REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31st December 2019 |
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F2 CHEMICALS LIMITED |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31st December 2019 |
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for |
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F2 CHEMICALS LIMITED |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Contents of the Financial Statements |
for the Year Ended 31st December 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 14 |
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F2 CHEMICALS LIMITED |
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Company Information |
for the Year Ended 31st December 2019 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditor |
Chartered Certified Accountants |
41 St Thomas's Road |
Chorley |
Lancashire |
PR7 1JE |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Strategic Report |
for the Year Ended 31st December 2019 |
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The directors present their strategic report for the year ended 31st December 2019. |
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REVIEW OF BUSINESS |
The company has experienced an increase of 12% in turnover during 2019. The increase is largely due to new |
customers across the globe. |
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There has been a significant decrease in the company's operating margin to 10%. This is due to two significant events: |
increased sales volumes have all come from the company's lower margin products and existing sales includes a |
reduction in the more profitable products. Secondly, a large increase in direct electricity costs has occurred due to above |
average price increases. |
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The company anticipates that sales will remain close to the 2019 level in the next year. The company continues to |
receive full support from its parent company, Showa Denko KK. |
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KEY PERFORMANCE INDICATORS ("KPI") |
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The directors monitor progress on the company's strategy by reference to the following KPI's: |
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KP I | 2019 | 2018 |
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Sales growth/(decline) (%) | 12 | 14 |
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Operating margin (%) | 10 | 24.3 |
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ENVIRONMENTAL AND OTHER RISKS |
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The company continues to closely monitor and evaluate, environmental, and other, regulatory matters which could have |
a major impact on its activities. |
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The company is keen to eliminate all injuries, occupational illnesses, unsafe practices and incidents of environmental |
harm from our activities. The health and safety of its employees, the local community and the environment is the |
number one priority of F2 Chemicals Ltd. |
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F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Strategic Report |
for the Year Ended 31st December 2019 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
FINANCIAL RISK MANAGEMENT |
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The company's operations expose it to a variety of financial risks that include the effects of credit risk and liquidity risk. |
The company has in place a risk management programme that seeks to limit the adverse effects on the financial |
performance of the company. |
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Credit risk: |
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The company has implemented policies that require appropriate credit checks on both potential customers and suppliers |
before sales/purchases are made. |
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Liquidity risk: |
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The company actively maintains short term debt finance that is designed to ensure the company has sufficient funds for |
operations.The movement in short term borrowings is largely due to the reclassification of long term borrowings.. |
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Foreign exchange risk: |
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The company operates foreign currency bank accounts and also deals with both buying and selling products in a range |
of currencies. |
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Brexit: |
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A large proportion of the company's sales are made within the EC. Despite now passing the Brexit date of 31 January |
2020, it is still not clear how this will affect these sales. |
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In order to reduce the risk, the company has continued to take advantage of opportunities and partnerships outside the |
EC as well as looking to grow within the UK. This has been reflected in sales to Asian regions, which have shown a |
139% increase as well as sales made within the UK, which has shown a 190% increase. |
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BUSINESS MODEL |
The company's business model is to sell speciality fluorochemical products into exclusive niche markets both |
domestically and internationally. Shareholder value for the sole shareholder is generated by the supply of high added |
value products in a diverse range of markets. In 2019, 88% (2018: 93%) of the company's sales were for export. |
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ON BEHALF OF THE BOARD: |
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F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Report of the Directors |
for the Year Ended 31st December 2019 |
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The directors present their report with the financial statements of the company for the year ended 31st December 2019. |
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PRINCIPAL ACTIVITIES |
The Company's principal activities during the twelve months continued to be the manufacture and supply of |
perfluorocarbon fluids using cobalt fluoride technology and other fluorine containing organic chemicals principally |
using its selective direct fluorination technology. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2019. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2019 to the date of this |
report. |
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Other changes in directors holding office are as follows: |
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ENGAGEMENT WITH EMPLOYEES |
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ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
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STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS |
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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. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business. |
