Robertet (UK) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01010651 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

ROBERTET (UK) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

C Maubert

L Picolet

O Maubert

B McCandless

Mrs S S Mackrell

SECRETARY:

Mrs V Lawrence

REGISTERED OFFICE:

Kings Road Industrial Estate

Haslemere

Surrey

GU27 2QU

REGISTERED NUMBER:

01010651 (England and Wales)

AUDITORS:

Galloways

Statutory Auditor

30 New Road

Brighton

East Sussex

BN1 1BN

BANKERS:

Santander UK PLC

Santander Corporate & Commercial Banking

Bridle Road

Bootle

Merseyside

L30 4GB

The directors present their strategic report for the year ended 31 December 2018.

REVIEW OF BUSINESS

Sales turnover in the year under review (2018) was £10,690,910 compared with £10,575,665 last year (2017) Growth in sales turnover

reflected the continued demand for the company's products and services.

The UK market saw some growth in the fragrance division due to the investment in the business development model employed in 2016.

No Nigerian trips were planned this year as the focus shifted slightly to Kenya, and the North of the UK enabling account managers to

focus on the UK, there has also been a slight reduction in flavour sales due to the UK moving products abroad for manufacture. The

directors regard the investment in UK development to be integral to the continuing success of the business ensuring we continue to

develop and grow in our primary market.

Trading margins fell compared with the previous year due to the continued rising costs of raw materials which has been hit further by a

global Force Majeure in more than one major supplier of raw materials.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks.

The key business risks and uncertainties affecting the company are considered to be the problems associated with Brexit, export business

and competition from both national and independent competitors.

BALANCED AND COMPREHENSIVE ANALYSIS

Our key performance indicators are as follows:

Delivery Performance:

Delivery performance is measured using SAP business one: actual despatch date against planned despatch date.

Suppliers Raw Material Quality:

Suppliers are measured for continuous material quality using GC purity trace and ensuring the RI and SG are within the required range.

Customer Satisfaction:

Customer satisfaction is measured by the field sales team who provide call reports for every customer visit and also by completion of a

customer satisfaction questionnaire.

These help us measure our performance against our competitors.

FUTURE OUTLOOK

The external commercial environment is expected to remain competitive in 2019. With the continued Brexit uncertainty and the above

mentioned Force Majeure which is expected to continue to create raw material issues throughout 2019 and the continued predicted

problems obtaining currency in Nigeria, we remain confident that we will see some growth in UK sales during 2019. The directors believe

additional focus on the UK market is key for 2019 and additional resource will be made available in this area as required.

ON BEHALF OF THE BOARD:

Mrs S S Mackrell - Director

28 June 2019

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of perfumery compounds created and blended in

Haslemere, together with the sale of perfumery and flavour products manufactured by Robertet SA in Grasse.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2018 are £Nil (2017: £Nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this report.

C Maubert

L Picolet

O Maubert

B McCandless

Mrs S S Mackrell

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

-	select suitable accounting policies 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 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.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to

make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Galloways, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs V Lawrence - Secretary

28 June 2019

Opinion

We have audited the financial statements of Robertet (UK) Limited (the 'company') for the year ended 31 December 2018 which comprise

the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

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.

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.

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.

Roger Moore (Senior Statutory Auditor)

for and on behalf of Galloways

Statutory Auditor

30 New Road

Brighton

East Sussex

BN1 1BN

1 July 2019

TURNOVER

3

10,690,910

10,575,665

Cost of sales

7,185,162

6,645,664

GROSS PROFIT

3,505,748

3,930,001

Administrative expenses

1,749,590

1,679,662

1,756,158

2,250,339

Other operating income

4

11,000

11,000

OPERATING PROFIT

6

1,767,158

2,261,339

Interest receivable and similar income

7

19,899

8,492

1,787,057

2,269,831

Interest payable and similar expenses

8

7,523

6,919

PROFIT BEFORE TAXATION

1,779,534

2,262,912

Tax on profit

9

324,731

426,493

PROFIT FOR THE FINANCIAL YEAR

1,454,803

1,836,419

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,454,803

1,836,419

FIXED ASSETS

Tangible assets

10

1,136,274

1,157,864

CURRENT ASSETS

Stocks

11

1,870,610

1,350,167

Debtors

12

2,417,723

2,410,135

Cash at bank and in hand

6,382,785

5,055,075

10,671,118

8,815,377

CREDITORS

Amounts falling due within one year

13

1,713,572

1,338,525

NET CURRENT ASSETS

8,957,546

7,476,852

TOTAL ASSETS LESS CURRENT LIABILITIES

10,093,820

8,634,716

PROVISIONS FOR LIABILITIES

15

119,721

115,420

NET ASSETS

9,974,099

8,519,296

CAPITAL AND RESERVES

Called up share capital

16

97,500

97,500

Other reserves

2,500

2,500

Retained earnings

9,874,099

8,419,296

SHAREHOLDERS' FUNDS

9,974,099

8,519,296

The financial statements were approved by the Board of Directors on 28 June 2019 and were signed on its behalf by:

