| REGISTERED NUMBER: 03377633 (England and Wales) |
| Group Strategic Report, |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 August 2024 |
| for |
| Minchem Limited |
| REGISTERED NUMBER: 03377633 (England and Wales) |
| Group Strategic Report, |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 August 2024 |
| for |
| Minchem Limited |
| Minchem Limited (Registered number: 03377633) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 August 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Income Statement | 8 |
| Consolidated Other Comprehensive Income | 9 |
| Consolidated Balance Sheet | 10 |
| Company Balance Sheet | 11 |
| Consolidated Statement of Changes in Equity | 12 |
| Company Statement of Changes in Equity | 13 |
| Consolidated Cash Flow Statement | 14 |
| Notes to the Consolidated Cash Flow Statement | 15 |
| Notes to the Consolidated Financial Statements | 16 |
| Minchem Limited |
| Company Information |
| for the Year Ended 31 August 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Paul Robert Scriven FCCA |
| AUDITORS: |
| Chartered Certified Accountants |
| Statutory Auditor |
| Cliveden Chambers |
| Cliveden Place |
| Longton |
| Stoke-on-Trent |
| Staffordshire |
| ST3 4JB |
| Minchem Limited (Registered number: 03377633) |
| Group Strategic Report |
| for the Year Ended 31 August 2024 |
| The directors present their strategic report of the company and the group for the year ended 31 August 2024. |
| REVIEW OF BUSINESS |
| The financial performance for the year shows an operating profit of £1,322,636 (year ended 31st August 2023 - £1,573,256). |
| The Minchem Limited Group of Companies consists of 4 entities; |
| Minchem Limited an established trading, agency and distribution business with a focus on Zirconium-based specialist products, minerals and chemicals. |
| Minchem HMP Limited is an established ceramic mineral milling and blending business, with a focus on milling of Zircon (Zirconium Silicate) and related minerals. |
| ACCS Limited is a manufacturer and supplier of protective linings used in industrial corrosive environments. |
| Minchem Europe SrL, incorporated in Italy, was formed in 2019 to enable the group to maintain a presence in the European Union post Brexit. |
| The group was formed following the acquisition by Minchem Limited of Minchem HMP Limited in 2006. ACCS Limited was acquired in 2012. Both companies are based on the same site in Stoke-on-Trent. |
| The future growth of the group is reliant upon the continued development of the existing business relationships with suppliers and on a number of potential overseas opportunities, in particular in the US, Spain, Korea and Australia. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Despite the fact that the group companies products can be described as 'niche', each of the group companies operates in highly competitive market areas. In order to maintain competitive pricing, costs, margins and final selling prices are reviewed on a regular basis. |
| Supply chain risks are managed by a combination of nurturing long-term business relationships with suppliers and holding buffer stocks of materials in UK and European stores. Potential alternative suppliers are vetted on an on-going basis. |
| Measures have been taken by the group to mitigate the risks relating to Brexit. The directors consider that the group is adequately prepared to deal with this risk. |
| KEY PERFORMANCE INDICATORS (KPI'S) |
| The directors monitor progress of the company by reference to the operating results; |
| Year ended | 31st August 2024 | 31st August 2023 |
| Profit before tax | £1,286,867 | £1,545,318 |
| The results are in line with forecast, taking into account the volatility of the exchange rate and commodity prices during the year. |
| FINANCIAL RISK MANAGEMENT |
| The primary financial risk exposure for the group relates to foreign exchange. The group companies purchase the majority of their raw materials in US Dollars, Japanese Yen and Euro's and sell in Sterling, Euro's and US Dollars. Whenever possible, purchase and sale are made in the same currency but when not possible, the forex position is reviewed on a regular basis. |
| ON BEHALF OF THE BOARD: |
| 22 May 2025 |
| Minchem Limited (Registered number: 03377633) |
| Report of the Directors |
| for the Year Ended 31 August 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 August 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of the processing and sale of minerals and chemicals. |
