Company registration number 01100854 (England and Wales)
MULTICHEM LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
PAGES FOR FILING WITH REGISTRAR
MULTICHEM LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MULTICHEM LIMITED
BALANCE SHEET
AS AT 31 MAY 2022
31 May 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
401,001
388,690
Investments
5
32,258
32,258
433,259
420,948
Current assets
Stocks
7
665,836
567,303
Debtors
8
1,334,015
812,790
Cash at bank and in hand
263,231
445,661
2,263,082
1,825,754
Creditors: amounts falling due within one year
9
(1,049,136)
(783,633)
Net current assets
1,213,946
1,042,121
Total assets less current liabilities
1,647,205
1,463,069
Provisions for liabilities
(21,434)
(12,006)
Net assets
1,625,771
1,451,063
Capital and reserves
Called up share capital
11
1,627
1,627
Share premium account
1,950
1,950
Capital redemption reserve
1,573
1,573
Profit and loss reserves
1,620,621
1,445,913
Total equity
1,625,771
1,451,063
MULTICHEM LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2022
31 May 2022
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 May 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 September 2022 and are signed on its behalf by:
M Nelson
Director
Company Registration No. 01100854
MULTICHEM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
- 3 -
1
Accounting policies
Company information
Multichem Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Unit 1, Tyne Mills Industrial Estate, Hexham, Northumberland, NE46 1XL.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover represents amounts receivable for goods
provided in the normal course of business, net of trade discounts, VAT and other sales-related tax
.
Turnover from the sale of goods is recognised when substantially all the risks and rewards associated with those goods have been transferred to a customer. This is typically when the goods are physically delivered to the customer. In the case of bill & hold agreements, it is typically when the goods are available for collection. In the case of export sales this may vary according to contractual terms, but is typically at the point of loading onto a delivery vessel.
1.3
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:
Freehold buildings
2% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
33.3% 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
.
MULTICHEM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 4 -
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
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.
1.6
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 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.
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.
Basic financial liabilities
Basic financial liabilities, including
creditors
, 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
paymen
ts discounted at a market rate of interest.
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. A
m
ounts 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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MULTICHEM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 5 -
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.
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.
1.8
Retirement benefits
The company participates in a defined contribution personal pension plan. The amount charged to the profit and loss account represents the contributions payable to the plan in respect of the accounting period. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
1.9
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 lease
s
asset are consumed.
1.10
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.11
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
MULTICHEM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 6 -
2
Employees
2022
2021
Number
Number
Total
15
16
3
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
86,629
36,457
Adjustments in respect of prior periods
625
Total current tax
86,629
37,082
Deferred tax
Origination and reversal of timing differences
9,428
(1,873)
Total tax charge
96,057
35,209
4
Tangible fixed assets
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 June 2021
515,921
396,518
103,002
119,169
1,134,610
Additions
44,375
1,974
46,349
At 31 May 2022
515,921
440,893
103,002
121,143
1,180,959
Depreciation and impairment
At 1 June 2021
209,736
337,044
80,922
118,218
745,920
Depreciation charged in the year
10,318
19,305
3,312
1,103
34,038
At 31 May 2022
220,054
356,349
84,234
119,321
779,958
Carrying amount
At 31 May 2022
295,867
84,544
18,768
1,822
401,001
At 31 May 2021
306,185
59,474
22,080
951
388,690
MULTICHEM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 7 -
5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
32,258
32,258
6
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Multichem Ink (Shanghai) Co. Limited
China
Ordinary
100.00
7
Stocks
2022
2021
£
£
Raw materials
528,157
441,663
Finished goods
137,679
125,640
665,836
567,303
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,036,776
531,792
Amounts owed by group undertakings
145,345
152,528
Other debtors
151,894
128,470
1,334,015
812,790
9
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
813,016
698,183
Corporation tax
86,629
36,457
Other taxation and social security
8,730
10,959
Other creditors
140,761
38,034
1,049,136
783,633
MULTICHEM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 8 -
10
Share-based payment transactions
The company operates a scheme under which share options, settled by the issue of ordinary shares in the company, have been granted to an employee of the company.
On 9 December 2017, options to acquire 181 ordinary shares of £1 were granted. The participating employee has the option to acquire the shares in the company at the exercise price of £141.37 per share.
The impact on the profit and loss account has been assessed as immaterial and as such, no change has been recognised in the current or prior period.
11
Called up share capital
2022
2021
£
£
Allotted, called up and fully paid equity shares:
Ordinary 'A' shares of £1 each
1,477
1,477
Ordinary 'B' shares of £1 each
150
150
1,627
1,627
12
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
15,397
24,293
13
Directors' transactions
Dividends totalling £305,377 (2021 - £211,631) were paid in the year in respect of shares held by the company's directors.