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Registered number: 04306904









LAKE CHEMICALS AND MINERALS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
COMPANY INFORMATION


Directors
C H Erbslöh 
S Cartlidge 




Company secretary
A N J Cusk



Registered number
04306904



Registered office
3 Moons Park
Burnt Meadow Road

Moons Moat North Industrial Estate

Redditch

B98 9PA




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

Cornerblock

2 Cornwall Street

Birmingham

West Midlands

B3 2DX





 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Balance Sheet
11
Company Balance Sheet
12 - 13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16 - 17
Consolidated Analysis of Net Debt
18
Notes to the Financial Statements
19 - 38


 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors present their Strategic Report for Lake Chemicals and Minerals Limited ("Lake" or the "Company") for the year ended 31 December 2024.

Business review
 
Lake sells specialty chemicals, ingredients, and formulations providing real value for manufacturers and brands trading in industrial and life science markets. Sales are in the UK and Ireland, and export sales remain important to future growth.
Lake offers a suite of services from market insights to ideation, formulation and manufacturing in support of Ultimate Customer Value and this ensures sales growth of ingredients and raw materials. Additional investment in industrial activities have continued in 2024 to achieve sustained profitable growth over the long term. This complements investments in life science activities in 2023. At the close of 2024 Lake completed four years of significant infrastructure investments that support existing sales and offering superior opportunities for future business growth through an industry leading business model.
This claim is made because investment in infrastructure is combined with continuing development and training of personnel. Lake’s 
"Your Growth Mindset" learning management platform offers employees asynchronous learning options and topics cover technical, product, quality, supply chain, manufacturing, and importantly, sales training. It is the strength of the technical sales team to command incisive skills and capabilities that spearheads the conversion of sales opportunities leading to business growth. Further, training of the Lake Manager Executive team has continued to enhance line management skills and forge leadership traits. Lake’s strong management team is taking on the challenges of a company growing beyond the entrepreneur, thereby securing the future for all stakeholders.
Lake’s business strategies are highly developed and focussed on specific sectors within life science and industrial markets. Strategies are aligned to the needs of suppliers and respond to customer applications. Specific business development activities mine large numbers of sales opportunities in pharmaceutical, food staples and supplementation, cosmetic and industrial markets. Lake’s ability to demonstrate credible technical expertise in each of the markets and sectors is key to gaining trust of customers and suppliers.
Having developed a business value portfolio summarised in Ultimate Customer Value, Lake is looking at the drivers of growth. Significant resource has been amassed to employ marketing in terms of persuasion and promotion to drive brand awareness and thereby embed Lake’s value into the culture of target markets. Exploiting a marketing premium will create growth.
Business activities are supported by state-of-the-art ERP software that collects and collates data from sales through to manufacturing and innovation. Where there is data there is the opportunity to apply AI and specific projects are constantly being evaluated, developed and used within the business. Further advances are being made in ESG capabilities feeding into company policies and daily decisions made by the business. Environmental data gathering and planning continues within a complex business model where there are many external inputs beyond our control but within our influence.
Lake is well placed to take advantage across markets, maintain market position and develop growth opportunities despite challenging economic and political scenarios.

Principal risks and uncertainties
 
Uncertainty in political actions created an environment where the most agile and capable of businesses are challenged. Lake has robust and resilient activity across multiple markets and the critical mass required to take advantage of emerging opportunities. Since the 2024 General Election businesses are suffering from an environment of uncertainty and poor economic activity. Business and consumer communities are increasingly disillusioned. The tax on business activities and increase in regulatory reporting requirements continues apace.
Page 1

