| REGISTERED NUMBER: 10366229 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| WATERSIDE COLOURS LIMITED |
| REGISTERED NUMBER: 10366229 (England and Wales) |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| WATERSIDE COLOURS LIMITED |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 10 |
| Consolidated Other Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 |
| WATERSIDE COLOURS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 12 King Street |
| Leeds |
| LS1 2HL |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report of the Company and the Group for the year ended 31 December 2024. |
| Waterside Colours is a supplier of dyestuffs, pigments and performance products to the paper industries worldwide. |
| REVIEW OF BUSINESS |
| These are the Group's first consolidated financial statement and include the commencement of activities in the USA |
| through Waterside Colours Inc. |
| In this year of trading, the Group has seen a small reduction in revenue but an increase in net assets. |
| The Group results as reported in the financial statements are summarised as: |
| 31.12.24 | 31.12.23 | + / - |
| £ | £ | £ |
| Turnover | 20,401,997 | 21,279,775 | (877,778 | ) |
| Operating profit | 784,402 | 572,578 | 211,824 |
| Net assets | 4,396,246 | 3,900,038 | 496,208 |
| The Group has continued to develop new markets at a time when traditional markets continue to experience reduced volumes, leading to competition pushing for market share and resulting in turnover decreasing marginally by £877,778 (-4%). The Group is confident that it is maintaining market share within its traditional markets despite market conditions hardening. There has been an increase in operating profit compared to the previous year's results of £211,824 (+37%) due to improved gross margin and the reduction of factory closure costs. Net assets increased by £496,208 from £3,900,038 to £4,396,246. |
| Waterside Colours Inc continues to pursue growth by sales expansion into the US. |
| During the previous year the Group decided to close its UK Manufacturing operation, which has now been completed. |
| Going concern and future developments |
| The Directors intend to continue to build on the Group's progress and to further develop the business, particularly in markets outside the United Kingdom, and the US. |
| In this Strategic Report, the Directors are required to consider and comment on going concern issues relevant to the Group's financial position.This includes an assessment of the Group's trading prospects and cash flows over a period of at least one year from the date of approval of these financial statements. |
| The inflationary pressures on costs, particularly staff, transportation and raw materials, that have impacted on operating profit, whilst mitigated to some extent through increased pricing, are expected to continue for some time. The general malaise and uncertainty in the sector, and other economic uncertainties outside of the Group's control, are expected to strongly influence the level of demand for product and therefore growth from existing markets in the near future. Development of new markets and an increased customer base will provide some offset as well as, in the medium term, provide a firm foundation for when the global levels of demand return. |
| The Board remain confident in their expectations of the Group's overall performance.Whilst the current economic climate, creates both cashflow and profitability risks for businesses generally, the Directors consider that on balance the Group has sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements, on the basis of information available to them as at the date of approval. Accordingly, these financial statements have been prepared on the going concern basis |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| In common with other sales orientated businesses the principal risks to the business are |
| - changes in the Group's markets; |
| - competitive pressures; |
| - materials pricing and availability; |
| - regulatory changes. |
| Whilst certain aspects of raw material availability and pricing are ultimately outside of the Group's control, well established relationships with suppliers exist. |
| The Group operates in multiple currencies with consequent foreign exchange exposure. A significant amount of natural hedging against exchange risk is achieved through purchasing and financing polices, and the position is regularly monitored by the Board. |
| ON BEHALF OF THE BOARD: |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their report with the financial statements of the Company and the Group for the year ended 31 December 2024. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2024. |
| RESEARCH AND DEVELOPMENT |
| The Group conducts research and development in respect of new and existing products and their manufacture. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| FINANCIAL INSTRUMENTS |
| The Group has a normal business level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. |
