Wychem Limited - Limited company accounts 18.2
Wychem Limited - Limited company accounts 18.2
REGISTERED NUMBER: |
Directors' Report and |
Audited Financial Statements |
for the Year Ended 31 December 2018 |
for |
Wychem Limited |
Wychem Limited (Registered number: 00956213) |
Contents of the Financial Statements |
for the Year Ended 31 December 2018 |
Page |
Company Information | 1 |
Directors' Report | 2 | to | 3 |
Independent Auditors' Report | 4 | to | 6 |
Statement of Comprehensive Income | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Notes to the Financial Statements | 10 | to | 20 |
Wychem Limited |
Company Information |
for the Year Ended 31 December 2018 |
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) |
Directors' Report |
for the Year Ended 31 December 2018 |
The directors present their report with the financial statements of the company for the year ended 31 December 2018. |
PRINCIPAL ACTIVITY |
The principle activity of the company in the year under review was the manufacture of chemicals. |
DIVIDENDS |
During the year, no dividends have been paid and the directors recommend that no final dividend is paid. |
RESEARCH AND DEVELOPMENT |
The company undertakes, and will continue to undertake various forms of research and development of chemical |
processes. |
FUTURE DEVELOPMENTS |
The directors expect the company continue to trade in its current form for the foreseeable future. |
DIRECTORS |
The directors who have held office during the period from 1 January 2018 to the date of this report are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with |
applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the |
directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted |
Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard |
101 'Reduced Disclosure Framework'. Under company law the directors must not approve the financial statements |
unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or |
loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company and |
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible |
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of |
fraud and other irregularities. |
Wychem Limited (Registered number: 00956213) |
Directors' Report |
for the Year Ended 31 December 2018 |
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. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Wychem Limited (Registered number: 00956213) |
Opinion |
We have audited the financial statements of Wychem Limited (the 'company') for the year ended 31 December 2018 |
which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. |
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, |
and the provisions available for small entities, in the circumstances set out in note twenty three to the financial |
statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe |
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in |
doing so, consider whether the other information is materially inconsistent with the financial statements or our |
knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material |
inconsistencies or apparent material misstatements, we are required to determine whether there is a material |
misstatement in the financial statements or a material misstatement of the other information. If, based on the work |
we have performed, we conclude that there is a material misstatement of this other information, we are required to |
report that fact. We have nothing to report in this regard. |
Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Directors' Report has been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Wychem Limited (Registered number: 00956213) |
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 Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to |
you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, |
and for such internal control as the directors determine necessary to enable the preparation of financial statements |
that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a |
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of |
accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic |
alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from |
material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. |
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with |
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and |
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the |
economic decisions of users taken on the basis of these financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' |
Report. |
Independent Auditors' Report to the Members of |
Wychem Limited (Registered number: 00956213) |
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 an Auditors' Report 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Eldo House, Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Wychem Limited (Registered number: 00956213) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2018 |
2018 | 2017 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
582,824 | 603,568 |
523,704 | 74,671 |
Other operating income |
OPERATING PROFIT |
Interest receivable and similar income |
546,735 | 92,801 |
Interest payable and similar expenses | 4 |
PROFIT BEFORE TAXATION | 5 |
Tax on profit | 6 | (91,047 | ) | (26,898 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Wychem Limited (Registered number: 00956213) |
Balance Sheet |
31 December 2018 |
2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 | 1,780,677 | 1,836,652 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors on by: |
Wychem Limited (Registered number: 00956213) |
