| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| AUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| BASILDON CHEMICAL CO. LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| AUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| BASILDON CHEMICAL CO. LIMITED |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Statement of Comprehensive Income | 9 |
| Statement of Financial Position | 10 |
| Statement of Changes in Equity | 11 |
| Statement of Cash Flows | 12 |
| Notes to the Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 |
| BASILDON CHEMICAL CO. LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| (Statutory Auditor) |
| Court House |
| Court Road |
| Bridgend |
| CF31 1BE |
| SOLICITORS: |
| Chalford Park |
| Oxford Road |
| Old Chalford |
| Oxfordshire |
| OX7 5QR |
| United Kingdom |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| REVIEW OF BUSINESS |
| The company's principal activity during the year continued to be the development, production, procurement and supply of a range of silicone and non-silicone based speciality chemicals and intermediates to agreed specifications and to regulated markets including pharmaceuticals, food and cosmetics. |
| The company reported an increase in sales in 2024 compared to 2023. The growth in sales was mostly driven by customers in the Middle East region and Europe with a decline in North and South America. |
| The increase in demand in 2024 was caused by a stable market and share growth. |
| The company continues to manufacture silicone and non-silicone based speciality chemicals and entered into a tolling services agreement with GmbH. Under the terms of this agreement, the Company provides manufacturing services for the GmbH. The company receives compensation for these services on a cost-plus fee basis. |
| In addition, the company continues to recognise the revenue with its customers, being charged by GmbH for the finished products associated with the sales. |
| KEY PERFORMANCE INDICATORS |
| The company uses a range of performance measures to monitor and manage the business effectively. These are both financial and non-financial and the most significant of these are the key performance indicators (KPI's). The KPI's for the year ended 31 December 2024 with comparatives for 2023 and 2022 are summarised as follows: |
| 2024 | 2023 | 2022 |
| Gross Profit % | 20% | 16% | 31% |
| Turnover | £24.463,384 | £24,108,475 | £27,800,981 |
| Profit before tax | £2,682,051 | £1,083,075 | £5,923,988 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company is exposed to low levels of price, credit, liquidity and cash flow risk. The company manages these risks by financing its operations through retained profits and has access to a full range of financial support available from its parent company if the need should ever arise. |
| The management's objectives are to retain sufficient liquid funds to enable it to meet its day to day trading requirements, to minimise the company's exposure to fluctuation customer cash flow, and manage future cash flows expected to arise from the company's trading activities. |
| The company makes little use of financial instruments other than an operational bank account so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company. |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| STRATEGY FOR GROWTH |
| Basildon Chemical Co. Limited continues to strengthen the existing product portfolio through the technical resources within the company, the acquisition of complimentary products targeted at our key markets and by the utilisation of the significant Research and Development capabilities in Momentive Performance Materials that provides access to innovative and novel technology. |
| Momentive Performance Materials has continued to strengthen Basildon Chemical Co. Limited, in terms of geographic coverage and enhanced relationships with key customers. The expectation is an improvement in the global economy in 2025 resulting in improved orders and sales to our target customers and markets going forward. |
| In September 2018, MPM Holdings Inc, a global silicones and advanced materials company, and SJL Partners LLC, KCC Corporation and Wonik QnC Corporation (collectively, the "Investor Group"), entered into a definitive merger agreement whereby the Investor Group would acquire Momentive in a transaction valued at approximately $3.1 billion, including the assumption of net debt, pension and OPEB liabilities. |
| In January 2021 KCC Corp sold it Silicone division, including 100% of the shares in Basildon Chemical to MPM Holdings Inc. Subsequently the company was acquired by Momentive Performance Materials Holdings UK Limited. Based on the expected strategic synergy effects, the planned system and business integration combined with on-going development of our technology platforms will enable the company to grow the business and improve earnings going forward. |
| ON BEHALF OF THE BOARD: |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
| DIVIDENDS |
| Dividends of £3,957,250 were paid by the company to its parent company during the year. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| Disclosures required under Schedule 7 have been disclosed in the Strategic Report in accordance with S414C(11) of the Companies Act 2006. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies 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 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. |
| 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 company'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 company's auditors are aware of that information. |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| AUDITORS |
| The auditors, Xeinadin Audit 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 |
| BASILDON CHEMICAL CO. LIMITED |
| Opinion |
| We have audited the financial statements of Basildon Chemical Co. Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 December 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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 |
| BASILDON CHEMICAL CO. LIMITED |
