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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2018 |
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for |
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EMS-Chemie (UK) Ltd |
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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2018 |
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for |
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EMS-Chemie (UK) Ltd |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2018 |
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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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Statement of Income and Retained Earnings | 8 |
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Balance Sheet | 9 |
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Notes to the Financial Statements | 10 |
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EMS-Chemie (UK) Ltd |
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Company Information |
for the Year Ended 31 December 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors |
The Glades |
Festival Way |
Stoke on Trent |
Staffordshire |
ST1 5SQ |
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BANKERS: |
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15 Market Square |
Stafford |
Staffordshire |
ST18 0AR |
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SOLICITORS: |
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17 Martin Street |
Stafford |
Staffordshire |
ST16 2LF |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Strategic Report |
for the Year Ended 31 December 2018 |
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The directors present their strategic report for the year ended 31 December 2018. |
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REVIEW OF BUSINESS |
Business review |
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Business activity levels, measured by volume, were essentially in line with those achieved in 2017, with a |
significant increase in operating profit in line with higher sales revenue. The increased turnover does contain |
organic growth but was heavily influenced by increased selling prices during the year, implemented as a result of |
continued raw material price increases (a trend which is expected to carry on into 2019). |
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The excellent reputation enjoyed by EMS-CHEMIE (UK) LTD in the UK, Nordic and Irish markets continues to be |
maintained with our focus upon: |
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1. Strong customer service and support |
2. High quality and consistent product supply |
3. Continual and innovative product development |
4. Solution provider willing to partner long term with customers and end users |
5. Well respected and highly competent technical expertise |
6. Competitive pricing |
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Strategy |
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Our focus remains in promoting metal replacement with Grivory GV, Grilamid and HT products. Long term |
partnering and project development remains crucial in maintaining continued growth. EMS-CHEMIE (UK) LTD |
seeks to differentiate itself from the competition by: |
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1. Maintaining its high standards of customer service and support |
2. Providing a local presence in the UK market |
3. Managing its distribution business in house and housing stock within the UK |
4. Employing highly skilled and motivated employees |
5. Continual product development |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company is well represented in the key markets of automotive, construction, industrial and electrical. |
Stability in the general economic conditions within the UK and Ireland will be key in enabling us to maintain that |
growth, consequently there is uncertainty around the impending impact of BREXIT. Our materials are |
manufactured in the EU and Switzerland, who are in the tariff free zone, and the potential addition of import |
duties should a tariff free trade deal not be reached will impact significantly. At current rates this would add a |
further 6.5% to import prices. |
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There also continues to be further adversity within the automotive sector surrounding the bad publicity of diesel |
engines and key manufacturers such as Jaguar Landrover continuing to announce reduced working hours, etc |
which is having a dampening effect on sales and limiting development of potential new projects. |
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As predicted, tightness of raw material supply for the manufacture of PA12 products was a factor in 2018 and |
restricted our ability to meet the continuing high demand. This limitation will not enable us to grow our PA12 |
business even though the demand exists. To counter this risk EMS continues to develop alternate product |
offerings to bridge that gap and enable us to fulfil overall customer demand. These alternate products do not |
have such raw material supply restrictions but demand isn't yet at the same levels as for PA12. |
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EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Strategic Report |
for the Year Ended 31 December 2018 |
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FINANCIAL KEY PERFORMANCE INDICATORS |
The board monitors the performance of the company by reference to two KPI's, gross profit % and operating |
profit %. |
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Gross profit % |
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In the current year the company achieved 9.3% compared with 10.7% in the previous year. This reduction was |
due to us not being able to pass on all of the raw material price increases to our customers with the company |
absorbing its fair share of these movements. This timing lag was anticipated and expected. Margins will remain |
under pressure during 2019 with continuing raw material price volatility. |
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Operating profit % |
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In the current year the company achieved 5.0% compared with 6.2% in the previous year. Overheads costs have |
increased 19%, mostly in relation to staff costs in line with requirements of increased turnover. |
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ON BEHALF OF THE BOARD: |
