Company registration number 07183047 (England and Wales)
HEXPOL TPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HEXPOL TPE LIMITED
COMPANY INFORMATION
Directors
P G Hellberg
P Rosen
M Griffiths
(Appointed 1 June 2024)
K Dahlberg
(Appointed 1 May 2025)
J Wikstrom
(Appointed 1 May 2025)
Secretary
A Reilly
Company number
07183047
Registered office
Don Street
Middleton
Manchester
M24 2GG
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
Bankers
Handelsbanken
1st Floor, The Exchange
5 Bank Street
Bury
BL9 0DN
HEXPOL TPE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
HEXPOL TPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

 

The directors present the strategic report for the year ended 31 December 2024. The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.

Principal activities

Hexpol TPE Limited is part of the Hexpol AB group. Hexpol TPE Limited engages in the design, development, manufacture, distribution, and sale of high-quality Thermoplastic Elastomer compounds for use in a diverse range of end market applications including automotive, building and construction, wire & cable, personal care, consumer / household, electrical & electronics and general industrial.

Business review

The company recorded a profit after taxation for the financial period of £2,463k (2023: £1,909k).

 

This result is pleasing as the business has continued to develop innovative solutions to demanding applications and has seen these products being brought to market during 2024. The growth for these will continue to be more apparent during subsequent years.

 

The company’s strategy is to continue to create “a material difference” by being the preferred solutions provided for sustainable polymer applications. We achieve this by supplying high quality polymer solutions that enhance our customers applications – everyday, everywhere. The company works in partnership with its customers to achieve continued growth both in turnover and operating profit whilst maintaining or improving working capital.

 

Hexpol TPE Limited’s directors follow group policies relating to environment, employees, sustainability and implement them within the organization. The business positively invests in ongoing methods to reduce energy and carbon footprint in line with ISO 14001 and also utilizes external third-party platforms such as Ecovardis to help improve its performance in relation to environmental, labor & human rights, ethics and sustainable procurement criteria

The future prospects for the business are positive as both the project opportunities continue to grow, and the group’s global footprint offers competitive advantage.

Financial key performance indicators

The company uses KPI’s to actively monitor financial performance.

                                    

 

2024

2023

Turnover £'000

£19,452

£18,092

Gross Profit %

27.5%

26.5%

Operating Profit %

15.4%

12.9%

 

 

 

HEXPOL TPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

There are a number of potential risks and uncertainties, which could have a material impact on the long-term performance of the business and could cause actual results to differ materially from those expected. The directors consider the following to be the principal risks and uncertainties facing the company:

 

Issue

Risk

Mitigation

Market and competition

The market for thermoplastic elastomers remains competitive. There is a trend of a growing number of competitors and increasing price competition. Global competitors are becoming increasingly segment focused in their approach to the market.

The company seeks to manage the risk of losing customers by providing intelligently engineered materials of a high quality with short lead times and providing excellent local service and support. Our sales teams continually monitor market trends / developments, pricing, and competitor activity.

Raw material costs

The main costs incurred by the company relates to its raw materials, being primarily polymers, oils and additives. The cost of raw materials can be quite volatile, and it is of great importance that the company’s selling prices fully recover these and other operating costs.

Group purchasing and monitoring within the Hexpol group. Proactive and flexible IT systems for the management of costing and pricing.

Interest rate risks

Fluctuating interest rates and charges for loans from group undertakings.

The company finances its operations through cash generation from ordinary operating activities and loans from group undertakings.

Foreign currency risks

The business has significant sales and purchases outside of the UK and as such is exposed to movement in foreign exchange rates.

A significant proportion of the company’s transactions are in foreign currencies. However, since and majority of the company’s sales and purchases are denominated in Euros, a natural hedge is created which reduces the company’s exposure to currency fluctuations and the company’s foreign currency risk.

Credit risks

Credit risk primarily arises due to the inability of trade debtors to settle their outstanding balances.

This risk is minimized through the performance of credit checks on new and ongoing business combined with customer visits and knowledge of the clients where applicable.

HEXPOL TPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Principal risks and uncertainties (continued)

Environment

The company recognizes that it has an impact on the environment and has a duty to prevent harm to people, prevent damage or disturbance to the environment and fully consider health, safety and environmental factors in its day to day and strategic decision-making processes.

 

 

The company recognizes its duties and will comply with all relevant legislation. The company also commits to continual improvement activities in accordance with the international standards ISO 14001 and ISO 45001. The company actively identifies the potential impacts of its processes and manages its resources to save energy, reduce water, promote recycling and prevent pollution to the environment.

Armed Conflicts

Trading uncertainty and impacts due to conflicts between Russia/Ukraine and the Middle East.

There are several potential impacts from these conflicts including sporadic fluctuations in energy and raw material prices and availability, limitations on supplier choice and unpredictable market pricing from both a supplier and competition perspective. Although we have seen some impacts from all of these possibilities we have managed to navigate them without too much detriment to the business performance and these continue to assessed and managed on a daily basis.

