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Registered number: 00580109
Safic-Alcan UK Limited
Annual Report and Financial Statements
For the Year Ended 31 December 2024
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Safic-Alcan UK Limited
Company Information
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Chartered Accountants & Statutory Auditor
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Safic-Alcan UK Limited
Contents
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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Safic-Alcan UK Limited
Strategic Report
For the Year Ended 31 December 2024
The directors present their Strategic report for the year ended 31 December 2024.
The results for the year show an increase operating profit to £10.82m (2023 - £10.40m) as well as a strengthening of the closing net asset position to £30.14m (2023 - £28.95m).
On 1 January 2024, the trade of 4PLAS Limited was transferred into Safic-Alcan UK Limited which has contributed to the increased revenue and resulted in an investment income of £0.6m. 4PLAS was originally acquired in February 2023 and supplies innovative polymer solutions to the injection moulding industry in the United Kingdom.
During 2024, the company retained its platinum status with EcoVadis. This is a fantastic recognition of the company’s sustainability efforts and puts Safic-Alcan UK in the top 1% of companies assessed in the past 12 months.
Principal risks and uncertainties
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The directors and senior management team have considered the principal risks and uncertainties facing the business, including both external and internal factors and their potential impact on performance, strategy and long-term viability. The key risks identified for the year are:
Safety, Health and Environmental (SHE) Compliance
Due to the hazardous nature of some of the chemicals distributed, there is an inherent risk of incidents affecting people, the environment and property. Any failure to comply with applicable safety, health and environmental legislation could lead to serious consequences, including prosecution, fines or reputational damage.
The company maintains robust SHE procedures and ensures full compliance with REACH, COSHH and CLP regulations.
Regulatory Changes
The chemical industry is subject to intensive and evolving regulatory frameworks. Brexit and divergence from EU legislation, as well as changes in UK REACH, can increase compliance complexity and operational cost.
The company employs dedicated compliance personnel, engages with regulatory bodies and subscribes to industry alerts to stay informed about upcoming regulatory changes.
Supply Chain Disruption
Disruption in global supply chains, whether due to geopolitical events, port delays or supplier issues, could impact product availability and customer satisfaction.
The company maintains a diversified supplier base, holds strategic stock levels and has strong relationships with multiple transport partners to help mitigate this risk.
Customer Credit Risk
The company is exposed to risk of non-payment or delayed payment by customers, particularly in tough economic situations.
Strong credit control procedures are in place and credit insurance is used for the majority of sales invoices raised.
Page 1
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Safic-Alcan UK Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Currency Risk
The company is exposed to currency risk through its international trade activities. Currency fluctuations, especially in the Euro, USD and other major currencies may lead to volatility in revenue, costs and profitability.
Company policy permits but does not demand that these exposures may be hedged to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.
Natural hedging is also used where possible. Revenues in foreign currencies are matched with costs in the same currency, reducing the net exposure to exchange rate movements.
Financial key performance indicators
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The management team uses a variety of financial and non-financial key performance indicators to assist with the management of the business. Those of most significance are:
∙Operating profit increased to £10.819m for the year (2023 - £10.397m).
∙Net assets: £30.139m at the year end, up from £28.949m in 2023.
∙Indicators such as average stock days, average debtor days and average creditor days are monitored
monthly.
Directors' statement of compliance with duty to promote the success of the Company
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This statement is intended by the Board of Directors to set out how they have approached and met their responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial period ending 31 December 2024.
Stakeholders of the company include employees, shareholders, customers, suppliers, creditors of the business and the community in which it operates.
The directors’, both individually and collectively, consider that they have acted in good faith to promote the success of the company for the benefit of its stakeholders as a whole (having regard to the matters set out in s172 of the Act) in the decisions taken during the period. In particular:
∙To ensure the directors and senior management team take account of the likely consequences of their decisions in the long term, they review monthly information on all the key areas of the business including financial performance, key operational matters, and health, safety and environmental matters. The company's performance and progress are also reviewed regularly at senior management meetings.
∙All employees are critical for the continued success of the business. The directors and senior management team will consult all employees before making strategic decisions that will potentially affect them. The employee forum allows representatives of all areas of the company to have regular access to members of the senior management team. This forum works together to improve the business and the general working environment.