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EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Report of the Directors |
for the Year Ended 31 December 2018 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2018. |
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PRINCIPAL ACTIVITY |
EMS-Chemie (UK) Ltd operates as a wholly owned subsidiary of EMS-Chemie Holding AG and is active in the |
marketing and sales of high performance engineering polymers within the UK and Irish markets. |
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DIVIDENDS |
Dividends paid in the year amount to £1,050,000 (2017 £1,070,000). |
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FUTURE DEVELOPMENTS |
EMS CHEMIE HOLDING AG, the parent Company of EMS-CHEMIE (UK) LTD continues to invest in modern worldwide |
production facilities, coupled with innovative product development. Current product development is aware of |
certain raw material limitations and is focusing its resources on developing product that can be manufactured |
without restrictions to supply. EMS-CHEMIE (UK) LTD remains focussed on retaining and growing its existing |
customer base as well as developing new business opportunities with new and prospective customers. Successful |
delivery of new projects to revenue and profitability, in many instances can take a number of years and it is vital |
that the Company has a varied and sufficient portfolio of opportunities to sustain long term growth. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2018 to the date of |
this report. |
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Other changes in directors holding office are as follows: |
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this report. |
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RESULTS AND DIVIDENDS |
The profit for the year, after taxation, amounted to £1,036,308 (2017 - £1,065,131). |
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On 8 March 2019 the directors proposed a dividend of £1,040,000. |
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POST BALANCE SHEET EVENTS |
There have been no significant events affecting the Company since the year end. |
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EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Report of the Directors |
for the Year Ended 31 December 2018 |
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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), including Financial |
Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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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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. |
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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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AUDITORS |
The auditors, Mitten Clarke Audit Limited, will be proposed for re-appointment in accordance with section 485 |
of the Companies Act 2006. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
EMS-Chemie (UK) Ltd |
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Opinion |
We have audited the financial statements of EMS-Chemie (UK) Ltd (the 'company') for the year ended |
31 December 2018 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 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 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. |
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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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Opinion 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 |
EMS-Chemie (UK) Ltd |
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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 five, 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 Auditors |
The Glades |
Festival Way |
Stoke on Trent |
Staffordshire |
ST1 5SQ |
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EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Statement of Income and Retained Earnings |
for the Year Ended 31 December 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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1,248,719 | 1,079,817 |
1,126,058 | 1,147,330 |
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Other operating income | 5 |
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OPERATING PROFIT | 8 |
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Interest receivable and similar income | 10 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 11 |
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PROFIT FOR THE FINANCIAL YEAR |
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Retained earnings at beginning of year |
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Dividends | 12 | ( |
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RETAINED EARNINGS AT END OF YEAR |
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EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Balance Sheet |
31 December 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
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CURRENT ASSETS |
Stocks | 14 |
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Debtors | 15 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 16 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
behalf by: |
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EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2018 |
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1. | STATUTORY INFORMATION |
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EMS-Chemie (UK) Ltd is a private company limited by shares, incorporated and domiciled in England and |
Wales. The registered office is Darfin House, Priestly Court, Gillette Close, Staffordshire Technology Park, |
Stafford, Staffordshire, ST18 0LQ. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention unless otherwise |
specified within these accounting policies and in accordance with Financial Reporting Standard 102, the |
Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act |
2006. |
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical |
accounting estimates. It also requires management to exercise judgment in applying the Company's |
accounting policies (see note 3). |
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The following principal accounting policies have been applied: |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic |
of Ireland": |
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• | the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv); |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d); |