 

On behalf of the board

M Griffiths
Director
1 August 2025
HEXPOL TPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

Hexpol TPE LImited is part of the Hexpol AB group. Hexpol TPE Limited engages in the design, development, manufacture, distribution and sale of high-quality Thermoplastic Elastomer compounds for use in a diverse range of end market applications including automotive, building & construction, wire & cable, personal care, consumer/household, electrical & electronics and general industrial.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M Clayton
(Resigned 1 June 2024)
R Wolkener
(Resigned 30 April 2025)
P G Hellberg
C Rüter
(Resigned 30 April 2025)
P Rosen
M Griffiths
(Appointed 1 June 2024)
K Dahlberg
(Appointed 1 May 2025)
J Wikstrom
(Appointed 1 May 2025)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HEXPOL TPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
M Griffiths
Director
1 August 2025
HEXPOL TPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF HEXPOL TPE LIMITED
- 6 -
Opinion

We have audited the financial statements of Hexpol TPE 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 notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

HEXPOL TPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HEXPOL TPE LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

HEXPOL TPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF HEXPOL TPE LIMITED
- 8 -

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:

 

 

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
1 August 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
HEXPOL TPE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£'000
£'000
Turnover
3
19,452
18,092
Cost of sales
(14,102)
(13,307)
Gross profit
5,350
4,785
Administrative expenses
(2,362)
(2,452)
Operating profit
4
2,988
2,333
Interest receivable and similar income
7
302
171
Profit before taxation
3,290
2,504
Tax on profit
8
(827)
(595)
Profit for the financial year
2,463
1,909

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HEXPOL TPE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
9
2,688
3,200
Tangible assets
10
1,518
1,257
4,206
4,457
Current assets
Stocks
11
1,165
983
Debtors
12
2,351
2,329
Cash at bank and in hand
8,689
5,857
12,205
9,169
Creditors: amounts falling due within one year
13
(3,832)
(3,494)
Net current assets
8,373
5,675
Total assets less current liabilities
12,579
10,132
Provisions for liabilities
Deferred tax liability
14
208
224
(208)
(224)
Net assets
12,371
9,908
Capital and reserves
Called up share capital
16
1,200
1,200
Capital contribution reserve
2,000
2,000
Profit and loss reserves
9,171
6,708
Total equity
12,371
9,908
The financial statements were approved by the board of directors and authorised for issue on 1 August 2025 and are signed on its behalf by:
M Griffiths
Director
Company Registration No. 07183047
HEXPOL TPE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
£'000
£'000
£'000
£'000
Balance at 1 January 2023
1,200
2,000
4,799
7,999
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,909
1,909
Balance at 31 December 2023
1,200
2,000
6,708
9,908
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
2,463
2,463
Balance at 31 December 2024
1,200
2,000
9,171
12,371
HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Hexpol TPE Limited is a private company limited by shares incorporated in England and Wales. The registered office is Don Street, Middleton, Manchester, M24 2GG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

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

 

 

This information is available in the consolidated financial statements of the ultimate parent entity, Hexpol AB as at 31 December 2024 and these financial statements are available at www.hexpol.com.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets - goodwill

Positive goodwill arising on acquisitions is capitalised, classified as an asset on the statement of financial position and amortised on a straight-line basis over its useful economic life up to a presumed maximum of 20 years as it was deemed at the time of the acquisition (in 2010) that the majority of benefits will flow through in 20 years. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

 

FRS 102 requires goodwill to have a finite life. In the absence of a readily ascertainable usefule life, useful life must not exceed 10 years. On adoption of FRS 102, the company took the optional exemption from retrospective application and, as a result, elected not to adjust the expected amortisation profile. The existing useful economic life of the Company's Goodwill (expiring no earlier than 2030) has been reviewed and deemed reasonable. The carrying value of goodwill is reviewed for internal and external indicators of impairment at the end of each reporting period, and an impairment recognised if events or changes in circumstances indicate the carrying value may not be recoverable. Changes in the expected useful life or the expected pattern of consumption of benefits are accounted for as a change in accouting estimate.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
Over 5 to 15 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition. Net realisable value is as follows:

 

Raw materials, consumables and goods for resale - purchase cost on a first-in, first-out basis.

 

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity.

 

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group undertakings, are initially recognised at transaction price. 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.

 

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

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provisions

These are determined by ageing of stock and an appropriate level of provision is then applied on historic experience and current market conditions.

Goodwill

Goodwill is reviewed for internal and external indicators of impairment at the end of each reporting period, and an impairment recognised if events or changes in circumstances indicae the carrying value may not be recoverable. Changes in the expected useful life or the expected pattern of consumption of benefits are accounted for as a change in accounting estimate.

