Company registration number 00532158 (England and Wales)
BELZONA INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BELZONA INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Mr J C Svendsen
Mr N A Robinson
Mr J D Pugh
Mr B A Nisill
Company number
00532158
Registered office
Claro Road
Harrogate
North Yorkshire
HG1 4DS
Auditor
Fortus Audit LLP
Equinox House
Clifton Park
Shipton Road
York
YO30 5PA
BELZONA INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 28
BELZONA INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

The strategic report has been prepared by the directors in accordance with section 414(a) to (d) of the Companies Act 2006 and sets out a balanced and comprehensive analysis of the developments and performance of the group’s business during the financial year and the position of the group at the end of the financial year consistent with the size and complexity of the group’s business.

 

Principle activity

 

The group’s principal activity is the manufacture and sale of specialist repair and maintenance products for machinery, equipment and structures. These sales are made through a network of global independent stocking distributorships, as well as directly to end users in the UK and certain overseas markets.

Review of the business

Over the course of 2023, the group continued to progress its strategy to be a leading manufacturer of specialist repair and maintenance products.

Principal risks and uncertainties

Worldwide financial uncertainties and inflationary pressures impacted in 2023. The group has been directly affected by rising costs, particularly material, energy and salary costs. Proactive policies including forward purchasing, supplier review and employee salary benchmarking are employed to manage cost increases, ensuring the group gets the best return in relation to costs incurred.

 

By applying a controlled approach to budgeting and financial control, the group continues to confidently invest in developing people, assets and research and development, whilst minimising the risk to profitability.

 

The group continues to pursue business opportunities across a wide range of markets in multiple regions. This approach allows the group to mitigate regional uncertainties whilst focusing on developing revenues through its core products and services.

Key performance indicators

The directors of Belzona use the following measurements to assess the financial performance of the business on a monthly, quarterly and annual basis:

2023
2022
£
%
£
Turnover
46,847,927
6.34%
44,056,211
Gross profit
27,099,221
0.43%
26,982,779
Profit before tax
11,499,136
-18.33%
14,080,395
2023 saw continued growth in turnover with group sales increasing by 6.3%, as a result of improved export markets. Worldwide economic inflationary pressures driving up material, energy and salary costs, directly impacted group profit with the overall result being a 18.3% year-on-year reduction in profit after tax.

The board maintains an active approach to spending that allows it to target investment in key growth areas of the business whilst reviewing and maintaining other spends, ensuring strong financial stability.

The board remains committed to growing the business and developing stronger relationships with customers. To improve and further develop the UK route to market, Belzona Limited divested its UK trading arm in 2023, forming an independent sales and distribution company. Additionally, a new wholly owned distributor was created in Germany during December 2022 with trading commencing early 2023.

Investment in research and development to drive future innovation continues to form another fundamental foundation of the long-term strategy. In 2023 there was one product upgrade released, further supporting the renewables sector and enhancing the overall product portfolio.
Outlook

The board remains confident over continued future revenue growth and profitability. The group adopts a rigorous approach of continuous review and improvement which continues to develop and enhance the strong working practices.

 

The group remains committed to its long-term core principle of investing in its distributor network through the provision of training as well as technical and sales support.

BELZONA INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Section 172 Statement

In accordance with Section 172(1) of the Companies Act 2006, the directors are committed to acting in good faith and making decisions that are most likely to promote the success of the company for the benefit of its stakeholders as a whole.

 

In fulfilling this duty, the board carefully considers the long-term consequences of their decisions, ensuring prioritisation of the interests and well-being of Belzona's employees.

 

In order for Belzona to help achieve its perpetual growth strategy, the board realises the importance of fostering strong, mutually beneficial relationships with its suppliers, customers and wider stakeholders whom Belzona collaborate with in its day-to-day business.

 

The philosophy of the business is based around sustainability and the emphasis of repairing existing assets with Belzona's products, rather than replacing with new. This ethos is echoed throughout all the business' operations in order to remain environmentally responsible.

The directors promote staff participation in local charitable and environmental work, contributing to the wider communities in which they are located across the world. For further information on Belzona's efforts to reduce its impact on the environment, please turn to the Carbon Reporting section of the Directors' Report.

 

The board is committed to maintaining high standards of business conduct and consistently perform their roles with the utmost integrity; one of Belzona's core principles at the heart of the brand. Furthermore, they also acknowledge their duty to act fairly for every stakeholder; taking the needs of all associates into consideration during the everyday course of business.