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the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e),
11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
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the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a),
12.29(b) and 12.29A; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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This information is included in the consolidated financial statements of EMS-Chemie Holding AG as at 31 |
December 2017 and these financial statements may be obtained from EMS-Chemie Holding AG, Via |
Innovativa, 7013 Domat/EMS, Switzerland. |
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Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the |
Company and the revenue can be reliably measured. Revenue is measured as the fair value of the |
consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The following criteria must also be met before revenue is recognised: |
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Sale of goods |
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Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
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- | the Company has transferred the significant risks and rewards of ownership to the buyer; |
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the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and |
any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to |
bringing the asset to the location and condition necessary for it to be capable of operating in the manner |
intended by management. |
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated |
useful lives, using the straight-line method. |
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Depreciation is provided on the following basis: |
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Motor vehicles - Straight line over 3 years |
Fixtures and fittings - Straight line over 8 years |
Office equipment - Straight line over 15 years |
Computer equipment - Straight line over 3 years |
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Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs |
to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
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At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount |
is reduced to its selling price less costs to complete and sell. The impairment loss is recognised |
immediately in profit or loss. |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of |
financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and |
other third parties, loans to related parties and investments in non-puttable ordinary shares. |
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Debt instruments (other than those wholly repayable or receivable within one year), including loans and |
other accounts receivable and payable, are initially measured at present value of the future cash flows |
and subsequently at amortised cost using the effective interest method. Debt instruments that are |
payable or receivable within one year, typically trade payables or receivables, are measured, initially and |
subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or |
received. However if the arrangements of a short-term instrument constitute a financing transaction, like |
the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that |
is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or |
liability is measured, initially, at the present value of the future cash flow discounted at a market rate of |
interest for a similar debt instrument and subsequently at amortised cost. |
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Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting |
period for objective evidence of impairment. If objective evidence of impairment is found, an impairment |
loss is recognised in the Profit and loss account. |
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For financial assets measured at amortised cost, the impairment loss is measured as the difference |
between an asset's carrying amount and the present value of estimated cash flows discounted at the |
asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate |
for measuring any impairment loss is the current effective interest rate determined under the contract. |
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For financial assets measured at cost less impairment, the impairment loss is measured as the difference |
between an asset's carrying amount and best estimate, which is an approximation of the amount that the |
company would receive for the asset if it were to be sold at the balance sheet date. |
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Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is |
an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or |
to realise the asset and settle the liability simultaneously. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of |
Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive |
income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all significant timing differences that have originated but not |
reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different |
from those in which they are recognised in financial statements. Deferred tax is measured using tax rates |
and laws that have been enacted or substantively enacted by the year end and that are expected to apply |
to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Foreign currencies |
Functional and presentation currency |
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The Company's functional and presentational currency is GBP. |
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Transactions and balances |
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Foreign currency transactions are translated into the functional currency using the spot exchange rates at |
the dates of the transactions. |
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At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary |
items measured at historical cost are translated using the exchange rate at the date of the transaction |
and non-monetary items measured at fair value are measured using the exchange rate when fair value |
was determined. |
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Foreign exchange gains and losses resulting from the settlement of transactions and from the translation |
at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are |
recognised in the Statement of income and retained earnings except when deferred in other |
