REGISTERED NUMBER: 01408896 (England and Wales)

SPECIALTY COATING SYSTEMS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

D Ellis

T T Bender

REGISTERED OFFICE:

Unit A1

Kingswey Business Park

Forsyth Road

WOKING

Surrey

GU21 5SA

REGISTERED NUMBER:

01408896 (England and Wales)

AUDITOR:

Shaw Gibbs Audit Ltd

264 Banbury Road

Oxford

Oxfordshire

OX2 7DY

FIXED ASSETS

Tangible assets

4

1,198,331

965,664

Investments

5

2,542,807

2,505,699

3,741,138

3,471,363

CURRENT ASSETS

Stocks

344,911

462,400

Debtors

6

3,277,833

3,141,019

Cash at bank and in hand

1,034,796

694,542

4,657,540

4,297,961

CREDITORS

Amounts falling due within one year

7

(1,105,309

)

(666,991

)

NET CURRENT ASSETS

3,552,231

3,630,970

TOTAL ASSETS LESS CURRENT LIABILITIES

7,293,369

7,102,333

CREDITORS

Amounts falling due after more than one year

8

(394,882

)

(1,372,106

)

PROVISIONS FOR LIABILITIES

10

(205,649

)

(108,607

)

NET ASSETS

6,692,838

5,621,620

CAPITAL AND RESERVES

Called up share capital

11

2,122,501

2,122,501

Share premium

12

400

400

Retained earnings

12

4,569,937

3,498,719

SHAREHOLDERS' FUNDS

6,692,838

5,621,620

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

D Ellis - Director

1.	STATUTORY INFORMATION

Specialty Coating Systems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

Straight line over the life of the lease

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

10% on cost

Computer equipment

-

33% on cost, 20% on cost and 10% on cost

The company has a policy of not capitalising chillers and computer equipment (other than servers), unless they are part of a specific project.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stock is valued on the weighted average cost basis.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

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.

Any differences arising from converting the opening reserves of any foreign branches to the rates of exchange ruling at the balance sheet date, have been taken to reserves.

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Exemption from preparing group accounts

In accordance with Section 401 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts, as it is a wholly-owned subsidiary of another company incorporated outside the EEA.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 80 (2023 - 70 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

1,245,847

2,021,942

216,338

146,085

3,630,212

Additions

20,877

373,298

-

1,869

396,044

Exchange differences

(10,301

)

(37,365

)

(3,266

)

(2,721

)

(53,653

)

At 31 December 2024

1,256,423

2,357,875

213,072

145,233

3,972,603

DEPRECIATION

At 1 January 2024

874,989

1,509,055

145,718

134,786

2,664,548

Charge for year

40,873

99,037

10,029

4,309

154,248

Exchange differences

(9,998

)

(29,385

)

(2,454

)

(2,687

)

(44,524

)

At 31 December 2024

905,864

1,578,707

153,293

136,408

2,774,272

NET BOOK VALUE

At 31 December 2024

350,559

779,168

59,779

8,825

1,198,331

At 31 December 2023

370,858

512,887

70,620

11,299

965,664

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2024

2,505,699

Additions

37,108

At 31 December 2024

2,542,807

NET BOOK VALUE

At 31 December 2024

2,542,807

At 31 December 2023

2,505,699

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Specialty Coating Systems (Ireland) Ltd

Registered office: outside of the United Kingdom

Nature of business: to provide custom coating services

%

Class of shares:

holding

Ordinary

100.00

Comelec S.A.

Registered office: outside of the United Kingdom

Nature of business: to provide custom coating services

%

Class of shares:

holding

Ordinary

100.00

SCS Germany GmbH

Registered office: outside of the United Kingdom

Nature of business: to provide custom coating services

%

Class of shares:

holding

Ordinary

100.00

Specialty Coating Systems (Ireland) Ltd is incorporated in the Republic of Ireland and provides custom coating services in that region.

Comelec SA is incorporated in Switzerland and provides custom coating services in that region.

SCS Germany GmbH is incorporated in Germany and provides custom coating services in that region.

6.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Trade debtors

1,235,531

1,189,261

Amounts owed by group undertakings

106,424

106,201

Other debtors

10,130

5,261

Czech Republic Tax

-

16,416

VAT

19,742

19,742

Prepayments

58,325

56,189

1,430,152

1,393,070

Amounts falling due after more than one year:

Amounts owed by group undertakings

1,847,681

1,747,949

Aggregate amounts

3,277,833

3,141,019

Included in amounts falling due after more than one year is €800,000 due from a fellow subsidiary which is actually due within one one year but the directors believe that repayment will not be made until over one year. The remaining amounts owed by group undertakings is owed by the company's subsidiary. All amounts owed by group undertakings have been guaranteed by another group member.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

78,242

110,734

Amounts owed to group undertakings

278

18,396

UK Tax

85,855

52,096

Czech Republic Tax

151,195

-

Social security and other taxes

58,464

49,507

Other creditors

78,065

42,588

VAT creditor

68,473

47,152

Accrued expenses

584,737

346,518

1,105,309

666,991

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Amounts owed to group undertakings

394,882

1,352,106

Other creditors

-

20,000

394,882

1,372,106

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

254,160

316,897

Between one and five years

800,078

849,052

In more than five years

503,196

697,981

1,557,434

1,863,930

10.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

205,649

108,607

Deferred

tax

£

Balance at 1 January 2024

108,607

Charge to Income Statement during year

97,042

Balance at 31 December 2024

205,649

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

2,122,501

Ordinary

£1.00

2,122,501

2,122,501

12.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2024

3,498,719

400

3,499,119

Profit for the year

1,087,876

1,087,876

Exchange difference

(16,658

)

-

(16,658

)

At 31 December 2024

4,569,937

400

4,570,337

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditor was unqualified.

Lance Redman (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs Audit Ltd

14.	RELATED PARTY DISCLOSURES

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

The consolidated financial statements of Coatings Holding Inc, within which the company is included, can be obtained from the following address:

Coatings Holding Inc.,

7645 Woodland Drive,

Indianapolis,

IN 46278

USA

15.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Coatings Holding Inc., a company based in the USA, and the ultimate parent company, which is also the ultimate controlling party is Kisco Ltd, a company based in Japan.

In accordance with Section 401 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts, as it is a wholly-owned subsidiary of another company incorporated outside the EEC.