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REGISTERED NUMBER: 01858420 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

KEMMETECH LIMITED

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 March 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 11

Other Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 17


KEMMETECH LIMITED

COMPANY INFORMATION
for the year ended 31 March 2024







DIRECTORS: D C Shankland
M Maton
C D Shankland
E C Masih
D G Searle
S Turnbull





SECRETARY: D C Shankland





REGISTERED OFFICE: Unit 4, Arnold Business Park
Branbridges Road
East Peckham
Tonbridge
Kent
TN12 5LG





REGISTERED NUMBER: 01858420 (England and Wales)





AUDITORS: BSR Bespoke
Chartered Accountants
Registered Auditors
Linden House
Linden Close
Tunbridge Wells
Kent
TN4 8HH

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

STRATEGIC REPORT
for the year ended 31 March 2024


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

REVIEW OF BUSINESS
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Kemmetech enters its 40th year with a long-established reputation for material innovation, manufacturing expertise and customer retention, with an average length of customer relationship exceeding 19 years. Kemmetech produces the world's best flexible radiation protection materials, which are used in a variety of applications within healthcare, security and detection sectors, with a significant global market share. We also possess considerable expertise in the manufacturing of PVC-based technical foams and other specialist products, serving a variety of broad sectors, from construction and glazing to automotive and transportation, renewable energy to agriculture. Our worldwide customer base spans more than 40 countries with distribution to over 100 and includes a mature base whilst delivering growth in new and developing markets.

As a company we are driven towards sustainable, long-term growth and adding company value through net profitability, increasing market share and reducing waste. We achieve this through operational efficiency and a focus on continuous improvement, exploring niche markets and delivering 'gold standard' products with superior customer service. A key part of achieving this is the significant investment in our staff, equipment and infrastructure and processes, supported by cutting-edge product development to bring new and improved products to our customers.

We consider that our key performance indicators (KPIs) are (i) Production Volume (linear metres (L/M)), (ii) Production Value, (iii) Contribution, (iv) Contribution by L/M, (v) Gross Profit & Gross Margin, (vi) Production Hours, (vii) Production Volume/ Value by Production Hour (viii) Net Profitability, (ix) Waste Percentage, (x) EBITDA Margin,(xi) Sales Volume & Value by Customer, by Product Family & by Geographical Indicator (Region & Country).

Post pandemic trading
The impact of C-19 was felt by the business in FY21 with sales of £10.1m (a 14.9% reduction from the previous year). This was followed by good recovery in FY22, delivering £13.3m - with FY23 continuing to show significant growth with a c 17.8% revenue increase to £15.6m. FY24 has seen a reduction in trading, predominantly driven by global economic and political uncertainty, with the outbreak of war in Ukraine, continued inflationary pressures and a 'normalising' of post-pandemic trading, having experienced some element of 'bounce-back' immediately following the easing of the pandemic. The directors continue to be confident of the company's strong future position in existing markets, but remain focused on diversifying product lines, to meet not only existing customers' evolving needs, but also in looking to develop untapped, exciting new markets.

UK foam sector growth
As reported upon in the previous three years' reports, the company continues to benefit from growth of the UK's industrial foams sector and the trend towards an 'on-shoring' strategic approach to sourcing components and materials. We continue to innovate and have implemented a Continuous Improvement approach to systems, controls and processes throughout our production, warehousing and operations functions.

Cost of raw materials drive inflationary pressure in parts of the business
The business has continued to see profit margins pressured as a result of the aggressive and volatile increases in the cost of certain raw materials, despite general inflationary easing experienced across the UK and other economies in the last year. In FY23 we reported that metals, resins and plasticisers had seen prices more than double over the previous 24 months and that whilst we had seen some signs of easing, which we expected to continue, prices remained at significantly higher levels than in the past. During FY24 we have seen some continued easing of raw material process, however this has been offset by significant market volatility and large price increases of some key metals, including Antimony and Bismuth.


KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

STRATEGIC REPORT
for the year ended 31 March 2024


Additionally, as in previous years our customers continue to face price pressure from end users, resulting in a challenging environment for all upstream and downstream business, placing evermore importance on the protection and generation of 'marginal gains' in profit wherever possible. At certain points during FY24, the relative weakness of the Pound, particularly versus the US$ and Euro has added additional price pressure on those commodities which cannot be sourced locally. Given the specialist nature of some of our raw materials, where possible the business seeks to diversify supply chains, including the on-shoring of supply if this is a viable option.