| DIVIDENDS |
| An interim dividend of £22.582 per share on the Ordinary £1 shares was paid on 31 March 2024. The directors recommend a final dividend of £13.781636 per share, making a total of £36.363636 per share for the year ended 31 August 2024. |
| No interim dividend was paid on the A Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares. |
| No interim dividend was paid on the Ordinary C D J T £1 shares. The directors recommend that no final dividend be paid on these shares. |
| The total distribution of dividends for the year ended 31 August 2024 will be £ 200,000 . |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report. |
| Other changes in directors holding office are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| Minchem Limited (Registered number: 03377633) |
| Report of the Directors |
| for the Year Ended 31 August 2024 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Paterson Brodie Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Minchem Limited |
| Opinion |
| We have audited the financial statements of Minchem Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 August 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Minchem Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where 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. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
| We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies act 2006 and UK corporate taxation laws. |
| We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries to the managing director and the management team of the company. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included: |
| - Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; |
| - Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process; |
| - Challenging assumptions and judgements made by management in its significant accounting estimates; |
| - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; |
| - Assessing the extent of compliance with the relevant laws and regulations. |
| We communicated relevant laws and regulations identified to the management team and our audit team performed the audit procedures as detailed above. |
| 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 Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Minchem Limited |
| 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Certified Accountants |
| Statutory Auditor |
| Cliveden Chambers |
| Cliveden Place |
| Longton |
| Stoke-on-Trent |
| Staffordshire |
| ST3 4JB |
| Minchem Limited (Registered number: 03377633) |
| Consolidated |
| Income Statement |
| for the Year Ended 31 August 2024 |
| 31.8.24 | 31.8.23 |
| Notes | £ | £ | £ |
| TURNOVER | 3 | 18,364,912 | 15,857,643 |
| Cost of sales | 14,150,320 | 11,887,227 |
| GROSS PROFIT | 4,214,592 | 3,970,416 |
| Distribution costs | 413,813 | 536,907 |
| Administrative expenses | 2,478,143 | 1,860,253 |
| 2,891,956 | 2,397,160 |
| OPERATING PROFIT | 5 | 1,322,636 | 1,573,256 |
| Fair value adjustment on quoted investments | 6 | 37,068 | 28,557 |
| 1,285,568 | 1,544,699 |
| Income from fixed asset investments | 226 | 333 |
| Interest receivable and similar income | 1,073 | 403 |
| 1,299 | 736 |
| 1,286,867 | 1,545,435 |
| Interest payable and similar expenses | 7 | - | 117 |
| PROFIT BEFORE TAXATION | 1,286,867 | 1,545,318 |
| Tax on profit | 8 | 327,251 | 335,139 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 959,616 | 1,210,179 |
| Minchem Limited (Registered number: 03377633) |
| Consolidated |
| Other Comprehensive Income |
| for the Year Ended 31 August 2024 |
| 31.8.24 | 31.8.23 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 959,616 | 1,210,179 |
| OTHER COMPREHENSIVE INCOME |
| Revaluation of quoted investments | (37,069 | ) | (28,557 | ) |
| Net gain included in income statement | 28,206 | 21,419 |
| Purchase of own shares | (91,114 | ) | (124,250 | ) |
| Income tax relating to components of other comprehensive income |
8,863 |
7,138 |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(91,114 |
) |
(124,250 |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
868,502 |
1,085,929 |
| Total comprehensive income attributable to: |
| Owners of the parent | 868,502 | 1,085,929 |
| Minchem Limited (Registered number: 03377633) |
| Consolidated Balance Sheet |
| 31 August 2024 |
| 31.8.24 | 31.8.23 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | 1 | 1 |
| Tangible assets | 12 | 336,946 | 313,114 |
| Investments | 13 | 36,277 | 73,346 |
| 373,224 | 386,461 |
| CURRENT ASSETS |