On behalf of the board

Mr B A Nisill
Director
25 October 2024
BELZONA INTERNATIONAL 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.

Principal activity

The principal activity of the group continued to be that of the manufacture and sale of products for the conservation and extension of asset life for machinery and equipment and buildings and structures.

Directors

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

Mr J C Svendsen
Mr N A Robinson
Mr J D Pugh
Mr B A Nisill
Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £5,627,333. The directors do not recommend payment of a further dividend.

Future developments

The future developments of the company are disclosed in the strategic report.

BELZONA INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Energy and carbon report

In compliance with The Companies Act 2006, Part 7A to Schedule 7 ‘Dealing with energy and carbon disclosures by large unquoted companies’, the board makes the following disclosures of energy and Carbon Dioxide (CO2) information for the UK entities of the group for the year ended 31st December 2023.

 

The information includes the reporting of greenhouse gas emissions (Scope 1 and 2), energy consumption data for fuels and electricity, together with a CO2 intensity ratio:

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the period
2,515,390
2,419,235
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Fuel
258.86
230.19
- Transport
53.51
71.85
312.37
302.04
Scope 2 - indirect emissions
- Electricity
252.85
245.26
Total gross emissions
565.22
547.30
Intensity ratio
Tonnes of CO2e per tonne of product
0.469
0.462

Methodology

These energy and carbon emission calculations have been determined in accordance with the mandatory requirements of the Streamlined Energy & Carbon Reporting regulations (SECR).

 

GHG Protocol has been used in the process of quantifying the group's energy usage.

 

Performance

Despite reporting marginal increases year on year, significant steps to reduce Belzona's carbon footprint have been taken since the year end. During 2023, the group adopted a new mission statement that better represents Belzona's desire to improve its impact on the environment ‘’Polymerics solutions for a sustainable future'’.

 

The concept of Belzona's product is to 'repair, protect & improve' and upgrade global industry, plant and machinery rather than replacing with new, which is the epitome of the meaning of sustainability. The board anticipates the business will continue to review carbon emissions with the goal of ongoing reductions where possible.

 

Future energy saving plans

Since the year end, Belzona has installed 762 solar panels, covering an area of 1,486m2 at its Harrogate site. Electric vehicle charging infrastructure was installed last year and during 2024, the charging points became fully operational. All future additions to the fleet will be a hybrid or fully electric vehicle, phasing out internal combustion powered vehicles as the fleet falls due for replacement.

 

Since 2021, the company has a procured its electricity solely through 100% renewable energy sources.

 

In addition, Belzona has recently installed an energy monitoring system, and the board is now investigating higher efficiency heating systems.

 

Whilst not eliminating all travel, Belzona actively promotes video conferencing and virtual meetings, reducing travel CO2 impact.

 

BELZONA INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.

Approval of reduced disclosures

The company, as a qualifying entity, has taken advantage, in respect of its separate financial statements, of the disclosure exemptions in FRS 102 paragraph 1.12. The companys shareholders have been notified in writing about the intention to take advantage of the disclosure exemptions and no objection has been received.

 

The company also intends to take advantage of these exemptions in the financial statements to be issued in the following year. Objections may be served on the company by shareholders holding in aggregate 5 per cent or more of the total allocated shares in the company. They should be served no later than 31 December 2024.

Disclosure of information in the strategic report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, the directors have prepared a strategic report which can be found on page 1 of the financial statements.

On behalf of the board
Mr B A Nisill
Director
25 October 2024
BELZONA INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELZONA INTERNATIONAL LIMITED
- 6 -
Opinion

We have audited the financial statements of Belzona International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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:

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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

BELZONA INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BELZONA INTERNATIONAL LIMITED
- 7 -
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit, in respect to fraud are to identify and assess the risks of material misstatement of the financial statements due to fraud and obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses, and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

 

Our approach was as follows:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. 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.

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.