Historically, Kemmetech has typically borne the cost of materials inflation, particularly in the immediate aftermath of the C-19 pandemic. However, in the second quarter of FY23 the business was forced to make the difficult decision to materially increase customer pricing. This was generally accepted across our customer portfolio, reflecting our long-developed reputation for quality and innovation and our long-standing and important customer relationships. We continue to closely monitor raw material pricing, negotiate where appropriate and maximise production efficiencies in an effort to be as nimble as possible with customer pricing, which is now reviewed and communicated on a quarterly basis.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the nature of Kemmetech's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business and are of the opinion that where possible, processes are in place to mitigate such risks.

Credit risk
Kemmetech is fortunate to have many strong, long-standing customer relationships with whom we enjoy repeat business. In respect of these customers, we are confident of their credit worthiness, although we continue to review the payment history and credit history of existing customers to determine whether levels remain reasonable or need to be revised, as customer circumstances change, or business conditions warrant a more general review of credit risk exposure.

For new customers, typically a period of time is taken whereby limited (or zero) credit is extended, whilst the customer and Kemmetech establish a working relationship. This is reviewed on a regular basis by the directors.

Foreign exchange risk
As described above, where it is prudent or necessary to source raw materials from overseas suppliers, the business may face some uncertainty surrounding foreign exchange fluctuations and the associated cost of supply.

Whilst the default position is to agree pricing in Pound Sterling with suppliers, this is sometimes not possible. In these circumstances, the Company agrees payment currency in either US$ or Euro. Forward looking cashflow forecasting and working capital management on a weekly basis identifies future requirements for supplier payment in foreign currency and purchasing of sufficient funds to cover these payments are made as needed.

The directors do not believe the level of foreign currency risk warrants more formal instruments (e.g. currency hedging) to be used, however as the business continues to develop this will be reviewed regularly.

Environmental risks
The directors recognise that lack of understanding of the nature, scale and environmental impacts of Kemmetech's activities may lead to negative environmental incidents, causing damage to our reputation, potential loss of business and profit, and possible prosecution.

We therefore strive to comply with all relevant statutory, regulatory and compliance obligations, codes of practice and other requirements applicable to our activities. Our focus is on the reduction of hazards, prevention of injury, ill health and protection of the environment and sustainable resource use where relevant to the context of our business.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

STRATEGIC REPORT
for the year ended 31 March 2024


Brexit and supply chain issues
Despite the length of time which has elapsed since the original vote to withdraw from the European Union (EU), with the inherent uncertainty arising from the Brexit process and its aftermath, Kemmetech has continued to review potential risks arising from the process. The directors have undertaken a review of the business supply chain and potential risks associated with materials procurement.

Many of the materials used by the business are UK-sourced or procured from suppliers in non-EU jurisdictions, with whom we have developed well-established long-standing relationships. Where materials are sourced from or travel through the EU, the business continues to monitor the post-Brexit situation; albeit we now have a number of years' experience of trading under these circumstances and have developed excellent relationships with specialist logistical partners to assist us with the import of raw materials and export of our finished products from/ to the EU.

ON BEHALF OF THE BOARD:





C D Shankland - Director


28 November 2024

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

REPORT OF THE DIRECTORS
for the year ended 31 March 2024


The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture of vinyl foam, x-ray protective sheeting, noise control sheeting, photo-luminescent and radiation protection sheeting.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

D C Shankland
M Maton
C D Shankland
E C Masih
D G Searle
S Turnbull

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Sch. 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments, research and development and financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

REPORT OF THE DIRECTORS
for the year ended 31 March 2024


AUDITORS
The auditors, BSR Bespoke, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





C D Shankland - Director


28 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEMMETECH LIMITED


Opinion
We have audited the financial statements of Kemmetech Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEMMETECH LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEMMETECH LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the client and determined that the most significant are:

- the form and content of the financial statements, FRS 102 "The Financial Reporting Standard applicable in the
UK and Republic of Ireland" and the Companies Act 2006;
- UK Corporate tax laws;
- UK REACH;
- UK Employment Law and data protection, and
- International Organisation for Standardisation, including ISO9001.

We gathered an understanding of how the entity is complying with the above frameworks by enquiring and observing management and those charged with governance, ensuring there is a culture of honesty with an emphasis on fraud prevention which may reduce opportunities for fraud to occur as well as acting as a deterrent.

We assessed the susceptibility of the financial statements to material misstatement due to fraud, by making an assessment of the key fraud risks, the manner in which any such risks may materialise, our knowledge of the client and an assessment of the current business environment.

We designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed additional audit procedures to address each identified fraud risk to obtain reasonable assurance that the financial statements were free of fraud or error.

We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KEMMETECH LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Stephen Pocock FCCA (Senior Statutory Auditor)
for and on behalf of BSR Bespoke
Chartered Accountants
Registered Auditors
Linden House
Linden Close
Tunbridge Wells
Kent
TN4 8HH

29 November 2024

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

INCOME STATEMENT
for the year ended 31 March 2024

31.3.24 31.3.23
Notes £    £    £    £   

TURNOVER 3 12,581,657 15,629,438

Cost of sales 7,771,272 9,976,377
GROSS PROFIT 4,810,385 5,653,061

Distribution costs 208,505 313,080
Administrative expenses 864,000 1,094,737
1,072,505 1,407,817
3,737,880 4,245,244

Other operating income 4 106,950 3,840
OPERATING PROFIT 6 3,844,830 4,249,084

Interest receivable and similar income 59,113 10,581
3,903,943 4,259,665

Interest payable and similar expenses 7 147 2,097
PROFIT BEFORE TAXATION 3,903,796 4,257,568

Tax on profit 8 1,041,779 778,085
PROFIT FOR THE FINANCIAL YEAR 2,862,017 3,479,483

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

OTHER COMPREHENSIVE INCOME
for the year ended 31 March 2024

31.3.24 31.3.23
Notes £    £   

PROFIT FOR THE YEAR 2,862,017 3,479,483


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,862,017

3,479,483

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

BALANCE SHEET
31 March 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 3,163,216 3,125,959

CURRENT ASSETS
Stocks 11 1,008,285 1,901,131
Debtors 12 2,666,118 2,029,193
Cash at bank and in hand 1,924,921 1,938,737
5,599,324 5,869,061
CREDITORS
Amounts falling due within one year 13 1,871,903 1,640,739
NET CURRENT ASSETS 3,727,421 4,228,322
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,890,637

7,354,281

PROVISIONS FOR LIABILITIES 14 421,161 346,822
NET ASSETS 6,469,476 7,007,459

CAPITAL AND RESERVES
Called up share capital 15 20,324 20,324
Revaluation reserve 1,443,715 1,508,975
Capital redemption reserve 113,219 113,219
Retained earnings 4,892,218 5,364,941
6,469,476 7,007,459

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2024 and were signed on its behalf by:





C D Shankland - Director


KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2024

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 April 2022 20,324 4,112,194 1,632,239 113,219 5,877,976

Changes in equity
Total comprehensive income - 3,602,747 (123,264 ) - 3,479,483
Transfer to employee ownership
trust - (2,350,000 ) - - (2,350,000 )
Balance at 31 March 2023 20,324 5,364,941 1,508,975 113,219 7,007,459

Changes in equity
Total comprehensive income - 2,927,277 (65,260 ) - 2,862,017
Transfer to employee ownership
trust - (3,400,000 ) - - (3,400,000 )
Balance at 31 March 2024 20,324 4,892,218 1,443,715 113,219 6,469,476

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

CASH FLOW STATEMENT
for the year ended 31 March 2024

31.3.24 31.3.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,322,252 3,688,254
Interest paid (147 ) (2,097 )
Tax paid (898,115 ) (390,566 )
Net cash from operating activities 3,423,990 3,295,591

Cash flows from investing activities
Purchase of tangible fixed assets (145,601 ) (141,966 )
Sale of tangible fixed assets 50,000 -
Interest received 59,113 10,581
Net cash from investing activities (36,488 ) (131,385 )

Cash flows from financing activities
Amount introduced by directors 327 -
Amount withdrawn by directors (1,645 ) (2,052 )
Transfer of retained earning to EOT (3,400,000 ) (2,350,000 )
Net cash from financing activities (3,401,318 ) (2,352,052 )

(Decrease)/increase in cash and cash equivalents (13,816 ) 812,154
Cash and cash equivalents at beginning of
year

2

1,938,737

1,126,583

Cash and cash equivalents at end of year 2 1,924,921 1,938,737

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 March 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.3.24 31.3.23
£    £   
Profit before taxation 3,903,796 4,257,568
Depreciation charges 108,344 86,873
Profit on disposal of fixed assets (50,000 ) -
Finance costs 147 2,097
Finance income (59,113 ) (10,581 )
3,903,174 4,335,957
Decrease/(increase) in stocks 892,846 (345,704 )
(Increase)/decrease in trade and other debtors (635,607 ) 671,809
Increase/(decrease) in trade and other creditors 161,839 (973,808 )
Cash generated from operations 4,322,252 3,688,254