| Stocks | 14 | 5,044,635 | 5,526,452 |
| Debtors | 15 | 3,594,420 | 2,730,063 |
| Cash at bank and in hand | 5,570,526 | 3,856,166 |
| 14,209,581 | 12,112,681 |
| CREDITORS |
| Amounts falling due within one year | 16 | 3,736,812 | 2,305,320 |
| NET CURRENT ASSETS | 10,472,769 | 9,807,361 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
10,845,993 |
10,193,822 |
| PROVISIONS FOR LIABILITIES | 18 | 32,953 | 48,738 |
| NET ASSETS | 10,813,040 | 10,145,084 |
| CAPITAL AND RESERVES |
| Called up share capital | 19 | 8,704 | 9,250 |
| Capital redemption reserve | 20 | 91,300 | 90,750 |
| Retained earnings | 20 | 10,713,036 | 10,045,084 |
| SHAREHOLDERS' FUNDS | 10,813,040 | 10,145,084 |
| The financial statements were approved by the Board of Directors and authorised for issue on 22 May 2025 and were signed on its behalf by: |
| C A Skidmore - Director |
| Dr T A Skidmore - Director |
| Minchem Limited (Registered number: 03377633) |
| Company Balance Sheet |
| 31 August 2024 |
| 31.8.24 | 31.8.23 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| CURRENT ASSETS |
| Stocks | 14 |
| Debtors | 15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 18 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Capital redemption reserve | 20 |
| Retained earnings | 20 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 757,937 | 862,652 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Minchem Limited (Registered number: 03377633) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 August 2024 |
| Called up | Capital | Fair |
| share | Retained | redemption | value | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 September 2022 | 10,000 | 8,909,873 | 90,000 | 50,032 | 9,059,905 |
| Changes in equity |
| Reduction in share capital | (750 | ) | - | - | - | (750 | ) |
| Total comprehensive income | - | 1,135,211 | 750 | (50,032 | ) | 1,085,929 |
| Balance at 31 August 2023 | 9,250 | 10,045,084 | 90,750 | - | 10,145,084 |
| Changes in equity |
| Increase in share capital | 4 | - | - | - | 4 |
| Reduction in share capital | (550 | ) | - | - | - | (550 | ) |
| Dividends | - | (200,000 | ) | - | - | (200,000 | ) |
| Total comprehensive income | - | 867,952 | 550 | - | 868,502 |
| Balance at 31 August 2024 | 8,704 | 10,713,036 | 91,300 | - | 10,813,040 |
| Minchem Limited (Registered number: 03377633) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 August 2024 |
| Called up | Capital | Fair |
| share | Retained | redemption | value | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 September 2022 |
| Changes in equity |
| Reduction in share capital | (750 | ) | - | - | - | (750 | ) |
| Total comprehensive income | - | ( |
) |
| Balance at 31 August 2023 |
| Changes in equity |
| Increase in share capital | 4 | - | - | - | 4 |
| Reduction in share capital | (550 | ) | - | - | - | (550 | ) |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 August 2024 |
| Minchem Limited (Registered number: 03377633) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 August 2024 |
| 31.8.24 | 31.8.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 2,407,179 | 1,231,539 |
| Finance costs paid | - | (117 | ) |
| Tax paid | (339,103 | ) | (222,607 | ) |
| Net cash from operating activities | 2,068,076 | 1,008,815 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (72,855 | ) | (24,551 | ) |
| Sale of tangible fixed assets | 9,500 | 20,821 |
| Interest received | 1,073 | 403 |
| Dividends received | 226 | 333 |
| Net cash from investing activities | (62,056 | ) | (2,994 | ) |
| Cash flows from financing activities |
| Share issue | 4 | - |
| Share buyback | (91,664 | ) | (125,000 | ) |
| Equity dividends paid | (200,000 | ) | - |
| Net cash from financing activities | (291,660 | ) | (125,000 | ) |
| Increase in cash and cash equivalents | 1,714,360 | 880,821 |
| Cash and cash equivalents at beginning of year |
2 |
3,856,166 |
2,975,345 |
| Cash and cash equivalents at end of year | 2 | 5,570,526 | 3,856,166 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 August 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Profit before taxation | 1,286,867 | 1,545,318 |
| Depreciation charges | 49,022 | 17,364 |
| Profit on disposal of fixed assets | (9,499 | ) | (9,946 | ) |
| Quoted investments fair value adjustment | 37,069 | 28,556 |
| Finance costs | - | 117 |
| Finance income | (1,299 | ) | (736 | ) |
| 1,362,160 | 1,580,673 |
| Decrease/(increase) in stocks | 481,817 | (692,917 | ) |
| (Increase)/decrease in trade and other debtors | (864,357 | ) | 1,453,627 |
