Dugdale Compounds Limited
Registered number: 08699993
Annual report and
consolidated financial statements
For the year ended 31 December 2024
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DUGDALE COMPOUNDS LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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DUGDALE COMPOUNDS LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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DUGDALE COMPOUNDS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the Company is that of a holding company.
The principal activity of the Group continued to be the manufacture and sale of PVC compounds.
The Group manufactures and sells PVC compounds and powder blends for both the injection moulding and extrusion sector throughout the United Kingdom and overseas. These users cover a wide spectrum of industries including construction, footwear and leisure.
The business strives to provide the highest level of service to all its customers and long term relationship with both our customers and suppliers are essential to us.
The Group always looks to create added value for our customers by selling high quality PVC compounds aligned with the necessary technical knowledge.
The Group has achieved an encouraging profitable result for the year to 31 December 2024.
Consolidated operating profit increased to £5,000,206 from £4,917,289 in the previous year. The current year sales were driven by higher sales volumes, with consumer spend on PVC end products increasing demand.
Principal risks and uncertainties
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The principal risks and uncertainties affecting the business include the following:
∙Raw material availability and prices: The Group is subject to the effects of global oil and commodity pricing. Close management of all key raw material inputs and pricing of finished is an essential function of our daily operations.
∙Environmental risks: The Group continues to improve its recycling and maintains its compliance with environmental legislation.
∙Debtors: The Group maintains strong relationships with each of its key customers and has established credit control parameters. Appropriate credit terms are agreed with all customers and these are closely managed. In addition, the Company remains a member of the Group Credit Committee, which meets monthly.
∙The effect of legislation of other regulatory activities: The Group monitors forthcoming and current legislation continuously. All appropriate measures are taken to protect the Group's intellectual property rights and to minimise the risk of infringement of third party rights.
Key areas of strategic development and performance of the business include:
∙Sales and Marketing: New and replacement business is being won continually; new markets have been developed in line with the Group's strategy, key customer relationships are monitored and fostered on a regular basis.
∙Health and safety: The Group continues to seek ways of ensuring that a safe and healthy working environment is progressively improved.
∙Environment: Consent limits continue to be met, new methods of achieving greater environmental effectiveness are continually being examined.
∙Competitive advantage: The Group focuses on areas where it has a competitive advantage including service and product range, which places it well it terms of superior long term income/cash flow growth potential.
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DUGDALE COMPOUNDS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group continues to offset the risk of competitive pressure through continual improvements in its customer service quality and delivery times.
To provide certainty of supply the Group sources major raw materials from multiple suppliers worldwide whenever possible. The Group's business may be affected by fluctuations in the price of key raw materials, although purchasing policies and practices seek to mitigate, where practical, such risks.
Financial key performance indicators
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The Board uses many performance indicators to monitor performance. The key indicators which are considered paramount to the operation of the business are return on capital, current ratio, stock turnover and sales per employee. These performance indicators are reviewed in detail on a monthly basis and variances investigated.
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Profit before tax / net assets
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Current assets: current liabilities
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Sales per employee (£000)
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Turnover / average number of employees
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DUGDALE COMPOUNDS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Section 172 (1) Statement
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The board of directors of Dugdale Compounds Limited consider that both individually and together for the year ended 31 December 2024 they have acted in the way they consider, in good faith, would be the most likely to promote the success of the Group for the benefit of its members as a whole and having regard to the matters set out in s17 (1)(a-f) as below:
a) The likely consequences of any decision in the long term;
b) The interests of the Group’s employees;
c) The need to foster the Group’s business relationships with suppliers, customers and others;
d) The impact of the Group’s operations on the community and the environment;
e) The desirability of the Group maintaining a reputation for high standards of business conduct; and
f) The need to act fairly between members of the Group.