BELZONA INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BELZONA INTERNATIONAL LIMITED
- 8 -
Frances Howard FCA (Senior Statutory Auditor)
For and on behalf of Fortus Audit LLP
25 October 2024
Business Advisors & Accountants
Statutory Auditor
Equinox House
Clifton Park
Shipton Road
York
YO30 5PA
BELZONA INTERNATIONAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
46,847,927
44,056,211
Cost of sales
(19,748,706)
(17,073,432)
Gross profit
27,099,221
26,982,779
Distribution costs
(2,726,798)
(3,557,040)
Administrative expenses
(13,590,237)
(9,599,553)
Other operating income
103,902
157,246
Operating profit
4
10,886,088
13,983,432
Interest receivable and similar income
8
618,103
96,982
Interest payable and similar expenses
9
(5,055)
(19)
Profit before taxation
11,499,136
14,080,395
Tax on profit
10
(2,352,437)
(2,842,043)
Profit for the financial year
22
9,146,699
11,238,352
Other comprehensive income
Currency translation differences
(1,008,937)
1,544,772
Total comprehensive income for the year
8,137,762
12,783,124
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
BELZONA INTERNATIONAL LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
17,104,679
14,218,287
Investments
14
832
832
17,105,511
14,219,119
Current assets
Stocks
16
10,758,481
8,926,446
Debtors
17
6,742,817
4,811,083
Cash at bank and in hand
16,965,518
22,889,503
34,466,816
36,627,032
Creditors: amounts falling due within one year
18
(4,677,493)
(6,497,587)
Net current assets
29,789,323
30,129,445
Total assets less current liabilities
46,894,834
44,348,564
Provisions for liabilities
19
(35,841)
-
0
Net assets
46,858,993
44,348,564
Capital and reserves
Called up share capital
21
100,100
100,100
Profit & loss reserves
22
46,758,893
44,248,464
Total equity
46,858,993
44,348,564
The financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and are signed on its behalf by:
25 October 2024
Mr B A Nisill
Director
BELZONA INTERNATIONAL LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
9,122,851
9,122,851
Current assets
Debtors
17
1,221,434
67,375
Cash at bank and in hand
171,165
1,395,398
1,392,599
1,462,773
Creditors: amounts falling due within one year
18
(7,722,542)
(7,749,765)
Net current liabilities
(6,329,943)
(6,286,992)
Total assets less current liabilities
2,792,908
2,835,859
Capital and reserves
Called up share capital
21
100,100
100,100
Profit & loss reserves
22
2,692,808
2,735,759
Total equity
2,792,908
2,835,859

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £5,584,382 (2022 - £3,844,068 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and are signed on its behalf by:
25 October 2024
Mr B A Nisill
Director
Company Registration No. 00532158
BELZONA INTERNATIONAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit & loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100,100
35,823,218
35,923,318
Year ended 31 December 2022:
Profit for the year
-
11,238,352
11,238,352
Other comprehensive income:
Currency translation differences
-
1,544,772
1,544,772
Total comprehensive income for the year
-
12,783,124
12,783,124
Dividends
11
-
(4,357,878)
(4,357,878)
Balance at 31 December 2022
100,100
44,248,464
44,348,564
Year ended 31 December 2023:
Profit for the year
-
9,146,699
9,146,699
Other comprehensive income:
Currency translation differences
-
(1,008,937)
(1,008,937)
Total comprehensive income for the year
-
8,137,762
8,137,762
Dividends
11
-
(5,627,333)
(5,627,333)
Balance at 31 December 2023
100,100
46,758,893
46,858,993
BELZONA INTERNATIONAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit & loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100,100
3,249,570
3,349,670
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,844,067
3,844,067
Dividends
11
-
(4,357,878)
(4,357,878)
Balance at 31 December 2022
100,100
2,735,759
2,835,859
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
5,584,382
5,584,382
Dividends
11
-
(5,627,333)
(5,627,333)
Balance at 31 December 2023
100,100
2,692,808
2,792,908
BELZONA INTERNATIONAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
7,161,719
13,014,298
Interest paid
(5,055)
(19)
Income taxes paid
(3,572,898)
(1,969,605)
Net cash inflow from operating activities
3,583,766
11,044,674
Investing activities
Purchase of tangible fixed assets
(4,172,958)
(1,495,655)
Proceeds from disposal of tangible fixed assets
48,974
128,273
Interest received
618,103
96,982
Net cash used in investing activities
(3,505,881)
(1,270,400)
Financing activities
Dividends paid to equity shareholders
(5,627,333)
(4,357,878)
Net cash used in financing activities
(5,627,333)
(4,357,878)
Net (decrease)/increase in cash and cash equivalents
(5,549,448)
5,416,396
Cash and cash equivalents at beginning of year
22,889,503
16,768,576
Effect of foreign exchange rates
(374,537)
704,531
Cash and cash equivalents at end of year
16,965,518
22,889,503
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Belzona International Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Claro Road, Harrogate, HG1 4DS.

