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Registered number: 01254437










ALFA CHEMICALS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
ALFA CHEMICALS LIMITED
 

COMPANY INFORMATION


Directors
S C Bungay 
Dr T W Mathers 
R M Parr 
Dr E K Wale 




Registered number
01254437



Registered office
Arc House
Terrace Road South

Binfield

Bracknell

Berkshire

RG42 4PZ




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
ALFA CHEMICALS LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22


 
ALFA CHEMICALS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

 
Business review and future developments
 
The company operates in markets which remain highly competitive. Turnover decreased by 12%, from £20.65m in 2023 to £18.12m in 2024.
The economic downturn of 2023, coupled with reduced end-customer demand, led to an oversupply in the main markets, resulting in decreases in both volume and pricing. These challenging conditions persisted throughout 2024. Despite this, the company successfully built resilience by strengthening distributor relationships, expanding into new markets with new principals, and implementing targeted sales initiatives to drive organic growth. Strong growth has been seen in the new range of manufactured products launched in 2023.
The company continues to differentiate itself through service quality and reliability. This strategic focus has contributed to gross profit margins rising from 22% in 2023 to 25% in 2024.
Profit before tax for 2024 was sustained at £0.7m, in line with 2023. The improved gross margin achieved enabled the company to maintain profitability whilst supporting increased operating costs. These costs reflect the company’s continued commitment to future growth, with investment in people together with an increase in face-to-face sales and marketing activity, as well as the impact of inflationary factors.
The company remains profitable and committed to strengthening relationships with key customers and suppliers, ensuring long-term growth and market resilience.

Principal risks and uncertainties
 
The company seeks to manage the risk of losing Principals by the provision of added value services that they would be unable to provide. In addition the company focuses on retaining and increasing its customer base by improving the service to customers by reducing response times in the supply of products and also in the handling of customer queries, while maintaining strong relationships and local representation with key customers.
The main financial risks arising from the company's activities are credit risk, exchange rate and liquidity risk. These are monitored by the board of directors and were not considered to be significant at the balance sheet date.
The company's policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made and to monitor payments against contractual agreements for existing customers.
The company's policy in respect of exchange rate risk is to maintain bank accounts denominated in Euros and US Dollars to facilitate day to day trading transactions; exposure to movements in exchange rates is mitigated by transferring funds into sterling accounts on a timely basis.
The company's policy in respect of liquidity risk is to maintain readily accessible bank deposit accounts to ensure the company has sufficient funds for operation.

Financial key performance indicators
 
Turnover, margin and net profit are the main measures used to monitor the performance of the company. Each of these measures is discussed in the business review.

 
Page 1

 
ALFA CHEMICALS LIMITED
 

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


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



S C Bungay
Director

Date: 17 July 2025

Page 2

 
ALFA CHEMICALS 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.

Principal activity

The company's principal activity is the distribution of specialty raw materials from, primarily, overseas principals to the Pharmaceutical, Personal Care and Industrial markets in the UK and Ireland.

Results and dividends

The profit for the year, after taxation, amounted to £500,151 (2023 - £573,239).

Interim dividends of £1,098,863 (2023: £686,240) were paid to ordinary shareholders during the year. The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

S C Bungay 
Dr T W Mathers 
R M Parr 
Dr E K Wale 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Political and charitable contributions

During the year the company made charitable contributions of £27,463 (2023: £26,541). There were no political contributions.

Page 3

 
ALFA CHEMICALS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Qualifying third party indemnity provisions

The company has maintained directors' liability insurance in respect of its directors.

Post balance sheet events

Post year end, the company paid dividends of £153,781 on 15 January 2025 and £151,849 on 15 April 2025 to Alfa Chemicals Group Limited.

Disclosure of information to auditor

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's auditor is 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's auditor is aware of that information.

Auditor

The auditor, James Cowper Kreston Auditwill 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 C Bungay
Director
Date: 17 July 2025

Page 4

 
ALFA CHEMICALS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS LIMITED
 

Opinion


We have audited the financial statements of Alfa Chemicals Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the 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 company's affairs as at 31 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 Auditor's 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 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 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.