 
LAKE CHEMICALS AND MINERALS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


In this weak and changing environment, Lake is focussing on maximising the effectiveness of infrastructure investments and optimising the productivity of all processes, particularly the sales process. There are no single events that are affecting the business. Supply chains are mostly stable and known although periodic disturbances in terms of delivery times and price variations continue to be the norm. Lake has developed capability to seek advanced warning from insights into many aspects of business operation to be able to manage uncertainties as they occur.
A significant improvement has been achieved over recent years in the hiring of new colleagues who meet the requirements of Lake’s business culture. Onboarding processes, continual training and offering of structured career development are supported by improved recognition for colleagues. The objective is to ensure retention of valuable employees is being achieved in a market that continues to be competitive.
Lake is alert to the importance of secure GDPR whilst taking advantage of Artificial Intelligence opportunities. Cyber crime is a constant threat and all computer hardware and software including storage are meeting the highest standards. Continual training of every employee to recognise cybercrimes and being alert to novel attempts to attack IT and banking infrastructure are in place.
Unexpected foreign currency exchange rate variations pose a threat to the business and experience gained by managing such events over previous years enables the potential impact to be minimised.
The most effective deterrent to risk is an experienced management team able to spot challenges and make decisions in the moment and this will remain an important aspect of personnel development.

Development and performance
 
The advent of Covid acted as a marker for changes in the financial performance of Lake with agile reactions that allow Lake to benefit from variable market conditions. Volume growth has led to a rebalancing of customer relationships with value added back to key suppliers. Changeable market dynamics have allowed the affirmation of Lake’s significant Ultimate Customer Value proposition to suppliers and customers.
Lake is successful in building a resilient business culture and a team with credible expertise in many fields of operation and over recent years significant experience has been accrued. Technical selling of specialities is a fundamental capability and is now accompanied by a recognised positive impact from marketing strategic insights, novel formulation development and manufacturing to bring products to market. These capabilities bring direct value to Lake’s coveted suppliers.
Combining Lake’s Ultimate Customer Value business model with significant available resource to create above average sales growth is the focus of company activities. There is significant scope to grow the business.
The management team are pleased with Lake’s 2024 performance. Profits met expectations, sales were maintained, and speciality margins realised. Overheads were controlled. The company has re invested profits into agile manufacturing, technical sales, supply chain services and employee training to support strategic growth. 

Financial key performance indicators
 
Turnover in 2024 decreased by 8% compared with 2023, Gross Profit decreased by 8% and Gross Margins were maintained. Overheads decreased by 2% compared to 2023 and Operating Profit decreased by 35%. This financial performance is measured to be positive when taken in the context of a challenging economy.
Management of working capital continues to be important whilst investing in strategic growth. Achieving an acceptable return on investments is an important focus for 2025 and beyond.

Page 2

 
LAKE CHEMICALS AND MINERALS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


This report was approved by the board and signed on its behalf.



S Cartlidge
Director

Date: 11 April 2025

Page 3

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £520,358 (2023 - £1,049,510).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

C H Erbslöh 
S Cartlidge 

Future developments

Details of the Group's future developments are included in the Strategic Report.

Research and development activities

Details of the Group's research and development activities are included in the Strategic Report.

Page 4

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





S Cartlidge
Director

Date: 11 April 2025

Page 5

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED
 

Opinion


We have audited the financial statements of Lake Chemicals and Minerals Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 is 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 7

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)



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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the Group and Company and industry in which it operates, key laws and regulations that we identified included:

Companies Act;
Tax legislation;
Health and safety and employment legislation;
Medicines and Healthcare Products Regulatory Agency (MHRA); and
Medical Regulation Acts.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

Management bias in respect of accounting estimates and judgements made;
Management override of controls; and
Posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the financial statements.

Our procedures included, but were not limited to:

Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular obsolete and slow moving stock provisions.

It is the primary responsibility of management, with oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.





