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REGISTERED NUMBER: 02680159 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st December 2024

for

F2 CHEMICALS LIMITED

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)






Contents of the Financial Statements
for the Year Ended 31st December 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


F2 CHEMICALS LIMITED

Company Information
for the Year Ended 31st December 2024







DIRECTORS: Mr A Penman
Mr Y Ohara
Mr M Mori
Mr A Maruhashi
Mr T Muranishi



REGISTERED OFFICE: Lea Lane
Lea Town
Preston
Lancashire
PR4 0RZ



REGISTERED NUMBER: 02680159 (England and Wales)



SENIOR STATUTORY AUDITOR: Andrew Carl Caunce FCCA



AUDITORS: Abrams Ashton - Chorley Limited
Statutory Auditor
Chartered Certified Accountants
41 St. Thomas's Road
Chorley
Lancashire
PR7 1JE

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Strategic Report
for the Year Ended 31st December 2024

The directors present their strategic report for the year ended 31st December 2024.

REVIEW OF BUSINESS
The company's turnover has reduced by 9% during 2024. The decrease is in the main due to reduced demand in the electronic gas market, although this has been offset by increased demand for Flutec liquid products.

Despite the reduction in turnover, operating margin has improved from last year due to higher margins achieved with the mix of products sold during the year.

The company continues to receive full support from its parent company, Resonac Corporation.

KEY PERFORMANCE INDICATORS ("KPI")

The directors monitor progress on the company's strategy by reference to the following KPI's:

KPI 2024 2023

Sales growth/(decline) (%) (9) 9

Operating margin (%) 25 16



ENVIRONMENTAL AND OTHER RISKS

The company continues to closely monitor and evaluate, environmental, and other, regulatory matters which could have a major impact on its activities.

The company is keen to eliminate all injuries, occupational illnesses, unsafe practices and incidents of environmental harm from our activities. The health and safety of its employees, the local community and the environment is the number one priority of F2 Chemicals Ltd.


F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Strategic Report
for the Year Ended 31st December 2024

PRINCIPAL RISKS AND UNCERTAINTIES
FINANCIAL RISK MANAGEMENT

The company's operations expose it to a variety of financial risks that include the effects of credit risk and liquidity risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company.

Credit risk:

The company enacts policies that require appropriate credit checks on both potential customers and suppliers before sales/purchases are made.

Liquidity risk:

The company actively maintains short term debt finance facility that is designed to ensure the company has sufficient funds for operations.

Foreign exchange risk:

The company operates foreign currency bank accounts and also deals with both buying and selling products in a range of currencies.

Brexit:

In 2024 sales to Europe accounted for 56.6% of turnover (2023: 47.1%). Indications from the customer base in Europe is that demand for the products remains strong. The impact of Brexit has continued to provide logistical and administrative challenges for both distributing product and importing raw materials, although procedures have settled to some degree. The changes do not appear to have impacted the appetite to trade with Europe.

The company seeks to reduce risk by diversifying and has continued to take advantage of opportunities and partnerships outside the EC. This has been reflected in sales to Asian regions, which total almost £2.2m in 2024. Sales to Asian countries account for 16.4% of the company's total sales and remained strong despite the impact of the embargo on sales to Russia and Ukraine. This compares to 14.8% of sales to Asia in 2023.

BUSINESS MODEL
The company's business model is to sell speciality fluorochemical products into specialist niche markets both domestically and internationally. Shareholder value for the sole shareholder is generated by the supply of high added value products in a diverse range of markets. In 2023, 96% (2023: 89%) of the company's sales were for export.

ON BEHALF OF THE BOARD:





Mr A Penman - Director


24th April 2025

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Report of the Directors
for the Year Ended 31st December 2024

The directors present their report with the financial statements of the company for the year ended 31st December 2024.

PRINCIPAL ACTIVITIES
The Company's principal activities during the twelve months continued to be the manufacture and supply of perfluorocarbon products using cobalt fluoride technology and other fluorine containing organic chemicals.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report.

