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Registered number: 12329338










ALFA CHEMICALS GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
ALFA CHEMICALS GROUP LIMITED
 

COMPANY INFORMATION


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




Registered number
12329338



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 GROUP LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 29


 
ALFA CHEMICALS GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The company has two subsidiaries, Alfa Chemicals Limited and Alfa Chemicals Nordic ApS.

Business review and future developments
 
The Group operates in markets which remain highly competitive. Group turnover for 2024 decreased by 10%, from £22.5m in 2023 to £20.2m in 2024. Profit after tax for 2024 decreased by 14% from £263k in 2023 to £225k in 2024. 
The results of the Group are predominately driven by the main operating subsidiary, Alfa Chemicals Limited (“ACL”).
ACL’s 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.
ACL 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.
ACL’s profit 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 Group 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 Group 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 Group'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 Group'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 Group'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 Group's policy in respect of liquidity risk is to maintain readily accessible bank deposit accounts to ensure the group has sufficient funds for operations.

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

Page 1

 
ALFA CHEMICALS GROUP 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 C Bungay
Director

Date: 17 July 2025

Page 2

 
ALFA CHEMICALS GROUP 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, which is non trading, has two subsidiaries, Alfa Chemicals Limited and Alfa Chemicals Nordic ApS, which are engaged in the distribution of specialty raw materials from, primarily, overseas principals to the Pharmaceutical, Personal Care and Industrial markets.

Results and dividends

The profit for the year, after taxation, amounted to £225,078 (2023 - £262,843).

The directors did not recommend the payment of a dividend for the year.

Directors

The directors who served during the year were:

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

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 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 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.

Future developments

The Group continues to focus on distributing specialty raw materials in global Pharmaceutical, Personal Care and Industrial markets. Alfa Chemicals Nordic ApS is expected to deliver growth in the Nordics region.

Page 3

 
ALFA CHEMICALS GROUP LIMITED
 

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

Engagement with employees

The Group is committed to promoting equal opportunities in employment. Its employees and job applicants will receive equal treatment regardless of age, disability, gender reassignment, marital or civil status, pregnancy or maternity, race, colour, nationality, ethnic or national origin, religion or belief, sex or sexual orientation.
The directors regularly engage with employees to seek their views and provide briefings and presentations on key developments and operating performance. Employees are encouraged to offer suggestions and views and to raise queries with directors and managers.
To aid in retention, a benefits package incorporating death in service and permanent health insurance, together with a contributory pension scheme is offered to all employees, in addition to salary. A discretionary bonus scheme and divisional incentive schemes are also available.

Political and charitable contributions

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

Qualifying third party indemnity provisions

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

Post balance sheet events

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

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 and the Group'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 and the Group'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 GROUP LIMITED
 

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

Opinion


We have audited the financial statements of Alfa Chemicals Group 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 Auditor's 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 5

 
ALFA CHEMICALS GROUP LIMITED
 

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


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.


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 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 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 6

 
ALFA CHEMICALS GROUP LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS GROUP 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 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 specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as 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.


Page 7

 
ALFA CHEMICALS GROUP LIMITED
 

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





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 8

 
ALFA CHEMICALS GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
20,154,876
22,484,604

Cost of sales
  
(14,989,580)
(17,504,352)

Gross profit
  
5,165,296
4,980,252

Administrative expenses
  
(4,724,905)
(4,479,047)

Operating profit
 5 
440,391
501,205

Interest receivable and similar income
 9 
12,686
11,649

Interest payable and similar expenses
 10 
(48,845)
(86,240)

Profit before taxation
  
404,232
426,614

Tax on profit
 11 
(179,154)
(163,771)

Profit for the financial year
  
225,078
262,843

Profit for the year attributable to:
  

Owners of the parent Company
  
225,078
262,843

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

The notes on pages 16 to 29 form part of these financial statements.

Page 9

 
ALFA CHEMICALS GROUP LIMITED
REGISTERED NUMBER: 12329338

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,139,884
1,369,777

Tangible assets
 13 
93,202
115,718

  
1,233,086
1,485,495

Current assets
  

Stocks
 15 
2,711,058
2,849,903

Debtors: amounts falling due within one year
 16 
2,001,839
2,768,988

Cash at bank and in hand
 17 
2,007,911
2,301,652

  
6,720,808
7,920,543

Creditors: amounts falling due within one year
 18 
(2,389,133)
(3,310,887)

Net current assets
  
 
 
4,331,675
 
 
4,609,656

Total assets less current liabilities
  
5,564,761
6,095,151

Creditors: amounts falling due after more than one year
 19 
-
(750,000)

Provisions for liabilities
  

Deferred tax
 20 
(20,788)
(26,256)

  
 
 
(20,788)
 
 
(26,256)

Net assets
  
5,543,973
5,318,895


Capital and reserves
  

Called up share capital 
 21 
100
100

Profit and loss account
 22 
5,543,873
5,318,795

  
5,543,973
5,318,895


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 16 to 29 form part of these financial statements.

