Wychem Limited - Accounts to registrar (filleted) - small 23.2.5
Wychem Limited - Accounts to registrar (filleted) - small 23.2.5
| REGISTERED NUMBER: |
| Audited Financial Statements |
| for the Year Ended 31 December 2022 |
| for |
| Wychem Limited |
| Wychem Limited (Registered number: 00956213) |
| Contents of the Financial Statements |
| for the Year Ended 31 December 2022 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 3 | to | 11 |
| Wychem Limited |
| Company Information |
| for the Year Ended 31 December 2022 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| BUSINESS ADDRESS: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| INDEPENDENT AUDITORS: |
| Chartered Accountants |
| and Statutory Auditors |
| Eldo House, Kempson Way |
| Suffolk Business Park |
| Bury St Edmunds |
| Suffolk |
| IP32 7AR |
| Wychem Limited (Registered number: 00956213) |
| Balance Sheet |
| 31 December 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 4 |
| Tangible assets | 5 |
| CURRENT ASSETS |
| Stocks | 6 |
| Debtors | 7 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 8 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
9 |
( |
) |
| PROVISIONS FOR LIABILITIES | 12 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 13 |
| Share premium |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| 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 |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements |
| for the Year Ended 31 December 2022 |
| 1. | STATUTORY INFORMATION |
| Wychem Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Significant judgements and estimates |
| In the application of the Company's accounting policies, which are described below, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on, company standard procedures, historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
| The estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
| Critical judgements and key sources of estimation uncertainty in applying the Company's accounting policies |
| The following are critical judgements including those involving estimations, that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
| Depreciation of tangible fixed assets |
| Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on, standard company policy and the directors knowledge of the reduction in the residual value of plant and machinery and other fixed assets on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to the residual value of nil at the end of the economic lives of those assets. |
| Stock obsolescence provision |
| A provision is made against slow moving stock in accordance with company policy and, where relevant based on the condition or expected future usage of individual stock lines. The charge is calculated as described below such that stock holding value represents stock that can reasonably be expected to be realised within the succeeding two financial periods at or above the holding value. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Goodwill |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| The company does not capitalise the cost of replacement parts of significant equipment such as reactors and replacement components that form part of the factory unless such equipment is individually recognised and the asset is replaced in its entirety or being substantially added to or improved. Other expenditure is capitalised where the underlying asset has a useful life of over two years. |
| Stocks |
| Stock and work in progress are valued at the lower of cost and net realisable value. Cost is calculated on a |
| standard mark down from selling price, being currently 30%. Net realisable value for finished goods is the |
| company set selling price and for raw materials would be the resale value if the company was to sell this stock on to a third party. Work in progress comprises materials, labour and overheads incurred appropriate to the stage of manufacture. Net realisable value is the expected selling price of the work in progress and costs are constantly monitored against this. If costs exceed net realisable value the stock value will be written down. |
| Provision is made against slow moving and obsolete stock so as to fully provide after stock lines are held for |
| more than two years. |
| Stocks of machine component parts are held at cost. Provision is made to the extent the condition and |
| potential life of such components has deteriorated as at the accounting date. Net realisable value for these |
| machine components is the expected resale value if these items were to be sold on to a third party. |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans from banks or other related parties. |
| Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date. |
| Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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. |
| 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. |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Research and development |
| Expenditure on research and development is written off to revenue in the year in which it is incurred. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Pension costs and other post-retirement benefits |
| The pension cost charge in the financial statements represents the contributions payable by the company during the year to a company sponsored group personal pension scheme. The assets of the scheme are held independently from those of the company. |
| Related party transactions |
| On an annual basis, group entities, directors, key management, their close families and other entities in which those parties have significant control are identified as parties related to the company and an assessment is made of the potential type of transactions, if any that may be had with those parties. A review is then made of company transactions material to each party identified and such are disclosed in the notes to the financial statements together with the name of the relevant related party, the relationship to the company and the amount owing or owed to the related party at the accounting date. |
| Impairment |
| At each reporting date, goodwill and other fixed assets, including tangible fixed assets and investments but excluding investment properties, are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is the higher of its value in use and its net realisable value, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in profit and loss. |
