Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
COMPANY INFORMATION
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CHEMIGRAPHIC (TOPCO) LIMITED
CONTENTS
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CHEMIGRAPHIC (TOPCO) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Directors submit their report and the audited financial statements for Chemigraphic (Topco) Limited (the “Company” or “Group”) for the year ended 30 September 2024.
We contribute to products that have the power to change communities. We work with some of the world’s leading brands with a focus on customer service excellent to develop products that improve and save lives, increase your cyber security and develop market segments across the globe. We are passionate about technology, innovation, continuous improvement, production efficiency and supply chain resilience.
The Group has performed well despite a challenging market backdrop.
Management acknowledges that there are risk factors which could impact the business. The risks under constant review include meeting customer requirements, finance, supply chain and market competition.
The key approaches to managing the risks and uncertainties in the business are:
∙Ensuring a customer-based focus, especially delivering on time and in full;
∙Delivering quality as standard. We focus upon meeting or exceeding customer requirements for product;
∙Fostering an environment of continuous improvement;
∙A “Right First-Time” expectation. This is critical to our efficiency requirements and;
∙Managing our People & Culture. This includes recognising the importance of diversity, inclusion, employee engagement, training and progression.
In addition, there are financial risks, which can be divided into several key areas.
∙Credit risk to counterparties. This is mitigated by following an appropriate evaluation of credit worthiness. Most of our customers are substantial global entities.
∙Foreign exchange risk, which results from fluctuations in purchasing and selling commitments. In addition to GBP, the Company buys products, invoices and holds cash in Chinese CNY, Euros and US Dollars. Whilst these risks are partly offset by natural hedges within the customer and supply base, non-GBP flows are monitored, with hedging applied where appropriate.
∙Liquidity risk is mitigated by focusing on working capital management, and maintaining sufficient financing facilities to support trading.
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CHEMIGRAPHIC (TOPCO) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Corporate Social Responsibility (CSR)
The Group recognises that it is accountable to many stakeholders. As a global manufacturer, we have a responsibility beyond our economics. We need to acknowledge our impact on employees, customers, the societies we work within and the environments we impact. This awareness drives the shape of our operating model, and how we seek to do business. Our CSR principles divide into several core areas:
∙Conduct & Ethics. This is building key relationships of trust across all our stakeholders.
∙Diversity and Inclusion. We need to ensure that every aspect of our employment and workplace reflects this culture.
∙Safety, which needs to be paramount in everything we do.
∙Environmental Impact. This includes reducing the direct consequences of our operations, minimizing waste, improving longevity and decreasing obsolescence. We are working with an external agency to map our path to carbon neutrality.
Revenue has reduced marginally in the current year largely due to the timing of an expected program for one of our partners, which moved into 2025.
The gross profit percentage has increased from 27.6% to 28.5%, with contributing factors including improved production efficiency and delivered supply chain initiatives. As the Company seeks to prepare for the forthcoming year, the average number of employees increased from 149 to 160. The Group repaid £3.2m of borrowing, reducing outstanding finance from £5.4m to £2.2m. This has reduced the Companies underlying leverage to under one times adjusted EBITDA, even after the capital equipment investments that have been undertaken. Cash on hand increased from £0.2m to £0.7m. The Group continues to focus on achieving growth in existing sectors, investing in both its UK and Chinese operations. The Group has doubled production capacity in China during the year. There have also been substantial recent UK based investments in equipment for Optical Inspection, Pick-by-light, Robotic Soldering, flow solder, and Reflow. The Group differentiates itself through its value-add services and capacity to provide more complex bespoke product builds. These necessitate increasingly demanding regulatory and customer requirements, especially within the medical and security sectors. The Company also seeks, where appropriate, to adopt a worldwide supply approach through its different global locations. Accordingly, our customers expect the highest standards of accreditation, which we maintain across ISO 9001, 13485, 14001 & 27001.
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CHEMIGRAPHIC (TOPCO) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Company can support its customers across a number of areas of product realisation, including:
∙Prototyping and new product innovation;
∙Supply chain & life cycle management;
∙Product assembly manufacturing;
∙Component risk analysis;
∙Off AVL;
∙Service or Repair; and
∙Materials sourcing & procurement.
