Contec Cleanroom (UK) Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 08662605 (England and Wales)
Contec Cleanroom (UK) Limited
Company Information
Directors
A J Lawrence
J S McBride Jr
Company number
08662605
Registered office
1 Park Row
Leeds
LS1 5AB
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Contec Cleanroom (UK) Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
Contec Cleanroom (UK) Limited
Strategic Report
For the year ended 31 December 2024
Page 1

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

 

Contec Cleanroom (UK) Limited (“Contec UK”) is a company that manufactures and sells cleaning products to companies that operate in critical environments. These products are manufactured for use by the semiconductor, biotechnology, pharmaceutical and healthcare industries. These financial statements show the financial position for Contec UK as a single company and the financial position of this Company.

 

Contec UK's vision is dedicated to safely developing and manufacturing innovative cleaning products for use in critical environments. We are committed to empowering our talented associates who are excited by the challenge to provide total customer satisfaction to world-class manufacturers, healthcare providers and professional cleaners.

 

The principal activities of Contec UK during the year continue to be the bottling of isopropyl alcohol and licensed disinfectants for use in Europe, the Middle East and Africa.

Business review

The accounts for Contec UK show a profit in 2024, which was better than budgeted. As the Company is currently operating out of a number of different units in a business park while its new building is being built, inefficiencies are being experienced. The current manufacturing situation is restricting productivity. When the new building is completed in 2025, the expectation is that efficiencies will result in a more effective manufacturing process with a significant increase in the volume of sales.

 

The outlook for 2025 is a cautiously optimistic as the new building must be validated for production. Contec UK will experience some one-time cost in 2025 in order to get the operations up and running. The current plan is to move-in to the new building by the middle of 2025, However, Contec UK will run two production sites until customers qualify products from the new site. We expect to run the current facilities through the end of 2025.

Key Performance Indicators

            2024        2023        2022

 

Revenue (£'000)    9,080        8,375        5,757

 

EBITDA (£'000)         725        296        212

 

EBITDA %        8.0%        3.5%        3.7%

Other performance indicators

As well as the financial key performance indicators detailed, the Group also monitors several non-financial performance indicators to ensure the business remains on track against strategic objectives. These KPI's include health and safety, customer satisfaction, employee engagement, order fulfilment and carbon footprint.

Other information and explanations

The directors are of the opinion that the markets Contec UK sells its products into continues to grow, but is concerned with inflation, competition, cyber security and other global issues. The directors believe Contec UK has positioned itself with a strong team that is prepared to grow the Company and meet the challenges that arise in the coming years with the support of its parent Company in the US.

Contec Cleanroom (UK) Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2
Other information and explanations (continued)

Contec UK understands the importance of integrating the wellbeing of our associates and community, and our impact on the environment, into our business operations. The Company believes that businesses have a responsibility to positively contribute to the communities in which they operate and to minimize their environmental impact. The Company continues to employ sustainable practices in its operations, through energy-efficient technologies, reducing waste generation, and promoting recycling initiatives.

On behalf of the board

A J Lawrence
Director
20 May 2025
Contec Cleanroom (UK) Limited
Directors' Report
For the year ended 31 December 2024
Page 3

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of manufacturing cleanroom products.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A J Lawrence
J S McBride Jr
Auditor

Moore Kingston Smith were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Contec Cleanroom (UK) Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
A J Lawrence
Director
20 May 2025
Contec Cleanroom (UK) Limited
Independent Auditor's Report
To the Members of Contec Cleanroom (UK) Limited
Page 5
Opinion

We have audited the financial statements of Contec Cleanroom (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Contec Cleanroom (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Contec Cleanroom (UK) Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, 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.

Contec Cleanroom (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Contec Cleanroom (UK) Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Contec Cleanroom (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Contec Cleanroom (UK) Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Contec Cleanroom (UK) Limited
Independent Auditor's Report (Continued)
To the Members of Contec Cleanroom (UK) Limited
Page 9

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Paul Springfield
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
21 May 2025
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Contec Cleanroom (UK) Limited
Profit and Loss Account
For the year ended 31 December 2024
Page 10
2024
2023
Notes
£
£
Turnover
3
9,080,346
8,375,896
Cost of sales
(7,164,998)
(6,703,447)
Gross profit
1,915,348
1,672,449
Distribution costs
(430,382)
(482,702)
Administrative expenses
(1,071,667)
(1,213,274)
Operating profit/(loss)
4
413,299
(23,527)
Interest receivable and similar income
6
20,870
1,895
Interest payable and similar expenses
7
(190,229)
(144,919)
Profit/(loss) before taxation
243,940
(166,551)
Tax on profit/(loss)
8
(116,316)
(55,000)
Profit/(loss) for the financial year
127,624
(221,551)