The directors make decisions by taking their legal duty into account and also the priorities and requirements of the stakeholders. The following paragraphs summarise how the Directors fulfil their duty to promote the success of the Company.
a) The likely consequences of any decision in the long term;
The directors take cognizance to the likely consequences of their decisions on the long term objectives and sustainability of the Company, its stakeholders and the community, whilst also preserving its values and culture. Costs and Investments alike are all considered or their impact on liquidity, for future investment and without prejudicing the position of other creditors. We are a business built on our standards and reputation and would not take a decision which would have a detrimental impact on this whether in the short term or the long term. We are dedicated to ensuring we maintain our culture whilst achieving our purpose.
b) The interests of the Group’s employees
Our employees are key so it is critical that they have the right attitude and the drive to create ideas and set high standards. The Core Values are communicated and all employees are encouraged to challenge each other supportively in maintaining them. Open and effective communication across the business is seen as key.
c) The need to foster the Group’s business relationships with suppliers, customers and others
A Win Win mentality is a key factor in building and maintaining strong and mutually beneficial business relationships, both internally and externally.
d) The impact of the Group’s operations on the community and the environment
We are proud to be part of the local and wider communities. It is our aim to create opportunities to recruit and develop local people and to understand the local issues that are important to the community and what we can do to support it, which includes local involvement in World Earth Day.
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DUGDALE COMPOUNDS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
e) The desirability of the Group maintaining a reputation for high standards of business conduct
All new employees undergo a full Induction programme, are provided with a New Starter Pack which documents our history, standards, equal opportunities and training programme (amongst other things). All employees have easy access to our Operating Procedures and Codes of Conduct and understand the requirement for them to comply with the Group’s high standards of business conduct at all times. Any issues of non-compliance with any of our policies can be dealt with in confidence.
f) The need to act fairly between members of the Group
The Group aims to act with integrity and courtesy in all its business relationships and will consider all members and stakeholders when making decisions for the overall good of the Group.
Future developments
The Company plans to continue with its existing strategy for 2025. New grades will continue to be developed during the year, alongside additional BENVIC products, to add to the current product portfolio and investments in customer and staff training will be made to enhance our already strong customer support service.
This report was approved by the board on 31 March 2025 and signed on its behalf.
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DUGDALE COMPOUNDS 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
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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.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the Group and Parent Company 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 Parent Company and of the profit or loss of the Group for that period.
In preparing each of the Group and parent Company 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 Parent 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 Parent 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 £3,626,639 (2023 - £3,474,938).
During the year the Group has declared dividends totaling £Nil (2023 - £Nil).
The Directors who served during the year were:
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M F Gasso (resigned 3 December 2024)
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DUGDALE COMPOUNDS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
These consolidated financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons:
The directors have prepared forecasts for a period in excess of 12 months from the date of approval of these financial statements which indicate that the Group will have sufficient funds, through its cash balances and available invoice financing facility to meet its liabilities as they fall due for that period.
The directors are not aware of any material uncertainties surrounding the ongoing trade of the business and post year end trading has been pleasing. Consequently the Directors have prepared the financial statements on a going concern basis.
Greenhouse gas emissions, energy consumption and energy efficiency action
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The Group is required to report the emissions and energy consumption for the year ended 31 December 2024. Following the location based methodology the Company’s UK consumption is as follows:
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2024 UK Consumption (MWh)
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2023 UK Consumption (MWh)
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Scope 2 Indirect emissions
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2024 UK Consumption (tCO2e)
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2023 UK Consumption (tCO2e)
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Scope 2 Indirect emissions
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Scope 3 sources account for 100% (2023: 100%) of the emissions during the year with a total of 133,803 tCO2 (2023: 100,454 tCO2) emitted. The intensity metrics chosen to monitor emissions are emissions in tonnes per £1,000,000 of revenue generated and per full time equivalent. Energy efficiency actions taken by the Group during the year include, refurbishment of LEV systems to maximise efficiency and reduction of energy usage, programme of LED replacement lighting and electricity usage monitoring equipment installed on each manufacturing line for evaluation purposes and improvement activities.
Matters covered in the Group Strategic Report
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Certain information not shown in the Directors' Report is shown in the Strategic Report instead in accordance with Section 414C(11) of the Companies Act 2006. This includes a business review, principal risks and uncertainties and future developments.