| The Group trades in a number of different currencies, predominantly the pound sterling and the euro. |
| The foreign exchange risk is mitigated through euro-denominated materials purchases and bank borrowings. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The Group has chosen in accordance with s414C (11) to the Companies Act 2006 to set out the Strategic Report Information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained within the Directors Report. It has done so in respect of research and development and financial instruments. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| AUDITORS |
| The auditors, Azets Audit Services Limited, are deemed to be re-appointed under section 487(2) of the Companies Act 2006.. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WATERSIDE COLOURS LIMITED |
| Opinion |
| We have audited the financial statements of Waterside Colours Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2024 and of the Group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WATERSIDE COLOURS LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WATERSIDE COLOURS LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| Extent to which the audit was considered capable of detecting irregularities, including fraud |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. |
| We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. |
| In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: |
| - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; |
| - Reviewing minutes of meetings of those charged with governance; |
| - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; |
| - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
| - Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias; and |
| - Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period. |
| 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 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. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| WATERSIDE COLOURS LIMITED |
| Use of our report |
| This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| 12 King Street |
| Leeds |
| LS1 2HL |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 3 | 20,401,997 | 21,279,775 |
| Cost of sales | 15,185,516 | 16,379,290 |
| GROSS PROFIT | 5,216,481 | 4,900,485 |
| Distribution costs | 927,280 | 898,319 |
| Administrative expenses | 3,504,799 | 3,429,588 |
| 4,432,079 | 4,327,907 |
| OPERATING PROFIT | 5 | 784,402 | 572,578 |
| Interest receivable and similar income | 4,044 | 1,810 |
| 788,446 | 574,388 |
| Interest payable and similar expenses | 6 | 119,177 | 156,198 |
| PROFIT BEFORE TAXATION | 669,269 | 418,190 |
| Tax on profit | 7 | 173,061 | 107,225 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 496,208 | 310,965 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 496,208 | 310,965 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 496,208 | 310,965 |
| Total comprehensive income attributable to: |
| Owners of the parent | 496,208 | 310,965 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| CONSOLIDATED BALANCE SHEET |
| 31 DECEMBER 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 | 331,924 | 453,875 |
| Tangible assets | 10 | 348,430 | 447,985 |
| Investments | 11 | - | - |
| 680,354 | 901,860 |
| CURRENT ASSETS |
| Stocks | 12 | 4,929,094 | 4,677,938 |
| Debtors | 13 | 4,273,124 | 3,939,907 |
| Cash at bank and in hand | 1,004,696 | 1,650,946 |
| 10,206,914 | 10,268,791 |
| CREDITORS |
| Amounts falling due within one year | 14 | 6,461,586 | 7,213,283 |
| NET CURRENT ASSETS | 3,745,328 | 3,055,508 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 4,425,682 | 3,957,368 |
| PROVISIONS FOR LIABILITIES | 18 | 29,436 | 57,330 |
| NET ASSETS | 4,396,246 | 3,900,038 |
| CAPITAL AND RESERVES |
| Called up share capital | 19 | 10,000 | 10,000 |
| Retained earnings | 20 | 4,386,246 | 3,890,038 |
| SHAREHOLDERS' FUNDS | 4,396,246 | 3,900,038 |
| The financial statements were approved by the Board of Directors and authorised for issue on 8 July 2025 and were signed on its behalf by: |
| S A Banks-Cooper - Director |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| COMPANY BALANCE SHEET |
| 31 DECEMBER 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 18 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 507,112 | 311,739 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 | 10,000 | 3,579,073 | 3,589,073 |
| Changes in equity |
| Total comprehensive income | - | 310,965 | 310,965 |
| Balance at 31 December 2023 | 10,000 | 3,890,038 | 3,900,038 |
| Changes in equity |
| Total comprehensive income | - | 496,208 | 496,208 |
| Balance at 31 December 2024 | 10,000 | 4,386,246 | 4,396,246 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2024 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 31.12.24 | 31.12.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | (44,116 | ) | 1,961,149 |
| Interest paid | (119,177 | ) | (156,198 | ) |