Page 10

 
ALFA CHEMICALS GROUP LIMITED
REGISTERED NUMBER: 12329338

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 14 
7,477,785
7,477,785

  
7,477,785
7,477,785

Current assets
  

Debtors: amounts falling due within one year
 16 
99
99

  
99
99

Creditors: amounts falling due within one year
 18 
(300,000)
(600,000)

Net current liabilities
  
 
 
(299,901)
 
 
(599,901)

Total assets less current liabilities
  
7,177,884
6,877,884

  

Creditors: amounts falling due after more than one year
 19 
-
(750,000)

  

Net assets
  
7,177,884
6,127,884


Capital and reserves
  

Called up share capital 
 21 
100
100

Profit and loss account
 22 
7,177,784
6,127,784

  
7,177,884
6,127,884


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 16 to 29 form part of these financial statements.

Page 11

 
ALFA CHEMICALS GROUP LIMITED
 

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


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 January 2023
100
5,055,952
5,056,052
5,056,052



Profit for the year
-
262,843
262,843
262,843



At 1 January 2024
100
5,318,795
5,318,895
5,318,895



Profit for the year
-
225,078
225,078
225,078


At 31 December 2024
100
5,543,873
5,543,973
5,543,973


The notes on pages 16 to 29 form part of these financial statements.

Page 12

 
ALFA CHEMICALS GROUP 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
100
5,527,784
5,527,884



Profit for the year
-
600,000
600,000



At 1 January 2024
100
6,127,784
6,127,884



Profit for the year
-
1,050,000
1,050,000


At 31 December 2024
100
7,177,784
7,177,884


The notes on pages 16 to 29 form part of these financial statements.

Page 13

 
ALFA CHEMICALS GROUP 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
225,078
262,843

Adjustments for:

Amortisation of intangible assets
229,893
229,893

Depreciation of tangible assets
42,708
34,560

(Profit)/loss on disposal of tangible assets
(29,040)
625

Interest paid
48,863
86,240

Interest received
(12,704)
(11,649)

Taxation charge
179,154
163,771

Decrease in stocks
138,845
272,532

Decrease/(increase) in debtors
767,149
(242,895)

(Decrease)/increase in creditors
(679,095)
561,315

Corporation tax (paid)
(127,287)
(336,584)

Net cash generated from operating activities

783,564
1,020,651


Cash flows from investing activities

Purchase of tangible fixed assets
(20,186)
(62,240)

Sale of tangible fixed assets
29,040
-

Interest received
12,704
11,649

Net cash generated from/(used in) investing activities

21,558
(50,591)

Cash flows from financing activities

Repayment of other loans
(1,050,000)
(600,000)

Interest paid
(48,863)
(86,240)

Net cash used in financing activities
(1,098,863)
(686,240)

Net (decrease)/increase in cash and cash equivalents
(293,741)
283,820

Cash and cash equivalents at beginning of year
2,301,652
2,017,832

Cash and cash equivalents at the end of year
2,007,911
2,301,652


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,007,911
2,301,652

2,007,911
2,301,652


The notes on pages 16 to 29 form part of these financial statements.

Page 14

 
ALFA CHEMICALS GROUP 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

2,301,652

(293,741)

2,007,911

Debt due after 1 year

(750,000)

750,000

-

Debt due within 1 year

(600,000)

300,000

(300,000)


951,652
756,259
1,707,911

The notes on pages 16 to 29 form part of these financial statements.

Page 15

 
ALFA CHEMICALS GROUP LIMITED
 

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

1.


General information

Alfa Chemicals Group 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 Group management to exercise judgment 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 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

Foreign currency translation

Functional and presentation currency

The Group'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.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas
Page 16

 
ALFA CHEMICALS GROUP LIMITED
 

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

2.Accounting policies (continued)


2.3
Foreign currency translation (continued)

operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

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.

 
2.5

Finance costs

Finance costs are charged to profit or loss 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.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

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 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 Group in independently administered funds.

Page 17

 
ALFA CHEMICALS GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.8

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 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.


 
2.9

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life of 10 years.

 
2.10

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.

Page 18

 
ALFA CHEMICALS GROUP LIMITED
 

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

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

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.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

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.

 
2.13

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.

 
2.14

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.15

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 19

 
ALFA CHEMICALS GROUP LIMITED
 

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

2.Accounting policies (continued)

 
2.16

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 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 Group'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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.