Page 8

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)



Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


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 2006Our 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.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
Cornerblock
2 Cornwall Street
Birmingham
West Midlands
B3 2DX

11 April 2025
Page 9

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
24,963,001
27,100,995

Cost of sales
  
(18,971,792)
(20,574,987)

Gross profit
  
5,991,209
6,526,008

Administrative expenses
  
(5,221,222)
(5,337,342)

Other operating income
 5 
104,262
150,988

Operating profit
 6 
874,249
1,339,654

Interest receivable and similar income
 10 
7,574
363

Interest payable and similar expenses
 11 
(167,386)
(220,501)

Profit before tax
  
714,437
1,119,516

Tax on profit
 12 
(194,079)
(70,006)

Profit for the financial year
  
520,358
1,049,510

Profit for the year attributable to:
  

Owners of the parent company
  
520,358
1,049,510

  
520,358
1,049,510

The notes on pages 19 to 38 form part of these financial statements.

Page 10

 
LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
117,747
136,696

Tangible assets
 15 
1,471,255
1,521,237

  
1,589,002
1,657,933

Current assets
  

Stocks
 17 
6,495,516
6,209,302

Debtors: amounts falling due within one year
 18 
4,065,470
4,028,032

Cash at bank and in hand
 19 
113,121
1,259,943

  
10,674,107
11,497,277

Creditors: amounts falling due within one year
 20 
(4,501,133)
(5,719,438)

Net current assets
  
 
 
6,172,974
 
 
5,777,839

Total assets less current liabilities
  
7,761,976
7,435,772

Creditors: amounts falling due after more than one year
 21 
-
(183,333)

Provisions for liabilities
  

Deferred taxation
 24 
(331,941)
(351,000)

  
 
 
(331,941)
 
 
(351,000)

Net assets
  
7,430,035
6,901,439


Capital and reserves
  

Called up share capital 
 25 
50,000
50,000

Foreign exchange reserve
 26 
6,209
(2,029)

Profit and loss account
 26 
7,373,826
6,853,468

  
7,430,035
6,901,439


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


S Cartlidge
Director

Date: 11 April 2025

The notes on pages 19 to 38 form part of these financial statements.

Page 11

 
LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
112,947
129,707

Tangible assets
 15 
1,471,255
1,521,237

Investments
 16 
91
91

  
1,584,293
1,651,035

Current assets
  

Stocks
 17 
6,483,540
6,196,994

Debtors: amounts falling due within one year
 18 
4,233,605
4,212,640

Cash at bank and in hand
 19 
97,785
1,232,646

  
10,814,930
11,642,280

Creditors: amounts falling due within one year
 20 
(4,480,470)
(5,688,643)

Net current assets
  
 
 
6,334,460
 
 
5,953,637

Total assets less current liabilities
  
7,918,753
7,604,672

  

Creditors: amounts falling due after more than one year
 21 
-
(183,333)

Provisions for liabilities
  

Deferred taxation
 24 
(331,941)
(351,000)

  
 
 
(331,941)
 
 
(351,000)

Net assets
  
7,586,812
7,070,339


Capital and reserves
  

Called up share capital 
 25 
50,000
50,000

Profit and loss account brought forward
 26 
7,020,339
5,983,231

Profit for the year
  
516,473
1,037,108

Profit and loss account carried forward
  
7,536,812
7,020,339

  
7,586,812
7,070,339


Page 12

 
LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S Cartlidge
Director

Date: 11 April 2025

The notes on pages 19 to 38 form part of these financial statements.

Page 13

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Foreign exchange reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
50,000
(9,962)
5,803,958
5,843,996



Profit for the year
-
-
1,049,510
1,049,510

Foreign exchange translation
-
7,933
-
7,933



At 1 January 2024
50,000
(2,029)
6,853,468
6,901,439



Profit for the year
-
-
520,358
520,358

Foreign exchange translation
-
8,238
-
8,238


At 31 December 2024
50,000
6,209
7,373,826
7,430,035


The notes on pages 19 to 38 form part of these financial statements.

Page 14

 
LAKE CHEMICALS AND MINERALS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
50,000
5,983,231
6,033,231



Profit for the year
-
1,037,108
1,037,108



At 1 January 2024
50,000
7,020,339
7,070,339



Profit for the year
-
516,473
516,473


At 31 December 2024
50,000
7,536,812
7,586,812


The notes on pages 19 to 38 form part of these financial statements.

