: - Market price pressure due to energy price fluctuations - Raw material price fluctuations in the chemical industry global supply - Maintaining and sourcing adequate stock levels remains a number one objective - The company relies on a global supply chain, disruptions such as shipping delays, geopolitical tensions or increased tariffs could lead to higher costs and supply shortages potentially affecting our ability to meet customer demand. - The chemical industry faces growing pressure to adopt sustainable practices and reduce environmental impact. Failure to meet evolving environmental standards or to invest in sustainable technologies could damage the company's reputation and lead to regulatory penalties.
Financial key performance indicators
The company uses a range of performance measures to monitor and manage the business effectively. The most significant of these are the key performance indicators (KPISs) The KPIs for the year ended 31 March 2024 with comparatives for 2023 are summarised as follows:
2023 2022
£
Gross Profit % 24 17
Turnover 16,889,931 18,927,990
Profit before Tax 1,485,945 1,258,355
Future
The directors aim to maintain the policies which have previously resulted with growth, we remain optimistic about our ability to grow sales. The directors anticipate further challenges in maintaining margins, influenced by global inflationary pressures and supply chain fluctuations. We have invested and will continue to invest in upgrading our manufacturing facilities in order to enhance efficiency and reduce environmental impact aligning with our sustainability goals. The directors aim to maintain the policies which have previously resulted with growth, we remain optimistic about our ability to grow sales. We have invested and will continue to invest in upgrading our manufacturing facilities in order to enhance efficiency and reduce environment impact aligning with our sustainability goals.
This report was approved by the board of directors on 6 September 2024 and signed on behalf of the board by:
Mr Alfred Desmond Savage
Mr Timothy Savage
Director
Director
Registered office:
44 Hall Road
Donaghcloney
Craigavon
Co. Armagh
BT66 7LJ
Central Chemical Supplies Limited
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
Mr Alfred Desmond Savage
Mr Timothy Savage
Mr Evan Evans
Mrs Joanne Rowan
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Disclosure of information in the strategic report
The company has included it strategic report on page 1.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 6 September 2024 and signed on behalf of the board by:
Mr Alfred Desmond Savage
Mr Timothy Savage
Director
Director
Registered office:
44 Hall Road
Donaghcloney
Craigavon
Co. Armagh
BT66 7LJ
Central Chemical Supplies Limited
Independent Auditor's Report to the Members of Central Chemical Supplies Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of Central Chemical Supplies Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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.
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 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 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to identify and assess the risk of material misstatement of the financial statements due to fraud through designing and implementing appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identifies during the course of our audit. However the primary responsibility for the prevention and detection of of fraud rests with management and those charged with governance of the company. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and discussed the policies and procedures regarding compliance. Specific areas considered were as follows: - the nature of the industry and sector, control environment and business performance. - Enquiring with management and others to gain an understanding of the organisation itself including operations, financial reporting and known fraud or error. - Evaluating and understanding the internal control system. - Performing analytical procedures as expected or unexpected variances in account balances or classes of transactions appear. - Testing documentation supporting account balances or classes of transactions. - The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, International Financial Reporting Standards and UK taxation legislation. Audit Response to Risks Identified Our procedures to respond to potential risks include the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of the most significant laws and regulations; - contacting company solicitors and enquiry of management regarding any actual or potential litigation and claims; - reviewing correspondence with HMRC, and - to address the risk of fraud through 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; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all audit team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected all irregularities including those leading to material misstatements in the financial statements or non-compliance with regulation, even though we have properly planned and performed our audit in accordance with auditing standards. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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. 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 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 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. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
James Casey FCA
(Senior Statutory Auditor)
For and on behalf of
Henry Murray & Company Ltd.
Chartered Accountants & Statutory Auditors
23 Church Place,
Lurgan,
Co. Armagh.
N. Ireland
BT66 6EY
6 September 2024
Central Chemical Supplies Limited
Statement of Income and Retained Earnings
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
16,889,931
18,927,990
Cost of sales
12,816,970
15,737,393
-------------
-------------
Gross profit
4,072,961
3,190,597
Administrative expenses
2,571,721
1,871,468
Other operating income
5
539
534
------------
------------
Operating profit
6
1,501,779
1,319,663
Other interest receivable and similar income
10
3,432
855
Interest payable and similar expenses
11
19,266
62,163
------------
------------
Profit before taxation
1,485,945
1,258,355
Tax on profit
12
242,721
163,669
------------
------------
Profit for the financial year and total comprehensive income
1,243,224
1,094,686
------------
------------
Dividends paid and payable
13
( 67,000)
( 42,000)
Retained earnings at the start of the year
3,169,896
2,117,210
------------
------------
Retained earnings at the end of the year
4,346,120
3,169,896
------------
------------
All the activities of the company are from continuing operations.