Page 5

 
ALFA CHEMICALS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS LIMITED (CONTINUED)


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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Directors' responsibilities statement set out on page 3, 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 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.


Page 6

 
ALFA CHEMICALS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS LIMITED (CONTINUED)


Auditor's 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 Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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 specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were are follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to 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 evidence.

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 Auditor's 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 Auditor's 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.




Alexander Peal BSc (Hons) FCA DChA (Senior Statutory Auditor)
for and on behalf of
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

18 July 2025
Page 7

 
ALFA CHEMICALS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
 £
£

  

Turnover
 4 
18,124,907
20,647,658

Cost of sales
  
(13,540,600)
(16,139,716)

Gross profit
  
4,584,307
4,507,942

Administrative expenses
  
(4,061,204)
(3,951,923)

Other operating income
 5 
130,923
163,475

Operating profit
 6 
654,026
719,494

Interest receivable and similar income
 10 
21,012
14,890

Profit before tax
  
675,038
734,384

Tax on profit
 11 
(174,887)
(161,145)

Profit for the financial year
  
500,151
573,239

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 11 to 22 form part of these financial statements.

Page 8

 
ALFA CHEMICALS LIMITED
REGISTERED NUMBER: 01254437

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
93,202
115,723

Investments
 14 
6,306
6,306

  
99,508
122,029

Current assets
  

Stocks
 15 
2,359,306
2,606,487

Debtors: amounts falling due within one year
 16 
2,051,600
2,626,606

Cash at bank and in hand
 17 
1,948,081
2,243,974

  
6,358,987
7,477,067

Creditors: amounts falling due within one year
 18 
(1,957,525)
(2,493,946)

Net current assets
  
 
 
4,401,462
 
 
4,983,121

Total assets less current liabilities
  
4,500,970
5,105,150

Provisions for liabilities
  

Deferred tax
 19 
(20,788)
(26,256)

  
 
 
(20,788)
 
 
(26,256)

Net assets
  
4,480,182
5,078,894


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account
 21 
4,380,182
4,978,894

  
4,480,182
5,078,894


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




S C Bungay
Director
Date: 17 July 2025

The notes on pages 11 to 22 form part of these financial statements.

Page 9

 
ALFA CHEMICALS LIMITED
 

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
100,000
5,091,895
5,191,895



Profit for the year
-
573,239
573,239

Dividends: Equity capital
-
(686,240)
(686,240)



At 1 January 2024
100,000
4,978,894
5,078,894



Profit for the year
-
500,151
500,151

Dividends: Equity capital
-
(1,098,863)
(1,098,863)


At 31 December 2024
100,000
4,380,182
4,480,182


The notes on pages 11 to 22 form part of these financial statements.

Page 10

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Alfa Chemicals Limited is a private company limited by shares and incorporated in England and Wales. Its registered head office is Arc House, Terrace Road South, Binfield, Bracknell, Berkshire, RG42 4PZ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Alfa Chemicals Group Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 11

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Motor vehicles
-
3%
straight line per month
Fixtures and fittings
-
2%
straight line per month

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.9

Financial instruments

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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
Page 12

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.9
Financial instruments (continued)

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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after 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.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.10

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 13

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 operates and generates 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 except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.12

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 14

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements require 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. The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.
Stock provisions
Provisions are estimated by the company in respect of specific stocks based upon the age of the stock and knowledge of known issues.


4.


Turnover

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
13,694,510
16,794,197

Rest of Europe
2,059,057
1,705,690

Rest of the World
2,371,340
2,147,771

18,124,907
20,647,658



5.


Other operating income

2024
2023
£
£

Management charges
130,923
163,475


Page 15

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
42,707
34,559

Exchange differences
8,660
52,430


7.


Auditor's remuneration

2024
2023
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
17,835
17,325


8.


Employees

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


2024
2023
£
£

Wages and salaries
2,554,715
2,403,281

Social security costs
294,789
255,625

Cost of defined contribution scheme
124,178
114,325

2,973,682
2,773,231


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


        2024
        2023
            No.
            No.