Mr A Penman
Mr Y Ohara
Mr M Mori
Mr A Maruhashi

Other changes in directors holding office are as follows:

Mr T Tani - resigned 1st February 2024
Mr T Muranishi - appointed 1st February 2024

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.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Report of the Directors
for the Year Ended 31st December 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr A Penman - Director


24th April 2025

Report of the Independent Auditors to the Members of
F2 Chemicals Limited

Opinion
We have audited the financial statements of F2 Chemicals Limited (the 'company') for the year ended 31st December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st December 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and 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 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.

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.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions 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 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
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
F2 Chemicals Limited


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.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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.

Report of the Independent Auditors to the Members of
F2 Chemicals Limited


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the chemical products sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, REACH regulations, anti-bribery, employment, environmental regulations and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Report of the Independent Auditors to the Members of
F2 Chemicals Limited


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.




Andrew Carl Caunce FCCA (Senior Statutory Auditor)
for and on behalf of Abrams Ashton - Chorley Limited
Statutory Auditor
Chartered Certified Accountants
41 St. Thomas's Road
Chorley
Lancashire
PR7 1JE

24th April 2025

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Income Statement
for the Year Ended 31st December 2024

31.12.24 31.12.23
Notes £    £    £   

TURNOVER 3 13,357,541 14,732,999

Raw materials and consumables 4,324,194 6,765,988

Staff costs 4 2,199,584 2,563,378
Depreciation 719,009 702,907
Other operating expenses 2,292,649 2,275,285
5,211,242 5,541,570
OPERATING PROFIT 6 3,822,105 2,425,441

Interest receivable and similar income 7 165,414 27,918
Interest payable and similar expenses 8 (4,988 ) (11,590 )
PROFIT BEFORE TAXATION 3,982,531 2,441,769

Tax on profit 9 805,408 593,336
PROFIT FOR THE FINANCIAL YEAR 3,177,123 1,848,433

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Other Comprehensive Income
for the Year Ended 31st December 2024

31.12.24 31.12.23
Notes £    £   

PROFIT FOR THE YEAR 3,177,123 1,848,433


OTHER COMPREHENSIVE INCOME
Remeasurements on Pensions scheme (433,000 ) (450,000 )
DB scheme deficit contributions (1,225,000 ) -
Income tax relating to components of other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(1,658,000

)

(450,000

)
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,519,123

1,398,433

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Balance Sheet
31st December 2024

31.12.24 31.12.23
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 9,004 11,812
Tangible assets 12 6,553,630 6,663,104
6,562,634 6,674,916

CURRENT ASSETS
Stocks 13 4,294,907 3,515,230
Debtors 14 3,410,378 2,656,790
Cash at bank 4,907,274 4,558,173
12,612,559 10,730,193
CREDITORS
Amounts falling due within one year 15 2,820,161 2,577,305
NET CURRENT ASSETS 9,792,398 8,152,888
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,355,032

14,827,804

PROVISIONS FOR LIABILITIES 17 659,063 650,958
NET ASSETS 15,695,969 14,176,846

CAPITAL AND RESERVES
Called up share capital 18 11,125,000 11,125,000
Retained earnings 19 4,570,969 3,051,846
SHAREHOLDERS' FUNDS 15,695,969 14,176,846

The financial statements were approved by the Board of Directors and authorised for issue on 24th April 2025 and were signed on its behalf by:





Mr A Penman - Director


F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Statement of Changes in Equity
for the Year Ended 31st December 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st January 2023 11,125,000 2,053,413 13,178,413

Changes in equity
Dividends - (400,000 ) (400,000 )
Total comprehensive income - 1,398,433 1,398,433
Balance at 31st December 2023 11,125,000 3,051,846 14,176,846

Changes in equity
Total comprehensive income - 1,519,123 1,519,123
Balance at 31st December 2024 11,125,000 4,570,969 15,695,969

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Cash Flow Statement
for the Year Ended 31st December 2024

31.12.24 31.12.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,219,846 3,539,011
Interest paid (4,989 ) (5,427 )
Pension contribution provision (1,225,000 ) -
Pension contribution excess (433,000 ) (450,000 )
Tax paid (766,444 ) -
Net cash from operating activities 790,413 3,083,584