| 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 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, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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: |
| The audit was planned on the basis that the testing undertaken and procedures carried out would have a reasonable expectation of detecting any instances of irregularity including fraud. The plan involved assessing the risk of the financial statements containing material misstatements taking into account various factors such as the control systems in place, the standard of record keeping and an assessment of the influence and role of the stakeholders involved. The audit plan was followed and benefitted from the audit teams knowledge of the client. They considered how fraud may occur and where the financial statements may be susceptible to error. |
| Suitable transaction sample testing was made on the high risk areas of the financial statements. Enquiries were made of the company directors for information and explanations as required during the course of the audit and any contentious areas appropriately challenged to ensure that sufficient audit evidence was obtained. |
| The procedures and testing undertaken as a result of our risk assessments were deemed sufficient to identify material errors for which adjustment was then made in the financial statements. There is however no guarantee that all errors, including those related to fraud, would be identified as part of the audit. |
| 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 |
| BASILDON CHEMICAL CO. 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 |
| (Statutory Auditor) |
| Court House |
| Court Road |
| Bridgend |
| CF31 1BE |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Distribution costs |
| Administrative expenses |
| 2,237,372 | 2,803,832 |
| 2,586,036 | 1,052,175 |
| Other operating (expenses) / |
| income | ( |
) | ( |
) |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| PROFIT BEFORE TAXATION |
| Tax on profit | 6 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| STATEMENT OF FINANCIAL POSITION |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 8 |
| Tangible assets | 9 |
| CURRENT ASSETS |
| Stocks | 10 |
| Debtors | 11 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of intangible fixed assets |
| Sale of tangible fixed assets | ( |
) |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Decrease in group/associated debtors | ( |
) |
| Increase in group/associated | ( |
) |
| Equity dividends paid | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
3,346,078 |
| Cash and cash equivalents at end of year |
2 |
2,252,247 |
2,628,933 |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| (Profit)/loss on disposal of fixed assets | ( |
) |
| Finance income | (482,864 | ) | (94,972 | ) |
| 2,745,716 | 1,596,762 |
| (Increase)/decrease in stocks | ( |
) |
| Decrease in trade and other debtors |
| Decrease in trade and other creditors | ( |
) | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 December 2024 |
| 31.12.24 | 1.1.24 |
| £ | £ |
| Cash and cash equivalents | 2,252,247 | 2,628,933 |
| Year ended 31 December 2023 |
| 31.12.23 | 1.1.23 |
| £ | £ |
| Cash and cash equivalents | 2,628,933 | 3,346,078 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.1.24 | Cash flow | At 31.12.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,628,933 | (376,686 | ) | 2,252,247 |
| 2,628,933 | ( |
) | 2,252,247 |
| Total | 2,628,933 | (376,686 | ) | 2,252,247 |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Basildon Chemical Co. Limited Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
| The Directors have reviewed and considered relevant future budgetary information in making their assessment of going concern and assured themselves of the ongoing financial support of the group parent organisations. On the basis of these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements. |
| Significant material judgements, estimates and uncertainty |
| In applying the accounting policies decisions sometimes have to be made about the likely outcome of future events.Those judgements and estimates made in preparing the financial statements are based upon historical experience and assumptions that the directors believed were reasonable the circumstances. |
| a. Useful economic life of tangible and intangible assets |
| The useful economic life of assets is kept under annual review. Amendment is made is if the estimate of useful life requires change as a result of technological change or the economic use or physical condition of the assets. |
| b.Goodwill |
| The useful life of goodwill was assessed annually to ensure that the estimation of the future productive economic life of the trading assets and liabilities which the goodwill is derived will continue to be deliverable. |
| c. Going concern |
| The ability of the company to continue to trade as a going concern is assessed annually by the directors considering the greater support of the Momentive group and the plans that will be in place for future trading. |
| d. Deferred taxation |
| Is estimated based upon a calculation of tax timing difference that are likely to arise. |
| e. Other estimates |
| The directors annually calculate on a consistent basis any provisions that may be required in connection with bad debts or stocks that make require a reduction in value. |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers. |
| Revenue from the sale of goods is recognised when significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon shipment, completion of the predict or the product being ready for delivery, based on specific contract terms. |
| Revenue from services provided by the company is recognised when the company has performed its obligations and in exchange obtained the right to consideration. |
| Goodwill |
| Goodwill, being the amount paid in connection with the acquisition of a business in 2019 was being amortised evenly over its estimated useful life of ten years until the trade relating to the goodwill was disposed of during the year. |