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DUGDALE COMPOUNDS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Disclosure of information to auditor
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Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the Directors are aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and
∙the Directors have taken all the steps that ought to have been taken as Directors in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 31 March 2025 and signed on its behalf.
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DUGDALE COMPOUNDS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUGDALE COMPOUNDS LIMITED
Opinion
We have audited the financial statements of Dugdale Compounds Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Group's and the Parent Company’s affairs as at 31 December 2024 and of the Group's 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and 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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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DUGDALE COMPOUNDS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUGDALE COMPOUNDS LIMITED
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of 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 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 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the Parent Company 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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DUGDALE COMPOUNDS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUGDALE COMPOUNDS LIMITED
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 Group's and the Parent 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 intend either to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Group and the Parent Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: UK tax legislation and environmental legislation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Group and the Parent Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Group and the Parent Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation and the Companies Act 2006.
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DUGDALE COMPOUNDS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUGDALE COMPOUNDS LIMITED
In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to stock provisions, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.
Christopher Hudson (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
3 Wellington Place
Leeds
LS1 4AP
31 March 2025
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DUGDALE COMPOUNDS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 19 to 40 form part of these financial statements.
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DUGDALE COMPOUNDS LIMITED
REGISTERED NUMBER: 08699993
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 March 2025.
The notes on pages 19 to 40 form part of these financial statements.
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DUGDALE COMPOUNDS LIMITED
REGISTERED NUMBER: 08699993
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Capital redemption reserve
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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 profit after tax of the Parent Company for the year was £2,879,681 (2023 - loss of £246,560).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 March 2025.
The notes on pages 19 to 40 form part of these financial statements.
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DUGDALE COMPOUNDS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Capital redemption reserve
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Comprehensive income for the year
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Total comprehensive income for the year
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 19 to 40 form part of these financial statements.
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DUGDALE COMPOUNDS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Capital redemption reserve
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Comprehensive expense for the year
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Total comprehensive expense for the year
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Comprehensive expense for the year
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Total comprehensive expense for the year
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The notes on pages 19 to 40 form part of these financial statements.
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DUGDALE COMPOUNDS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Government grants including RDEC income
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(Increase)/decrease in debtors
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(Decrease)/increase in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Loan issued to group company
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Net cash used in investing activities
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DUGDALE COMPOUNDS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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Cash flows from financing activities
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(Decrease) in amounts owed to groups
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Net cash used in financing activities
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
Cash and cash equivalents at the end of year
|
|
|
|
|
|
Cash and cash equivalents at the end of year comprise:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 18 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Dugdale Compounds Limited ("the Company") is a private company, limited by shares, and incorporated in England and Wales. The registered number is 08699993.
The registered office and principal place of business is Valley Mill, Sowerby Bridge, West Yorkshire, HX6 2AA.
The principal activity of the Group continued to be the manufacture and sale of PVC compounds. The principal activity of the Company is a holding company.
These financial statements have been prepared in pound sterling which is the functional currency of the Group, and rounded to the nearest whole pound.
2.Accounting policies
|
|
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 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.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("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 Statement of Financial Position, 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.
- 19 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
These consolidated financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons:
The directors have prepared forecasts for a period in excess of 12 months from the date of approval of these financial statements which indicate that the Company and the Group will have sufficient funds, through their cash balances and available invoice discounting facility to meet their liabilities as they fall due for that period.
The directors are not aware of any material uncertainties surrounding the ongoing trade of the business and post year end trading has been pleasing. Consequently the Directors have prepared the financial statements on a going concern basis.
|
|
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.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
- 20 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of turnover can be measured reliably;
∙it is probable that the Group 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.
|
|
Operating leases: the Group as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in Consolidated Statement of Comprehensive Income in the year in which they are incurred.
- 21 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life which is considered to be 20 years.
- 22 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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.
|
|
Impairment of fixed assets and goodwill
|
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Investments in subsidiaries are measured at cost less accumulated impairment.
