Company registration number 02184127 (England and Wales)
Menzolit Ltd.
Annual report and financial statements
For the year ended 31 December 2024
Menzolit Ltd.
Company information
Directors
Mr W H Folger
Mr J Montobbio
Secretary
Mr T Bulcock
Company number
02184127
Registered office
Farrington Road Industrial Estate
Farrington Road
Burnley
Lancashire
England
BB11 5DB
Auditor
DJH Audit Limited
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Menzolit Ltd.
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
Menzolit Ltd.
Strategic report
For the year ended 31 December 2024
- 1 -

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

Review of the business

The results for the period and financial position of the company are shown in the annexed financial statements.

2024 has shown a significant decrease in revenue, due to market conditions Menzolit has followed that trend. However, raw material costs have remained stable due to pricing indices protecting gross profit margins.

While turnover for 2024 saw a decrease, margins have been protected and shift pattern changes have largely protected profitability. With the first full year of the solar panels following installation in 2023, we have seen a large reduction in energy overheads versus 2023.

 

There were no Health and Safety incidents to be reported.

 

The company has no single loan to be paid.

Principal risks and uncertainties

The directors have assessed the main risk facing the company is the slowing of the market seen from summer 2024 onwards, which has affected the level of activity of Menzolit customers. While internally, despite long serving staff members, an aging workforce will need to be addressed.

Forecasts prepared by the directors show stability for the company, in terms of both turnover and profitability, but the short-term risks mentioned above cannot be neglected.

In 2023, the company decided to stop the agency contract with Sertec Limited. The case is still open awaiting final decision, with a large accrual in place.

Key performance indicators

The company appraises business performance and stability according to key performance indicators.

2024

2023

Change

Revenue

£16,315,025

£20,348,378

-19.8%

Gross Profit Margin %

23.6%

20.6%

+3%

Profit Before Tax Margin %

5.7%

6.4%

-0.7%

Future Developments

Menzolit Ltd will continue to invest in upgrading the plant and training for the workforce to maintain its competitiveness. The company will reinforce its very close relationship with key customers, to provide a foundation to grow and expand the business organically.

In collaboration with sister companies in Spain and Italy, the company continues to develop new products and several new products are expected to be launched during the next financial year.

On behalf of the board

Mr J Montobbio
Director
1 April 2025
Menzolit Ltd.
Directors' report
For the year ended 31 December 2024
- 2 -

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 the production, marketing and sale of thermoset moulding compounds (SMC/BMC).

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £250,000. 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:

Mr W H Folger
Mr J Montobbio
Auditor

DJH Audit Limited have indicated its willingness to be reappointed for another term and appropriate arrangement are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr J Montobbio
Director
1 April 2025
Menzolit Ltd.
Directors' responsibilities statement
For the year ended 31 December 2024
- 3 -

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.

Menzolit Ltd.
Independent auditor's report
To the members of Menzolit Ltd.
- 4 -
Opinion

We have audited the financial statements of Menzolit Ltd. (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 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:

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.

Menzolit Ltd.
Independent auditor's report (continued)
To the members of Menzolit Ltd.
- 5 -

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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Menzolit Ltd.
Independent auditor's report (continued)
To the members of Menzolit Ltd.
- 6 -

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety legislation and Control of Substances Hazardous to Health 2002.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

 

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

-Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key revenue lines for evidence of management bias.

- Performing a physical verification of key assets, including inventories.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the entity.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Menzolit Ltd.
Independent auditor's report (continued)
To the members of Menzolit Ltd.
- 7 -

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.

Kate Hughes
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
1 April 2025
Accountants
Statutory Auditor
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN
Menzolit Ltd.
Statement of comprehensive income
For the year ended 31 December 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
16,315,025
20,348,378
Cost of sales
(12,461,530)
(16,157,017)
Gross profit
3,853,495
4,191,361
Administrative expenses
(2,926,883)
(2,880,886)
Profit before taxation
926,612
1,310,475
Tax on profit
7
(155,001)
(326,496)
Profit for the financial year
771,611
983,979

The income statement has been prepared on the basis that all operations are continuing operations.