Trading
23
22



Administration
16
15

39
37

Page 16

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
        754,592
         787,978


During the year retirement benefits were accruing to 4 directors (2023 - 5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £182,975 (2023 - £166,284).
 
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,106 (2023 - £8,831).

The directors are considered to be the key management personnel of the company.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
21,012
14,890


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
180,355
154,199


180,355
154,199


Total current tax
180,355
154,199

Deferred tax


Origination and reversal of timing differences
(5,472)
6,946

Adjustments in respect of prior periods
4
-

Total deferred tax
(5,468)
6,946


Tax on profit
174,887
161,145
Page 17

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
675,038
734,384


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
168,760
172,731

Effects of:


Expenses not deductible for tax purposes
18,339
8,964

Fixed asset differences
-
(678)

Adjustments to tax charge in respect of previous periods - deferred tax
4
-

Remeasurement of deferred tax for changes in tax rates
-
412

Group relief
(12,216)
(20,284)

Total tax charge for the year
174,887
161,145


12.


Dividends

2024
2023
£
£


Dividends paid on equity capital
1,098,863
686,240

Page 18

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Total

£
£
£



Cost 


At 1 January 2024
91,509
446,981
538,490


Additions
-
20,186
20,186


Disposals
(53,009)
-
(53,009)



At 31 December 2024

38,500
467,167
505,667



Depreciation


At 1 January 2024
91,509
331,258
422,767


Charge for the year
-
42,707
42,707


Disposals
(53,009)
-
(53,009)



At 31 December 2024

38,500
373,965
412,465



Net book value



At 31 December 2024
-
93,202
93,202



At 31 December 2023
-
115,723
115,723


14.


Fixed asset investments





Investments in subsidiary companies

£



Cost 


At 1 January 2024
6,306



At 31 December 2024
6,306




The investment represents 100% of the issued share capital (€7,000, translated at the investment date of 1 January 2019) of Alfa Chemicals Nordic ApS, a company incorporated in Denmark. The company’s principal activity is the sale of raw materials for the chemical industry and its registered address was Fredericiagade 15B, Ground floor, DK-1310 Copenhagen, Denmark until 30 November 2024. On 1 December 2024 the registered office changed to Bredgade 20A, 2nd Floor, DK-1260, Copenhagen, Denmark.


Page 19

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Stocks

2024
2023
£
£

Finished goods and goods for resale
2,359,306
2,606,487



16.


Debtors

2024
2023
£
£


Trade debtors
1,734,847
2,445,820

Amounts owed by group undertakings
224,156
16,441

Other debtors
92,597
164,345

2,051,600
2,626,606



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,948,081
2,243,974



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,065,255
1,669,964

Corporation tax
69,628
10,173

Other taxation and social security
397,311
424,597

Other creditors
172,431
119,225

Accruals and deferred income
252,900
269,987

1,957,525
2,493,946


Page 20

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Deferred taxation




2024


£






At beginning of year
(26,256)


Credited to profit or loss
5,468



At end of year
(20,788)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Fixed asset timing differences
(20,788)
(26,256)

(20,788)
(26,256)


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100,000 (2023 - 100,000) Ordinary shares of £1.00 each
100,000
100,000



21.


Reserves

Profit and loss account

Includes all current and prior periods retained profits and losses.


22.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £124,178 (2023: £114,325).


23.


Related party transactions

The company has taken advantage of the exemption under FRS 102 not to disclose related party transactions with wholly owned group companies.
During the year the company paid dividends of £1,098,863 (2023: £686,240) to the shareholders.

Page 21

 
ALFA CHEMICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

24.


Post balance sheet events

Post year end, the company paid dividends of £153,781 on 15 January 2025 and £151,849 on 15 April 2025 to Alfa Chemicals Group Limited.


25.


Controlling party

The ultimate parent company is Alfa Chemicals Group Limited, a company incorporated in England.
The largest and smallest group in which the results of the company are consolidated is that headed by Alfa Chemicals Group Limited. The consolidated financial statements of this company are available to the public from:
The Registrar of Companies
Companies House
2 Crown Way
Cardiff
CF4 3UZ

No other group financial statements include the results of the company.


Page 22