| De Monchy Aromatics Limited |
| Notes to the Accounts |
| for the year ended 31 December 2025 |
|
|
| 1 |
Accounting policies |
|
|
Basis of preparation |
|
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
|
|
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. |
|
|
Intangible fixed assets |
|
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
|
|
Amortisation is recognised so as to write off the cost or valuation of assets less their residual vaues over their useful lives on the following bases: |
|
|
Computer software |
|
|
20% straight line |
|
|
Tangible fixed assets |
|
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
|
|
Freehold land and buildings |
10% straight line |
|
Plant and equipment including computers |
20% straight line |
|
Motor vehicles |
25% straight line |
|
|
Stocks |
|
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
|
|
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. |
|
|
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. |
|
|
Cash and cash equivalents |
|
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
|
|
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, 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 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 |
|
|
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. |
|
|
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
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. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 2 |
Employees |
2025 |
|
2024 |
| Number |
Number |
|
|
Average number of persons employed by the company |
21 |
|
20 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Profit before taxation |
2025 |
|
2024 |
| £ |
£ |
|
Profit before taxation is stated after charging: |
|
|
Depreciation of tangible assets |
106,597 |
|
30,147 |
|
Amortisation of intangible assets |
2,053 |
|
1,563 |
|
|
| 4 |
Intangible fixed assets |
£ |
|
Computer software |
|
|
Cost |
|
At 1 January 2025 |
53,921 |
|
Additions |
3,425 |
|
At 31 December 2025 |
57,346 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2025 |
48,450 |
|
Provided during the year |
2,053 |
|
At 31 December 2025 |
50,503 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2025 |
6,843 |
|
At 31 December 2024 |
5,471 |
|
|
|
|
|
|
|
|
|
|
|
|
| 5 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery etc |
|
Motor vehicles |
|
Total |
| £ |
£ |
£ |
£ |
|
Cost |
|
At 1 January 2025 |
31,419 |
|
710,894 |
|
98,490 |
|
840,803 |
|
Additions |
4,150 |
|
107,021 |
|
34,250 |
|
145,421 |
|
Disposals |
- |
|
- |
|
(98,490) |
|
(98,490) |
|
At 31 December 2025 |
35,569 |
|
817,915 |
|
34,250 |
|
887,734 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2025 |
27,673 |
|
586,148 |
|
75,588 |
|
689,409 |
|
Charge for the year |
1,663 |
|
74,897 |
|
30,037 |
|
106,597 |
|
On disposals |
- |
|
- |
|
(98,490) |
|
(98,490) |
|
At 31 December 2025 |
29,336 |
|
661,045 |
|
7,135 |
|
697,516 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2025 |
6,233 |
|
156,870 |
|
27,115 |
|
190,218 |
|
At 31 December 2024 |
3,746 |
|
124,746 |
|
22,902 |
|
151,394 |
|
|
| 6 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade debtors |
1,180,732 |
|
1,198,070 |
|
VAT recoverable |
|
|
|
|
36,049 |
|
- |
|
Prepayments and accrued income |
|
|
|
|
64,456 |
|
55,284 |
|
Other debtors |
8,676 |
|
59,795 |
|
|
|
|
|
|
1,289,913 |
|
1,313,149 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loans and overdrafts |
10,000 |
|
10,184 |
|
Obligations under finance lease and hire purchase contracts |
28,412 |
|
15,395 |
|
Trade creditors |
851,311 |
|
1,095,346 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
310,000 |
|
550,000 |
|
Taxation and social security costs |
115,570 |
|
154,444 |
|
Accruals and deferred income |
3,861 |
|
23,387 |
|
Other creditors |
4,394 |
|
- |
|
|
|
|
|
|
1,323,548 |
|
1,848,756 |
|
|
|
|
|
|
|
|
|
|
Obligations under finance leases includes hire purchase contracts and finance leases totalling £28,412 (2024 £15,395). These are secured against the assets being financed. |
|
|
| 8 |
Creditors: amounts falling due after one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loans |
3,066 |
|
12,976 |
|
Obligations under finance lease and hire purchase contracts |
41,914 |
|
3,670 |
|
Other creditors |
723 |
|
723 |
|
|
|
|
|
|
45,703 |
|
17,369 |
|
|
|
|
|
|
|
|
|
|
The long-term loans are secured by fixed and floating charges held by Natwest Bank PLC, RBS Finance Limited. |
|
|
Obligations under finance leases includes hire purchase contracts and finance leases totalling £41,914 (2024 £3,670). These are secured against the assets being financed. |
|
| 9 |
Other financial commitments |
2025 |
|
2024 |
| £ |
£ |
|
|
Total future minimum payments under non-cancellable operating leases |
|
220,833 |
|
326,833 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Related party transactions |
|
|
De Monchy Aromatics China Limited |
|
During the year end the company made sales of £673,200 (2024: £743,600) to De Monchy Aromatics China Limited and made purchases of £2,108,645 (2024: £1,640,517) from De Monchy Aromatics China Limited, a company under common control. |
|
|
De Monchy Aromatics Asia Limited |
|
During the year end the company made purchases of £101,518 (2024: £Nil) from De Monchy Aromatics Asia Limited, a company under common control. |
|
|
De Monchy Aromatics BV Limited |
|
During the year end the company made purchases of £83,370 (2024: £102,465) from De Monchy Aromatics BV Limited, a company under common control. Management charges of £176,817 (2024: £72,305) were charged from De Monchy Aromatics BV Limited in respect of the year ended 31 December 2025. |
|
|
| 11 |
Controlling party |
|
|
The ultimate holding company is Samika Holdings Ltd which is incorporated in England and Wales under number 11737637. |
|
|
| 12 |
Other information |
|
|
De Monchy Aromatics Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
Units B & C Holton Heath Trading Park |
|
Blackhill Road |
|
Poole |
|
Dorset |
|
BH16 6LS |