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 1,924,921 1,938,737
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,938,737 1,126,583


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 1,938,737 (13,816 ) 1,924,921
1,938,737 (13,816 ) 1,924,921
Total 1,938,737 (13,816 ) 1,924,921

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2024


1. STATUTORY INFORMATION

Kemmetech Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover
The company manufactures to order: vinyl foam, x-ray protective sheeting, noise control sheeting, photo-luminescent and radiation protection sheeting. Revenue is recognised when it is probable that future economic benefits will flow to the company from the provision of contracts for the sale of those goods and is measured as the fair value of consideration which the company expects to receive from those transactions. Revenue is recognised as control of the goods is passed over to the customer which is for the vast majority of cases is considered to be once the goods have been manufactured and the company has a right to payment for those goods. Revenue is recognised net of returns and of trade discounts and is shown exclusive of value added tax.

Interest income
Interest income is recognised in the profit and loss using the effective interest method.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 10% on cost
Fixtures and fittings - 20% on reducing balance
Computer equipment - 33% on cost

Tangible fixed assets are initially measured at cost price, this can include transport, installation, legal and other such associated costs. After initial recognition the asset is subsequently measured under the cost model of cost, less depreciation, less any impairment losses.

Subsequent day-to-day servicing of the assets will be recognised in the profit or loss in the period they are incurred. Only subsequent expenditure that can provide an incremental benefit will be capitalised.

Land and buildings are shown at their most recent valuation.

Government grants
Grants relating to revenue shall be recognised in the profit and loss on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Overheads are charged to profit and loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Financial instruments
The company enters into basic financial instruments that give rise to financial assets and financial liabilities including trade and other debtors, trade and other creditors, bank account balances, bank loans and other loans and borrowings and investments in certain non puttable and non convertible equity instruments.

Debt instruments which are not payable or receivable within one year are initially accounted for at the transaction price and are subsequently accounted for at amortised cost using the effective interest method. Debt instruments payable and receivable within one year are measured at their undiscounted cash amounts. Where the debt instruments are treated as a financing transaction, then the financial asset or liability is measured at the present value of future cash flows based on a market rate of interest. Debt instruments which are treated as financial assets and accounted for at amortised cost are also assessed for impairment.

Equity instruments are initially accounted for at transaction price. They are subsequently accounted for at cost unless they can be accounted for at fair value based on a readily available market price in an active market. Equity instruments which are treated as financial assets and accounted for at cost are also assessed for impairment.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions
Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.3.24 31.3.23
£    £   
United Kingdom 4,288,750 6,042,047
Europe 2,209,134 2,319,671
Rest of the World 6,083,773 7,267,720
12,581,657 15,629,438

4. OTHER OPERATING INCOME

During the year the company benefited from £104,710 of government grants in the form of the Research and Development expenditure credit (RDEC). In accordance with the company's accounting policy, this credit is included in other operating income within the profit and loss over the same period as the costs for which it compensates.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


5. EMPLOYEES AND DIRECTORS
31.3.24 31.3.23
£    £   
Wages and salaries 1,219,145 1,205,199
Social security costs 134,910 144,777
Other pension costs 12,108 12,279
1,366,163 1,362,255

The average number of employees during the year was as follows:
31.3.24 31.3.23

Factory 15 16
Admin 1 1
Sales 1 2
Directors 6 4
23 23

31.3.24 31.3.23
£    £   
Directors' remuneration 665,779 452,100
Directors' pension contributions to money purchase schemes 3,963 1,871

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
31.3.24 31.3.23
£    £   
Emoluments etc 166,600 157,551

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.24 31.3.23
£    £   
Depreciation - owned assets 108,344 86,873
Profit on disposal of fixed assets (50,000 ) -
Auditors' remuneration 13,500 13,500
Auditors' remuneration for non audit work 7,000 7,750
Foreign exchange differences 16,749 13,598

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.24 31.3.23
£    £   
Corporation tax interest - 1,745
Other interest 147 352
147 2,097

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.3.24 31.3.23
£    £   
Current tax:
UK corporation tax 967,440 733,978

Deferred tax 74,339 44,107
Tax on profit 1,041,779 778,085

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.24 31.3.23
£    £   
Profit before tax 3,903,796 4,257,568
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

975,949

808,938

Effects of:
Expenses not deductible for tax purposes 805 61,610
Adjustments to tax charge in respect of previous periods (235 ) -
Research & development expenditure credit - (121,541 )
Changes in rate of deferred tax 65,260 33,639
Enhanced capital allowances - (4,561 )
Total tax charge 1,041,779 778,085

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%, hence the higher effective tax rate in these financial statements. This new rate has been applied to deferred tax balances.

