Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
COMPANY INFORMATION
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LECHLER COATINGS LIMITED
CONTENTS
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LECHLER COATINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic Report for Year Ended 31 December 2024.
Lechler Coatings Ltd is a paint distribution company based in Middlewich, Cheshire. The company is one of the subsidiaries of Lechler Spa and the only one in the UK.
The company sells paints to the Refinish and Industry markets. Turnover decreased in 2024, the company’s plan is to maintain a stable business in 2025.The refinish business didn’t achieve its sales target planned for the year 2024, while the Industry business was on target. Even though no official tracking system for customer satisfaction is in place, we do record complaints and the number of official complaints recorded on the system went from 141 in 2023 to 147 in 2024. As part of a bigger group, the subsidiary also adhere to ISO 9001 – international quality standard. To comply with GDPR and anti-Bribery laws, the subsidiary is supported by the legal department based at the headquarters in Italy and a legal firm in the UK.
The year ahead
The group strategy for 2025 is to continue the focus on the development of new markets: from our Brazilian subsidiary into the other South American countries, but also into Canada and some of the Eastern European countries. The Group also counts on the support from the European subsidiaries to further expand the brand in Europe.
Lechler group will continue on its sustainability journey. Different projects are and will be implemented to increase sustainability. From reducing Co2 emission, thanks to the installation of solar panels and the introduction of hybrid and electric cars, to focusing on employee’s wellbeing (Lechler academy), while making sure that the companies of the group are economically sustainable. The new office spaces and an exposition area have opened its door in 2024, as part of the project ‘Lechler Village’ at our headquarters in Como, Italy. The works for the new colour laboratories will continue during 2025 and should open its doors in the spring of 2026. The headquarters will continue to support the subsidiary as needed. |
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LECHLER COATINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
From a review meeting with our internal legal departments and the manager on site, we have identified key business risks faced by the business.
The business risks include:
∙Health and Safety risk
∙External business risks, including regulatory and compliance obligations (importing goods into the UK market)
∙Legal risks resulting from contracts with suppliers and customers as well as employee contracts
∙Financing risks, increasing costs of running the business
∙Employment risks, predominantly due to shortage of qualified people in the market
∙Information risks such as data protection, bribery, cyber-security and integrity of IT systems.
Our market sectors, competitors and the impact of political decisions may have an effect on our trading activity and therefore primary sources for risk assessments.
Gross profit was £1,882k (2023 - £1,941k) and profit before taxation was £455k (2023 - £386k). The company performed well in 2024, especially taking into consideration the difficulties in recruiting staff and the increasing costs of running the company.
The plan for 2025 is to protect the current business with the view to implement changes to increase business in the years to come. The big challenge would be to replace 2 sales manager and 2 technicians to return to a full team. |
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LECHLER COATINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Training
Training is provided to comply with H&S regulations. Board meetings There are no specific board meetings held in the UK and/or just to discuss the subsidiary matters. Both directors are based at the headquarters in Italy. Decision making and principal decisions The fundamental approach to making effective decisions remains the need to consider the interests of the company employees together with the business relationships of our customers and suppliers. The Company actively engages with key customers on a regular basis via the sales and technical team. Principal decisions are undertaken by the management team with clear delegated authority. The Group Directors are the final decision makers for all matters with long term consequences. Culture The Company people values form the principles of the culture, and are used by the Board, acting as a guiding framework for decision making. Good governance and effective communication are essential to ensuring business decisions and conduct are of a high standard. This assists with the delivery of our purpose, whilst at the same time protecting the Company's reputation.
This report was approved by the board on 14 April 2025 and signed on its behalf.
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LECHLER COATINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the 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 Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £334,821 (2023 - £276,142).
Dividends of £276,142 (2023 - £350,909) were paid during the year.
The directors who served during the year were:
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LECHLER COATINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The difficulties in recruiting staff and the higher costs of running the business, have had an impact on this challenging year. Some of our distributors have lost main accounts which resulted in decrease in our sales.
Raw materials are now more steadily available, but costs remain high. An average price increase of 2.3-2.5% will be implemented from 1 March 2025 on all Refinish, Industry and marketing products.
Under section 487(2) of the Companies Act 2006, WR Partners will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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LECHLER COATINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS LIMITED
We have audited the financial statements of Lechler Coatings Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the 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 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 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 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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LECHLER COATINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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LECHLER COATINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, health and safety regulations and UK General Data Protection Regulation. We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to gain their understanding. Based on our understanding, our procedures involved enquiries of management, manual journal testing, cash book reviews for large and unusual transactions and challenging management on key accounting estimates and judgements.
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 Auditors' Report.
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LECHLER COATINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS 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 Auditors' 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
Chartered Accountants
Statutory Auditors
Drake House
Gadbrook Park
Cheshire
CW9 7RA
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LECHLER COATINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
REGISTERED NUMBER: 03125348
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 25 form part of these financial statements.
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LECHLER COATINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Lechler Coatings Limited is a private company, limited by shares and incorporated in England and Wales. The address of the registered office and the principal place of business are the same and detailed on the company information page.
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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The 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 Odescalchi SRL as at 31 December 2024 and these financial statements may be obtained from its registered office Via Santa Sofia 21, 20122, Milan, Italy.
The directors have considered the expected future cash flows for the business, taking into account potential risks. They expect to continue to have access to sufficient funding from the parent company if required and have obtained written assurances for this. As a result the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements.
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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.
Depreciation is provided on the following basis:
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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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 bets 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. |
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LECHLER COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £42,749 (2023 - £43,592). Contributions totalling £8,966 (2023 - £7,678) were payable to the fund at the balance sheet date and are included in creditors.
Lechler S.p.A is the immediate parent company. The ultimate parent company is Odescalchi S.r.L, a company registered in Italy.
Odescalchi S.r.L is the smallest and largest group in which Lechler Coatings Limited is a member and for which consolidated financial statements are prepared. A copy of the group financial statements can be obtained from the registered office at Odescalchi Srl, Via Santa Sofia 21, 20122 Milano, Italy. |