| Tax paid | (73,671 | ) | (187,839 | ) |
| Net cash from operating activities | (236,964 | ) | 1,617,112 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (20,438 | ) | (333,203 | ) |
| Purchase of tangible fixed assets | (37,050 | ) | - |
| Interest received | 4,044 | 1,810 |
| Net cash from investing activities | (53,444 | ) | (331,393 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (355,842 | ) | (624,459 | ) |
| Net cash from financing activities | (355,842 | ) | (624,459 | ) |
| (Decrease)/increase in cash and cash equivalents | (646,250 | ) | 661,260 |
| Cash and cash equivalents at beginning of year | 2 | 1,650,946 | 989,686 |
| Cash and cash equivalents at end of year | 2 | 1,004,696 | 1,650,946 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit before taxation | 669,269 | 418,190 |
| Depreciation charges | 278,995 | 278,306 |
| Finance costs | 119,177 | 156,198 |
| Finance income | (4,044 | ) | (1,810 | ) |
| 1,063,397 | 850,884 |
| (Increase)/decrease in stocks | (251,156 | ) | 1,043,583 |
| Increase in trade and other debtors | (333,218 | ) | (165,468 | ) |
| (Decrease)/increase in trade and other creditors | (523,139 | ) | 232,150 |
| Cash generated from operations | (44,116 | ) | 1,961,149 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2024 |
| 31.12.24 | 1.1.24 |
| £ | £ |
| Cash and cash equivalents | 1,004,696 | 1,650,946 |
| Year ended 31 December 2023 |
| 31.12.23 | 1.1.23 |
| £ | £ |
| Cash and cash equivalents | 1,650,946 | 989,686 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.24 | Cash flow | At 31.12.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,650,946 | (646,250 | ) | 1,004,696 |
| 1,650,946 | (646,250 | ) | 1,004,696 |
| Debt |
| Debts falling due within 1 year | (2,427,992 | ) | 355,842 | (2,072,150 | ) |
| (2,427,992 | ) | 355,842 | (2,072,150 | ) |
| Total | (777,046 | ) | (290,408 | ) | (1,067,454 | ) |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Waterside Colours Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| Monetary assets in these financial statements are rounded to the nearest £1. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| These accounts have been prepared under the going concern principle. At the time of approving the financial statements, the directors believe that the group have adequate resources to continue in operational existence for a period of at least one year from the date of approval. In making their assessment of going concern, the directors have also considered forecasts for the group and economic factors generally. Accordingly, these financial statements have been prepared on the going concern basis. |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| the requirements of Section 7 Statement of Cash Flows; |
| the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d); |
| the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A; |
| the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29; |
| the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
| Basis of consolidation |
| Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. |
| The Group uses the purchase method of accounting to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of the minority interest. The excess of the cost of acquisition over the fair value of the Group's share of identifiable assets is recorded as goodwill. |
| Transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed (where necessary) to ensure consistency with the policies adopted by the Group. |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Critical accounting judgements and key sources of estimation uncertainty |
| In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
| The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
| Key sources of estimation uncertainty |
| The following estimates have the most significant effect on amounts recognised in the financial statements. |
| Depreciation and amortisation |
| The depreciation policy has been set according to management's experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year in respect of tangible fixed assets was £136,605 (2023 - £134,127) and the amortisation of intangible fixed assets charged in the year was £142,390 (2023 - £144,180). The Directors consider this is a fair reflection of the benefits derived from the consumption of the assets during the year. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Goodwill |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Long leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments' of FRS 102 to all of its financial instruments. |
| Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument. |
| Financial liabilities are offset, with 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. |
| Basic financial assets |
| Basic financial assets, which includes debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
| 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, 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. |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Basic financial liabilities |