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 reporting 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.
- 23 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
|
|
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.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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.
|
|
Provisions for liabilities
|
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
- 24 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
- 25 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
|
|
Financial instruments (continued)
|
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables 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.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
- 26 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
Critical judgements in applying the Company’s accounting policies
In applying the Group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of revision and future periods, if the revision affects both current and future periods.
Judgements applied:
(i) Determining residual values and useful economic lives of tangible assets
Judgement is applied when determining the residual values of fixed assets. When determining the residual value, the directors have assessed the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.
(ii) Stock provision
The Group makes provision for slow moving and obsolete stock. A fixed percentage write down is applied to stock when it reaches 6 months old, and a further write down is made when the stock is 12 months old. Specific provisions are also made for other stock lines as considered necessary by the business.
Analysis of turnover by country of destination:
|
The whole of the turnover in the year relates to manufacture and sale of PVC compounds.
|
- 27 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
Research and Development Expenditure Credit (RDEC)
|
|
|
|
|
|
|
|
|
|
The operating profit is stated after charging/(crediting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating leases: land and buildings
|
|
|
|
Depreciation charge in respect of owned assets
|
|
|
|
|
|
|
|
|
|
During the year, the Group obtained the following services from the Company's auditor:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
|
|
|
|
Fees payable to the Company's auditor in respect of:
|
|
|
|
Taxation compliance services
|
|
|
|
|
|
|
- 28 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
Staff costs, including Directors' remuneration, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
The average monthly number of employees, including the Directors, during the year was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution and administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has no employees other than the Director, who did not receive any remuneration (2023 - £NIL)
|
|
|
|
|
|
Group contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
|
|
|
During the year retirement benefits were accruing to 1 Director (2023 - 2) in respect of defined contribution pension schemes.
|
|
The highest paid Director received remuneration of £222,393 (2023 - £271,372).
|
|
The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £NIL (2023 - £NIL).
|
- 29 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
Other interest receivable from group companies
|
|
|
|
Other interest receivable
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans from group undertakings
|
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
Adjustments in respect of previous periods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and reversal of timing differences
|
|
|
|
Adjustment in respect of previous periods
|
|
|
|
|
|
|
|
All current tax relates to UK corporation tax and to items recognised in the profit and loss account.
|
- 30 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
|
Factors affecting tax charge for the year
|
|
The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
|
|
|
|
|
|
|
|
Non-tax deductible amortisation of goodwill and impairment
|
|
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect to prior periods - corporation tax
|
|
|
|
Adjustments to tax charge in respect to prior periods - deferred tax
|
|
|
|
Remeasurement of deferred tax for changes in tax rates
|
|
|
|
Other differences leading to a decrease in the tax charge
|
|
|
|
Total tax charge for the year
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
- 31 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
On 8 April 2014 the Company acquired all of the ordinary shares of Benvic Dugdale Limited. The resulting goodwill of £817,736 was capitalised and will be written off over 20 years. The reason for selecting that period is that the directors feel that this is an appropriate period over which the acquisition will add value to the business.
|
- 32 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Investments in subsidiary companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following was a subsidiary undertaking of the Company:
|
|
|
|
|
|
|
|
Benvic Dugdale Limited (formerly Dugdale Limited)
|
Valley Mill, Sowerby Bridge, West Yorkshire, HX6 2AA
|
Manufacture and sale of PVC compounds
|
|
|
|
Raw materials and consumables
|
|
|
|
Finished goods and goods for resale
|
|
|
|
|
|
|
|
|
|
|
|
There is no material difference between the replacement cost of stock and the amounts stated above.
|
- 34 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company:
Included in amounts owed to group undertakings is £765,935 (2023: £828,005) which is unsecured, interest-free, repayable on demand and has no fixed repayment date.
Group:
Included in amounts owed to group undertakings is £3,000,000 (2023: £2,000,000) which is unsecured, repayable on demand and has no fixed repayment date. Interest is payable on this amount at SONIA plus 2.3%.