Statement of Changes in Equity |
for the Year Ended 31 December 2018 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2017 |
Changes in equity |
Total comprehensive income | - | 107,145 | - | 107,145 |
Balance at 31 December 2017 | 2,322,212 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2018 | 800,000 | 1,556,081 | 559,930 | 2,916,011 |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements |
for the Year Ended 31 December 2018 |
1. | STATUTORY INFORMATION |
Wychem Limited is a |
registered number and registered office address can be found on the Company Information page. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparation |
The company has taken advantage of the following disclosure exemptions in preparing these financial |
statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of: |
- | paragraph 79(a)(iv) of IAS 1; and |
- | paragraph 73(e) of IAS 16 Property, Plant and Equipment; |
• | the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements; |
• | the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets. |
The company has also taken advantage of the disclosure exemptions available in relation to 'IFRS 15 Revenue |
from Contracts with Customers' and 'IFRS 16 Leases' as permitted by FRS101 "Reduced disclosure framework" |
for accounts periods commencing on or after 1 January 2018. |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
2. | ACCOUNTING POLICIES - continued |
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 and revenue recognition |
Turnover represents the sale of goods net of discounts and excluding value added tax. |
The major part of the company's business is the manufacture of chemicals to its customers' precise |
specifications and usually under customers prescribed terms and conditions (with the exception of pricing |
which is decided largely by the Company). Sales orders are received and normal sales credit terms of 30 days |
net or more are extended. It is not practice nor is it appropriate given the nature of the business to request |
stage payments. Legal title to purchased and processed materials and all risks associated with the holding and |
manufacture of materials remains wholly with Wychem Ltd until such point that quality control procedures are |
satisfactorily completed and processed chemicals are accepted by customers usually at the time of delivery or |
collection. There is no contractual or financial penalty levied on customers if sales orders are cancelled or varied |
at any stage before completion. It is therefore the acceptance of stock by customers that is the trigger point for |
the recognition of revenue under this element of the company's business. |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
2. | ACCOUNTING POLICIES - continued |
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 50%. Work in progress comprises materials, labour and |
overheads incurred appropriate to the stage of manufacture. |
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. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local |
tax rules, using tax rates enacted or substantially enacted by the balance sheet date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
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. |
Leasing commitments |
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over |
the period of the lease. |
Employee benefit costs - pension scheme |
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. |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
2. | ACCOUNTING POLICIES - continued |
Financial liabilities - bank loans |
The company's term loans are accounted for at cost which is not materially different to the treatment required |
by IAS 39 which stipulates amortised cost. |
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 |
2018 | 2017 |
£ | £ |
Gross pay (including benefits in kind) | 954,799 | 851,014 |
Social security | 99,524 | 80,834 |
Pension contributions | 46,421 | 40,322 |
Total staff costs (including pensions benefits and social security) | 1,100,744 | 972,170 |
The average number employed during the year was as follows: | 2018 | 2017 |
Manufacturing and distribution | 22 | 23 |
Administration | 3 | 2 |
25 | 25 |
2018 | 2017 |
£ | £ |
Director's remuneration | - | - |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2018 | 2017 |
£ | £ |
Bank interest |
Other interest | 9,923 | - |
Interest on tax liabilities | - | 212 |
Hire purchase interest |
Bank charges | 26,560 | 8,947 |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
5. | PROFIT BEFORE TAXATION |
The profit before taxation is stated after charging/(crediting): |
2018 | 2017 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Audit fee - Company | 15,950 | 15,950 |
Auditor's non-audit fees | 4,890 | 8,130 |
Foreign exchange differences |
Research and development | 378,425 | 349,562 |
6. | TAXATION |
Analysis of tax income |
2018 | 2017 |
£ | £ |
Current tax: |
Tax on profit for the year | 109,287 | - |
Prior period tax adjustments | (151,564 | ) | (43,998 | ) |
Total current tax | (42,277 | ) | (43,998 | ) |
Deferred tax | ( |
) |
Total tax income in statement of comprehensive income | (91,047 | ) | (26,898 | ) |
Factors affecting the tax expense |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
2018 | 2017 |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2017 - |
95,523 |
15,445 |
Effects of: |
Depreciation (less)/greater than capital allowances | 7,192 | (16,590 | ) |
Non-deductible expenses | 6,572 | 1,096 |
credit |
Prior year adjustments - group relief | (151,564 | ) | (44,583 | ) |
Prior year adjustments - other | - | 585 |
Deferred tax | (48,770 | ) | 17,100 |