Page 15

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
520,358
1,049,510

Adjustments for:

Amortisation of intangible assets
51,919
48,908

Depreciation of tangible assets
232,378
233,011

Loss on disposal of tangible assets
-
2,875

Interest paid
167,386
220,501

Interest received
(7,574)
(363)

Taxation charge
194,079
70,006

(Increase)/decrease in stocks
(286,214)
497,803

(Increase)/decrease in debtors
(37,438)
591,482

(Decrease)/increase in creditors
(756,834)
155,574

Increase/(decrease) in provisions
-
(140,000)

Corporation tax (paid)
(15,006)
(22,894)

Net cash generated from operating activities

63,054
2,706,413


Cash flows from investing activities

Purchase of intangible fixed assets
(33,300)
(48,653)

Purchase of tangible fixed assets
(182,396)
(394,828)

Interest received
7,574
363

Net cash from investing activities

(208,122)
(443,118)
Page 16

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of bank loans
(200,000)
(200,000)

Repayment of other loans
(634,368)
(687,323)

Interest paid
(167,386)
(220,501)

Net cash used in financing activities
(1,001,754)
(1,107,824)

Net (decrease)/increase in cash and cash equivalents
(1,146,822)
1,155,471

Cash and cash equivalents at beginning of year
1,259,943
104,472

Cash and cash equivalents at the end of year
113,121
1,259,943


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
113,121
1,259,943

113,121
1,259,943


The notes on pages 19 to 38 form part of these financial statements.

Page 17

 
LAKE CHEMICALS AND MINERALS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

1,259,943

(1,146,822)

113,121

Debt due after 1 year

(183,333)

183,333

-

Debt due within 1 year

(2,662,908)

651,035

(2,011,873)


(1,586,298)
(312,454)
(1,898,752)

The notes on pages 19 to 38 form part of these financial statements.

Debt due after 1 year consists of bank loans as detailed in note 21.
Debt due within 1 year consists of bank and other loans as detailed in note 20.

Page 18

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Lake Chemicals and Minerals Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office and the company's registration number are given in the company information of these financial statements. The nature of the Group's operations and principal activities are described in the Strategic Report on page 1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared on a going concern basis 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. 

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The financial statements are presented in Sterling which is the functional currency of the Group and rounded to the nearest £.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

After making enquires and considering the principal risks and uncertainties the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The directors have undertaken extensive financial modelling to consider the current uncertainty in the UK and global markets and has taken appropriate steps to safeguard the future operations and finances of the Group. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.

Page 19

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction.
                                                                                                                                                                     Exchange gains and losses are taken into account in arriving at operating profit.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

Revenue is normally recognised on the despatch of goods.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight line basis over the period of the lease.

 
2.7

Research and development

Expenditure on research activities is recognised in the Consolidated Statement of Comprehenisve Income as an expense as it is incurred.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to Consolidated Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

 
2.9

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 20

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income 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 Group in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is amortised on a straight line basis over a useful economic life of 5 years.
Website development costs are amortised on a straight line basis over a useful economic life of 3 years.

Page 21

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.13

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.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Consolidated Statement of Comprehensive Income during the period in which they are incurred.

Depreciation is charged on a straight line basis so as to allocate the cost of assets less their residual value over their estimated useful lives as follows:


Leasehold property improvements           - 11%
Fixtures and fittings    - 10-25%
Office equipment    - 10-33.3%
Computer equipment    - 33.3-50%
Warehouse equipment   - 20%
Laboratory and kitchen equipment  - 11-12%

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

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.

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 the Consolidated Statement of Comprehensive Income.