| Increase/(decrease) in trade and other creditors | 1,427,559 | (1,109,844 | ) |
| Cash generated from operations | 2,407,179 | 1,231,539 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 August 2024 |
| 31.8.24 | 1.9.23 |
| £ | £ |
| Cash and cash equivalents | 5,570,526 | 3,856,166 |
| Year ended 31 August 2023 |
| 31.8.23 | 1.9.22 |
| £ | £ |
| Cash and cash equivalents | 3,856,166 | 2,975,345 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.9.23 | Cash flow | At 31.8.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 3,856,166 | 1,714,360 | 5,570,526 |
| 3,856,166 | 1,714,360 | 5,570,526 |
| Total | 3,856,166 | 1,714,360 | 5,570,526 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 August 2024 |
| 1. | STATUTORY INFORMATION |
| Minchem Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| Turnover represents net invoiced sales of goods and services, together with commissions received, excluding value added tax. |
| Goodwill |
| Goodwill arising on consolidation, in relation to the acquisition of the subsidiary company in 2006, was amortised evenly over its estimated useful life of 10 years. |
| Goodwill in the parent company's accounts relates to the acquisition of a business in 2001, and was amortised on the same basis. |
| The acquisition of ACCS Limited in 2012 resulted in negative goodwill of £86,923. This was amortised over a period of 10 years. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Short leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 31.8.24 | 31.8.23 |
| £ | £ |
| United Kingdom | 5,518,040 | 5,943,570 |
| Export | 12,846,872 | 9,914,073 |
| 18,364,912 | 15,857,643 |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Wages and salaries | 752,060 | 730,281 |
| Social security costs | 84,480 | 80,102 |
| Other pension costs | 143,557 | 21,245 |
| 980,097 | 831,628 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 31.8.24 | 31.8.23 |
| Management and administration | 12 | 12 |
| Production | 3 | 2 |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Directors' remuneration | 230,811 | 227,797 |
| Directors' pension contributions to money purchase schemes | 72,199 | 10,667 |
| Information regarding the highest paid director is as follows: |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Emoluments etc | 89,689 | 89,309 |
| Pension contributions to money purchase schemes | 40,000 | - |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Hire of plant and machinery | 15,312 | 7,188 |
| Other operating leases | 1,289 | 1,259 |
| Depreciation - owned assets | 49,022 | 17,364 |
| Profit on disposal of fixed assets | (9,499 | ) | (9,946 | ) |
| Auditors' remuneration | 20,615 | 19,690 |
| 6. | GAIN ON FINANCIAL ASSETS AT FAIR VALUE |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Fair value adjustment on quoted investments | (37,068 | ) | (28,557 | ) |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.8.24 | 31.8.23 |
| £ | £ |
| PAYE interest | - | 117 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Current tax: |
| UK corporation tax | 343,036 | 339,105 |
| Deferred tax | (15,785 | ) | (3,966 | ) |
| Tax on profit | 327,251 | 335,139 |
| UK corporation tax has been charged at 24.95 % . |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Profit before tax | 1,286,867 | 1,545,318 |
| Profit multiplied by the standard rate of corporation tax in the UK of 24.953 % (2023 - 21.515 %) |
321,112 |
332,475 |
| Effects of: |
| Expenses not deductible for tax purposes | 10,740 | 7,368 |
| Income not taxable for tax purposes | (2,427 | ) | (2,212 | ) |
| Capital allowances in excess of depreciation | - | (3,008 | ) |
| Depreciation in excess of capital allowances | 5,239 | - |
| Movement in deferred tax provision | (15,785 | ) | 3,172 |
| Overseas subsidiary tax adjustments | 8,372 | 4,482 |
| Tax effect of fixed asset investment revaluation | - | (7,138 | ) |
| Total tax charge | 327,251 | 335,139 |
| Tax effects relating to effects of other comprehensive income |
| 31.8.24 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation of quoted investments | (37,069 | ) | 8,863 | (28,206 | ) |
| Net gain included in income statement | 28,206 | - | 28,206 |
| Purchase of own shares | (91,114 | ) | - | (91,114 | ) |
| (99,977 | ) | 8,863 | (91,114 | ) |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 8. | TAXATION - continued |
| 31.8.23 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation of quoted investments | (28,557 | ) | 7,138 | (21,419 | ) |