| Other working capital elements |
| Trade debtors and other debtors |
| Trade debtors, which generally have 30-60 day terms, are recognised and carried at the lower of their original invoiced value and recoverable amount. Balances expressed in foreign currencies are converted to Sterling at the exchange rates prevailing at the balance sheet date. Provision for impairment is made through profit or loss when there is objective evidence that the Company will not be able to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote. |
| Trade creditors |
| Trade creditors, which generally have 30 day credit terms, are recognised and carried at the lower of their original invoiced value and the payable amount. Balances expressed in foreign currencies are converted to Sterling at the exchange rates prevailing at the balance sheet date. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 4. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| Additions |
| At 31 December 2022 |
| AMORTISATION |
| Charge for year |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| 5. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Freehold | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2022 |
| Additions |
| At 31 December 2022 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for year |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| 6. | STOCKS |
| 2022 | 2021 |
| £ | £ |
| Raw materials |
| Work-in-progress |
| Finished goods |
| Fuel / toner stocks | 5,625 | 6,668 |
| Engineering stocks |
| Stock recognised as an expense during the year through the Statement of Comprehensive Income totalled £2,810,195 (2021: £2,764,574). This includes raw material purchase costs of £2,977,853 (2021: £2,208,920), labour costs of £358,461 (2021: £340,174), and a net change in the stock balance of -£526,119 (2021: £215,479). |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Trade debtors |
| Corporation tax |
| VAT |
| Prepayments |
| At the balance sheet date no trade debts were overdue and the directors consider that no provision for doubtful or irrecoverable debts is required. |
| 8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Bank loans and overdrafts |
| Trade creditors |
| Amounts owed to group undertakings |
| Social security and other taxes |
| Accruals and deferred income |
| 9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Amounts owed to group undertakings |
| 10. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2022 | 2021 |
| £ | £ |
| Within one year |
| Between one and five years |
| 11. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2022 | 2021 |
| £ | £ |
| Bank overdraft |
| The bank hold a fixed and floating charge over the companys assets. |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 12. | PROVISIONS FOR LIABILITIES |
| 2022 | 2021 |
| £ | £ |
| Deferred tax - accelerated |
| capital allowances | 268,894 | 60,666 |
| 268,894 | 60,666 |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2022 |
| Provided during year |
| Balance at 31 December 2022 |
| 13. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2022 | 2021 |
| value: | £ | £ |
| Ordinary | £1 | 800,000 | 800,000 |
| 14. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
| The Auditors' Report was unqualified. |
| for and on behalf of |
| 15. | PENSION COMMITMENTS |
| Contributions are made to the Company Group Personal Pension Plan for the majority of its permanent employees. |
| The total pension costs charged for the year in these financial statements amounted to £53,984 (2021: £67,921). |
| As at the balance sheet date nothing was owed to the scheme ia £nil (2021: £nil). |
| 16. | CONTINGENT LIABILITIES |
| Bank covenants place restrictions on the amount of the overdraft facility that can be utilised based on the level of trade debtors and inventories. During the year the group operated within the prescribed limits. |
| 17. | CAPITAL COMMITMENTS |
| 2022 | 2021 |
| £ | £ |
| Contracted but not provided for in the |
| financial statements |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 18. | OTHER FINANCIAL COMMITMENTS |
| As at 31 December 2022 the company had no commitments in relation to stock purchases (2021: £nil). |
| 19. | RELATED PARTY DISCLOSURES |
| i) Key Management Personnel |
| Employees of Wychem Limited that are considered to be key management received remuneration in the year totalling £183,929 (2021: £371,928). |
| ii) Ascensus Specialties LLC |
| Ascensus Specialties LLC has control over Wychem Limited. |
| In the year to 31 December 2022 Ascensus Specialties LLC loaned £303,433 to Wychem Limited. |
| During the year Wychem Limited purchased raw materials from Ascensus Specialties LLC amounting £11,858. |
| As at 31 December 2022 included in creditors of Wychem Limited is £303,433 due to Ascensus Specialties LLC. |
| iii) Strem Chemicals Incorporation |
| During the year Wychem Limited purchased materials from Strem Chemicals Inc amounting £141,619. |
| Strem Chemicals Inc are part of the Ascensus Specialties group. |
| iv) Jockey UK Bidco Ltd |
| Jockey UK Bidco Ltd has control over Wychem Limited. |
| In the year to 31 December 2022 Jockey UK Bidco Limited loaned £350,425 to Wychem Ltd. |
| As at 31 December 2022 included in creditors of Wychem Limited is £350,425 due to Jockey UK Bidco Ltd. |
| 20. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
| In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
| 21. | ULTIMATE CONTROLLING PARTY |
| The controlling party is Jockey UK Bidco Limited. |
| The ultimate controlling party is |
| 22. | STATUTORY INFORMATION |
| Wychem 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. |
| Wychem Limited (Registered number: 00956213) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2022 |
| 23. | TRANSITION FROM FRS 101 TO FRS 102 (SECTION 1A) |
| On 01/01/2022 the company elected to transition from the Financial Reporting Standard 101 "Reduced Disclosure Framework" to Financial Reporting Standard 102 Section 1A. |
| On transition to Financial Reporting Standard 102 Section 1A, the company has specifically reviewed the effect of the transition and has confirmed that the transition to FRS 102 (Section 1A) has no effect on the previously reported financial position and financial performance of the company. |