Company registration number 01149113 (England and Wales)
AIREDALE CHEMICAL COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
AIREDALE CHEMICAL COMPANY LIMITED
COMPANY INFORMATION
Directors
C J Chadwick
C Thomson
M Leighton
D G Marr
R Ward
M L Helliwell
(Appointed 1 January 2024)
A C Bevan
(Appointed 8 November 2024)
Secretary
C Thomson
Company number
01149113
Registered office
Airedale Mills
Skipton Road
Crosshills
Keighley
West Yorkshire
England
BD20 7BX
Auditor
BDO LLP
Central Square
29 Wellington Street
Leeds
LS1 4DL
AIREDALE CHEMICAL COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 33
AIREDALE CHEMICAL COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

 

During the year the principal activity of the Company was the manufacture and supply of speciality chemicals.

Business Review

The results for the year and the financial position of the Company are shown in the financial statements.

The board of directors are pleased with the results and financial position for the year. The Company is forecast to continue to be profitable in 2025.

Principal risks and uncertainties

 

Credit risk

The Company manages credit risk by assessing each customer and applying credit limits using data from credit checking agencies. Limits are then reviewed on a regular basis by management to ensure the Company minimises its exposure to possible over trading with companies seen to be a credit risk.

Foreign exchange risk

The Company purchase chemicals in foreign currencies, and as such the Company recognise exposure to currency rate fluctuations. The Company has continued to adopt a strategy to forward purchase currency to minimise foreign currency rate fluctuations.

The board have continued the strategy to de-risk and forward purchase currency to protect gross margin.

Liquidity risk

The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The main risk arising from financial instruments is liquidity risk and, in this respect, cash flow is monitored by the directors on a regular basis. Bank balances are structured to enable cash to be available when required.

Economic and political disruption

We continue to monitor economic and geo-political pressures that have the potential to have an impact on businesses including the continued conflict in the Ukraine, the middle east, inflationary pressures and increases in the cost of living. We continue to monitor both conflicts in Ukraine and the middle east and haven’t seen a negative impact on security of supply. However, we are not complacent and are continually reviewing our operations. We continue to closely monitor increasing energy prices, availability of products and the potential impact on supply chain costs.

The current business outlook shows that there is still a high demand for products we offer and changes to the economic environment could continue to increase this demand. We are structured well to optimise these opportunities and continue to review our cost / spend to ensure we run lean. We remain focused on supporting our teams during this period of rising costs.

 

AIREDALE CHEMICAL COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Key performance indicators

Statement of comprehensive income

Key Performance Indicators (KPIs) are gross margin and EBITDA (earnings before interest, tax, depreciation and amortisation).

 

Revenue for the year ended 31 December 2024 was £80.1 million (2023: £94.7 million) a decrease of £14.6 million, 15.4% on the previous year. A drop in revenue was in line with budget and expectations as we see the chemical markets, that have been high in recent years driven by geo-political events, return to more normal levels.

Revenue is generated from sales to both domestic and overseas markets. Revenue generated from overseas markets was £4.7 million (2023: £4.4 million). We actively seek market growth overseas with our core products, and expect the trend to continue into 2025.

Gross margin in the year amounted to £30.8 million (2023: £31.3 million) a decrease of 1.6%. Market conditions proved difficult in 2024, especially H2. We lost a significant contract in July which contributed massively to the gross margin being behind on the previous year. Our market approach through our five divisions, however, is allowing us to react more efficiently and track our progress within the overall performance. This proved positive in the year under review.

The Company uses EBITDA to monitor the company’s performance. EBITDA for 2024 was £16.9 million (2023: £19.1 million). EBITDA consists of Operating Profit of £13.5 million (2023: £14.3 million) adding back Share based payments of £1.7 million (2023: £3.4 million), depreciation of £1.5 million (2023: £1 million) and amortisation of £0.2 million (2023: £0.4 million).

The 2024 accounts include the trade of McCann Chemicals Limited and are therefore not directly comparable to the 2023 position.

Statement of financial position

Key Performance Indicators (KPIs) are investment levels, stock levels, debtor days (DSO) and liquidity.

Investment in fixed assets amounted to £1.7 million in the year (2023: £2.3 million). We were able to complete fixed asset projects in line with budget and found that project lead times reduced since materials became more readily available. Fleet assets were planned to arrive in 2024 however, some are still subject to extended lead times and therefore spilled into 2025.

Stock levels reduced in line with expectations. Stock as at 31 December 2024 was £3.8 million (2023 - £4.2 million).

