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Registered number: 03125348










LECHLER COATINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
LECHLER COATINGS LIMITED
 
 
COMPANY INFORMATION


Directors
M Baretti 
A Manoukian 




Company secretary
M Baretti



Registered number
03125348



Registered office
Unit 42 Pochin Way

Middlewich

Cheshire

CW10 0GY




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Drake House

Gadbrook Park

Northwich

Cheshire

CW9 7RA





 
LECHLER COATINGS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Balance Sheet
11
Statement of Changes in Equity
12
Notes to the Financial Statements
13 - 25


 
LECHLER COATINGS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors present their strategic Report for Year Ended 31 December 2024.

Fair review of the business
 
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

Principal risks and uncertainties
 
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.

Financial key performance indicators
 
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.




2024
2023
        £
        £
Turnover

10,996,497

11,482,818
 
Gross profit

1,881,846

1,940,646
 
Profit before taxation

454,958

386,215
 

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LECHLER COATINGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Promoting the success of the company
 
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.



M Baretti
Director

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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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 2006They 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.

Principal activity

The principal activity of the company continued to be that of a marketer of car refinishing and industrial paints and allied products.

Results and dividends

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.

Directors

The directors who served during the year were:

M Baretti 
A Manoukian 

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LECHLER COATINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the directors is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the directors has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post reporting date events

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.

Auditors

Under section 487(2) of the Companies Act 2006WR 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 14 April 2025 and signed on its behalf.
 





M Baretti
Director

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LECHLER COATINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS LIMITED
 

Opinion


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 policiesThe 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 December 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 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.


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.


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LECHLER COATINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS LIMITED (CONTINUED)


Other information


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 ReportOur 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.


Opinion 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 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


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.


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LECHLER COATINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LECHLER COATINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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 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)


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 2006Our 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.





Fran Johnson BSc BFP FCA (Senior Statutory Auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Drake House
Gadbrook Park
Northwich
Cheshire
CW9 7RA

30 April 2025
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LECHLER COATINGS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,996,497
11,482,818

Cost of sales
  
(9,114,651)
(9,542,172)

Gross profit
  
1,881,846
1,940,646

Administrative expenses
  
(1,428,193)
(1,554,431)

Operating profit
 5 
453,653
386,215

Interest receivable and similar income
 8 
1,305
-

Profit before tax
  
454,958
386,215

Tax on profit
 9 
(120,137)
(110,073)

Profit for the financial year
  
334,821
276,142

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 25 form part of these financial statements.

img4375.png Page 10

 
LECHLER COATINGS LIMITED
REGISTERED NUMBER: 03125348

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
3,225
3,225

Tangible assets
 12 
868,447
1,060,540

Investments
 13 
1,888
1,888

  
873,560
1,065,653

Current assets
  

Stocks
 14 
1,647,292
1,735,591

Debtors: amounts falling due within one year
 15 
2,393,286
2,386,505

Cash at bank and in hand
 16 
488,450
464,125

  
4,529,028
4,586,221

Creditors: amounts falling due within one year
 17 
(1,277,835)
(1,540,091)

Net current assets
  
 
 
3,251,193
 
 
3,046,130

Total assets less current liabilities
  
4,124,753
4,111,783

Provisions for liabilities
  

Deferred tax
 18 
(202,051)
(247,760)

  
 
 
(202,051)
 
 
(247,760)

Net assets
  
3,922,702
3,864,023


Capital and reserves
  

Called up share capital 
 19 
1,000,000
1,000,000

Profit and loss account
 20 
2,922,702
2,864,023

  
3,922,702
3,864,023


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 April 2025.




M Baretti
Director

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2024
1,000,000
2,864,023
3,864,023


Comprehensive income for the year

Profit for the year
-
334,821
334,821


Contributions by and distributions to owners

Dividends: Equity capital
-
(276,142)
(276,142)


At 31 December 2024
1,000,000
2,922,702
3,922,702



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

1,000,000
2,938,790
3,938,790


Comprehensive income for the year

Profit for the year
-
276,142
276,142


Contributions by and distributions to owners

Dividends: Equity capital
-
(350,909)
(350,909)


At 31 December 2023
1,000,000
2,864,023
3,864,023


The notes on pages 13 to 25 form part of these financial statements.

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LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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.

 
2.3

Going concern

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)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Company as lessee

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

 
2.7

Interest income

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

img3558.png Page 14

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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:

Software
-
no amortisation as not yet brought into use
img6ba7.png Page 15

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Plant and machinery
-
13%
on cost
Fixtures and fittings
-
13%
on cost
Computer equipment
-
20%
on cost
Other fixed assets
-
20%
on cost

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.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

img1fc4.png Page 16

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Provisions for liabilities

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 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.
 
Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.
 


 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Stock provisions are identified on a line by line basis and use management's experience in identifying slow moving and obsolete stock. The stock provision at 31 December 2024 was £9,311 (2023 - £23,892).

img4d81.png Page 17

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Product sales
10,996,497
11,482,818

10,996,497
11,482,818


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
10,996,497
11,482,818

10,996,497
11,482,818



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
2,422
1,680

Other operating lease rentals
305,339
288,963

Depreciation on owned tangible fixed assets
348,537
356,624


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
11,400
10,880

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

img3884.png Page 18

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,207,260
1,232,117

Social security costs
145,684
158,490

Cost of defined contribution scheme
42,749
43,592

1,395,693
1,434,199


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration and finance
3
4



Laboratory
3
3



Sales
15
16



Warehouse
4
4

25
27


8.


Interest receivable

2024
2023
£
£


Other interest receivable
1,305
-

1,305
-

img637b.png Page 19

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
165,846
80,293

Adjustments in respect of previous periods
-
(1,980)


165,846
78,313


Total current tax
165,846
78,313

Deferred tax


Origination and reversal of timing differences
(45,709)
31,760

Total deferred tax
(45,709)
31,760


Taxation on profit on ordinary activities
120,137
110,073

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
454,958
386,215


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
113,740
96,554

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
7,330
8,310

Capital allowances for year in excess of depreciation
(933)
(1,648)

Adjustments to tax charge in respect of prior periods
-
(1,980)

Effect of change in corporation tax rate
-
8,837

Total tax charge for the year
120,137
110,073

img0483.png Page 20

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
9.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

2024
2023
£
£


Dividend paid to parent
276,142
350,909

276,142
350,909


11.


Intangible assets




Computer software

£



Cost


At 1 January 2024
3,225



At 31 December 2024

3,225






Net book value



At 31 December 2024
3,225



At 31 December 2023
3,225



img49d1.png Page 21

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Leasehold improvements
Total

£
£
£
£



Cost or valuation


At 1 January 2024
3,687,277
29,139
298,198
4,014,614


Additions
155,066
1,379
-
156,445


Disposals
(956,022)
-
-
(956,022)



At 31 December 2024

2,886,321
30,518
298,198
3,215,037



Depreciation


At 1 January 2024
2,628,267
27,609
298,198
2,954,074


Charge for the year on owned assets
348,025
513
-
348,538


Disposals
(956,022)
-
-
(956,022)



At 31 December 2024

2,020,270
28,122
298,198
2,346,590



Net book value



At 31 December 2024
866,051
2,396
-
868,447



At 31 December 2023
1,059,010
1,530
-
1,060,540


13.


Fixed asset investments





Investments in associates

£



Cost or valuation


At 1 January 2024
1,888



At 31 December 2024
1,888




The company holds 1.67% of the share capital of Lechler Coatings Iberica, a fellow group undertaking of Odescalchi S.r.l.

img1624.png Page 22

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Stocks

2024
2023
£
£

Raw materials and consumables
129,443
123,919

Finished goods and goods for resale
1,517,849
1,611,672

1,647,292
1,735,591



15.


Debtors

2024
2023
£
£


Trade debtors
2,268,969
2,272,853

Other debtors
28,176
26,678

Prepayments and accrued income
96,141
86,974

2,393,286
2,386,505



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
488,450
464,125

488,450
464,125


img5c26.png Page 23

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
68,986
68,823

Amounts owed to group undertakings
200,000
503,586

Corporation tax
91,555
80,293

Other taxation and social security
496,050
350,008

Other creditors
9,764
19,250

Accruals and deferred income
411,480
518,131

1,277,835
1,540,091




18.


Deferred taxation




2024


£






At beginning of year
(247,760)


Charged to profit or loss
45,709



At end of year
(202,051)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(202,865)
(248,693)

Pension contributions
814
933

(202,051)
(247,760)


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 - 1,000,000 Ordinary shares of £1.00 each)
1,000,000
1,000,000


img4a1e.png Page 24

 
LECHLER COATINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Reserves

Profit and loss account

The profit and loss account represents the accumulated profits and losses of the company less dividends paid.


21.


Pension commitments

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.


22.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
290,764
272,748

Later than 1 year and not later than 5 years
597,296
790,809

888,060
1,063,557


23.


Controlling party

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.

img3d6e.png Page 25