| Net gain included in income statement | 21,419 | - | 21,419 |
| Purchase of own shares | (124,250 | ) | - | (124,250 | ) |
| (131,388 | ) | 7,138 | (124,250 | ) |
| 9. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 10. | DIVIDENDS |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Ordinary shares of £1 each |
| Final | 75,799 | - |
| Interim | 124,201 | - |
| 200,000 | - |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 September 2023 |
| and 31 August 2024 | 571,051 |
| AMORTISATION |
| At 1 September 2023 |
| and 31 August 2024 | 571,050 |
| NET BOOK VALUE |
| At 31 August 2024 | 1 |
| At 31 August 2023 | 1 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 11. | INTANGIBLE FIXED ASSETS - continued |
| Group |
| Group goodwill consists of the following: |
| Negative |
| Goodwill | goodwill |
| COST | £ | £ |
| At 1 September 2023 and 31 August 2024 | 657,974 | (86,923 | ) |
| AMORTISATION |
| At 1 September 2023 | 657,973 | (86,923 | ) |
| Amortisation for year | - | - |
| At 31 August 2024 | 657,973 | (86,923 | ) |
| NET BOOK VALUE |
| At 31 August 2024 | 1 | - |
| At 31 August 2023 | 1 | - |
| Negative goodwill arose on the acquisition by the group of ACCS Limited in 2012. The fair value of the separable net assets exceeded the fair value of the consideration paid. The negative goodwill has been amortised through the profit and loss account over a period of 10 years. |
| Company |
| Goodwill |
| £ |
| COST |
| At 1 September 2023 |
| and 31 August 2024 |
| AMORTISATION |
| At 1 September 2023 |
| and 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Short | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 September 2023 | 175,588 | 12,138 | 486,266 |
| Additions | - | - | 4,098 |
| Disposals | - | - | - |
| At 31 August 2024 | 175,588 | 12,138 | 490,364 |
| DEPRECIATION |
| At 1 September 2023 | 33,518 | 12,138 | 330,792 |
| Charge for year | 1,380 | - | 31,159 |
| Eliminated on disposal | - | - | - |
| At 31 August 2024 | 34,898 | 12,138 | 361,951 |
| NET BOOK VALUE |
| At 31 August 2024 | 140,690 | - | 128,413 |
| At 31 August 2023 | 142,070 | - | 155,474 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 September 2023 | 21,388 | 60,312 | 52,601 | 808,293 |
| Additions | - | 46,000 | 22,757 | 72,855 |
| Disposals | - | (26,350 | ) | - | (26,350 | ) |
| At 31 August 2024 | 21,388 | 79,962 | 75,358 | 854,798 |
| DEPRECIATION |
| At 1 September 2023 | 19,624 | 53,954 | 45,153 | 495,179 |
| Charge for year | 341 | 8,297 | 7,845 | 49,022 |
| Eliminated on disposal | - | (26,349 | ) | - | (26,349 | ) |
| At 31 August 2024 | 19,965 | 35,902 | 52,998 | 517,852 |
| NET BOOK VALUE |
| At 31 August 2024 | 1,423 | 44,060 | 22,360 | 336,946 |
| At 31 August 2023 | 1,764 | 6,358 | 7,448 | 313,114 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 September 2023 |
| Additions |
| At 31 August 2024 |
| DEPRECIATION |
| At 1 September 2023 |
| Charge for year |
| At 31 August 2024 |
| NET BOOK VALUE |
| At 31 August 2024 |
| At 31 August 2023 |
| 13. | FIXED ASSET INVESTMENTS |
| Group |
| Listed |
| investments |
| £ |
| COST OR VALUATION |
| At 1 September 2023 | 73,346 |
| Revaluations | (37,069 | ) |
| At 31 August 2024 | 36,277 |
| NET BOOK VALUE |
| At 31 August 2024 | 36,277 |
| At 31 August 2023 | 73,346 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 13. | FIXED ASSET INVESTMENTS - continued |
| Group |
| Cost or valuation at 31 August 2024 is represented by: |
| Listed |
| investments |
| £ |
| Valuation in 2018 | 13,577 |
| Valuation in 2019 | 683 |
| Valuation in 2020 | 64,026 |
| Valuation in 2021 | 178,582 |
| Valuation in 2022 | (190,837 | ) |
| Valuation in 2023 | (28,556 | ) |
| Valuation in 2024 | (37,069 | ) |
| Cost | 35,871 |
| 36,277 |
| Company |
| Shares in |
| group | Listed |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 September 2023 | 1,423,495 |
| Revaluations | ( |
) | (37,069 | ) |
| At 31 August 2024 | 1,386,426 |
| NET BOOK VALUE |
| At 31 August 2024 | 1,386,426 |
| At 31 August 2023 | 1,423,495 |
| Cost or valuation at 31 August 2024 is represented by: |
| Shares in |
| group | Listed |
| undertakings | investments | Totals |
| £ | £ | £ |
| Valuation in 2018 | - | 13,577 | 13,577 |
| Valuation in 2019 | - | 683 | 683 |
| Valuation in 2020 | - | 64,026 | 64,026 |
| Valuation in 2021 | - | 178,582 | 178,582 |
| Valuation in 2022 | - | (190,837 | ) | (190,837 | ) |
| Valuation in 2023 | - | (28,556 | ) | (28,556 | ) |
| Valuation in 2024 | - | (37,069 | ) | (37,069 | ) |