Central Chemical Supplies Limited
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
15
1,693,837
1,238,574
Current assets
Stocks
16
1,253,233
1,421,209
Debtors
17
2,763,184
2,521,334
Cash at bank and in hand
1,015,650
295,125
------------
------------
5,032,067
4,237,668
Creditors: amounts falling due within one year
19
2,179,429
2,134,963
------------
------------
Net current assets
2,852,638
2,102,705
------------
------------
Total assets less current liabilities
4,546,475
3,341,279
Creditors: amounts falling due after more than one year
20
81,056
81,056
Provisions
Taxation including deferred tax
22
119,199
90,227
------------
------------
Net assets
4,346,220
3,169,996
------------
------------
Capital and reserves
Called up share capital
25
100
100
Profit and loss account
4,346,120
3,169,896
------------
------------
Shareholders funds
4,346,220
3,169,996
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 6 September 2024 , and are signed on behalf of the board by:
Mr Alfred Desmond Savage
Mr Timothy Savage
Director
Director
Company registration number: NI032489
Central Chemical Supplies Limited
Statement of Cash Flows
Year ended 31 March 2024
2024
2023
Note
£
£
Cash flows from operating activities
Profit for the financial year
1,243,224
1,094,686
Adjustments for:
Depreciation of tangible assets
186,935
128,244
Other interest receivable and similar income
( 3,432)
( 855)
Interest payable and similar expenses
19,266
62,163
Gains on disposal of tangible assets
( 2,747)
Tax on profit
242,721
163,669
Accrued expenses
75,712
67,330
Changes in:
Stocks
167,976
( 175,413)
Trade and other debtors
( 241,850)
( 249,447)
Trade and other creditors
648,019
( 331,125)
------------
------------
Cash generated from operations
2,338,571
756,505
Interest paid
( 19,266)
( 62,163)
Interest received
3,432
855
Tax paid
( 142,700)
( 68,393)
------------
---------
Net cash from operating activities
2,180,037
626,804
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 642,198)
( 213,221)
Proceeds from sale of tangible assets
5,986
------------
---------
Net cash used in investing activities
( 642,198)
( 207,235)
------------
---------
Cash flows from financing activities
Payments of finance lease liabilities
( 58,238)
( 3,571)
Dividends paid
( 67,000)
( 42,000)
------------
---------
Net cash used in financing activities
( 125,238)
( 45,571)
------------
---------
Net increase in cash and cash equivalents
1,412,601
373,998
Cash and cash equivalents at beginning of year
(396,951)
(770,949)
------------
---------
Cash and cash equivalents at end of year
18
1,015,650
( 396,951)
------------
---------
Central Chemical Supplies Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 44 Hall Road, Donaghcloney, Craigavon, Co. Armagh, BT66 7LJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
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 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.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses . Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
Fully Amortised
Purchased Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Property
-
2% straight line
Plant and Machinery
-
25% reducing balance
Fixtures and Fittings
-
25% reducing balance
Motor Vehicles
-
25% reducing balance
Equipment and Software
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position 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 method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
16,889,931
18,927,990
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Other operating income
539
534
----
----
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
186,935
128,244
Gains on disposal of tangible assets
( 2,747)
Impairment of trade debtors
605
2,259
Foreign exchange differences
27,124
( 15,724)
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
15,000
12,500
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
12
13
Distribution staff
5
4
Administrative staff
5
4
Management staff
6
5
Number of laboratory staff
3
3
Number of yard staff
2
2
Number of sales staff
1
----
----
34
31
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,300,692
897,267
Social security costs
137,311
87,692
Other pension costs
3,742
3,476
------------
---------
1,441,745
988,435
------------
---------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
392,569
288,226
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
153,530
144,695
---------
---------
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
2,877
67
Other interest receivable and similar income
555
788
-------
----
3,432
855
-------
----
11. Interest payable and similar expenses
2024
2023
£
£
Interest on debenture loans
5,106
7,305
Interest on obligations under finance leases and hire purchase contracts
2,970
3,018
Invoice Financing Interest Charges
11,190
51,840
--------
--------
19,266
62,163