3
Turnover and other revenue
2024
2023
£'000
£'000
Turnover analysed by geographical market
UK
6,267
5,683
Europe
7,839
6,917
Rest of the world
5,346
5,492
19,452
18,092
2024
2023
£'000
£'000
Other revenue
Interest income
302
171
HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange losses/(gains)
16
(2)
Fees payable to the company's auditor for the audit of the company's financial statements
19
19
Depreciation of owned tangible fixed assets
191
180
Amortisation of intangible assets
512
512
Cost of stocks recognised as an expense
10,387
9,865
Impairment of stocks recognised or reversed
-
0
(80)
Operating lease charges
361
259
5
Employees

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

2024
2023
Number
Number
Adminstration
21
21
Manufacturing
30
29
Total
51
50

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
2,089
2,052
Social security costs
210
180
Pension costs
83
79
2,382
2,311
6
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
144
162
Company pension contributions to defined contribution schemes
6
7
150
169

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 1).

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Directors' remuneration
(Continued)
- 19 -

The other directors have been remunerated by group companies during both the current and prior year, and it is not practicable to allocate this between their services as directors of Hexpol TPE and other group companies.

7
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest receivable from group companies
302
171
8
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
842
542
Adjustments in respect of prior periods
-
0
1
Total current tax
842
543
Deferred tax
Origination and reversal of timing differences
(15)
53
Changes in tax rates
-
0
(1)
Total deferred tax
(15)
52
Total tax charge
827
595

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

2024
2023
£'000
£'000
Profit before taxation
3,290
2,504
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
823
589
Tax effect of expenses that are not deductible in determining taxable profit
1
-
0
Adjustments in respect of prior years
-
0
1
Effect of change in corporation tax rate
(1)
3
Depreciation on assets not qualifying for tax allowances
-
0
3
Deferred tax adjustments in respect of prior years
-
0
(1)
Fixed asset differences
4
-
0
Taxation charge for the year
827
595
HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Intangible fixed assets
Goodwill
£'000
Cost
At 1 January 2024 and 31 December 2024
10,246
Amortisation and impairment
At 1 January 2024
7,046
Amortisation charged for the year
512
At 31 December 2024
7,558
Carrying amount
At 31 December 2024
2,688
At 31 December 2023
3,200
10
Tangible fixed assets
Plant and equipment
£'000
Cost
At 1 January 2024
3,901
Additions
453
At 31 December 2024
4,353
Depreciation and impairment
At 1 January 2024
2,644
Depreciation charged in the year
191
At 31 December 2024
2,835
Carrying amount
At 31 December 2024
1,518
At 31 December 2023
1,257
11
Stocks
2024
2023
£'000
£'000
Raw materials and consumables
855
609
Finished goods and goods for resale
310
374
1,165
983
HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
1,943
1,997
Amounts owed by group undertakings
6
33
Other debtors
109
60
Prepayments and accrued income
293
239
2,351
2,329

Amounts owed by group undertakings are interest free, unsecured and repayable on demand.

13
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Trade creditors
2,883
2,452
Amounts owed to group undertakings
24
19
Corporation tax
221
293
Other taxation and social security
79
51
Accruals and deferred income
625
679
3,832
3,494

Amounts owed to group undertakings is comprised of short-term trading balances of £24k (2023: £19k) owed to the parent undertaking and fellow subsidiaries of the parent undertaking.

 

Short-term trading balances are interest free, unsecured and repayable on demand.

14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
208
224
HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£'000
Liability at 1 January 2024
224
Credit to profit or loss
(15)
Effect of change in tax rate - profit or loss
(1)
Liability at 31 December 2024
208
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
83
79

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £40k (2023: £13k) were payable to the fund at the reporting date.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
1,200,000
1,200,000
1,200
1,200
17
Operating lease commitments
Lessee

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

2024
2023
£'000
£'000
Within one year
489
530
Between two and five years
1,962
2,221
In over five years
2,911
3,195
5,362
5,946
18
Contingent liabilities

Contingent liabilities exist at 31 December 2024 in respect of counter-indemnities to H M Revenue and Customs totalling £100,000 (2023: £100,000).

 

The directors have confirmed that there are no other contingent liabilities at 31 December 2024 and 31 December 2023.

HEXPOL TPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
19
Related party transactions

The company has taken advantage of the exemption available under FRS 102 paragraph 33.1a not to disclose transactions with other group companies which meet the criteria that all subsidiary undertakings which are party to the transactions are wholly owned by the ultimate controlling parent. Refer to notes 12 and 13 for year-end intercompany balances.

20
Ultimate controlling party

The directors consider the ultimate parent undertaking and controlling party to be Hexpol AB.

 

The parent undertaking of the group of undertakings for which group financial statements are drawn up and of which the company is a member is Hexpol AB. Copies of the financial statements can be obtained from www.hexpol.com.

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