Company registration number 02635454 (England and Wales)
THE DARENT WAX COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
THE DARENT WAX COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr L Finlayson-Green
Mr AC Ward
Mr TA Ward
Mr RE Parker
Secretary
Mrs J Ward
Company number
02635454
Registered office
1 The Mills
Station Road
South Darenth
Kent
DA4 9BD
Auditor
Lindeyer Francis Ferguson Limited
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Business address
1 The Mills
Station Road
South Darenth
Kent
DA4 9BD
THE DARENT WAX COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
THE DARENT WAX COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Business review and outlook

Despite continued challenges across the global landscape the directors are pleased to report on a satisfactory year. There has been significant investment in the development of people and processes which has been a key focus area for us this year. Ensuring that our resources remain aligned with our ambitions for the future.

 

Looking forward into 2024/2025, the company continues to have a strong, consistent order book. It is anticipated that continuing development of new and existing products is expected to create many new opportunities to demonstrate our unique approach to the development of specialist wax compounds, technical support and service on a global stage.

 

Particular attention continues to be paid to cost control, with specific focus on productivity, raw materials and energy costs given the ongoing pressures in these areas over recent years.

Key performance indicators

The Company maintains its ISO 9001/2015 accreditation.

 

The Directors monitor and manage the performance of the company supported by the production of monthly management reports, consisting of monthly financial accounts and non-financial metrics which summarise the performance of each of the functional areas of the business. All remain in line with where we could reasonably expect them to be given some continued geopolitical and economic headwind influence.

Principal risks and uncertainties

The company recognises that we operate within global markets, including the UK, that continue to demonstrate some geopolitical and economic uncertainties generally.

 

Though it appears that the worst of the global shipping industry issues during 2022/23 may now be behind us. The industry is not yet however, recovered to pre-covid levels and therefore we continue to work very closely with our partners to make shipping bookings in advance lowering the risk of disruptions in our supply chain, both when importing and exporting.

 

The company’s existing energy contracts are due to mature early 2025. It is understood that although market conditions do not to reflect that of pre-2022 conditions, generally the wholesale energy market has seen some reduction in pricing from its unprecedented peak. Though there remains some uncertainty regarding long range forecasting of energy prices it is anticipated that we can expect to see some reduction from our current position, with effect from 2025.

On behalf of the board

Mr L Finlayson-Green
Director
15 November 2024
THE DARENT WAX COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the development, manufacture and sale of speciality wax compounds within the UK and overseas markets.

Results and dividends

The results for the year are set out on page 7.

 

The directors are pleased to report a successful year with operating profits of £1,112,846 (2023: £1,693,371 on sales of £11,335,191 (2023: £13,565,105).

Ordinary dividends were paid amounting to £3,750,000 (2023: £390,000). Of this, dividends of £3,500,000 were exceptional and paid as part of a group restructure in March 2024. The directors do not recommend payment of a further dividend.

Directors

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

Mr L Finlayson-Green
Mr AC Ward
Mr TA Ward
Mr RE Parker
Financial instruments
Liquidity risk

The company carefully manages it cash and borrowing requirements in order to minimise interest expenditure, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. An appreciable portion of the company's sales and procurement activities are made in US Dollars and Euros. Having identified the potential for currency de-valuation risk a dynamic strategy has been developed to mitigate against currency fluctuations by proactively seeking to balance foreign currency sales with forward procurement of materials thus limiting the necessity for foreign currency exchange.

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

Regardless of some of the unprecedented challenges over recent years, the company has made significant investments into infrastructure and plant & equipment in preparation to support future demand. This year we have focused on commissioning much of this new equipment whilst simultaneously preparing our people for the opportunities of the future.

 

The company intends to continue growing by concentrating on developing new markets for existing products, along with increasing its already significant focus on new product development and its unique approach to technical support and service.

