Company Registration No. 01185365 (England and Wales)
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
4
3,148,418
-
Tangible assets
5
1,113,999
398,496
4,262,417
398,496
Current assets
Stocks
2,764,982
1,165,378
Debtors
6
2,723,785
1,134,666
Cash at bank and in hand
3,970,994
509,691
9,459,761
2,809,735
Creditors: amounts falling due within one year
7
(2,318,309)
(1,375,331)
Net current assets
7,141,452
1,434,404
Total assets less current liabilities
11,403,869
1,832,900
Provisions for liabilities
8
(352,617)
(186,184)
Net assets
11,051,252
1,646,716
Capital and reserves
Called up share capital
9
306,001
306,000
Merger reserve
8,364,455
-
Profit and loss reserves
2,380,796
1,340,716
Total equity
11,051,252
1,646,716
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 23 March 2020 and are signed on its behalf by:
K F Jones
Director
Company Registration No. 01185365
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
1
Accounting policies
Company information
CHT UK Bridgwater Ltd. is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Showground Road, Bridgwater, Somerset, TA6 6AJ.
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 7 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.4
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:
Land and buildings Freehold
Straight line over 50 years
Land and buildings Leasehold
Over term of lease
Plant and machinery
10%-33% straight line
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 3 -
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying 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, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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
cost less impairment
.
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.
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
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
.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
1.9
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
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 are included in the profit and loss account for the period.
2
Exceptional costs
2019
2018
£
£
Exceptional costs
-
170,762
These costs relate
d
to the restructuring of the business following an acquisition by the Group.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 44 (2018 - 19).
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2019
-
Additions
3,526,228
At 31 December 2019
3,526,228
Amortisation and impairment
At 1 January 2019
-
Amortisation charged for the year
377,810
At 31 December 2019
377,810
Carrying amount
At 31 December 2019
3,148,418
At 31 December 2018
-
Intangible assets represent goodwill following the company's acquisition of the trade and assets of ACC Silicones Ltd. This is being amortised over the directors' estimate of its useful economic life of 7 years.
5
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2019
511,504
-
660,584
392,437
56,795
1,621,320
Additions
-
306,562
422,471
138,926
-
867,959
Disposals
-
-
(34,959)
-
-
(34,959)
At 31 December 2019
511,504
306,562
1,048,096
531,363
56,795
2,454,320
Depreciation and impairment
At 1 January 2019
221,217
-
605,423
374,810
21,374
1,222,824
Depreciation charged in the year
3,465
24,026
80,204
37,716
7,045
152,456
Eliminated in respect of disposals
-
-
(34,959)
-
-
(34,959)
At 31 December 2019
224,682
24,026
650,668
412,526
28,419
1,340,321
Carrying amount
At 31 December 2019
286,822
282,536
397,428
118,837
28,376
1,113,999
At 31 December 2018
290,287
-
55,161
17,627
35,421
398,496
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,586,408
1,042,648
Other debtors
137,377
92,018
2,723,785
1,134,666
7
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
1,424,569
1,089,468
Corporation tax
287,057
9,677
Other taxation and social security
190,168
199,159
Other creditors
416,515
77,027
2,318,309
1,375,331
8
Provisions for liabilities
2019
2018
£
£
Restructuring costs
-
170,762
Dilapidations
332,700
-
332,700
170,762
Deferred tax liabilities
19,917
15,422
352,617
186,184
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
306,001 Ordinary Shares of £1 each
306,001
306,000
One ordinary share was allotted in consideration for the transfer of the trade and assets of ACC Silicones Ltd.
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
10
Acquisitions
On 28 March 2019 the company acquired the trade and assets of ACC Silicones Ltd.
Fair Value
£
Property, plant and equipment
499,006
Inventories
1,564,587
Trade and other receivables
1,517,228
Cash and cash equivalents
2,832,886
Trade and other payables
(1,203,275)
Tax liabilities
(39,157)
Provisions
(348,680)
Deferred tax
15,633
Total identifiable net assets
4,838,228
Goodwill
3,526,228
Total consideration
8,364,456
Satisfied by:
£
Issue of shares
8,364,456
The goodwill arising on the acquisition of the business is attributable to the difference between the consideration and the net assets transferred. This is being amortised over the directors' estimate of its useful economic life of 7 years.
CHT UK BRIDGWATER LTD.
(FORMALLY CHT UK MANCHESTER LTD.)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
780,748
76,668
12
Parent company
The company's ultimate parent undertaking at the balance sheet date was RB Beitlich Industriebeteiligungen GmbH, a company incorporated in Germany with a registered office of Bismarckstrasse 102, 72072 Tubingen.
13
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Gary Kramrisch.
The auditor was Alexander & Co.
2019-12-31
2019-01-01
false
23 March 2020
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
This audit opinion is unqualified
Mr A Thompson
Mr F Naumann
Mr K F Jones
A Thompson
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