Menzolit Ltd.
Statement of financial position
As at 31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
9
562,030
283,315
Property, plant and equipment
10
4,177,548
4,148,553
4,739,578
4,431,868
Current assets
Inventories
11
1,314,313
1,952,112
Trade and other receivables
12
2,631,815
2,352,885
Cash and cash equivalents
704,464
345,622
4,650,592
4,650,619
Current liabilities
13
(1,470,736)
(1,706,077)
Net current assets
3,179,856
2,944,542
Total assets less current liabilities
7,919,434
7,376,410
Provisions for liabilities
Deferred tax liability
14
575,502
554,089
(575,502)
(554,089)
Net assets
7,343,932
6,822,321
Equity
Called up share capital
16
3,116,947
3,116,947
Retained earnings
4,226,985
3,705,374
Total equity
7,343,932
6,822,321

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 1 April 2025 and are signed on its behalf by:
Mr J  Montobbio
Director
Company registration number 02184127 (England and Wales)
Menzolit Ltd.
Statement of changes in equity
For the year ended 31 December 2024
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2023
3,116,947
2,971,395
6,088,342
Year ended 31 December 2023:
Profit and total comprehensive income
-
983,979
983,979
Dividends
8
-
(250,000)
(250,000)
Balance at 31 December 2023
3,116,947
3,705,374
6,822,321
Year ended 31 December 2024:
Profit and total comprehensive income
-
771,611
771,611
Dividends
8
-
(250,000)
(250,000)
Balance at 31 December 2024
3,116,947
4,226,985
7,343,932
Menzolit Ltd.
Notes to the financial statements
For the year ended 31 December 2024
- 11 -
1
Accounting policies
Company information

Menzolit Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is Farrington Road Industrial Estate, Farrington Road, Burnley, Lancashire, England, BB11 5DB.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Going concern

At the statement of financial position date, the company had retained earnings of £4,true209,696(2023: £3,705,374). The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis in preparing the financial statements.

A slowing of the market led to some significant decreases in revenues particularly in the summer months. This brought into effect certain stress-testing measures not previously exercised in the form of the cutting of a shift and refining overhead expenditure.

Stabilisation of raw material costs came in line with the stabilisation of inflation, leading to a

decrease in held stocks, following stockpiling in 2023. 2023's solar panel installation has helped to see a significant reduction in energy costs during 2024. While cashflow improvement have continued to be reinvested into the infrastructure of the company.

 

The company has cash reserves of £704,464 at the statement of financial position date.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
- 12 -

The company has prepared a detailed budget for 2025 and forecasts for the following two years that show continued profitability. Menzolit regularly updates its forecasts to reflect the latest information available and stress tests any changes to the plan. Close relationships developed with key customers assist in creating accurate forecasting data and as seen in 2024, enable Menzolit to react swiftly to changes and mitigate the effects of any variance from the plan. Discretionary costs will be amended throughout the year depending on the status of the company.

1.3
Revenue

Revenue represents the sale of goods excluding discounts, rebates and value added tax. Sale of goods are recognised when the company has delivered products to the customer, the customer has accepted the products and collection of the related receivables is anticipated.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
Straight line over 4 years
1.5
Property, plant and equipment

Property, plant and equipment 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:

Freehold buildings
Not provided
Plant and equipment
Straight line between 15 and 20 years
Fixtures and fittings
Straight line between 4 and 10 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
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Net realisable value is estimated selling price less costs to complete and sell.

 

The cost represents actual purchase price.

 

Finished goods cost includes an appropriate proportion of fixed and variable overheads.

 

At each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the income statement.

1.8
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.

1.9
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.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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 income statement 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.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
- 16 -
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 income statement, 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.

1.12
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 non-current 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.

1.13
Retirement benefits

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

1.14
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.

1.15
Foreign exchange

Monetary 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 the transaction. Exchange difference are taken into account in arriving at the operating result.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 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 are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

 

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

 

Estimating the useful economic life of an asset and the anticipated residual value are considered key in calculating an appropriate depreciation charge.

 

Making judgement based on historical experience on the level of provision required for impairment of inventories. Further information received after the statement of financial position date may impact on the level of provision required.