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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. |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Report of the Directors |
for the Year Ended 31st December 2019 |
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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 ought to have taken |
as a director in order to make himself aware of any relevant audit information and to establish that the company's |
auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
F2 Chemicals Limited |
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Opinion |
We have audited the financial statements of F2 Chemicals Limited (the 'company') for the year ended |
31st December 2019 which comprise the Income Statement, Other 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). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31st December 2019 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. |
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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. |
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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: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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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. |
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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. |
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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. |
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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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
Report of the Independent Auditors to the Members of |
F2 Chemicals Limited |
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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. |
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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: |
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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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
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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. |
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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. |
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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. |
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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. |
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for and on behalf of
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Statutory Auditor |
Chartered Certified Accountants |
41 St Thomas's Road |
Chorley |
Lancashire |
PR7 1JE |
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t/a Abrams Ashton - Chorley |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Income Statement |
for the Year Ended 31st December 2019 |
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31.12.19 | 31.12.18 |
Notes | £'000 | £'000 | £'000 | £'000 |
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TURNOVER | 3 |
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Raw materials and consumables |
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Staff costs | 4 |
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Depreciation |
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Other operating expenses |
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4,182 | 3,648 |
OPERATING PROFIT | 6 |
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Interest receivable and similar income | 7 |
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Interest payable and similar expenses | 8 | ( |
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Other finance costs | 22 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 9 |
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PROFIT FOR THE FINANCIAL YEAR |
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F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Other Comprehensive Income |
for the Year Ended 31st December 2019 |
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31.12.19 | 31.12.18 |
Notes | £'000 | £'000 |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Remeasurements on Pensions scheme | ( |
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Income tax relating to other comprehensive
income |
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OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
( |
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TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Balance Sheet |
31st December 2019 |
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31.12.19 | 31.12.18 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 10 |
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Tangible assets | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
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PROVISIONS FOR LIABILITIES | 19 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 20 |
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Retained earnings | 21 | ( |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
signed on its behalf by: |
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F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Statement of Changes in Equity |
for the Year Ended 31st December 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
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Balance at 1st January 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31st December 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31st December 2019 |
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F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Cash Flow Statement |
for the Year Ended 31st December 2019 |
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31.12.19 | 31.12.18 |
Notes | £'000 | £'000 |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Other finance costs |
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( |
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Pension contribution excess | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
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Purchase of tangible fixed assets | ( |
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Sale of intangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Capital repayments in year | ( |
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Net cash from financing activities | ( |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of
year |
2 |
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1,354 |
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Cash and cash equivalents at end of year | 2 | 2,586 | 1,862 |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Notes to the Cash Flow Statement |
for the Year Ended 31st December 2019 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Finance costs | 58 | 149 |
Finance income | (1 | ) | (1 | ) |
1,651 | 2,727 |
Decrease/(increase) in stocks |