| 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. |
| Goodwill has been amortised evenly over its estimated useful life of 10 years. It represented the additional sum over the value of a collection of trading assets and liabilities that the company bought as a going concern trading enterprise in September 2019. The personal care trade was sold to a third party during the year. |
| Patents and licences are being amortised evenly over their estimated useful life of three years. |
| Development costs which relate to the information and technology sector of the company infrastructure are being amortised evenly over their estimated useful life of four years. |
| Computer software is being amortised evenly over its estimated useful life of three years. |
| Tangible fixed assets |
| Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, plus any costs directly attributable to bringing the asset to its working condition for intended use. |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
| Freehold property | - Straight line over 50 years and Straight line over 30 years |
| Fixtures and fittings | - Straight line over 3 - 15 years |
| Motor Vehicles | - Straight line over 2 - 5 years |
| The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value. |
| The company values all stock items initially at average cost. More complex products have an overhead added to them using a standard basis of calculation. The more complex the product is to manufacture, the higher the overhead rate attributed. |
| Full provision is made for obsolete and slow moving items. |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date. |
| Deferred taxation |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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. |
| Leasing commitments |
| The company makes payments under short term operating leases which are charged as they arise to the Profit and Loss account. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. Annual contributions payable to the company's pension scheme are charged to the profit & loss account in the period to which they relate. |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| £ | £ |
| United Kingdom |
| Europe |
| United States of America |
| South America |
| Middle East | 2,668,298 | 1,827,527 |
| Rest of the World | 3,885,701 | 3,922,120 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Distribution & Admin | 28 | 30 |
| Manufacturing | 30 | 25 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| (Profit)/loss on disposal of fixed assets | ( |
) |
| Computer software amortisation |
| Auditors' remuneration |
| Foreign exchange differences |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior period adjustment | - | (90 | ) |
| Total current tax |
| Deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes | 310 | 22,649 |
| Depreciation in excess of capital allowances | (78 | ) | (1,353 | ) |
| Profit on disposal of fixed assets | (1,847 | ) | (10,500 | ) |
| Deferred tax | 16,438 | 29,878 |
| Prior year adjustment | (22,819 | ) | (90 | ) |
| Effective current year and standard tax rate difference | - | (18,969 | ) |
| Total tax charge | 662,517 | 292,384 |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 7. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Ordinary-full rights to voting income and capital return shares of £1 | each |
| Final |
| 8. | INTANGIBLE FIXED ASSETS |
| Computer |
| software |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 |
| AMORTISATION |
| At 1 January 2024 |
| and 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 9. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Freehold | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 10. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Raw materials |
| Finished goods |
| The replacement cost of stock did not differ significantly from the figures shown. |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Tax |
| VAT |
| Prepayments |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Tax |
| Social security and other taxes |
| Accrued expenses |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Other creditors |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 15. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 534,195 | 517,757 |
| Deferred tax |
| £ |
| Balance at 1 January 2024 |
| Charge to income | 16,438 |
| Balance at 31 December 2024 |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary-full rights to voting |
| income and capital return | £1 | 100,000 | 100,000 |
| 17. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 January 2024 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 December 2024 |
| 18. | PENSION COMMITMENTS |
| The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Pensions costs amounted to £153,584 (2023 - £113,533) and the amount of contributions outstanding and due at the year end amounted to £24,517 (2023 - £23,856). |
| BASILDON CHEMICAL CO. LIMITED (REGISTERED NUMBER: 01016104) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 19. | RELATED PARTY DISCLOSURES |
| During the year the company entered into the following trading transactions with other related parties: |
Remuneration |
Sales & Royalty income |
Purchases & expenses |
BalanceDr/(Cr) |
| £ | £ | £ | £ |
| Key Management remuneration |
110,507 |
- |
- |
- |
| Momentive Group companies |
- |
- |
16,824,613 |
-2,221,623 |
| During the year, dividends were paid to the parent group company of £3,957,250 |
| Income, purchases and expenses transacted with related parties were undertaken in the normal course of business with outstanding balances repayable on normal commercial terms. |
| 20. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is |
| In January 2021 the whole of the share capital was purchased by Momentive Performance Materials Holdings UK Limited, a company incorporated in the United Kingdom (Company number 13035356). |
| Through the Momentive company ownership structure the company is ultimately owned by the KCC Corporation based in South Korea who now own a 60% controlling shareholding.Before this disposal took place they owned 100%. |