Cash flows from investing activities
Purchase of tangible fixed assets (606,726 ) (429,925 )
Sale of tangible fixed assets - 28,001
Interest received 165,414 18,702
Net cash from investing activities (441,312 ) (383,222 )

Increase in cash and cash equivalents 349,101 2,700,362
Cash and cash equivalents at beginning of
year

2

4,558,173

1,857,811

Cash and cash equivalents at end of year 2 4,907,274 4,558,173

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Cash Flow Statement
for the Year Ended 31st December 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

31.12.24 31.12.23
£    £   
Profit before taxation 3,982,531 2,441,769
Depreciation charges 719,009 682,820
Loss on disposal of fixed assets - 20,087
Finance costs 4,988 11,590
Finance income (165,414 ) (27,918 )
4,541,114 3,128,348
(Increase)/decrease in stocks (779,677 ) 114,235
(Increase)/decrease in trade and other debtors (753,588 ) 290,906
Increase in trade and other creditors 211,997 5,522
Cash generated from operations 3,219,846 3,539,011

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 4,907,274 4,558,173
Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 4,558,173 1,857,811


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24 Cash flow At 31.12.24
£    £    £   
Net cash
Cash at bank 4,558,173 349,101 4,907,274
4,558,173 349,101 4,907,274
Total 4,558,173 349,101 4,907,274

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements
for the Year Ended 31st December 2024

1. STATUTORY INFORMATION

F2 Chemicals Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue recognition
Turnover is the value of goods, net of value added tax, provided to customers during the year.

Revenue is recognised when the following conditions are satisfied:

-the company has transferred to the buyer the significant risks and rewards of ownership of the goods
-the amount of revenue and related costs can be measured reliably

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each assets evenly over its expected useful life, as follows:

Flutec plant-6.6% straight line
Leasehold Improvements-6.6% straight line
Research laboratory-10% straight line
Plant and equipment-20% straight line
Office equipment, fixtures and fittings-10% straight line
Computer equipment-33% straight line
Motor vehicles-25% straight line

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition and, where appropriate, attributable overheads based on a normal level of activity. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments' of FRS 102 to all its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


Financial assets:

Basic financial assets, which include debtors, loans to common controlled companies and cash and bank balances, are initially measured at transaction price including transaction costs. They are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets:

All the company's financial assets fall to be classified as basic financial assets under Section 11 of FRS 102 and the company therefore holds no other financial assets.

Financial liabilities:

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities:

All the companies financial liabilities fall to be classified as basic financial liabilities under Section 11 of FRS 102 and the company therefore has no other financial instruments.

Research and development
Research and development expenditure on projects not specifically recoverable directly from customers is written off as incurred.

Foreign currencies
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Exchange differences are taken to the profit and loss account.

Hire purchase and leasing commitments
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

2. ACCOUNTING POLICIES - continued

Pensions
The company operates a defined benefit pension scheme that requires contributions to be made to a separately administered fund. The contributions to this fund are based on independent actuarial valuations designed to secure the benefits as set out in the rule. Contributions are charged in the profit and loss account so as to spread the cost of the employees' working lives with the company. The regular cost is attributed to individual years using a projected unit credit method. Variations in pension cost, which are identified as a result of actuarial valuations, are amortised over the average expected remaining working lives of employees in proportion to their expected payroll costs.

In October 2009 the defined benefit pension scheme was closed to new entrants for new employees eligible for pension contributions and the company makes payments to employees individual private pension plans.
On the 31st December 2015, the pension scheme was closed with the remaining liability to be paid off by the company in the subsequent years.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held with banks, and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

31.12.24 31.12.23
£    £   
United Kingdom 577,177 1,616,394
Europe 7,560,198 6,939,003
United States of America 2,949,920 3,932,749
Other 2,270,246 2,244,853
13,357,541 14,732,999

4. EMPLOYEES AND DIRECTORS

31.12.24 31.12.23
£ £
Wages and salaries 2,245,450 2,168,550
Social security costs 230,583 219,907
Other pension costs 156,551 624,921
Pension remeasurement (433,000 ) (450,000 )
2,199,584 2,563,378