The Group, like much of the industry, continues to work within a competitive landscape, but also within a constantly evolving marketplace. The Company recognizes its customers are currently seeking to adjust their working capital to a more normalized level following the well-documented global supply chain disruptions of recent years.
This report was approved by the board and signed on its behalf.
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CHEMIGRAPHIC (TOPCO) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We are a manufacturing service provider to various brand owners, providing global solutions varying from printed circuit board assemblies through to builds of complex finished products.
The profit for the year, after taxation, amounted to £740,000 (2023 - £181,000).
The directors did not recommend the payment of dividend in the year (2023: £Nil).
The directors who served during the year were:
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CHEMIGRAPHIC (TOPCO) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Group maintained a consistent EBITDA as compared to prior year with improving gross margin performance, reduced levels of borrowing and increased cash on hand. The revenue was underpinned by a strong contribution from our core strategic global accounts, supported with development capital expenditure to prepare the business for the medium term.
Chemigraphic continued to invest in its mainland China facility, doubling its operational footprint. This capacity allows us to service our global customers and provides a robust platform for further growth across the regions in which we operate. Our UK and Chinese facilities continue to support our strategic customers. The Group is well placed to deliver new business over the coming period and to effectively service its Medical, Cyber Security and Industrial market sectors. The net liabilities of the Group on 30 September 2024 were £7.8m (2023: £7.1m). The net liability position includes loan notes with a carrying value of £11.7m (2023: £10.6m) owed to the ultimate owners. The loan notes were originally used to fund the acquisition of the subsidiary undertaking, Chemigraphic Limited, in 2019. Chemigraphic Group has prepared detailed forecasts and projections up to 31 January 2026 which covers at least 12 months from the date of approval of the financial statements. The assumptions used in preparing these forecasts consider downside risks. The Directors have taken into consideration the current economic conditions and note that there is uncertainty in the global economy. There are however order book and customer forecasts covering the budgeted period of the next financial year. Following a refinance, which completed on the 14th January 2025, the Group now has receivable finance and loan facilities with a three year term, expiring in 2028. The business also retains an existing loan which is repayable by instalments over the period to 2026. The Company has complied with its banking covenants. The Group has also received a confirmation from NVM Private Equity LLP that they will not seek repayment of their loan notes until after 5 June 2026. The Directors have concluded that the Group has adequate resources to continue for the foreseeable future. As such, they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements
In accordance with section 414 of the Companies Act 2006 (Strategic Report and Directors' Report Regulations 2013), the Company has chosen to include certain information in the Strategic Report. The information covers the business review, future developments and principal risks and uncertainties.
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CHEMIGRAPHIC (TOPCO) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There have been no significant events affecting the Group since the year end.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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CHEMIGRAPHIC (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEMIGRAPHIC (TOPCO) LIMITED
We have audited the financial statements of Chemigraphic (Topco) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
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CHEMIGRAPHIC (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEMIGRAPHIC (TOPCO) LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Group strategic report or the Directors' report.
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CHEMIGRAPHIC (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEMIGRAPHIC (TOPCO) LIMITED (CONTINUED)
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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙Reviewing minutes of meetings of those charged with governance; and
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 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 Auditor's report.
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CHEMIGRAPHIC (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEMIGRAPHIC (TOPCO) LIMITED (CONTINUED)
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.
for and on behalf of
Statutory Auditors
Reigate, United Kingdom
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
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CHEMIGRAPHIC (TOPCO) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
REGISTERED NUMBER: 12026472
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
REGISTERED NUMBER: 12026472
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 45 form part of these financial statements.
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CHEMIGRAPHIC (TOPCO) LIMITED
REGISTERED NUMBER: 12026472
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 45 form part of these financial statements.
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CHEMIGRAPHIC (TOPCO) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Chemigraphic (Topco) Limited (the "Company") is a private company limited by shares and incorporated in England and Wales. Its registered head office is located at Unit A2 The Fleming Centre, Fleming way, Crawley, West Sussex, RH10 9NF.