comprehensive income as qualifying cash flow hedges. |
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Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented |
in the Statement of income and retained earnings within 'finance income or costs'. All other foreign |
exchange gains and losses are presented in the Statement of income and retained earnings within 'other |
operating income'. |
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Operating leases: the company as lessee |
Rentals paid under operating leases are charged to the Statement of income and retained earnings on a |
straight line basis over the lease term. |
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Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight |
line basis over the lease term, unless another systematic basis is representative of the time pattern of the |
lessee's benefit from the use of the leased asset. |
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Pension costs and other post-retirement benefits |
The Company operates a defined contribution plan for its employees. A defined contribution plan is a |
pension plan under which the Company pays fixed contributions into a separate entity. Once the |
contributions have been paid the Company has no further payment obligations. |
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The contributions are recognised as an expense in the Statement of income and retained earnings when |
they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the |
plan are held separately from the Company in independently administered funds. |
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Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are |
recognised when paid. Final equity dividends are recognised when approved by the shareholders at an |
annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and |
classified within interest payable. |
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Interest income |
Interest income is recognised in the Statement of income and retained earnings using the effective |
interest method. |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
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3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
|
There were no significant judgements and estimates required in the provision of the financial statements |
which warrant disclosure. |
|
4. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2018 | 2017 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
Rest of the world | 1,860,521 | 3,553,792 |
|
|
|
5. | OTHER OPERATING INCOME |
2018 | 2017 |
£ | £ |
Management fees receivable |
|
|
Profit on disposal of fixed assets |
|
|
Exchange gains | 20,746 | 32,205 |
139,653 | 146,575 |
|
6. | EMPLOYEES AND DIRECTORS |
2018 | 2017 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2018 | 2017 |
|
Selling and distribution | 10 | 9 |
Administration | 1 | 1 |
Directors | 4 | 4 |
|
|
|
7. | DIRECTORS' EMOLUMENTS |
2018 | 2017 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
|
7. | DIRECTORS' EMOLUMENTS - continued |
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
8. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2018 | 2017 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Foreign exchange differences | ( |
) | ( |
) |
Defined contribution pension cost |
|
|
|
9. | AUDITORS' REMUNERATION |
2018 | 2017 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's
financial statements |
9,000 |
7,800 |
Auditors' remuneration for non audit work |
|
|
|
10. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2018 | 2017 |
£ | £ |
Other interest receivable |
|
|
Foreign exchange gain on |
currency positions |
|
|
|
|
|
11. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2018 | 2017 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2017 - 19.25%). |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
|
11. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
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 tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
|
Short term timing difference leading to an increase (decrease) in
taxation |
4 |
(22 |
) |
Total tax charge | 237,959 | 255,441 |
|
Factors that may affect future tax charges |
|
There were no factors that may affect future tax charges. |
|
12. | DIVIDENDS |
|
During the year a dividend was paid on equity capital of £1,050,000 (2017: £1,070,000). |
|
On 8 March 2019 the directors proposed a dividend of £1,040,000. |
|
13. | TANGIBLE FIXED ASSETS |
Fixtures |
Office | and | Motor | Computer |
equipment | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2018 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2018 |
|
|
|
|
|
DEPRECIATION |
At 1 January 2018 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 December 2018 |
|
|
|
|
|
NET BOOK VALUE |
At 31 December 2018 |
|
|
|
|
|
At 31 December 2017 |
|
|
|
|
|
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
|
14. | STOCKS |
2018 | 2017 |
£ | £ |
Finished goods and goods for resale |
|
|
|
Stock recognised in cost of sales during the year as an expense was £23,041,387 (2017: £18,503,669). |
|
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
18. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
|
Ordinary | 1 | 1,530,000 | 1,530,000 |
|
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and |
repayment of capital. |
EMS-Chemie (UK) Ltd (Registered number: 00568534) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2018 |
|
19. | RESERVES |
|
Profit and loss account |
|
This reserve records all current and prior year retained proifts and losses. |
|
20. | PENSION COMMITMENTS |
|
The company operates a defined contributions pension scheme. The assets of the scheme are held |
separately from those of the company in an independently administered fund. The pension cost charge |
represents contributions payable by the company to the fund and amounted to £40,183 (2017 - £33,911). |
Contributions totalling £nil (2017 - £521) were payable to the fund at the balance sheet date. |
|
21. | CONTROLLING PARTY |
|
The company is controlled by EMS-Chemie Holding AG. The parent undertaking of the largest and smallest |
group for which consolidated financial statements are prepared is EMS-Chemie Holding AG, a company |
incorporated in Switzerland. Copies of the EMS-Chemie Holding AG consolidated financial statements can |
be obtained from EMS-Chemie Holding AG, Via Innovativa, 7013 Domat/EMS, Switzerland. |
|
EMS-Chemie Holding AG is ultimately controlled by Emesta Holding AG, the ultimate parent company, |
being a company incorporated in Switzerland. |