| Basic financial liabilities, including creditors and bank loans 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 creditors 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 creditors 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. |
| Derecognition of financial liabilities |
| Financial liabilities are derecognised when the Company’s contractual obligations expire or are discharged or cancelled. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Cash at bank and in hand |
| Cash at bank and in hand 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 month, and bank overdrafts. |
| Equity instruments |
| Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. |
| Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company. |
| Employee benefits |
| The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
| The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
| Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the Group. |
| An analysis of turnover by geographical market is given below: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| United Kingdom | 3,234,436 | 3,534,179 |
| Europe | 15,864,024 | 16,188,288 |
| North America | 198,276 | 886,398 |
| Rest of the world | 1,105,261 | 670,910 |
| 20,401,997 | 21,279,775 |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Wages and salaries | 1,585,558 | 1,756,322 |
| Social security costs | 139,645 | 180,405 |
| Other pension costs | 88,189 | 102,969 |
| 1,813,392 | 2,039,696 |
| The average number of employees during the year was as follows: |
| 31.12.24 | 31.12.23 |
| Administration & management | 14 | 14 |
| Production & distribution | 9 | 18 |
| Sales & marketing | 5 | 4 |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Directors' remuneration | 50,160 | 50,160 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Hire of plant and machinery | 25,639 | 55,529 |
| Other operating leases | 110,353 | 99,882 |
| Depreciation - owned assets | 136,605 | 134,127 |
| Patents and licences amortisation | 93,767 | 99,610 |
| Computer software amortisation | 48,622 | 44,570 |
| Foreign exchange differences | (2,948 | ) | 24,876 |
| Auditors remuneration | 24,300 | 19,750 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Bank interest | 112,854 | 141,888 |
| Factoring interest | 6,323 | 14,310 |
| 119,177 | 156,198 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Current tax: |
| UK corporation tax | 200,809 | 73,788 |
| Adjustments in respect of prior periods | 146 | - |
| Total current tax | 200,955 | 73,788 |
| Deferred tax | (27,894 | ) | 33,437 |
| Tax on profit | 173,061 | 107,225 |
| UK corporation tax has been charged at 25 % (2023 - 25 %). |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 7. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Profit before tax | 669,269 | 418,190 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
167,317 |
104,548 |
| Effects of: |
| Expenses not deductible for tax purposes | 15,821 | 16,081 |
| Capital allowances in excess of depreciation | - | (41,099 | ) |
| Depreciation in excess of capital allowances | 14,945 | - |
| Adjustments to tax charge in respect of previous periods | 146 | 262 |
| Deferred tax - timing differences | (27,894 | ) | 33,437 |
| Effect of CT rate change 1 April | - | (6,197 | ) |
| Losses in overseas subsidiaries added back | 2,726 | 193 |
| Total tax charge | 173,061 | 107,225 |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| 9. | INTANGIBLE FIXED ASSETS |
| Group |
| Patents |
| and | Computer |
| Goodwill | licences | software | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2024 | 23,870 | 667,135 | 243,108 | 934,113 |
| Additions | - | 20,438 | - | 20,438 |
| At 31 December 2024 | 23,870 | 687,573 | 243,108 | 954,551 |
| AMORTISATION |
| At 1 January 2024 | 23,870 | 411,798 | 44,570 | 480,238 |
| Amortisation for year | - | 93,767 | 48,622 | 142,389 |
| At 31 December 2024 | 23,870 | 505,565 | 93,192 | 622,627 |
| NET BOOK VALUE |
| At 31 December 2024 | - | 182,008 | 149,916 | 331,924 |
| At 31 December 2023 | - | 255,337 | 198,538 | 453,875 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 9. | INTANGIBLE FIXED ASSETS - continued |
| Company |
| Patents |
| and | Computer |
| Goodwill | licences | software | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| At 31 December 2024 |
| AMORTISATION |
| At 1 January 2024 |
| Amortisation for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 10. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 January 2024 | 150,535 | 258,997 | 553,007 |
| Additions | - | - | 31,019 |
| At 31 December 2024 | 150,535 | 258,997 | 584,026 |
| DEPRECIATION |
| At 1 January 2024 | 77,922 | 95,501 | 389,926 |
| Charge for year | 10,874 | 51,800 | 58,008 |
| At 31 December 2024 | 88,796 | 147,301 | 447,934 |
| NET BOOK VALUE |
| At 31 December 2024 | 61,739 | 111,696 | 136,092 |