 

The group consists of Belzona International Limited and all of its subsidiaries.

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.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of Belzona International Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the period are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

These financial statements have been prepared on a going concern basis. In order to prepare the financial statements on the going concern basis, the directors have completed detailed financial projections which take account of normal operating conditions and known variable factors which have affected the forecast in the past. The directors have decided to evaluate a range of financial outcomes to enable them to confirm the business has sufficient resources to continue as a going concern.

BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers during the period.

 

Turnover comprises income from the manufacture and sale of products for the conservation of machinery, equipment, buildings and structures together with income from the application of industrial repair products. Turnover is recognised when products are dispatched, apart from turnover in respect of long term contracts which is recognised as the contract progresses subject to satisfying contract conditions outside the control of the company.

 

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only by the extent of the expenses recognised are recoverable.

1.5
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 property
5 to 50 years (excluding freehold land)
Leasehold improvements
life of lease
Fixtures,plant & machinery
3 to 20 years (includes motor vehicles depreciated over 4 years)
Tools and equipment
3 to 10 years

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 recognised in the income statement.

No depreciation is charged on freehold land or assets under construction.

1.6
Fixed asset investments

In the parent company financial statements, investments in subsidiaries and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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.

We have reviewed the carrying value of our fixed assets and concluded that there is no requirement currently to make a write down to our fixed assets or any other assets, all of which are used in delivering our services and sales revenue.

1.8
Stocks

Stocks are stated at the lower of cost and net realisable value. For finished goods manufactured by the group cost comprises direct material cost.

 

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 the profit and loss. Reversals of impairment losses are also recognised in profit and 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.

BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 measured at transaction price including transaction costs. 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 measured at fair value.

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.

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 group 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 group after deducting all of its liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 income statement, 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 if, and only if, there is 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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.18

Distribution rights

Sold

 

The group grants exclusive right to distribute, sell, and service its or its distributors' products in certain territories. The performance obligation under these distributor agreements is the promise to provide daily access to the symbolic intellectual property over the term of each franchise agreement, which is a series of distinct services that represents a single performance obligation. Although the group's underlying activities associated with the symbolic intellectual property will vary both within a day and day-to-day, the symbolic intellectual property is accessed over time and the customer (the distributor) simultaneously receives and consumes the benefit with the group's performance of providing access to the symbolic intellectual property (including other related activities). Therefore, the group defers the proceeds from sales of these rights and amortises them on a straight line basis over a period ranging from 5 to 10 years, the expected lives of the agreements. Amortisation related to distribution rights sold are recorded as amortisation income and included in other income in the statement of comprehensive income.

 

Reacquired

 

From time to time, the group reacquires distribution rights from third parties prior to the maturity date under the original agreement. The group defers the cost of the reacquisition of these rights and amortises them on a straight line basis over the remaining lives of the original agreements. Amortisation related to distribution rights reacquired is recorded as amortisation expense and included in cost of sales in the statement of comprehensive income.

BELZONA INTERNATIONAL 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 group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Warranties

The group provides product warranties which are subject to conditions. These conditions limit the extent of the group's exposure to claims. At the reporting date there have been no material claims made and historically the level of warranty claims is negligible.

Revenue recognition

In some circumstances, sales in different geographical areas of the World are recognised at the point shipping terms state within the contract that control passes to the customer. These terms are specific to the contract and turnover is recorded when those conditions have been met.

Stock

Stock is valued at the lower of cost and net realisable value. This value is determined using some estimated values of cost and is therefore subject to estimation uncertainty.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
46,847,927
44,056,211
2023
2022
£
£
Other significant revenue
Interest income
618,103
96,982
Non product sales
43,862
92,244
Grants received
5,301
3,110
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,978,487
5,679,013
Rest of the World
22,360,636
21,329,650
The Americas
19,508,804
17,047,548
46,847,927
44,056,211
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
39,161
37,048
Government grants
(5,301)
(3,110)
Depreciation of owned tangible fixed assets
1,152,811
879,505
Profit on disposal of tangible fixed assets
(37,989)
(90,978)
Cost of stocks recognised as an expense
13,099,424
10,995,840
Stocks impairment losses recognised or reversed
(668)
-
0
Operating lease charges
61,627
32,529
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
30,000
23,000
For other services
All other non-audit services
29,560
13,633
6
Employees