| Cost | 1,350,149 | 35,871 | 1,386,020 |
| 1,350,149 | 36,277 | 1,386,426 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 13. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Scott Lidgett Industrial Estate, Scott Lidgett Road, Longport, Stoke on Trent, ST6 4NQ |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Unit 6, Scott Lidgett Industrial Estate, Scott Lidgett Road, Longport, Stoke on Trent, ST6 4NQ |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Aggregate capital and reserves |
| Profit/(loss) for the year | ( |
) |
| Registered office: Cornaredo (MI), Milan, Italy. |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Aggregate capital and reserves |
| (Loss)/profit for the year | ( |
) |
| Minchem Europe SrL is an Italian registered company, incorporated in 2019. The company was established to create a presence within the European Union. |
| 14. | STOCKS |
| Group | Company |
| 31.8.24 | 31.8.23 | 31.8.24 | 31.8.23 |
| £ | £ | £ | £ |
| Stocks | 5,044,635 | 5,526,452 |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.8.24 | 31.8.23 | 31.8.24 | 31.8.23 |
| £ | £ | £ | £ |
| Trade debtors | 3,453,368 | 2,592,463 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 49,846 | 47,051 |
| Minchem Srl loan | - | - | 383,722 | 583,125 |
| VAT | - | 3,165 |
| Prepayments | 91,206 | 87,384 |
| 3,594,420 | 2,730,063 |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.8.24 | 31.8.23 | 31.8.24 | 31.8.23 |
| £ | £ | £ | £ |
| Trade creditors | 2,966,527 | 1,855,804 |
| Tax | 343,036 | 339,103 |
| Social security and other taxes | 28,306 | 24,639 |
| VAT | 96,200 | - | 27,883 | - |
| Other creditors | 204,712 | 6,631 |
| Accrued expenses | 98,031 | 79,143 |
| 3,736,812 | 2,305,320 |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Non-cancellable operating | leases |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Within one year | 53,244 | 40,105 |
| Between one and five years | 73,289 | 77,282 |
| 126,533 | 117,387 |
| Company |
| Non-cancellable operating | leases |
| 31.8.24 | 31.8.23 |
| £ | £ |
| Within one year |
| Between one and five years |
| Operating lease commitments are in respect of office premises, telephone system and motor vehicles. |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 18. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31.8.24 | 31.8.23 | 31.8.24 | 31.8.23 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 32,953 | 39,876 |
| Other timing differences | - | 8,862 | - | 8,862 |
| 32,953 | 48,738 | - | 8,862 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 September 2023 | 48,738 |
| Credit to Income Statement during year | (6,923 | ) |
| Fair value adjustment on | (8,862 | ) |
| quoted investments |
| Balance at 31 August 2024 | 32,953 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 September 2023 |
| Fair value adjustment on |
| quoted investments | (8,862 | ) |
| Balance at 31 August 2024 |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.8.24 | 31.8.23 |
| value: | £ | £ |
| Ordinary | £1 | 5,500 | 5,500 |
| A Ordinary | £1 | 3,200 | 3,750 |
| 8,700 | 9,250 |
| Allotted and issued: |
| Number: | Class: | Nominal | 31.8.24 | 31.8.23 |
| value: | £ | £ |
| Share capital 3 | £1 | 4 | - |
| 4 Ordinary C D J T shares of £1 each were allotted |
| Minchem Limited (Registered number: 03377633) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 August 2024 |
| 20. | RESERVES |
| Group |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 September 2023 | 10,045,084 | 90,750 | 10,135,834 |
| Profit for the year | 959,616 | 959,616 |
| Dividends | (200,000 | ) | (200,000 | ) |
| Purchase of own shares | (91,664 | ) | 550 | (91,114 | ) |
| At 31 August 2024 | 10,713,036 | 91,300 | 10,804,336 |
| Company |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 September 2023 | 7,787,574 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Purchase of own shares | (550 | ) | 550 | - |
| Purchase of own shares | (91,114 | ) | - | (91,114 | ) |
| At 31 August 2024 | 8,254,397 |
| 21. | RELATED PARTY DISCLOSURES |
| During the year Mr. C.A. Skidmore, a director of the company, received rent of £8,400 (2023 - £8,400) from Minchem Limited in relation to a property owned by him and used by the company. |
| All transactions were on a normal commercial basis. |
| 22. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is C A Skidmore. |
| The group is controlled by Mr. C.A. Skidmore, by virtue of his holding of the majority of the voting rights in the parent company. |