∙The company's customers and suppliers are also fundamental to the success of the business. As a leading supplier of additives and chemicals to a variety of industries including, Rubber, Plastics, Adhesives, Polyurethane, Coatings, Inks, Construction, Cosmetics, Pharmaceuticals and Nutraceuticals, it is essential the company maintains its reputation for high quality products and a high standard of business conduct. The company strive to continually improve and strengthen its supply chain, products, and customer service for the mutual benefit of all its stakeholders.
∙The directors take environmental matters into consideration as part of their decision-making process and aim to be a responsible member of the local and wider community, minimising the company's impact on the environment wherever possible. The company is registered to ISO14001 - the international standard that specifies requirements for an effective environmental system (EMS).
Page 2
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Safic-Alcan UK Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
∙The company holds an EcoVadis Platinum certification. This covers a broad range of non-financial management systems including Environmental, Labour & Human Rights, Ethics and Sustainable Procurement impacts. Each company is rated on the material issues as they pertain to the company's size, location, and industry.
∙The directors' intentions are to behave responsibly toward all stakeholders and treat them fairly and equally, so that they all benefit from the long-term success of the company.
The directors' have overall responsibility for determining the company's purpose, values, and strategy and for
ensuring high standards of governance. The primary aim of the directors' is to promote the long-term
sustainable success of the company, generating value for stakeholders and contributing to the wider society.
Throughout 2024, the Board will continue to review and challenge how the company can improve engagement
with its employees and other stakeholders.
This report was approved by the board and signed on its behalf.
Page 3
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Safic-Alcan UK Limited
Directors' Report
For the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £8,690,065 (2023 - £7,905,243).
The dividends for the year amounted to £7,500,000 (2023: £1,750,000).
The directors who served during the year were:
B J McDonnell
Safic-Alcan SAS (appointed 31 January 2024)
P Combette (resigned 31 January 2024)
M G M Lecat (resigned 31 January 2024)
Safic-Alcan will continue to review and identify acquisition opportunities as well as increasing the product portfolio by acquiring new Principals where appropriate.
The directors will also continue to investigate all opportunities that may arise that will facilitate further growth and improved profitability for the business.
Page 4
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Safic-Alcan UK Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
Engagement with suppliers, customers and others
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Details on how the Company has engaged with suppliers, customers and others are given in the Directors’ statement of compliance with duty to promote the success of the Company within the strategic report.
Greenhouse gas emissions, energy consumption and energy efficiency action
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In October 2024, Safic-Alcan UK entered into contracts for 100% renewable electricity for a significant portion of its operations. The electricity supplied is certified by Renewable Energy Guarantees of Origin (REGO), which ensures that the energy is sourced from renewable sources.
In line with the Streamlined Energy and Carbon Reporting (SECR) regulations, this report includes both location-based and market-based emissions to give a comprehensive and transparent view of energy usage and the carbon footprint of the company.
The quantity of emissions in tonnes of carbon dioxide equivalent (tCO2e) for this financial year is summarised below along with comparative figures for the previous period.
The emissions and energy consumption information has been calculated using the 2024 UK Government GHG Conversion Factors for Company reporting.
These emissions result from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport; and the purchase of electricity by the Company for its own use, including for the purpose of transport.
Energy Consumption
The total kWh consumed for the financial year was 538,801 kWh (506,282 kWh in 2023). This includes electricity purchased from the national grid and renewable energy supplied through REGO-backed energy contracts.
Location-based (UK Grid Average) – emissions are calculated using the UK grid’s average emissions factor for electricity consumption. It represents the carbon footprint of the electricity consumed from the UK national grid, regardless of any specific energy sources used.
Market-Based (Renewable Energy Contracts) – emissions are calculated based on the specific energy contracts the company has entered into.
Renewable Electricity Consumption: 78,273 kWh
Non-Renewable Electricity Consumption: 267,350 kWh
The emissions associated with the renewable energy consumption are zero under the market-based method.
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Safic-Alcan UK Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
Measures to improve energy efficiency
The company will continue to monitor energy consumption patterns and explore opportunities for reducing emissions.
The Company has implemented a new car lease policy which allows hybrid cars only. Additional car charging points will be installed at both locations.
An awareness campaign was launched across both facilities to remind people of the importance of turning off heating, lighting and non-essential equipment when not in use.