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Contec Cleanroom (UK) Limited
Balance Sheet
As at 31 December 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
946,184
1,173,268
Tangible assets
10
17,623,940
11,784,124
18,570,124
12,957,392
Current assets
Stock
11
1,430,402
1,197,995
Debtors
12
1,415,097
1,291,086
Cash at bank and in hand
1,326,276
1,190,845
4,171,775
3,679,926
Creditors: amounts falling due within one year
13
(23,593,983)
(17,733,342)
Net current liabilities
(19,422,208)
(14,053,416)
Total assets less current liabilities
(852,084)
(1,096,024)
Provisions for liabilities
Deferred tax liability
14
(116,316)
-
0
(116,316)
-
Net liabilities
(968,400)
(1,096,024)
Capital and reserves
Called up share capital
16
1
1
Profit and loss reserves
(968,401)
(1,096,025)
Total equity
(968,400)
(1,096,024)
The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
A J Lawrence
Director
Company Registration No. 08662605
Contec Cleanroom (UK) Limited
Statement of Changes in Equity
For the year ended 31 December 2024
Page 12
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
(874,474)
(874,473)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(221,551)
(221,551)
Balance at 31 December 2023
1
(1,096,025)
(1,096,024)
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
127,624
127,624
Balance at 31 December 2024
1
(968,401)
(968,400)
Contec Cleanroom (UK) Limited
Statement of Cash Flows
For the year ended 31 December 2024
Page 13
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
6,229,591
2,065,447
Interest paid
(190,229)
(144,919)
Net cash inflow from operating activities
6,039,362
1,920,528
Investing activities
Purchase of tangible fixed assets
(5,924,801)
(2,391,703)
Interest received
20,870
1,895
Net cash used in investing activities
(5,903,931)
(2,389,808)
Net increase/(decrease) in cash and cash equivalents
135,431
(469,280)
Cash and cash equivalents at beginning of year
1,190,845
1,660,125
Cash and cash equivalents at end of year
1,326,276
1,190,845
Contec Cleanroom (UK) Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 14
1
Accounting policies
Company information

Contec Cleanroom (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Park Row, Leeds, LS1 5AB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the balance sheet date, the company had net liabilities of £968,400 (2023: £1,096,024), the company has received confirmation from its parent company, Contec Inc, that it will continue to support the company for a minimum period of twelve months following the approval of these financial statements and that it will not request any parental loan amounts to be repaid until such time as the company is able to do so without compromising its ability to continue to trade and meet its liabilities as they fall due.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and for a period of not less than twelve months following the approval of these financial statements. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight line basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 15
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the life of the lease
Leasehold improvements
Over the life of the lease
Plant and equipment
7 years
Fixtures and fittings
5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

 

Stock held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of 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 company after deducting all of its liabilities.

Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 16
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

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 leases asset are consumed.

Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 17
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of intangible fixed assets

The annual amortisation charge for intangible fixed assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. See note 9 for the carrying amount of the intangible fixed assets and note 1.4 for the useful economic lives for each class of asset.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the tangible fixed assets and note 1.5 for the useful economic lives for each class of asset.

Work in progress valuation

WIP is valued based on the sum of the standard cost price of the components which is a matter of judgement.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
9,080,346
8,375,896
2024
2023
£
£
Turnover analysed by geographical market
UK
9,080,346
8,375,896
Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
3
Turnover and other revenue
(Continued)
Page 18
2024
2023
£
£
Other significant revenue
Interest income
20,870
1,895
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
8,545
16,444
Fees payable to the company's auditor for the audit of the company's financial statements
26,750
25,570
Depreciation of owned tangible fixed assets
84,985
92,521
Amortisation of intangible assets
227,084
227,084
Operating lease charges
233,704
223,268
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was: 71 (2023: 74).