--------
--------
12. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
265,557
216,551
Adjustments in respect of prior periods
( 51,808)
( 73,575)
---------
---------
Total current tax
213,749
142,976
---------
---------
Deferred tax:
Origination and reversal of timing differences
28,972
20,693
---------
---------
Tax on profit
242,721
163,669
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,485,945
1,258,355
------------
------------
Profit on ordinary activities by rate of tax
371,486
239,088
Adjustment to tax charge in respect of prior periods
( 51,808)
( 73,575)
Effect of expenses not deductible for tax purposes
( 77,568)
( 22,995)
Effect of capital allowances and depreciation
611
21,151
------------
------------
Tax on profit
242,721
163,669
------------
------------
13. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
67,000
42,000
--------
--------
14. Intangible assets
Goodwill
Purchased Goodwill
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
150,000
50,844
200,844
---------
--------
---------
Amortisation
At 1 April 2023 and 31 March 2024
150,000
50,844
200,844
---------
--------
---------
Carrying amount
At 31 March 2024
---------
--------
---------
At 31 March 2023
---------
--------
---------
15. Tangible assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 Apr 2023
940,607
1,459,496
44,888
31,500
25,901
2,502,392
Additions
605,170
32,995
4,033
642,198
---------
------------
--------
--------
--------
------------
At 31 Mar 2024
940,607
2,064,666
44,888
64,495
29,934
3,144,590
---------
------------
--------
--------
--------
------------
Depreciation
At 1 Apr 2023
187,553
983,919
44,410
28,476
19,460
1,263,818
Charge for the year
18,812
161,201
119
4,880
1,923
186,935
---------
------------
--------
--------
--------
------------
At 31 Mar 2024
206,365
1,145,120
44,529
33,356
21,383
1,450,753
---------
------------
--------
--------
--------
------------
Carrying amount
At 31 Mar 2024
734,242
919,546
359
31,139
8,551
1,693,837
---------
------------
--------
--------
--------
------------
At 31 Mar 2023
753,054
475,577
478
3,024
6,441
1,238,574
---------
------------
--------
--------
--------
------------
16. Stocks
2024
2023
£
£
Raw materials and consumables
1,253,233
1,421,209
------------
------------
17. Debtors
2024
2023
£
£
Trade debtors
2,523,180
2,328,029
Prepayments and accrued income
121,608
117,983
Directors loan account
51,430
66,409
Other debtors
66,966
8,913
------------
------------
2,763,184
2,521,334
------------
------------
18. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2024
2023
£
£
Cash at bank and in hand
1,015,650
295,125
Bank overdrafts
( 692,076)
------------
---------
1,015,650
( 396,951)
------------
---------
19. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
692,076
Trade creditors
1,608,170
1,101,979
Accruals and deferred income
186,732
111,020
Corporation tax
213,148
142,099
Social security and other taxes
104,133
29,551
Obligations under finance leases and hire purchase contracts
58,238
Other creditors
67,246
------------
------------
2,179,429
2,134,963
------------
------------
Danske Bank hold the following security: - Fixed Charge over Book Debts - Floating Charge over assets and undertakings of the company - Legal Mortgage over commercial premises 44 Hall Road, Donaghcloney - Guarantees for HMRC totalling £44,000
20. Creditors: amounts falling due after more than one year
2024
2023
£
£
Accruals and deferred income
80,000
80,000
Other creditors
1,056
1,056
--------
--------
81,056
81,056
--------
--------
21. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
58,238
----
--------
22. Provisions
Deferred tax (note 23)
£
At 1 April 2023
90,227
Additions
28,972
---------
At 31 March 2024
119,199
---------
23. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 22)
119,199
90,227
---------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
119,199
90,227
---------
--------
24. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 3,742 (2023: £ 3,476 ).
25. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
26. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
295,125
720,525
1,015,650
Bank overdrafts
(692,076)
692,076
Debt due within one year
(58,238)
58,238
---------
------------
------------
( 455,189)
1,470,839
1,015,650
---------
------------
------------
Central Chemical Supplies Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2024
27. Directors' advances, credits and guarantees
The following loans to directors were outstanding during the year Name Nature Opening Closing Highest Balance Balance Balance During Year £ £ £ Mr AD Savage Personal 66,409 51,430 51,430 Interest at 2.25% was charged on this loan. This loan was repaid in full in April 2024.
28. Related party transactions
The company was under the control of Mr Alfred Desmond Savage throughout the accounting period.