The average monthly number of persons employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Distribution staff
135
122
-
-
Administrative staff
98
86
-
-
Management staff
11
16
-
-
Total
244
224
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
10,740,875
9,226,343
150,000
150,000
Social security costs
927,392
767,699
-
-
Pension costs
841,279
598,300
-
0
-
0
12,509,546
10,592,342
150,000
150,000
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
939,682
907,567
Company pension contributions to defined contribution schemes
39,179
20,268
978,861
927,835
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
583,019
533,626

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022: 3).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
618,103
96,982
9
Interest payable and similar expenses
2023
2022
£
£
Other interest
5,055
19
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,454,735
1,874,997
Adjustments in respect of prior periods
-
0
4,760
Total UK current tax
2,454,735
1,879,757
Foreign current tax on profits for the current period
435,912
836,529
Total current tax
2,890,647
2,716,286
Deferred tax
Origination and reversal of timing differences
(538,210)
125,757
Total tax charge
2,352,437
2,842,043
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 22 -

The actual charge 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
11,499,136
14,080,395
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
2,874,784
2,675,275
Tax effect of expenses that are not deductible in determining taxable profit
16,821
25,678
Change in unrecognised deferred tax assets
45,566
13,292
Adjustments in respect of prior years
-
0
4,760
Effect of change in corporation tax rate
(184,667)
-
Effect of overseas tax rates
(88,876)
98,437
Deferred tax adjustments in respect of prior years
-
0
9,055
Dividend income
-
0
(827,997)
Effect of R&D expenditure
(46,849)
737,781
Effect of capital allowances and depreciation
57,250
(5,227)
Additional tax on overseas earnings
(386,954)
65,212
Short term timing differences
27,943
45,777
Profit on disposal of assets
37,419
-
Taxation charge
2,352,437
2,842,043
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
5,627,333
4,357,878
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Stocks
16
(668)
-
Recognised in:
Cost of sales
(668)
-
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Tangible fixed assets
Group
Freehold property
Leasehold improvements
Fixtures,plant & machinery
Tools and equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
21,001,827
62,901
2,342,298
4,233,666
27,640,692
Additions
3,410,816
-
0
466,351
295,791
4,172,958
Disposals
-
0
-
0
(24,904)
(39,228)
(64,132)
Exchange adjustments
(311,817)
(1,678)
(50,332)
(35,154)
(398,981)
At 31 December 2023
24,100,826
61,223
2,733,413
4,455,075
31,350,537
Depreciation
At 1 January 2023
9,115,378
22,278
1,792,491
2,492,258
13,422,405
Depreciation charged in the year
380,072
1,581
174,032
597,126
1,152,811
Eliminated in respect of disposals
-
0
-
0
(21,051)
(31,912)
(52,963)
Transfers
-
0
-
0
(184)
-
0
(184)
Exchange adjustments
(203,523)
(595)
(37,964)
(34,129)
(276,211)
At 31 December 2023
9,291,927
23,264
1,907,324
3,023,343
14,245,858
Carrying amount
At 31 December 2023
14,808,899
37,959
826,089
1,431,732
17,104,679
At 31 December 2022
11,886,449
40,623
549,807
1,741,408
14,218,287
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
9,122,019
9,122,019
Other investments
832
832
832
832
832
832
9,122,851
9,122,851
Movements in fixed asset investments
Group
Other
£
Cost or valuation
At 1 January 2023 and 31 December 2023
832
Carrying amount
At 31 December 2023
832
At 31 December 2022
832
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other
Total
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
9,122,019
832
9,122,851
Carrying amount
At 31 December 2023
9,122,019
832
9,122,851
At 31 December 2022
9,122,019
832
9,122,851
15
Subsidiaries

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

                                                

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Belzona Limited
Claro Road, Harrogate, HG1 4DS
Ordinary
100.00
Belzona Technosol Limited
As above
Ordinary
100.00
Belzona-Z Limited
As above
Ordinary
100.00
Belzona UK Limited
As above
Ordinary
100.00
Belzona Inc.
Miami, Florida, USA
Ordinary
100.00
Belzona Great Lakes Holdings Limited
19th Floor, 885 West Georgia St, Vancouver, BC, Canada
Ordinary
100.00
Belzona Molecular Technology (Nanjing) Co. Limited
Nanjing,China
Ordinary
100.00
Belzona Technik West GmbH
Neuss, Germany
Ordinary
100.00