THE DARENT WAX COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Auditor

The auditor, Lindeyer Francis Ferguson Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company and of the profit or loss of the company 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 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr L Finlayson-Green
Director
15 November 2024
THE DARENT WAX COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE DARENT WAX COMPANY LIMITED
- 4 -
Opinion

We have audited the financial statements of The Darent Wax Company Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

THE DARENT WAX COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DARENT WAX COMPANY LIMITED
- 5 -
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:

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. As part of an audit, in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined below, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the company, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Companies Act 2006 and FRS 102.

 

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the company’s operations and to avoid material penalties, including the General Data Protection Regulation, health and safety, employment law and ISO 9001:2015 certification.

 

Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

 

THE DARENT WAX COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DARENT WAX COMPANY LIMITED
- 6 -

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the key risks were related to the understatement of revenue, and management bias in accounting estimates and areas of the financial statements requiring judgement. Such areas include, but are not limited to, the depreciation of tangible fixed assets, the carrying value of inventory, the bad debt provision for trade debtors and the impairment of intercompany group debtors. Audit procedures performed by us included:

 

The audit has been planned and performed in such a way as to best identify risks of material misstatement, however, because of the inherent limitations of audit procedures there is a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. For example, whilst we have properly planned and performed our audit in accordance with auditing standards, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely audit procedures are to identify it. Also, the risk of not detecting an irregularity due to fraud is higher than the risk of not detecting one resulting from error, due to probable deliberate concealment, override of controls, collusion or misrepresentations.

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.

Jonathan Healey FCA
Senior Statutory Auditor
For and on behalf of Lindeyer Francis Ferguson Limited
18 November 2024
Chartered Accountants
Statutory Auditor
North House
198 High Street
Tonbridge
Kent
TN9 1BE
THE DARENT WAX COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,335,191
13,565,105
Cost of sales
(8,049,983)
(10,072,845)
Gross profit
3,285,208
3,492,260
Administrative expenses
(2,180,120)
(1,798,889)
Operating profit
4
1,105,088
1,693,371
Interest payable and similar expenses
7
(29,653)
(29,361)
Profit before taxation
1,075,435
1,664,010
Tax on profit
8
(267,612)
(333,775)
Profit for the financial year
807,823
1,330,235

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THE DARENT WAX COMPANY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,341,024
1,224,527
Current assets
Stocks
10
1,744,094
2,296,246
Debtors
11
1,974,812
4,947,012
Cash at bank and in hand
755,366
353,870
4,474,272
7,597,128
Creditors: amounts falling due within one year
12
(1,889,376)
(1,762,636)
Net current assets
2,584,896
5,834,492
Total assets less current liabilities
3,925,920
7,059,019
Creditors: amounts falling due after more than one year
13
(295,924)
(526,478)
Provisions for liabilities
Deferred tax liability
17
307,720
268,088
(307,720)
(268,088)
Net assets
3,322,276
6,264,453
Capital and reserves
Called up share capital
19
42,055
42,055
Share premium account
-
0
16,213
Revaluation reserve
-
0
21,722
Capital redemption reserve
-
0
23,463
Profit and loss reserves
3,280,221
6,161,000
Total equity
3,322,276
6,264,453

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 15 November 2024 and are signed on its behalf by:
Mr L Finlayson-Green
Director
Company registration number 02635454 (England and Wales)
THE DARENT WAX COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 April 2022
42,055
16,213
24,135
23,463
5,218,352
5,324,218
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
-
1,330,235
1,330,235
Dividends
-
-
-
-
(390,000)
(390,000)
Transfers
-
-
(2,413)
-
2,413
-
Balance at 31 March 2023
42,055
16,213
21,722
23,463
6,161,000
6,264,453
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
-
807,823
807,823
Dividends
-
-
-
-
(3,750,000)
(3,750,000)
Transfers
-
-
(21,722)
-
21,722
-
Other movements
-
(16,213)
-
(23,463)
39,676
-
Balance at 31 March 2024
42,055
-
0
-
0
-
0
3,280,221
3,322,276
THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