| At 31 December 2023 | 72,613 | 163,496 | 163,081 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 10. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixtures |
| and | Computer |
| fittings | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 | 75,353 | 80,630 | 1,118,522 |
| Additions | - | 6,031 | 37,050 |
| At 31 December 2024 | 75,353 | 86,661 | 1,155,572 |
| DEPRECIATION |
| At 1 January 2024 | 45,545 | 61,643 | 670,537 |
| Charge for year | 7,693 | 8,230 | 136,605 |
| At 31 December 2024 | 53,238 | 69,873 | 807,142 |
| NET BOOK VALUE |
| At 31 December 2024 | 22,115 | 16,788 | 348,430 |
| At 31 December 2023 | 29,808 | 18,987 | 447,985 |
| Company |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 10. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Fixtures |
| and | Computer |
| fittings | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 11. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| The Group or the Company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Netherlands |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Aggregate capital and reserves |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 11. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Delaware , U.S.A. |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Aggregate capital and reserves |
| 12. | STOCKS |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Raw materials | 4,659 | 118,725 |
| Finished goods | 4,924,435 | 4,559,213 |
| 4,929,094 | 4,677,938 |
| The amount of stock recognised as an expense in cost of sales during the period is £14,940,664 (2023 £16,040,854). |
| There are no write downs or reversals of write downs of inventories in the period or previous period. |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Trade debtors | 3,937,573 | 3,584,133 |
| Other debtors | 78,340 | 79,131 |
| Owed by related undertakings | 59,678 | 36,609 | 151,749 | 40,055 |
| Prepayments and accrued income | 197,533 | 240,034 |
| 4,273,124 | 3,939,907 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 15) | 2,072,150 | 2,427,992 |
| Trade creditors | 380,049 | 431,473 |
| Amounts owed to group undertakings | 2,762,784 | 3,322,176 |
| Social security and other taxes | 333,429 | 219,281 |
| Other creditors | 256,464 | 364,715 |
| Accruals and deferred income | 656,710 | 447,646 |
| 6,461,586 | 7,213,283 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 15. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 2,072,150 | 2,427,992 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Company |
| Non-cancellable operating | leases |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Within one year |
| Between one and five years |
| Operating lease payments represent rentals payable by the company for certain of its properties and assets. |
| 17. | SECURED DEBTS |
| Included in trade creditors is a balance of £28,498 (2023 £1,315) owing to HMRC in respect of VAT and Duty Deferment. This is secured by way of a bank guarantee. |
| 18. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |
| £ | £ | £ | £ |
| Deferred tax | 29,436 | 57,330 | 29,436 | 57,330 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2024 | 57,330 |
| Credit to Income Statement during year | (27,894 | ) |
| Balance at 31 December 2024 | 29,436 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 18. | PROVISIONS FOR LIABILITIES - continued |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2024 |
| Credit to Statement of Comprehensive Income during year | ( |
) |
| Balance at 31 December 2024 |
| The deferred tax provision is in respect of timing differences between depreciation and capital allowances for tax purposes. |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.24 | 31.12.23 |
| value: | £ | £ |
| Ordinary | £1 | 10,000 | 10,000 |
| 20. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | 3,890,038 |
| Profit for the year | 496,208 |
| At 31 December 2024 | 4,386,246 |
| Company |
| Retained |
| earnings |
| £ |
| At 1 January 2024 |
| Profit for the year |
| At 31 December 2024 |
| 21. | PENSION COMMITMENTS |
| The Group operates defined contribution pension schemes for all qualifying employees.The assets of the scheme are held separately from those of the Group companies in independently administered funds. |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Charge to profit or loss in respect of defined contributions | 88,189 | 102,969 |
| WATERSIDE COLOURS LIMITED (REGISTERED NUMBER: 10366229) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 22. | ULTIMATE PARENT COMPANY |
| Siddharth Colorchem (PVT) Ltd is regarded by the directors as being the Group's ultimate parent company. |
| 23. | RELATED PARTY DISCLOSURES |
| Entities with control, joint control or significant influence over the entity |
| 31.12.24 | 31.12.23 |
| £ | £ |
| Sales | 368,756 | 40,167 |
| Purchases | 3,656,783 | 3,391,420 |
| Amount due from related party | 59,678 | 36,609 |
| Amount due to related party | 857,478 | 1,023,698 |
| 24. | ULTIMATE CONTROLLING PARTY |
| The Group has no ultimate controlling party. |