Belzona Technosol Limited is currently in the process of being liquidated.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
3,474,935
3,262,060
-
-
Contract work in progress
1,807
508,642
-
-
Other work in progress
37,047
59,920
-
-
Finished goods and goods for resale
7,244,692
5,095,824
-
0
-
0
10,758,481
8,926,446
-
-
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,335,110
780,924
-
0
-
0
Corporation tax recoverable
330,381
1,099
-
0
-
0
Amounts owed by group undertakings
-
-
1,220,225
66,447
Other debtors
3,213,991
2,691,779
1,209
928
Prepayments and accrued income
981,429
1,030,195
-
0
-
0
5,860,911
4,503,997
1,221,434
67,375
Amounts falling due after more than one year:
Deferred tax asset (note 19)
881,906
307,086
-
0
-
0
Total debtors
6,742,817
4,811,083
1,221,434
67,375
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,373,664
1,428,333
595
1,061
Amounts owed to group undertakings
-
0
-
0
7,712,947
7,748,704
Corporation tax payable
785,004
1,137,204
-
0
-
0
Other taxation and social security
432,946
223,185
-
-
Other creditors
24,631
928,965
-
0
-
0
Accruals and deferred income
2,061,248
2,779,900
9,000
-
0
4,677,493
6,497,587
7,722,542
7,749,765
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
35,841
-
149,930
124,547
Other short term timing differences
-
-
731,976
182,539
35,841
-
881,906
307,086
The company has no deferred tax assets or liabilities.
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Deferred taxation
(Continued)
- 26 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(307,086)
-
Credit to profit or loss
(538,979)
-
Asset at 31 December 2023
(846,065)
-
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
841,279
598,300

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,100
100,100
100,100
100,100

The ordinary shareholders have a right to attend all General Meetings of the company and to vote at such meetings.

 

The ordinary shareholders have the right to receive dividends and on a return of capital on liquidation the remaining assets of the company would be returned to the holders of the ordinary shares.

22
Reserves
Profit and loss reserves

The profit and loss account reserve records retained earnings and accumulated losses. These are realised and distributable, except where specifically identified as unrealised and non-distributable.

23
Financial commitments, guarantees and contingent liabilities

A group company, Belzona Inc, had a contingent liability at the period end estimated at £35,000 (2022 £46,000) relating to distribution rights sold during prior years and recognised over the term of the distribution agreement.

BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
91,398
145,040
-
-
Between two and five years
-
86,704
-
-
91,398
231,744
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
0
2,385,000
-
-
26
Related party transactions
Transactions with related parties

During the year the group carried out a number of transactions with Belzona Global LLC and Belzona Florida LLC, US-registered businesses under common control. Sales include bulk goods which were sold at favourable terms however all transactions are conducted at arm's length.

 

These transactions comprised:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Belzona Global LLC
1,147,911
890,749
5,124,412
4,788,726
Belzona Florida LLC
439,507
396,033
-
-
Costs reallocated
2023
2022
£
£
Group
Belzona Global LLC
-
824,870
BELZONA INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 28 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Belzona Global LLC
2,408,683
1,097,045
Belzona Florida LLC
323,216
290,963
27
Controlling party

The ultimate parent company is Orbex LLC, a company registered in the United States of America. The shares in Orbex LLC are owned by Mr J C Svendsen, a related party.

28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
9,146,699
11,238,352
Adjustments for:
Taxation charged
2,352,437
2,842,043
Finance costs
5,055
19
Investment income
(618,103)
(96,982)
Gain on disposal of tangible fixed assets
(37,989)
(90,978)
Depreciation and impairment of tangible fixed assets
1,152,811
879,505
Foreign exchange gains on cash equivalents
(511,630)
638,582
Movements in working capital:
Increase in stocks
(1,832,035)
(2,264,689)
Increase in debtors
(1,027,632)
(1,741,364)
(Decrease)/increase in creditors
(1,467,894)
1,609,810
Cash generated from operations
7,161,719
13,014,298
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
22,889,503
(5,549,448)
(374,537)
16,965,518
2023-12-312023-01-01falsefalseCCH SoftwareCCH Accounts Production 2024.300Mr J C SvendsenMr N A RobinsonMr J D PughMr B A 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