 
2.16

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 22

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.20

Financial instruments

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
 
Derivative financial instruments ("derivatives") are used to manage risks arising from changes in foreign currency exchange rates relating to the purchase of overseas sourced products. In accordance with the Group's foreign exchange policy, the Group does not enter into derivatives for speculative purposes. Derivatives are stated at their fair value, being the estimated amount that the Group would receive or pay to terminate them at the balance sheet date based on prevailing foreign currency exchange rates. However the fair value of derivatives was not material so derivatives have not been recognised in these financial statements.

 
Page 23

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument previously recognised in equity is retained in equity until the hedged transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is then transferred to the Consolidated Statement of Comprehensive Income.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
                                                                                                                                                                            In preparing these financial statements, the directors have made the following judgements:
                                                                                                                                                                     
Carrying value of stocks
                                                                                                                                                                               Management review the market value of and demand for its stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. Management use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company's products and achievable selling prices.
                                                                                                                                                                                                                                       These estimates are, on the whole, sufficiently reliable.


4.


Turnover

The whole of the turnover is attributable to the principal activities of the Group.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
22,427,033
25,119,351

Rest of Europe
2,087,490
1,620,779

Rest of the World
448,478
360,865

24,963,001
27,100,995


Page 24

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Other operating income

2024
2023
£
£

Commissions received
96,064
140,455

Government grants receivable
5,533
5,533

Research and development commission
2,665
5,000

104,262
150,988



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
232,378
233,011

Amortisation of intangible fixed assets
51,919
48,908

Operating lease rentals
409,547
294,743


7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
22,500
20,500

Page 25

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
3,031,892
3,047,963
2,955,310
2,944,168

Social security costs
374,578
377,311
365,438
360,670

Cost of defined contribution scheme
104,197
99,800
104,197
99,800

3,510,667
3,525,074
3,424,945
3,404,638


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Average number of employees
72
71
70
68


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
168,516
217,465

Group contributions to defined contribution pension schemes
30,000
30,000

198,516
247,465


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Bank interest receivable
7,574
363

Page 26

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank and other loan interest payable
167,386
220,501


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
200,000
134,000

Adjustments in respect of previous periods
13,138
(268,994)


Total current tax
213,138
(134,994)

Deferred tax


Origination and reversal of timing differences
(22,925)
39,923

Adjustments in respect of previous periods
3,866
165,077

Total deferred tax
(19,059)
205,000


Tax on profit
194,079
70,006
Page 27

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 24%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
714,437
1,119,516


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 24%)
178,609
268,684

Effects of:


Expenses not deductible for tax purposes
10,285
2,280

Fixed asset differences
1,887
3,288

Adjustments to tax charge in respect of prior periods
12,518
(268,994)

Adjustments to tax charge in respect of prior periods - deferred tax
3,438
165,077

Research and development enhanced expenditure
(12,658)
(97,351)

Remeasurement of deferred tax for changes in tax rates
-
2,396

Differences in tax rates
-
(5,374)

Total tax charge for the year
194,079
70,006


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £516,473 (2023 - £1,037,108).

Page 28

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Intangible assets

Group





Website development
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2024
48,653
172,904
503,999
725,556


Additions
11,300
22,000
-
33,300


Foreign exchange movement
-
(462)
-
(462)



At 31 December 2024

59,953
194,442
503,999
758,394



Amortisation


At 1 January 2024
15,702
69,159
503,999
588,860


Charge for the year
16,509
35,410
-
51,919


Foreign exchange movement
-
(132)
-
(132)



At 31 December 2024

32,211
104,437
503,999
640,647



Net book value



At 31 December 2024
27,742
90,005
-
117,747



At 31 December 2023
32,951
103,745
-
136,696

The aggregate amount of research and development expenditure recognised as an expense during the year amounted to £92,000 (2023: £450,000).