Mrs S S Mackrell - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2017

97,500

6,582,877

2,500

6,682,877

Changes in equity

Total comprehensive income

-

1,836,419

-

1,836,419

Balance at 31 December 2017

97,500

8,419,296

2,500

8,519,296

Changes in equity

Total comprehensive income

-

1,454,803

-

1,454,803

Balance at 31 December 2018

97,500

9,874,099

2,500

9,974,099

Cash flows from operating activities

Cash generated from operations

1

1,767,120

2,070,646

Interest paid

(7,523

)

(6,919

)

Tax paid

(361,961

)

(396,873

)

Net cash from operating activities

1,397,636

1,666,854

Cash flows from investing activities

Purchase of tangible fixed assets

(89,825

)

(303,262

)

Interest received

19,899

8,492

Net cash from investing activities

(69,926

)

(294,770

)

Increase in cash and cash equivalents

1,327,710

1,372,084

Cash and cash equivalents at beginning of year

2

5,055,075

3,682,991

Cash and cash equivalents at end of year

2

6,382,785

5,055,075

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

1,779,534

2,262,912

Depreciation charges

111,415

124,682

Fixed asset impairments

-

63,398

Finance costs

7,523

6,919

Finance income

(19,899

)

(8,492

)

1,878,573

2,449,419

Increase in stocks

(520,443

)

(173,611

)

Increase in trade and other debtors

(7,588

)

(247,233

)

Increase in trade and other creditors

416,578

42,071

Cash generated from operations

1,767,120

2,070,646

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 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

6,382,785

5,055,075

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

5,055,075

3,682,991

1.	STATUTORY INFORMATION

Robertet (UK) 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared in £ sterling. The functional currency is also £ sterling.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting

Standard (section 33.1A) applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly

owned subsidiaries within the group.

Turnover

Turnover comprises the value of sales (excluding VAT, similar taxes and trade discounts) of goods provided in the normal course

of business. Revenue is recognised when the goods are despatched and hence is the point at which the risks and rewards of

ownership pass to the buyer.

Tangible fixed assets

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

Short leasehold

-

over the term of the lease

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Plant & Machinery - Laboratory

-

25% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment

losses. Costs includes costs directly attributable to making the asset capable of operating as intended.

Stocks

Stocks are valued at the lower of cost or estimated selling price less cost to complete and sell and after making due allowance for

obsolete and slow moving items. The cost is calculated by taking purchase costs, conversion costs and any other costs to bring

the stock to it's present location and condition using the average costing basis of valuation.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 ruling at the balance sheet date. Foreign

exchange transactions are translated into sterling at the rates of exchange ruling at the transaction date with any fluctuations

being taken to the profit and loss account.

Pension costs

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.

Leasing commitments

Rentals applicable to operating leases where substantially all of the benefits of risks of ownership remain with the lessor are

charged to the profit and loss account as incurred.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any

losses arising from impairment are recognised in the profit and loss account in administrative expenses.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

Turnover is analysed by geographical market as below:

2018

2017

£

£

United Kingdom

6,959,200

6,868,042

Exports

3,723,240

3,697,974

Other income - United Kingdom

8,470

9,649

10,690,910

10,575,665

4.	OTHER OPERATING INCOME

2018

2017

£

£

Rent recovered

11,000

11,000

5.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

1,406,510

1,361,544

Social security costs

139,648

122,073

Other pension costs

160,013

155,872

1,706,171

1,639,489

The average number of employees during the year was as follows:

2018

2017

Administration

1

1

Evaluation

5

4

Finance

3

2

IT

2

2

Labs

11

10

Manufacturing

11

13

Processing

2

2

Sales

5

5

SOP

2

2

L&R

4

4

46

45

2018

2017

£

£

Directors' remuneration

214,683

270,315

Directors' pension contributions to money purchase schemes

24,470

31,035

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2018

2017

£

£

Emoluments etc

194,683

250,315

Pension contributions to money purchase schemes

24,470

31,035

6.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Depreciation - owned assets

111,415

124,682

Auditors' remuneration

21,000

21,000

Operating lease rentals

115,747

117,265

Loss/(profit) on foreign currency translation

10,525

22,318

Operating lease rental

2018

2017

£

£

- plant and equipment

585

1,726

- motor vehicles

6,083

6,460

- land and buildings

109,079

109,079

115,747

117,625

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2018

2017

£

£

Interest received

19,684

6,721

Interest received on early

paid Corporation tax

215

1,771

19,899

8,492

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Bank interest and charges

7,523

6,919

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

320,430

412,156

Over-provision in prior year

-

2,699

Total current tax

320,430

414,855

Deferred tax

4,301

11,638

Tax on profit

324,731

426,493

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2018

2017

£

£

Profit before tax

1,779,534

2,262,912

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.247%)

338,111

435,543

Effects of:

Expenses not deductible for tax purposes

3,810

20,581

(Accelerated)/Decelerated capital allowances

(21,491

)

(43,959

)

Over provision in prior year

-

2,699

Change in tax rate

-

(9

)

Taxable temporary differences

4,301

11,638

Total tax charge

324,731

426,493