Losses carried forward | - | 49 |
Tax income | (91,047 | ) | (26,898 | ) |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
6. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2018. |
2017 |
Gross | Tax | Net |
£ | £ | £ |
Capital reduction scheme |
7. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2018 |
Additions |
At 31 December 2018 |
DEPRECIATION |
At 1 January 2018 |
Charge for year |
At 31 December 2018 |
NET BOOK VALUE |
At 31 December 2018 |
At 31 December 2017 |
The net book value of tangible fixed assets includes £ 10,478 (2017 - £ 11,788 ) in respect of assets held under |
hire purchase contracts. |
8. | STOCKS |
2018 | 2017 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
Fuel stocks | 5,568 | 3,922 |
Engineering stocks |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
Corporation tax | - | 56,884 |
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. |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Hire purchase contracts (see note 12) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2018 | 2017 |
£ | £ |
Bank loans (see note 12) |
Hire purchase contracts (see note 12) |
12. | FINANCIAL LIABILITIES - BORROWINGS |
2018 | 2017 |
£ | £ |
Current: |
Bank overdrafts |
Bank loans |
Hire purchase (see note 13) |
Non-current: |
and under five years |
Hire purchase (see note 13) |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
12. | FINANCIAL LIABILITIES - BORROWINGS - continued |
Terms and debt repayment schedule |
1 year or |
less | 2-5 years | Totals |
£ | £ | £ |
Bank overdrafts | - | 618,877 |
Bank loans | 43,099 | 129,340 |
Hire purchase | - | 592 |
43,099 | 748,809 |
Bank borrowings are secured by fixed and floating charges on the assets of the company and its immediate |
parent company, MRG Holdings Ltd. |
One bank loan extant at the beginning of the year had an initial term of 15 years and interest is payable at 2% |
above bank base rate. |
A second bank loan was taken in 2015 over a term of five years on which interest is charged at 3.5% above base |
rate. |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2018 | 2017 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2018 | 2017 |
£ | £ |
Within one year |
Between one and five years |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
2018 | 2017 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 592 | 5,334 |
748,809 | 765,346 |
The bank overdraft is secured with a fixed and floating charge over the companys assets. |
Hire purchase assets are secured against the fixed asset financed. |
15. | PROVISIONS FOR LIABILITIES |
2018 | 2017 |
£ | £ |
Deferred tax - accelerated |
capital allowances |
88,430 | 137,200 |
Deferred |
tax |
£ |
Balance at 1 January 2018 |
Accelerated capital allowances |
- Timing differences | (48,770 | ) |
Balance at 31 December 2018 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
Ordinary | £1 | 800,000 | 800,000 |
17. | 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 £46,421 (2017: |
£40,322). |
As at the balance sheet date nothing was owed to the scheme (2017: nil). |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
18. | IMMEDIATE AND ULTIMATE PARENT COMPANY |
The company's immediate parent company is MRG Holdings Ltd, registered in England and Wales. |
Aurelius Equity Opportunities SE & Co. KGaA registered in Germany was regarded as the company's ultimate |
parent company at the balance sheet date and is the entity for which group accounts are prepared. The Group's |
UK address is 3rd Floor, 1 Savile Row, London W1. |
Consolidated financial statements for Aurelius Equity Opportunities SE & Co. KGaA are publically available at |
the following address : https://aureliusinvest.com |
19. | CONTINGENT LIABILITIES |
The company has given an unlimited multi-lateral guarantee, secured on its assets, for its parent company's |
bank borrowings which at 31 December 2018 were £NIL (2017: £NIL). |
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. |
20. | CAPITAL COMMITMENTS |
2018 | 2017 |
£ | £ |
Contracted but not provided for in the |
financial statements |
21. | OTHER FINANCIAL COMMITMENTS |
As at 31 December 2018 the company is committed to purchase £61,007 of engineering stock. |
Wychem Limited (Registered number: 00956213) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
22. | RELATED PARTY DISCLOSURES |
i) Noriabe Limited |
Noriabe Limited is the personal service company of Mr G. Morgan, who was a director of the company until 31 |
December 2018. |
Service charges and expenses were incurred of £66,500 (2017: £102,631). |
Nothing was owed to the related company at the balance sheet date (2017: £33.900) |
ii) Mr B. Schlosser - Director until 31 January 2018 |
During the year consultancy fees of £6,243 were charged to the company (2017: £6,009). Nothing was owed to |
Mr Schlosser at the balance sheet date (2017: nil). |
iii) Wychem Holding Limited |
Wychem holdings is a company with indirect control over Wychem Limited. |
Management charges were paid by Wychem Limited to Wychem Holdings Limited amounting to £53,055 (2017: |
£78,195). |
iv) Nestor Primecare Services Limited |
Nestor Primecare Services Limited is a company controlled by the same entity as Wychem Limited. |
In the year invoices were raised by Nestor Primecare Services Limited to Wychem Limited amounting to |
£30,377 (2017: NIL). |
v) Key Management Personnel |
Employees of Wychem Limited that are considered to be key management received remuneration in the year |
totalling £93,187. |
23. | APB 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. |
24. | 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. |