 
2.17

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 20

 
ALFA CHEMICALS GROUP LIMITED
 

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

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 group 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
4,089,026
3,542,636

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

20,154,876
22,484,604



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Amortisation
229,893
229,893

Depreciation
42,702
34,560

(Profit)/loss on disposal of fixed assets
(29,040)
625

Exchange differences
20,868
54,921

Defined contribution pension schemes
136,096
118,480


6.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
17,135
16,645

Taxation compliance services
3,875
3,765

Accounts preparation services
5,150
5,000

Page 21

 
ALFA CHEMICALS GROUP LIMITED
 

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

7.


Employees

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


Group
Group
2024
2023
£
£


Wages and salaries
2,787,961
2,563,344

Social security costs
294,789
255,625

Cost of defined contribution scheme
136,096
118,480

3,218,846
2,937,449


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


        2024
        2023
            No.
            No.







Trading
25
24



Administration
16
15

41
39


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
754,592
787,978


During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £182,975
 (2023 - £166,284).

The value of the Group'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 Group.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
12,686
11,649

Page 22

 
ALFA CHEMICALS GROUP LIMITED
 

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

10.


Interest payable and similar expenses

2024
2023
£
£


Interest payable on loan notes
48,845
86,240


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
184,622
156,825


184,622
156,825


Total current tax
184,622
156,825

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
179,154
163,771

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 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
404,232
426,614


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
101,058
100,342

Effects of:


Expenses not deductible for tax purposes
78,092
63,695

Fixed asset differences
-
(678)

Adjustments in respect of prior periods
4
-

Remeasurement of deferred tax for changes in tax rates
-
412

Total tax charge for the year
179,154
163,771

Page 23

 
ALFA CHEMICALS GROUP LIMITED
 

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

12.


Intangible assets

Group 





Goodwill

£



Cost


At 1 January 2024
2,298,928



At 31 December 2024

2,298,928



Amortisation


At 1 January 2024
929,151


Charge for the year
229,893



At 31 December 2024

1,159,044



Net book value



At 31 December 2024
1,139,884



At 31 December 2023
1,369,777



Page 24

 
ALFA CHEMICALS GROUP LIMITED
 

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

13.


Tangible fixed assets

Group






Motor vehicles
Fixtures and fittings
Total

£
£
£



Cost 


At 1 January 2024
91,510
446,976
538,486


Additions
-
20,186
20,186


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



At 31 December 2024

38,501
467,162
505,663



Depreciation


At 1 January 2024
91,510
331,258
422,768


Charge for the year
-
42,702
42,702


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



At 31 December 2024

38,501
373,960
412,461



Net book value



At 31 December 2024
-
93,202
93,202



At 31 December 2023
-
115,718
115,718

Page 25

 
ALFA CHEMICALS GROUP LIMITED
 

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

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost 


At 1 January 2024
7,477,785



At 31 December 2024
7,477,785




The investment represents 100% of the issued share capital of Alfa Chemicals Limited, a company incorporated in England. 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. The registered address is: Arc House, Terrace Road South, Binfield, Bracknell, Berkshire, RG42 4PZ.
Alfa Chemicals Limited has an investment representing 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.



15.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
2,711,058
2,849,903


Page 26

 
ALFA CHEMICALS GROUP LIMITED
 

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

16.


Debtors

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


Trade debtors
1,906,902
2,603,549
-
-

Other debtors
23,176
77,694
99
99

Prepayments and accrued income
71,761
87,745
-
-

2,001,839
2,768,988
99
99



17.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
2,007,911
2,301,652



18.


Creditors: Amounts falling due within one year

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

Loan notes
300,000
600,000
300,000
600,000

Trade creditors
1,187,302
1,851,924
-
-

Corporation tax
64,383
7,048
-
-

Other taxation and social security
412,229
450,440
-
-

Other creditors
142,030
119,391
-
-

Accruals and deferred income
283,189
282,084
-
-

2,389,133
3,310,887
300,000
600,000



19.


Creditors: Amounts falling due after more than one year

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

Loan notes
-
750,000
-
750,000


Total loan notes outstanding at 31 December 2024 are £300,000 (2023: £1,350,000). Interest is charged at 5% with quarterly installments of £150,000 with a final repayment date of October 2029.

Page 27

 
ALFA CHEMICALS GROUP LIMITED
 

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

20.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(26,256)
(19,310)


Credited/(charged) to profit or loss
5,468
(6,946)



At end of year
(20,788)
(26,256)

Company


2024
2023






At end of year
-
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

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

(20,788)
(26,256)


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



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



22.


Reserves

Profit and loss account

Includes all current and prior periods retained profits and losses.


23.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £136,096 (2023: £118,480).

Page 28

 
ALFA CHEMICALS GROUP LIMITED
 

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

24.


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.


25.


Controlling party

The Group is controlled by the directors by virtue of their shareholding in the parent company.

Page 29