2024
2023
Number
Number
71
74

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,502,091
2,190,922
Social security costs
191,588
189,372
Pension costs
75,381
74,700
2,769,060
2,454,994
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
20,870
1,895
Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 19
7
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
187,206
140,392
Other interest
3,023
4,527
190,229
144,919
8
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
55,000
Deferred tax
Origination and reversal of timing differences
116,316
-
0
Total tax charge
116,316
55,000

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
243,940
(166,551)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
60,985
(41,638)
Tax effect of expenses that are not deductible in determining taxable profit
802
-
0
Unutilised tax losses carried forward
-
0
41,255
Permanent capital allowances in excess of depreciation
-
0
383
Amortisation on assets not qualifying for tax allowances
56,771
-
0
Deferred tax adjustments in respect of prior years
(2,242)
-
0
Other timing differences
-
0
55,000
Taxation charge for the year
116,316
55,000
Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 20
9
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
2,270,841
Amortisation and impairment
At 1 January 2024
1,097,573
Amortisation charged for the year
227,084
At 31 December 2024
1,324,657
Carrying amount
At 31 December 2024
946,184
At 31 December 2023
1,173,268
10
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
£
Cost
At 1 January 2024
9,454
142,425
11,521,259
928,209
107,722
12,709,069
Additions
-
0
-
0
5,831,676
42,395
50,730
5,924,801
At 31 December 2024
9,454
142,425
17,352,935
970,604
158,452
18,633,870
Depreciation and impairment
At 1 January 2024
7,087
142,425
-
0
731,260
44,173
924,945
Depreciation charged in the year
945
-
0
-
0
61,024
23,016
84,985
At 31 December 2024
8,032
142,425
-
0
792,284
67,189
1,009,930
Carrying amount
At 31 December 2024
1,422
-
0
17,352,935
178,320
91,263
17,623,940
At 31 December 2023
2,367
-
0
11,521,259
196,949
63,549
11,784,124
Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 21
11
Stock
2024
2023
£
£
Raw materials and consumables
562,216
472,266
Work in progress
735,471
344,031
Finished goods and goods for resale
132,715
381,698
1,430,402
1,197,995
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
275,359
896,707
Amounts owed by group undertakings
300,105
77,725
Other debtors
720,275
251,477
Prepayments and accrued income
119,358
65,177
1,415,097
1,291,086
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
615,997
321,599
Amounts owed to group undertakings
21,952,562
16,969,176
Taxation and social security
-
0
58,343
Other creditors
240,425
12,896
Accruals and deferred income
784,999
371,328
23,593,983
17,733,342
Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 22
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,796,660
-
Tax losses
(1,678,426)
-
Provisions
(1,918)
-
116,316
-
2024
Movements in the year:
£
Liability at 1 January 2024
-
Charge to profit or loss
116,316
Liability at 31 December 2024
116,316
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
75,381
74,700

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
1 ordinary share of £1 each
1
1
1
1
Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
17
Operating lease commitments
Lessee

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
£
£
Within one year
138,483
128,524
Between two and five years
72,982
130,784
211,465
259,308
18
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
302,355
1,157,174
19
Related party transactions
Transactions with related parties

During the year the company recognised sales income of £5,468,951 (2023: £4,943,857) from its ultimate parent company, Contec Inc. The company also made purchases of £343,670 (2023: £239,446) from Contec Inc.

 

At 31 December 2024 an amount of £300,105 (2023: £77,725) was owed by Contec Inc.

 

At 31 December 2024 an amount of £21,952,562 (2023: £16,969,176) was owed to Contec Inc.

 

During the year the company incurred an interest charge of £187,206 (2023: £147,123) in respect of loan undertakings received from parent companies. The loan is repayable as and when the financial resources of the company permit. The interest rate on the first £20,000,000 is fixed at the long-term Annual Applicable Federal Rates (AFR) as published by the IRS on 30 September 2020. The rate in effect for this element of the loan is 1.00%. The interest rate for the next tranche of the loan up to £5,000,000 is fixed at the long-term Annual Applicable Federal Rates (AFR) as published by the IRS on 31 August 2024. The rate in effect for this element of the loan is 3.37%.

20
Ultimate controlling party

The company's immediate parent company is Contec Holding Co. a company incorporated in Mauritius. The ultimate parent company is Contec Inc., a company incorporated in the United States of America. In the opinion of the directors there was no ultimate controlling party at the statement of financial position date.

 

The principal place of the business of the ultimate parent company, Contec Inc., is 525 Locust Grove, Spartanburg, South Carolina, 29303, USA.

Contec Cleanroom (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 24
21
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
127,624
(221,551)
Adjustments for:
Taxation charged
116,316
55,000
Finance costs
190,229
144,919
Investment income
(20,870)
(1,895)
Amortisation and impairment of intangible assets
227,084
227,084
Depreciation and impairment of tangible fixed assets
84,985
92,521
Movements in working capital:
(Increase)/decrease in stock
(232,407)
29,619
Increase in debtors
(124,011)
(552,801)
Increase in creditors
5,860,641
2,292,551
Cash generated from operations
6,229,591
2,065,447
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,190,845
135,431
1,326,276
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