Page 29

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
           14.Intangible assets (continued)

Company




Website development
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2024
48,653
163,152
503,999
715,804


Additions
11,300
22,000
-
33,300



At 31 December 2024

59,953
185,152
503,999
749,104



Amortisation


At 1 January 2024
15,702
66,396
503,999
586,097


Charge for the year
16,509
33,551
-
50,060



At 31 December 2024

32,211
99,947
503,999
636,157



Net book value



At 31 December 2024
27,742
85,205
-
112,947



At 31 December 2023
32,951
96,756
-
129,707

The aggregate amount of research and development expenditure recognised as an expense during the year amounted to £92,000 (2023: £450,000).

Page 30

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Tangible fixed assets

Group and Company






Leasehold improvements
Fixtures and fittings
Computer equipment
Warehouse equipment
Total

£
£
£
£
£



Cost 


At 1 January 2024
407,362
556,320
185,001
963,006
2,111,689


Additions
-
8,760
13,575
160,061
182,396



At 31 December 2024

407,362
565,080
198,576
1,123,067
2,294,085



Depreciation


At 1 January 2024
44,986
192,854
118,885
233,727
590,452


Charge for the year
45,240
52,878
35,954
98,306
232,378



At 31 December 2024

90,226
245,732
154,839
332,033
822,830



Net book value



At 31 December 2024
317,136
319,348
43,737
791,034
1,471,255



At 31 December 2023
362,376
363,466
66,116
729,279
1,521,237

Details of assets subject to security are provided in note 20.

Page 31

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2024
91



At 31 December 2024
91






Net book value



At 31 December 2024
91



At 31 December 2023
91


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Ubichem (UK) Limited
Ordinary
100%
Lake Chemical Trustees Limited
Ordinary
100%
Salutivia Limited
Ordinary
100%
Elenzia Limited
Ordinary
100%
Lake Chemicals and Minerals (Ireland) Limited
Ordinary
100%

The registered office of all subsidiary undertakings is 3 Moons Park, Burnt Meadow Road, Moons Moat North Industrial Estate, Redditch, B98 9PA, except for Lake Chemicals and Minerals (Ireland) Limited which is 6E KCR Estate, Kimmage, Dublin 12.

Page 32

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Finished goods and goods for resale
6,495,516
6,209,302
6,483,540
6,196,994


Impairment losses totaling £95,925 (2023 - £82,883) were recognised in the Consolidated Statement of Comprehensive Income during the year. Impairment losses arose due to certain items of stock which were deemed to be obsolete or slow moving in nature, with a specific impairment loss being recognised for items which were past their expiry date at year end.
                                                                                                                                                                                                                       Details of assets subject to security are provided for in note 20.


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,598,290
3,661,350
3,570,801
3,643,616

Amounts owed by group undertakings *
-
-
211,508
211,079

Other debtors
31,295
10,861
31,205
10,771

Prepayments and accrued income
435,885
355,821
420,091
347,174

4,065,470
4,028,032
4,233,605
4,212,640


* Amounts owed by group undertakings are interest free and are repayable on demand and have therefore been presented as a debtor due within 1 year. The directors have reviewed the forecasts of the Company's subsidiary undertaking and consider that this balance is fully recoverable, with an expectation that this will be recovered over a period which is greater than 12 months from the balance sheet date.


19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
113,121
1,259,943
97,785
1,232,646


Page 33

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank and other loans
2,011,873
2,662,908
2,011,873
2,662,908

Trade creditors
1,632,023
2,363,231
1,631,729
2,355,908

Corporation tax
200,000
15,006
200,000
15,006

Other taxation and social security
180,308
285,217
167,535
270,928

Other creditors
164,926
270,685
163,273
267,214

Accruals and deferred income
312,003
122,391
306,060
116,679

4,501,133
5,719,438
4,480,470
5,688,643


Secured creditors
Included in bank and other loans is the Group's invoice discounting facilities totalling £1,828,540 (2023: £2,462,908) which are secured by fixed and floating charges over the assets of the Group, which have first call over certain of the Group's trade debtors. The value of trade debtors securing the facilities at 31 December 2024 was £3,030,627 (2023: £3,310,709).