The Darent Wax Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 The Mills, Station Road, South Darenth, Kent, DA4 9BD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of The Darent Wax Group Limited. These consolidated financial statements are available from its registered office, 1 The Mills, Station Road, South Darenth, Kent, DA4 9BD.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.4
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:

Leasehold improvements
4% on cost
Plant and equipment
10% and 25% reducing balance, depending upon the estimated useful life of the asset
Fixtures and fittings
10% and 25% reducing balance, depending upon the estimated useful life of the asset
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stocks are valued in the accounts on an average cost basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.7
Financial instruments

The company only has financial instruments which are classified as basic financial instruments.

 

Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in profit and loss.

 

Bank loans are initially recorded at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
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.

1.9
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.

1.10
Retirement benefits

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

1.11
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases asset are consumed.

1.12
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.

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Valuation of stock

The salaries of production staff are included within stock to accurately reflect all elements of production costs incurred. In order to calculate this, management increase the cost of finished goods by a flat 20%, to recognise the cost of direct labour invested into finished goods.

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.

Depreciation

Depreciation is calculated to write off the cost or valuation of assets over their estimated useful economic lives. See note 1.4 for specific rates.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Wax Manufacture
11,335,191
13,565,105
2024
2023
£
£
Turnover analysed by geographical market
UK
5,956,960
5,998,657
Overseas markets
5,378,231
7,566,448
11,335,191
13,565,105
THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
44,541
(29,775)
Fees payable to the company's auditor for the audit of the company's financial statements
7,250
7,000
Depreciation of owned tangible fixed assets
104,819
84,205
Depreciation of tangible fixed assets held under finance leases
71,405
43,474
Loss on disposal of tangible fixed assets
36,405
73
Operating lease charges
353,645
294,346
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production staff
44
53
Other staff
30
23
Total
74
76

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,932,832
1,836,537
Social security costs
172,964
166,578
Pension costs
91,313
90,020
2,197,109
2,093,135
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
206,306
207,631
Company pension contributions to defined contribution schemes
10,139
10,139
Benefits in kind
13,890
5,116
230,335
222,886

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 15 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
65,630
68,325
Company pension contributions to defined contribution schemes
5,739
5,739

The highest paid director received benefits in kind of £994 (2023: £Nil)

7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
13,675
18,673
Interest on finance leases and hire purchase contracts
15,978
10,688
29,653
29,361
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
227,980
256,449
Adjustments in respect of prior periods
-
0
(41,429)
Total current tax
227,980
215,020
Deferred tax
Origination and reversal of timing differences
39,632
118,755
Total tax charge
267,612
333,775

The rate of Corporation Tax increased from 19% to 25% in April 2023.

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 16 -

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:

2024
2023
£
£
Profit before taxation
1,075,435
1,664,010
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
268,859
316,162
Tax effect of expenses that are not deductible in determining taxable profit
18,339
7,967
Group relief
(17,049)
-
0
Permanent capital allowances in excess of depreciation
(42,169)
(67,679)
Research and development tax credit
-
0
(41,430)
Deferred tax movement
39,632
118,755
Taxation charge for the year
267,612
333,775
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
273,115
2,047,589
120,350
260,055
2,701,109
Additions
-
0
267,795
1,904
53,590
323,289
Disposals
-
0
(124,200)
-
0
-
0
(124,200)
At 31 March 2024
273,115
2,191,184
122,254
313,645
2,900,198
Depreciation and impairment
At 1 April 2023
42,337
1,265,641
99,388
69,216
1,476,582
Depreciation charged in the year
10,925
101,971
5,570
57,758
176,224
Eliminated in respect of disposals
-
0
(93,632)
-
0
-
0
(93,632)
At 31 March 2024
53,262
1,273,980
104,958
126,974
1,559,174
Carrying amount
At 31 March 2024
219,853
917,204
17,296
186,671
1,341,024
At 31 March 2023
230,778
781,948
20,962
190,839
1,224,527
THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Tangible fixed assets
(Continued)
- 17 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
122,823
136,470
Motor vehicles
186,670
167,971
309,493
304,441
10
Stocks
2024
2023
£
£
Raw materials and consumables
1,029,043
1,384,219
Work in progress
160,328
316,669
Finished goods and goods for resale
475,869
478,496
Consignment stock
78,854
116,862
1,744,094
2,296,246
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,461,130
2,153,458
Corporation tax recoverable
-
0
41,735
Amounts owed by group undertakings
210,562
2,431,861
Other debtors
37,801
12,626
Prepayments and accrued income
265,319
307,332
1,974,812
4,947,012
THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
168,000
168,000
Obligations under finance leases
15
86,262
65,687
Trade creditors
722,804
1,319,824
Amounts owed to group undertakings
439,792
-
0
Corporation tax
8,523
72,682
Other taxation and social security
93,476
48,889
Other creditors
41,967
12,210
Accruals
328,552
75,344
1,889,376
1,762,636
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
196,000
364,000
Obligations under finance leases
15
99,924
162,478
295,924
526,478
14
Loans and overdrafts
2024
2023
£
£
Bank loans
364,000
532,000
Payable within one year
168,000
168,000
Payable after one year
196,000
364,000

The above bank loans are secured by fixed and floating charges over the assets of the company dated 5 February 2014 and 9 May 2017.

The loan bears interest at a rate of 2.99% and will be fully repaid by May 2026 as a result of monthly repayments.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
86,262
65,687
In two to five years
99,924
162,478
186,186
228,165
THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Finance lease obligations
(Continued)
- 19 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Hire purchase interest of £15,978 (2023 - £10,688) was incurred in the year. Finance leases are secured against the assets to which they relate.

16
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
17
307,720
268,088
17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
307,720
268,088
2024
Movements in the year:
£
Liability at 1 April 2023
268,088
Charge to profit or loss
39,632
Liability at 31 March 2024
307,720
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
91,313
90,020

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
19
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
42,053 Ordinary shares of £1 each
42,053
42,053
2 Ordinary A shares of £1 each
2
2
42,055
42,055
20
Financial commitments, guarantees and contingent liabilities

There is a fixed and floating charge dated 28 June 2021 over the assets of The Darent Wax Company Limited in respect of an amount due to a director of the ultimate parent company, The Darent Wax Group Limited. The amount owed by the ultimate parent company in respect of this security at 31 March 2024 is £640,000 (2023: £1,080,000).

 

In addition, there is also a fixed and floating charge in respect of a loan held by fellow group company, Darent Wax Properties Limited. The cross-guarantee under this charge is limited to £2,250,000 and dated 9 May 2017. The amount owed by the fellow group company under this guarantee at 31 March 2024 amounted to £1,555,319 (2023: £1,738,688).

21
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
106,325
71,246
Between two and five years
372,138
-
0
478,463
71,246
22
Related party transactions

The following amounts were outstanding at the reporting end date:

Other information

During the year, £2,918 was owed to The Darent Wax Company Limited by a director of the company (2023: £2,918).

 

At the year end, £9,595 (2023: £9,595) was owed to The Darent Wax Company Limited by Darent Wax SAS, an entity controlled by a member of key management personnel.

 

The company has taken advantage of the exemption provided in 33.1A of FRS 102 not to include details of transactions with 100% group companies.

 

THE DARENT WAX COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
23
Ultimate controlling party

The ultimate parent company is The Darent Wax Group Limited and consolidated accounts are produced by this company. Their address is 1 The Mills, Station Road, South Darenth, Kent, DA4 9DB.

 

There is no ultimate controlling party of The Darent Wax Group Limited.

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