3
Revenue
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
15,397,581
19,432,201
Europe
917,444
916,177
16,315,025
20,348,378
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(2,904)
6,502
Fees payable to the company's auditor for the audit of the company's financial statements
13,431
13,328
Depreciation of owned property, plant and equipment
445,908
387,280
Profit on disposal of property, plant and equipment
(715)
-
Amortisation of intangible assets
91,943
-
Operating lease charges
55,152
32,722
Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
Management
5
5
Production and sales staff
25
27
Administration
3
3
Total
33
35

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,374,339
1,343,755
Social security costs
134,628
122,208
Pension costs
103,008
101,162
1,611,975
1,567,125
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
90,933
86,957
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
133,588
129,656
Deferred tax
Origination and reversal of timing differences
21,413
196,840
Total tax charge
155,001
326,496
Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
7
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
Profit before taxation
926,612
1,310,475
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
231,653
327,619
Tax effect of expenses that are not deductible in determining taxable profit
(230)
7,032
Effect of change in corporation tax rate
-
0
(8,155)
Permanent capital allowances in excess of depreciation
(97,835)
-
0
Deferred tax movement
21,413
-
0
Taxation charge for the year
155,001
326,496
8
Dividends
2024
2023
£
£
Interim paid - Ordinary shares
250,000
250,000
9
Intangible fixed assets
Software
£
Cost
At 1 January 2024
283,315
Additions
370,658
At 31 December 2024
653,973
Amortisation and impairment
At 1 January 2024
-
0
Amortisation charged for the year
91,943
At 31 December 2024
91,943
Carrying amount
At 31 December 2024
562,030
At 31 December 2023
283,315
Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 20 -
10
Property, plant and equipment
Freehold buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2024
2,344,136
4,184,795
755,086
7,284,017
Additions
13,493
289,510
173,166
476,169
Disposals
-
0
-
0
(1,642)
(1,642)
At 31 December 2024
2,357,629
4,474,305
926,610
7,758,544
Depreciation and impairment
At 1 January 2024
481,154
2,104,251
550,059
3,135,464
Depreciation charged in the year
55,247
286,375
104,286
445,908
Eliminated in respect of disposals
-
0
-
0
(376)
(376)
At 31 December 2024
536,401
2,390,626
653,969
3,580,996
Carrying amount
At 31 December 2024
1,821,228
2,083,679
272,641
4,177,548
At 31 December 2023
1,862,982
2,080,544
205,027
4,148,553

The residual values, estimated useful lives and depreciation methods of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

11
Inventories
2024
2023
£
£
Raw materials and consumables
974,031
1,431,848
Finished goods and goods for resale
340,282
520,264
1,314,313
1,952,112
12
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,781,795
1,791,016
Corporation tax recoverable
159,682
136,579
Amounts owed by group undertakings
484,712
119,884
Other receivables
205,626
305,406
2,631,815
2,352,885
Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 21 -
13
Current liabilities
2024
2023
£
£
Trade payables
508,750
888,254
Amounts owed to group undertakings
102,738
94,770
Taxation and social security
462,342
336,714
Accruals and deferred income
396,906
386,339
1,470,736
1,706,077
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
575,502
554,089
2024
Movements in the year:
£
Liability at 1 January 2024
554,089
Charge to other comprehensive income
21,413
Liability at 31 December 2024
575,502

 

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,008
101,162

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.

Menzolit Ltd.
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 22 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,116,947
3,116,947
3,116,947
3,116,947
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
40,762
31,697
Between two and five years
104,425
90,533
In over five years
-
0
14,716
145,187
136,946
18
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of property, plant and equipment
-
60,150
19
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

20
Ultimate controlling party

At the year end the ultimate parent company was Senata GmbH, a company registered in Germany. The consolidated accounts are available to the public and may be obtained from Senata GmbH, Gute Anger 1, 85356 Freising, Germany.

21
Control

Day-to-day control of the company is held by the director, J Montobbio. Overall control of the company is held by Dr. Werner Folger, by way of his control of the parent company, Senata GmbH.

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