The Environmental Management System of Safic-Alcan UK is registered to ISO 14001:2015 standard.
Intensity measurement
The chosen intensity measurement is total emissions in metric tonnes tCO2e per £m of turnover.
Location-Based Carbon Intensity: 1.57 tCO2e/£m (1.45 tCO2e/£m in 2023)
Market-Based Carbon Intensity: 1.34 tCO2e/£m (1.45 tCO2e/£m in 2023)
The move to renewable energy only started in October 2024 but the positive impact on the intensity measurement is already visible.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
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Information relating to events since the end of the year is given in the Strategic Report and in Note 25.
The auditor, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 6
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Safic-Alcan UK Limited
Independent Auditor's Report to the Members of Safic-Alcan UK Limited
We have audited the financial statements of Safic-Alcan UK Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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.
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 United Kingdom, including the Financial Reporting Council'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
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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.
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.
Page 7
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Safic-Alcan UK Limited
Independent Auditor's Report to the Members of Safic-Alcan UK Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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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:
∙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
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.
Page 8
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Safic-Alcan UK Limited
Independent Auditor's Report to the Members of Safic-Alcan UK Limited (continued)
Auditor's responsibilities for the audit of the financial statements
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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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and REACH regulations. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements, such as the valuation of investments and goodwill. Audit procedures performed by the engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety, employment law and REACH) and fraud;
∙Assessment of identified fraud risk factors;
∙Challenging assumptions and judgements made by management in its significant accounting estimates;
∙Checking and reperforming the reconciliation of key control accounts;
∙Performing a debtors circularisation and agreeing year-end trade debtors to cash received;
∙Review of internal controls and physical inspection of stock;
∙Confirmation of the quantity of stock held by third parties;
∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business;
∙Performing analytical procedures with automatic data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
∙Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities:
∙Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
∙Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation.
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Safic-Alcan UK Limited
Independent Auditor's Report to the Members of Safic-Alcan UK Limited (continued)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
James Peach FCA (Senior Statutory Auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Horsham
12 June 2025
Page 10
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Safic-Alcan UK Limited
Statement of Comprehensive Income
For the Year Ended 31 December 2024
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Income from fixed assets investments
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Amounts written off investments
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Other comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 14 to 28 form part of these financial statements.
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Page 11
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Safic-Alcan UK Limited
Registered number: 00580109
Balance Sheet
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Capital redemption reserve
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 June 2025.
The notes on pages 14 to 28 form part of these financial statements.
Page 12
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Safic-Alcan UK Limited
Statement of Changes in Equity
For the Year Ended 31 December 2024
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Capital redemption reserve
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The notes on pages 14 to 28 form part of these financial statements.
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Page 13
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Safic-Alcan UK Limited is a private limited company limited by shares and incorporated in England with the registration number 00580109.
As part of the Safic-Alcan Group, the principal activity of the company is a specialist chemical distributor for industries such as rubber, plastics, adhesives and coatings as well as being a key supplier in the personal care and pharmaceutical sectors.
The address of the registered office and principal place of business is:
812 Fountain Court
Birchwood Boulevard
Birchwood
Warrington
WA3 7QZ
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in GBP and rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Myrtil SAS as at 31 December 2024 and these financial statements may be obtained from 13, Cours Valmy, Tour Pacific - 92977, La
Defense Cedex, Paris, France.
Page 14
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the HM Revenue and Customs' monthly average exchange rates in the month of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 15
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life. This is estimated to be 10 to 15 years.
Page 16
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Short-term leasehold property
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3 to 10 years or term of the lease
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3 to 10 years straight line
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3 to 4 years straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Page 17
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument.
Cash and cash equivalents
These comprise cash at bank and other short-term highly liquid bank deposits with an original maturity of three months or less.
Debtors
Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the Statement of Comprehensive Income when there is objective evidence that the asset is impaired.
Creditors
Short term creditors are measured at the transaction price.
Derivatives
Forward foreign exchange contracts are initially recognised at fair value on the date a contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value are recognised in cost of sales. The Company does not currently apply hedge accounting for foreign exchange derivatives.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Page 18
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the directors to make judgement, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgements have had the most significant impact on amounts recognised in the financial statements:
Goodwill
The company has recognised goodwill arising from business combinations with a carrying value of £7,452,486 at the reporting date (see note 13). On acquisition, the company determines a reliable estimate of the useful life of goodwill and intangible assets based upon factors such as the expected use of the acquired business, forecasts of expected future results and cash flows, and any legal, regulatory or contractual provisions that can limit useful life. At each subsequent reporting date, the directors consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the useful economic life of goodwill and intangible assets.