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( |
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Decrease/(increase) in trade and other debtors |
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Increase/(decrease) in trade and other creditors |
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( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of |
these Balance Sheet amounts: |
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Year ended 31st December 2019 |
31.12.19 | 1.1.19 |
£'000 | £'000 |
Cash and cash equivalents | 2,586 | 1,862 |
Year ended 31st December 2018 |
31.12.18 | 1.1.18 |
£'000 | £'000 |
Cash and cash equivalents | 1,862 | 1,354 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.1.19 | Cash flow | At 31.12.19 |
£'000 | £'000 | £'000 |
Net cash |
Cash at bank | 1,862 | 724 | 2,586 |
1,862 |
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2,586 |
Debt |
Debts falling due within 1 year | (2,893 | ) | 715 | (2,178 | ) |
Debts falling due after 1 year | (284 | ) | 284 | - |
(3,177 | ) | 999 | (2,178 | ) |
Total | (1,315 | ) | 1,723 | 408 |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Notes to the Financial Statements |
for the Year Ended 31st December 2019 |
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1. | STATUTORY INFORMATION |
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F2 Chemicals Limited is a
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registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Revenue recognition |
Turnover is the value of goods, net of value added tax, provided to customers during the year. |
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Revenue is recognised when the following conditions are satisfied: |
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-the company has transferred to the buyer the significant risks and rewards of ownership of the goods |
-the amount of revenue and related costs can be measured reliably |
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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. |
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Tangible fixed assets |
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated |
residual value, of each assets evenly over its expected useful life, as follows: |
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Flutec plant | - | 6.6% straight line |
Leasehold Improvements | - | 6.6% straight line |
Research laboratory | - | 10% straight line |
Plant and equipment | - | 20% straight line |
Office equipment, fixtures and fittings | - | 10% straight line |
Computer equipment | - | 33% straight line |
Motor vehicles | - | 25% straight line |
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Impairment of assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets |
have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any |
affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the |
carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised |
immediately in profit or loss. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of |
its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss |
been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit |
or loss. |
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Stocks |
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each |
product to its present location and condition and, where appropriate, attributable overheads based on a normal |
level of activity. Net realisable value is based on estimated selling price less any further costs expected to be |
incurred to completion and disposal. |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 |
'Other Financial Instruments' of FRS 102 to all 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. |
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Financial assets: |
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Basic financial assets, which include debtors, loans to common controlled companies and cash and bank |
balances, are initially measured at transaction price including transaction costs. They 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. |
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Other financial assets: |
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All the company's financial assets fall to be classified as basic financial assets under Section 11 of FRS 102 and |
the company therefore holds no other financial assets. |
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Financial liabilities: |
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Basic financial liabilities, including creditors, 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 |
receipts 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. Amounts 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. |
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Other financial liabilities: |
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All the companies financial liabilities fall to be classified as basic financial liabilities under Section 11 of FRS |
102 and the company therefore has no other financial instruments. |
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Research and development |
Research and development expenditure on projects not specifically recoverable directly from customers is |
written off as incurred. |
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Foreign currencies |
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets |
and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet |
date. Exchange differences are taken to the profit and loss account. |
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Hire purchase and leasing commitments |
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the |
lease term. |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
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Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Pensions |
The company operates a defined benefit pension scheme that requires contributions to be made to a separately |
administered fund. The contributions to this fund are based on independent actuarial valuations designed to |
secure the benefits as set out in the rule. Contributions are charged in the profit and loss account so as to spread |
the cost of the employees' working lives with the company. The regular cost is attributed to individual years |
using a projected unit credit method. Variations in pension cost, which are identified as a result of actuarial |
valuations, are amortised over the average expected remaining working lives of employees in proportion to their |
expected payroll costs. |
|
In October 2009 the defined benefit pension scheme was closed to new entrants for new employees eligible for |
pension contributions and the company makes payments to employees individual private pension plans. |
On the 31st December 2015, the pension scheme was closed with the remaining liability to be paid off by the |
company in the subsequent years. |
|
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held with banks, and bank overdrafts. Bank |
overdrafts, when applicable, are shown within borrowings in current liabilities. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the principal activities of the company. |