The average number of employees during the year was as follows:

31.12.24 31.12.23

Manufacturing 30 30
Administration 14 15
44 45

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

5. DIRECTORS' EMOLUMENTS

31.12.24 31.12.23
£ £
Directors remuneration 138,992 124,303

6. OPERATING PROFIT

The operating profit is stated after charging:

31.12.24 31.12.23
£    £   
Other operating leases 44,658 36,596
Depreciation - owned assets 716,200 679,681
Loss on disposal of fixed assets - 20,087
Patents and licences amortisation 2,808 3,139
Audit services 9,600 9,300
Pension scheme audit services 3,575 3,250
Foreign exchange differences 112,348 106,592

7. INTEREST RECEIVABLE AND SIMILAR INCOME
31.12.24 31.12.23
£    £   
Deposit account interest 148,970 18,702
HMRC credit interest 16,444 9,216
165,414 27,918

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Bank loan interest & charges 4,988 5,427
HMRC debit interest - 6,163
4,988 11,590

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.24 31.12.23
£    £   
Current tax:
UK corporation tax 797,944 513,737
Tax adjustments re prior years (641 ) (91,975 )
Total current tax 797,303 421,762

Deferred tax 8,105 171,574
Tax on profit 805,408 593,336

UK corporation tax has been charged at 25% (2023 - 25%).

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

9. 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:

31.12.24 31.12.23
£    £   
Profit before tax 3,982,531 2,441,769
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

995,633

610,442

Effects of:
Expenses not deductible for tax purposes 9,133 1,667
Depreciation in excess of capital allowances 1,428 33,964
Adjustments to tax charge in respect of previous periods (641 ) (91,860 )
Deferred tax 8,105 171,574
Tax marginal rate relief - (32,451 )
Pension FRS102 adjustment (108,250 ) (112,500 )
Pension contributions (100,000 ) 12,500
Total tax charge 805,408 593,336

Tax effects relating to effects of other comprehensive income

31.12.24
Gross Tax Net
£    £    £   
Remeasurements on Pensions scheme (433,000 ) - (433,000 )
DB scheme deficit contributions (1,225,000 ) - (1,225,000 )
(1,658,000 ) - (1,658,000 )

31.12.23
Gross Tax Net
£    £    £   
Remeasurements on Pensions scheme (450,000 ) - (450,000 )

10. DIVIDENDS
31.12.24 31.12.23
£    £   
Final - 400,000

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

11. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1st January 2024
and 31st December 2024 131,182
AMORTISATION
At 1st January 2024 119,370
Amortisation for year 2,808
At 31st December 2024 122,178
NET BOOK VALUE
At 31st December 2024 9,004
At 31st December 2023 11,812

12. TANGIBLE FIXED ASSETS
Plant &
equipment
and
Long office
leasehold equipment Totals
£    £    £   
COST
At 1st January 2024 1,566,916 20,590,342 22,157,258
Additions 29,952 576,774 606,726
Disposals - (621,869 ) (621,869 )
At 31st December 2024 1,596,868 20,545,247 22,142,115
DEPRECIATION
At 1st January 2024 1,066,106 14,428,048 15,494,154
Charge for year 35,322 680,878 716,200
Eliminated on disposal - (621,869 ) (621,869 )
At 31st December 2024 1,101,428 14,487,057 15,588,485
NET BOOK VALUE
At 31st December 2024 495,440 6,058,190 6,553,630
At 31st December 2023 500,810 6,162,294 6,663,104

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

13. STOCKS
31.12.24 31.12.23
£    £   
Raw materials and consumables 1,660,741 1,550,129
Work-in-progress 1,161,402 703,745
Finished goods 1,472,764 1,261,356
4,294,907 3,515,230

The difference between purchase price or production cost of stocks and their replacement cost is not material.