Fixed asset investments
The company has investments in subsidiaries with a carrying value of £40,000 at the reporting date (see note 15). Investments are held at historical cost less impairment to date. At each subsequent reporting date, the directors consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to recognise further impairment.
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
Page 19
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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The operating profit is stated after charging:
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Other operating lease rentals
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Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
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Fees payable to the Company's auditor and its associates in respect of:
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Taxation compliance services
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Page 20
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £327,179 (2023 - £306,060).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2023 - £8,500).
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Key management personnel remuneration
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Key management personnel emoluments
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Company contributions to defined contribution pension scheme
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Dividends received from unlisted investments
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Interest payable and similar expenses
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Loans from group undertakings
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Page 21
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Current tax on profits for the year
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 24.09%). On 1 April 2023 the corporation tax rate was increased to 25% from 19%. The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 24.09%)
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Non-tax deductible amortisation of goodwill and impairment
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Capital allowances for year in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
Page 22
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Transfer from investments on hive up
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Charge for the year on owned assets
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On 28 February 2023 the Company acquired 100% of the share capital in 4PLAS Limited for consideration of £6,449,975.
On 1 January 2024, the trade and assets of 4PLAS Limited were hived up into the Company.
In calculating the goodwill arising on this acquisition, the fair value of the assets in 4PLAS Limited were tangible fixed assets of £10,373, stocks of £1,011,948, debtors of £2,752,843, cash of £619,362 and creditors of £2,983,800.
The useful economic life of this goodwill has been estimated to be 15 years.
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Page 23
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Short-term leasehold property
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Charge for the year on owned assets
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Page 24
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Investments in subsidiary companies
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Transfer to goodwill on hive up
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The following was a subsidiary undertaking of the Company:
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The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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During the year the following entities were dissolved:
Langley-Smith Holdings Limited
Langley-Smith & Company Limited
Langley-Smith International Limited
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Page 25
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Finished goods and goods for resale
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The carrying value of stocks are stated net of impairment losses totalling £294,443 (2023 - £142,295). Impairment losses totalling £149,170 (2023 - £35,292) were recognised in the Statement of Comprehensive Income.
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Allotted, called up and fully paid
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2,121,929 (2023 - 2,121,929) Ordinary shares of £1.00 each
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Page 26
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Capital redemption reserve
During 2008, the Company purchased 2,878,071 of its own £1 shares. The capital redemption reserve comprises non-distributable reserves utilised by the company to purchase these shares.
Profit and loss account
The profit and loss account comprises all current and prior period retained profits and losses after deducting any distributions to the company's shareholders.
A debenture in favour of Natixis Bank has been given by the Company in respect of an Intercreditor agreement incorporating a fixed and floating charge over all the current and future assets of the company.
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. The pension cost charge represents contributions payable by the Company to the fund and amounted to £151,181 (2023 - £130,576). Contributions totalling £2,972 (2023 - £2,986) were payable to the fund at the balance sheet date.
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company has claimed the exemption available for disclosing transactions with 100% group members. Transactions with the following group companies do not meet this criteria.
During 2024, the Company made sales to Chemspec Canada, a fellow (non 100% owned) group company amounting to £nil (2023 - £11,306). No amounts were due from this company as at the year end.
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Page 27
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Safic-Alcan UK Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Post balance sheet events
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It was resolved on 18 March 2025 that the company would pay a dividend to its shareholder Safic-Alcan Espana, SA in respect of the financial results for the year ended 31 December 2024.
The value of the dividend payment was £10,000,000.
The ultimate parent company is Wisteria SAS, incorporated in France.
The immediate parent company is Safic-Alcan Espana SA, incorporated in Spain.
The only group in which the results of Safic-Alcan UK Limited are consolidated is that headed by Myrtil SAS. The consolidated accounts as at 31 December 2024 can be obtained from 13, Cours Valmy, Tour Pacific - 92977, La Defense Cedex, Paris, France.
Page 28
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