|
An analysis of turnover by geographical market is given below: |
|
31.12.19 | 31.12.18 |
£'000 | £'000 |
United Kingdom |
|
|
Europe |
|
|
United States of America |
|
|
Other | 2,515 | 1,937 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31.12.19 | 31.12.18 |
|
Manufacturing | 27 | 29 |
Administration | 14 | 14 |
|
|
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
5. | DIRECTORS' EMOLUMENTS |
|
31.12.19 | 31.12.18 |
£'000 | £'000 |
Directors remuneration | 105 | 105 |
|
6. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
31.12.19 | 31.12.18 |
£'000 | £'000 |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) |
|
Patents and licences amortisation |
|
|
Audit services |
|
|
Pension scheme audit services |
|
|
Foreign exchange differences |
|
( |
) |
|
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Deposit account interest |
|
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Bank loan interest & charges |
|
|
|
9. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
9. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
31.12.19 | 31.12.18 |
£'000 | £'000 |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2018 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses |
|
( |
) |
Adjustments to tax charge in respect of previous periods |
|
|
Deferred tax | 139 | 49 |
Transfer pricing adjustment y/e 31 December 2019 | 48 | - |
Profit on sale of intangible | (4 | ) | - |
Total tax charge | 285 | 182 |
|
Tax effects relating to effects of other comprehensive income |
|
31.12.19 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Remeasurements on Pensions scheme | ( |
) | - | (33 | ) |
|
31.12.18 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Remeasurements on Pensions scheme | ( |
) | - | (15 | ) |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
10. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£'000 |
COST |
At 1st January 2019 |
|
Additions |
|
Disposals | ( |
) |
At 31st December 2019 |
|
AMORTISATION |
At 1st January 2019 |
|
Amortisation for year |
|
Eliminated on disposal | ( |
) |
At 31st December 2019 |
|
NET BOOK VALUE |
At 31st December 2019 |
|
At 31st December 2018 |
|
|
11. | TANGIBLE FIXED ASSETS |
Plant & |
equipment |
and |
Long | office |
leasehold | equipment | Totals |
£'000 | £'000 | £'000 |
COST |
At 1st January 2019 |
|
|
|
Additions |
|
|
|
At 31st December 2019 |
|
|
|
DEPRECIATION |
At 1st January 2019 |
|
|
|
Charge for year |
|
|
|
At 31st December 2019 |
|
|
|
NET BOOK VALUE |
At 31st December 2019 |
|
|
|
At 31st December 2018 |
|
|
|
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
12. | STOCKS |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Raw materials and consumables |
|
|
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
The difference between purchase price or production cost of stocks and their replacement cost is not material. |
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Bank loans and overdrafts (see note 16) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Accruals and deferred income |
|
|
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Bank loans (see note 16) |
|
|
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31.12.19 | 31.12.18 |
£'000 | £'000 |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31.12.19 | 31.12.18 |
£'000 | £'000 |
Bank loans |
|
|
|
The bank loan is secured via a cross company guarantee relating to its parent company. |
|
19. | PROVISIONS FOR LIABILITIES |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Deferred tax | 188 | 49 |
|
Deferred |
tax |
£'000 |
Balance at 1st January 2019 |
|
Charge to Income Statement during year |
|
Balance at 31st December 2019 |
|
|
20. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.19 | 31.12.18 |
value: | £'000 | £'000 |
|
Ordinary | £1 | 11,125 | 11,125 |
|
21. | RESERVES |
Retained |
earnings |
£'000 |
|
At 1st January 2019 | ( |
) |
Profit for the year |
|
Pension reserve | (33 | ) |
At 31st December 2019 | ( |
) |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
22. | EMPLOYEE BENEFIT OBLIGATIONS |
|
The company operates a defined benefit pension scheme for its employees. The assets of the schemes are held in |
a separate trustee-administered fund. The pension scheme has been closed to future accruals on the 31/12/2015. |
|
The latest actuarial valuation report was completed on 29 January 2020. |
|
The amounts recognised in profit or loss are as follows: |
|
Defined benefit |
pension plans |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Current service cost | - | - |
Net interest from net defined benefit
asset/liability |
- |
(2 |
) |
Past service cost | - | - |
- | (2 | ) |
|
Actual return on plan assets |
|
( |
) |
|
Changes in the present value of the defined benefit obligation are as follows: |
|
Defined benefit |
pension plans |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Opening defined benefit obligation |
|
|
Interest cost |
|
|
Actuarial losses/(gains) |
|
( |
) |
Benefits paid | ( |
) | ( |
) |
Curtailments | - | 100 |
|
|
|
Changes in the fair value of scheme assets are as follows: |
|
Defined benefit |
pension plans |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Opening fair value of scheme assets |
|
|
Contributions by employer |
|
|
Asset Ceiling | (636 | ) | (611 | ) |
Expected return | 317 | 288 |
Actuarial gains/(losses) |
|
( |
) |
Benefits paid | (137 | ) | (296 | ) |
|
|
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
|
The amounts recognised in other comprehensive income are as follows: |
|
Defined benefit |
pension plans |
31.12.19 | 31.12.18 |
£'000 | £'000 |
Remeasurements | ( |
) | ( |
) |
(33 | ) | (15 | ) |
|
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
|
Defined benefit |
pension plans |
31.12.19 | 31.12.18 |
Equities & cash | 81.25% | 68.04% |
Gilts | 18.75% | 23.09% |
Bonds | - | 8.87% |
100.00% | 100.00% |
|
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
|
31.12.19 | 31.12.18 |
Discount rate |
|
|
Price inflation rate (CPI) |
|
|
Price inflation rate (RPI) |
|
|
Pensions-in-payment increase rate 5% |
|
|
Pensions-in-payment increase rate 2.5% |
|
|
|
The above percentages relate to the weighted-average assumptions to determine defined benefit obligations. |
|
The following percentages relate to the weighted-average assumptions to determine cost relating to defined |
benefit plans. |
|
31.12.19 | 31.12.18 |
Discount rate | 2.85% | 2.50% |
Price inflation rate (CPI) | 2.15% | 2.05% |
Price inflation rate (RPI) | 3.15% | 3.05% |
Pensions-in-payment increase rate 5% | 3.05% | 3.00% |
Pensions-in-payment increase rate 2.5% | 2.15% | 2.15% |
|
23. | ULTIMATE PARENT COMPANY |
|
The Company's ultimate parent company is Showa Denko KK, registered in Japan. |
|
24. | 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. |
F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31st December 2019 |
|
25. | ULTIMATE CONTROLLING PARTY |
|
The Company's immediate holding company is Showa Denko KK . |
|
Copies of its group accounts, which include the Company, are available from Showa Denko KK, 13-9, Shiba |
Daimon 1-Chome, Minato-ku, Tokyo, 105-8518, Japan. |