21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
-
183,333
-
183,333





22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank and other loans
2,011,873
2,662,908
2,011,873
2,662,908

Amounts falling due 1-2 years

Bank loans
-
183,333
-
183,333


2,011,873
2,846,241
2,011,873
2,846,241


Page 34

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
113,121
1,259,943
97,785
1,232,646

Financial assets measured at amortised cost
3,629,585
3,672,211
3,813,514
3,865,466

3,742,706
4,932,154
3,911,299
5,098,112


Financial liabilities

Financial liabilities measured at amortised cost
(3,808,822)
(5,296,824)
(3,806,875)
(5,286,030)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


Financial assets measured at amortised cost comprise of trade and other debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise of bank and other loans, trade creditors and other creditors.


24.


Deferred taxation


Group



2024


£






At beginning of year
(351,000)


Credited to the Consolidated statement of comprehensive income
19,059



At end of year
(331,941)

Page 35

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
24.Deferred taxation (continued)

Company


2024


£






At beginning of year
(351,000)


Credited to the Statement of comprehensive income
19,059



At end of year
(331,941)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(352,952)
(361,000)
(352,952)
(361,000)

Short-term timing differences
21,011
10,000
21,011
10,000

(331,941)
(351,000)
(331,941)
(351,000)


25.


Share capital

2024
2023
£
£
Authorised, allotted, called up and fully paid



100,000 (2023 - 50,000) Ordinary shares of £0.50 (2023 - £1) each
50,000
50,000

On 24 December 2024, the 50,000 of Ordinary Shares, with a nominal value of £1 each, were sub-divided into 100,000 Ordinary Shares of £0.50 each. There was no change in the aggregate nominal value of share capital as a result of this sub-division.



26.


Reserves

Foreign exchange reserve

This reserve records all foreign exchange gains and losses on the translation of the financial statements of subsidiary undertakings denoted in foreign currencies.

Profit and loss account

This reserve records the accumulation of profits and losses in the current and prior periods in the normal course of the business.

Page 36

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

27.


Capital commitments




At 31 December 2024 the Group and Company had capital commitments as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Contracted for but not provided in these financial statements
-
84,367
-
84,367


28.


Pension commitments

The Group contributes to defined contributions pension schemes on behalf of employees. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £104,197 (2023: £99,800). Contributions totaling £13,085 (2023: £11,025) were payable to the fund at the Balance Sheet date and are included in other creditors.


29.


Commitments under operating leases

At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
490,608
365,036
490,608
365,036

Later than 1 year and not later than 5 years
972,316
676,751
972,316
676,751

Later than 5 years
583,667
270,000
583,667
270,000

2,046,591
1,311,787
2,046,591
1,311,787


30.


Forward contracts

At the year end, as part of its normal trading activities, the Group had entered into an agreement for the forward purchasing of $2,225,000 (2023: $1,500,000) and €400,000 (2023: €325,000).

Page 37

 
LAKE CHEMICALS AND MINERALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

31.


Related party transactions


Sales to related parties 
Purchases from related parties 
Interest
Debtor balance (DR)
Creditors balance (CR)
£
£
£
£
£

2024
98,643
117,804
-
2,285
1,477
2023
39,425
148,498
-
-
4,989

Nature of related parties
Related parties represent companies which are under common control by way of shareholding and/or directorships.
Terms and conditions of transactions with related parties
Sales and purchases with related parties are made at normal market prices. Outstanding trading balances with related parties are unsecured, interest free and settlement is expected within 60 days of invoice date.
Related party disclosure exemption
The Company has taken advantage of the exemption, as permitted by section 33.1A of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the Group.
                                                                                                                                                                               
Key management personnel
The directors consider that only the board of directors are key management personnel and amounts paid to these individuals during the year is disclosed in note 9.


32.


Controlling party

There is no ultimate controlling party. 

 
Page 38