The principal activity of Chemigraphic (Topco) Limited and its subsidiary undertakings (the "Group") was the manufacture of electronic products and systems for various brand owners. The principal activity of the parent company is that of a holding company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.
Parent Company disclosure exemptions
In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No Statement of cash flows has been presented for the parent Company;
∙Disclosures in respect of the parent Company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Company as a whole; and
∙No disclosures have been given for the aggregate remuneration of the key management personnel of the parent Company as their remuneration is included in the totals for the Company as a whole.
The following principal accounting policies have been applied:
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Chemigraphic (Topco) Limited as at 30 September 2024 and these financial statements may be obtained from Unit A2 The Fleming Centre, Fleming Way, Crawley, West Sussex, RH10 9NF.
The consolidated financial statements present the results of the Group as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
The Directors have, at the time of approving the financial statements, a reasonable expectation that Chemigraphic (Topco) Limited has adequate resources to continue in operational existence for the foreseeable future, hence they continue to adopt the going concern basis of accounting in preparing financial statements.
The net liabilities of the Group on 30 September 2024 were £7.8 (2023: £7.1m). The net liability position includes loan notes with a carrying value of £11.7m (2023: £10.6m) owed to the ultimate owners. The loan notes were originally used to fund the acquisition of the subsidiary undertaking, Chemigraphic Limited, in 2019. Chemigraphic Group has prepared detailed forecasts and projections up to 31 January 2026 which covers at least 12 months from the date of approval of the financial statements. The assumptions used in preparing these forecasts consider downside risks. The Directors have taken into consideration the current economic conditions and note that there is uncertainty in the global economy. There are however order book and customer forecasts covering the budgeted period of the next financial year. Following a refinance, which completed on the 14th January 2025, the Group now has receivable finance and loan facilities with a three year term, expiring in 2028. The business also retains an existing loan which is repayable by instalments over the period to 2026. The Company has complied with its banking covenants. The Group has also received a confirmation from NVM Private Equity LLP that they will not seek repayment of their loan notes until after 5 June 2026. The Directors have concluded that the Group has adequate resources to continue for the foreseeable future. As such, they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Grants are included within 'Other operating income' in the Statement of comprehensive income in the same period as the related expenditure. Grant income are not deducted from the related expense. The deferred element of grants is included in creditors as deferred income.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Business combinations are accounted for by applying the purchase method. The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities. Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values to the Group's interest in the identifiable net assets, liabilities and contingent liabilities acquired. On acquisition, goodwill is allocated to cash-generating units ('CGU's') that are expected to benefit from the combination.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Estimation uncertainty Stocks Management estimates the level of provisioning required and net realisable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realisation of stocks may be affected by market-driven changes that may reduce future selling prices. The stock value in the financial statements is included net of a provision of £850,546 (2023: £1,492,000). Impairment of investments When preparing the financial statements, management estimated the recoverable amount of the carrying value of the investments using a discounted rate of 12.20%. Cash flow forecasts are derived from the budget approved by the Board. Cash flows beyond FY25 are not extrapolated for growth. The risk adjusted pre-tax discount rate was calculated by reference to the weighted average cost of capital. Impairment testing is dependent on estimates and judgements, particularly as they relate to the forecasting of future cash flows. An impairment would occur if the discount rate was significantly increased, or sales reduced by 15%.
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Analysis of turnover by country of destination:
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £3,000 (2023 - loss £11,000).
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21.Loans (continued)
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22.Deferred taxation (continued)
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The A ordinary shares, B ordinary shares and C1 ordinary shares carry the right to vote, on the basis of one vote for every ordinary share, and to receive dividends. The C2 ordinary shares, do not carry the right to vote nor to receive dividends.
Foreign exchange reserve
Profit and loss account
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Defined contribution plans
The Group operates a The total expense relating to these plans in the current year was £
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CHEMIGRAPHIC (TOPCO) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The smallest and largest group to prepare consolidated financial statements is Chemigraphic (Topco) Limited.
The Company's immediate parent company is
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