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 35 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A fixed and floating charge over the Group's assets existed in favour of Barclays Bank PLC at the year end.
The Group obtains working capital through a financing facility with Barclays Bank PLC. Under the terms of the financing arrangement the Group may draw down funds up to a maximum value which is a fixed proportion of its eligible trade debtors. Interest is charged on the funds drawn from the facility at 1.85% above Base Rate.
Amounts owed to group undertakings are repayable on 30th June 2025. Interest is charged on amounts at 3 months Euribor rate + 2.8%.
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings are repayable on 30th June 2025. Interest is charged on amounts at 3 months Euribor rate + 2.8%.
|
- 36 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
|
|
The provision for deferred taxation is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
Short term timing differences
|
|
|
|
|
|
|
|
|
Land remediation provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group commenced the remediation of land at its principal trading premises in the year in line with the wider group's environmental policy. Costs of £49,500 (2023: £103,041) were incurred during the year and the Directors are satisfied that the remaining provision will adequately cover the remaining work required.
The remaining provision is expected to be fully utilised within 2025.
|
- 37 -
|
DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
222,784 (2023 - 222,784) A Ordinary shares of £1.00 each
|
|
|
Capital redemption reserve
This represents a reserve for amounts recognised following the purchase of the Company's own shares.
Profit & loss account
The profit and loss account represent the cumulative profits and losses of the Company.
|
|
|
|
|
|
|
|
|
|
|
Loan from ultimate parent
|
|
|
|
|
|
|
|
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At the balance sheet date the Group had an outstanding Duty Deferment guarantee of £120,000 (2023 - £120,000). There are no uncertainties in relation to the value of this guarantee.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £184,382 (2023 - £110,644). Contributions totaling £Nil (2023 - £Nil) were payable to the fund at the reporting date and are included in creditors.
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DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Commitments under operating leases
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At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Later than 1 year and not later than 5 years
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- 39 -
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DUGDALE COMPOUNDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Related party transactions
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The Company has taken advantage of the exemption available in section 33 of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" related party disclosures from the requirements to disclose transactions with wholly owned group companies.
During the year the Group made trade related sales and purchases from its immediate parent company Benvic Group S.A.S, and other group companies. Benvic Group S.A.S is the Company's immediate parent undertaking.
Sales to group companies during the year amounted to £313,075 (2023 - £39,159).
Purchases from group companies during the year amounted to £6,884,606 (2023 - £3,894,889).
At the balance sheet date the trading balances due to related parties totaled £1,767,687 (2023 - £876,182), £317,233 was due from related parties (2023: £69,833). There are no guarantees or bad debt provision against these amounts. All amounts relate to trading balances hence are interest free and unsecured.
At the balance sheet date the amount owed to Benvic Group S.A.S was £2,791,140 (2023 - £5,736,060), interest was charged on this loan of £243,409 (2023: £360,909). This amount is repayable on 30th June 2025. Interest is charged on amounts at 3 months Euribor rate + 2.8%.
At the balance sheet date the amount owed by Benvic S.A.S was £3,000,000 (2023 - £2,000,000), interest was received on this loan of £161,313 (2023: £74,046). This amount is unsecured, repayable on demand and has no fixed repayment date. Interest is payable on this amount at SONIA plus 2.3%.
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Post balance sheet events
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There have been no post balance sheet events to note.
As at the balance sheet date, the immediate parent is Benvic Group SAS, of 57 Avenue de Tavaux, 21800, Chevigny Saint Sauveur, France, a company registered in France. The smallest group into which the Group's results are consolidated is Benvic Group SAS.
The largest group into which the Company’s results are consolidated is ICI Group GmbH, which are prepared in accordance with the IAS/IFRS regulations of the IASB. The registered office of ICI Group GmbH is Frankfurt am Main, Germany. The consolidated financial statements of ICI Group GmbH for the financial year ended 31 December 2024 will be available at the Company register (Unternehmensregister), Germany.
The Directors do not consider there to be an ultimate controlling party.
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