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade debtors 2,969,657 2,212,271
Other debtors 164,843 200,946
Prepayments and accrued income 275,878 243,573
3,410,378 2,656,790

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade creditors 374,431 627,478
Tax 274,065 243,206
Social security and other taxes 78,701 79,164
Other creditors 1,254,114 835,523
Accruals and deferred income 838,850 791,934
2,820,161 2,577,305

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.24 31.12.23
£    £   
Within one year 19,077 11,488
Between one and five years 36,999 5,745
56,076 17,233

17. PROVISIONS FOR LIABILITIES
31.12.24 31.12.23
£    £   
Deferred tax 659,063 650,958

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1st January 2024 650,958
Charge to Income Statement during year 8,105
Balance at 31st December 2024 659,063

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
11,125,000 Ordinary £1 11,125,000 11,125,000

19. RESERVES
Retained
earnings
£   

At 1st January 2024 3,051,846
Profit for the year 3,177,123
Pension reserve (1,658,000 )
At 31st December 2024 4,570,969

20. EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefit pension scheme for its employees. The assets of the schemes are held in a separate trustee-administered fund. The pension scheme has been closed to future accruals on the 31/12/2015.

The latest actuarial valuation report was completed on 31st January 2025.

The amounts recognised in profit or loss are as follows:

Defined benefit
pension plans
31.12.24 31.12.23
£    £   
Current service cost - -
Net interest from net defined benefit
asset/liability

(22,000

)

(19,000

)
Past service cost - -
(22,000 ) (19,000 )

Actual return on plan assets (757,000 ) 194,000

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

20. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
31.12.24 31.12.23
£    £   
Opening defined benefit obligation 8,758,000 8,263,000
Interest cost 399,000 401,000
Actuarial losses/(gains) (1,438,000 ) 262,000
Benefits paid (169,000 ) (168,000 )
7,550,000 8,758,000

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
31.12.24 31.12.23
£    £   
Opening fair value of scheme assets 8,758,000 8,263,000
Contributions by employer 433,000 450,000
Asset Ceiling (715,000 ) 19,000
Expected return 421,000 420,000
Actuarial gains/(losses) (1,178,000 ) (226,000 )
Benefits paid (169,000 ) (168,000 )
7,550,000 8,758,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
31.12.24 31.12.23
£    £   
Remeasurements (433,000 ) (450,000 )
(433,000 ) (450,000 )

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit
pension plans
31.12.24 31.12.23
Equities & cash 52.35% 53.28%
Gilts 47.65% 46.72%
100.00% 100.00%

F2 CHEMICALS LIMITED (REGISTERED NUMBER: 02680159)

Notes to the Financial Statements - continued
for the Year Ended 31st December 2024

20. EMPLOYEE BENEFIT OBLIGATIONS - continued

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

31.12.24 31.12.23
Discount rate 5.40% 4.60%
Price inflation rate (CPI) 2.55% 2.45%
Price inflation rate (RPI) 3.05% 3.05%
Pensions-in-payment increase rate 5% 2.90% 2.95%
Pensions-in-payment increase rate 2.5% 1.95% 2.05%

The above percentages relate to the weighted-average assumptions to determine defined benefit obligations.

The following percentages relate to the weighted-average assumptions to determine cost relating to defined benefit plans.

31.12.2431.12.23
Discount rate4.60%4.90%
Price inflation rate (CPI)2.45%2.45%
Price inflation rate (RPI)3.05%3.15%
Pensions-in-payment increase rate2.95%3.05%


21. ULTIMATE PARENT COMPANY

The Company's ultimate parent company is Resonac Corporation, registered in Japan.

22. OTHER FINANCIAL COMMITMENTS

Pension Contribution

Included within the other comprehensive income statements are pension contribution provisions in relation to the company's defined benefit pension scheme, these contributions total £1,225,000.

The company is actively seeking to achieve a contractual buy-in of the defined benefit pension scheme with an insurance company and further contributions are likely in order to meet the pricing of the insurance company. The contributions have been estimated by an independent financial advisory company.

23. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

24. ULTIMATE CONTROLLING PARTY

The Company's immediate holding company is Resonac Corporation.

Copies of its group accounts, which include the Company, are available from Resonac Corporation, 13-9, Shiba Daimon 1-Chome, Minato-ku, Tokyo, 105-8518, Japan.