9. RESEARCH AND DEVELOPMENT

The aggregate amount of research and development expenditure recognised as an expense during the period is £523,551 (2023: £492,071).

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


10. TANGIBLE FIXED ASSETS
Freehold Fixtures
land & Plant and and Computer
buildings machinery fittings equipment Totals
£    £    £    £    £   
COST OR VALUATION
At 1 April 2023 2,565,300 929,260 38,771 64,000 3,597,331
Additions - 139,058 4,350 2,193 145,601
At 31 March 2024 2,565,300 1,068,318 43,121 66,193 3,742,932
DEPRECIATION
At 1 April 2023 - 387,426 25,808 58,138 471,372
Charge for year - 102,134 3,014 3,196 108,344
At 31 March 2024 - 489,560 28,822 61,334 579,716
NET BOOK VALUE
At 31 March 2024 2,565,300 578,758 14,299 4,859 3,163,216
At 31 March 2023 2,565,300 541,834 12,963 5,862 3,125,959

Cost or valuation at 31 March 2024 is represented by:

Freehold Fixtures
land & Plant and and Computer
buildings machinery fittings equipment Totals
£    £    £    £    £   
Valuation in 2009 245,249 - - - 245,249
Valuation in 2015 110,062 - - - 110,062
Valuation in 2022 1,360,321 - - - 1,360,321
Cost 849,668 1,068,318 43,121 66,193 2,027,300
2,565,300 1,068,318 43,121 66,193 3,742,932

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.3.24 31.3.23
£    £   
Cost 849,668 849,668
Aggregate depreciation 301,520 301,520

Value of land in freehold land and buildings 221,501 221,501

Freehold land and buildings were valued on an open market basis on 4 May 2022 by Bracketts Chartered Surveyors. The directors consider there to be no significant movement between this valuation and the fair value at the balance sheet date.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


11. STOCKS
31.3.24 31.3.23
£    £   
Stocks 1,008,285 1,901,131

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Trade debtors 2,207,849 1,855,294
Other debtors 49,335 23,779
Directors' loan accounts 75,048 73,730
Prepayments 333,886 76,390
2,666,118 2,029,193

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Trade creditors 1,012,176 842,261
Corporation tax 587,082 517,757
Social security and other taxes 39,401 44,244
VAT 150,703 148,284
Other creditors 2,244 2,804
Directors' loan accounts 243 243
Accruals and deferred income 80,054 85,146
1,871,903 1,640,739

14. PROVISIONS FOR LIABILITIES

Deferred tax is made up as follows:



Accelerated
capital
allowances



Property
revaluation




Other




Total
££££
At 1 April 2023140,165206,657-346,822
Movement in the year9,31365,260(234)74,339
At 31 March 2024149,478271,917(234)421,161

Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 25%. The increase in the main rate of corporation tax to 25% was substantively enacted in October 2022. This new rate has been applied to deferred tax balances which are expected to reverse after 1 April 2023, the date on which that new rate becomes effective. There is not expected to be a material reversal in respect of any of the above elements of the deferred tax liability in the next year.

KEMMETECH LIMITED (REGISTERED NUMBER: 01858420)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal Value: 31.3.24 31.3.24
£ £
20,324 Ordinary A £1 20,324 20,324
20,324 20,324

The shares have attached to them full voting, dividend and capital distribution rights.

16. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023:

31.3.24 31.3.23
£    £   
D C Shankland
Balance outstanding at start of year 73,112 71,678
Amounts advanced 1,645 1,434
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 74,757 73,112

C D Shankland
Balance outstanding at start of year 618 -
Amounts advanced - 618
Amounts repaid (327 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 291 618

Interest is charged on balances exceeding £10,000 at the statutory rate. All overdrawn balances are to be repaid within 9 months of the year end.

17. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 754,638 (2023 - £ 640,484 ) was paid.

18. ULTIMATE CONTROLLING PARTY

The company is controlled by The Kemmetech Limited Employee Ownership Trust (the "Trust") following the
purchase of 100% of the shares by the Trust on 7 March 2019. During the year £3,400,000 (2023: £2,350,000)
was gifted to the Trust from the company.