DSO was 48 days (2023: 47 days). DSO is calculated based on the trade receivables balance compared to sales for the current and previous months. Trade debtors at 31 December 2024 were £10.5 million (2023: £12.2 million). The reduction was in line with expectations and linked to the fall in revenue. The Company invests significant time into working capital management which is reflected in a consistent DSO year on year.

The Company continually monitors cashflow to ensure we convert EBITDA to cash efficiently and to ensure the Company has sufficient liquidity to meet the Company’s requirements.

Other performance indicators

Health and safety, quality and environmental

We have continued to work closely with the Health and Safety Executive and environmental bodies to ensure obligations are met.

Airedale operates their quality system under ISO14001 and ISO9001-2015 standards, demonstrating our commitment to operate the business under a 'best practice' philosophy.

During the year, we have continued our commitments to REACH legislation.

AIREDALE CHEMICAL COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Promoting the success of the company

Under section 172 (1) of the Companies Act 2006, the Board has a duty to act in a way that would be most likely to promote the success of the Company for the benefit of the shareholders and in doing so have regard to:

 

a. The likely consequences of any decision in the long term;

b. The interests of the Company’s employees;

c. The need to foster the Company’s business relationships with suppliers, customers and others;

d. The impact of the Company’s operations on the community and the environment;

e. The desirability of the Company maintaining a reputation high standards of business conduct; and

f. The need to act fairly between members of the Company

As part of the Board’s decision making and review process, the Directors consider the potential impact of decisions on all stakeholders and consider the key stakeholders to be:

 

Employees

Our employees are our most important asset and maintaining a positive culture is important to the continued success of the Company. The Board regularly communicate the objectives and performance of the business and have frequent interactions with our staff on all matters relating to Health & Safety, Social and Environmental matters. The Board actively encourages suggestions from throughout the business on improvement ideas and fosters a cooperative and collaborative working environment.

Customers and Suppliers

We work closely with our customers and suppliers to develop collaborative and supportive relationships across all areas with a continual stream of improvement ideas to assist with improving business relationships both up and down the supply chain. We provide our customers with access to products from many different manufacturers and complement this supplier reach with value added services to support further growth and sustainability goals. The Company has strong relationships with both its customers and suppliers, built over many years of successful cooperation. The Board takes direct responsibility for many customer and supplier relationships which has delivered strong mutual benefits for all stakeholders, and this will continue to be a focus area in the future.

Shareholders

The Company communicates on a regular basis with its shareholders to ensure alignment with the objectives of the owners and to communicate on performance. The Board believes it has a good relationship with its shareholders, and they support the objectives of the business. Following relevant engagement with Shareholders during the year, the ultimate parent company, Airedale Newco Limited, issued Growth shares to shareholders and directors of the Company. Details of Growth shares issued are included in the notes to these financial statements.

Local Community and Environment

The Company places high importance on its role in the community and environment. In addition to ongoing direct investment in local initiatives such as providing and maintaining defibrillators in the local area, we also commit time to support local schools and charities. The Board has directly supported members of staff in fundraising and sponsorship and encourages employees in other activities in support of good causes. The Board has also invested in external support to develop, implement and manage its ESG strategy which will enhance the Company’s role in this area and continue to support the protection of and improvement of the environment.

Business Standards

The Board is committed to ensuring the business and its employees act in a responsible manner and maintain the highest standards of conduct. During the year, policies have been regularly reviewed and communicated to support this commitment.

On behalf of the board

C Thomson
Director
17 July 2025
AIREDALE CHEMICAL COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Principal activities

The principal activity of the Company continued to be that of the manufacture and supply of speciality chemicals.

Results and dividends

The results for the year are set out on page 11.

The profit for the year, after taxation, amounted to £10,560,844 (2023 - £10,329,055).

Interim dividends amounting to £1,653,569 were paid during the year (2023: £14,330,200). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C J Chadwick
C Thomson
M Leighton
D G Marr
R Ward
M L Helliwell
(Appointed 1 January 2024)
A C Bevan
(Appointed 8 November 2024)

Going Concern

The Company remains optimistic about its resilience and ability to continue to deliver strong operating profits and positive cash flows. Furthermore, the strength of the Company’s balance sheet and the significant levels of headroom within Group financing facilities mean the Company is well placed to deal with any adverse market scenarios that may arise.

Airedale Group produces regular forecasts, which include review by the Board of Director’s performed on a quarterly basis of current trading conditions; and has concluded that sufficient headroom exists within the Group's current facilities. Following the year end, there has been no breach of covenants, furthermore, there are no issues highlighted in the forecasts.

There have been no significant changes in the Company's principal activites in the year under review, and the Directors believe the business is ideally placed to full realise its growth potential in the coming years.

At the time of preparing and at the date of approving these financial statements the directors have a reasonable expectaation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the forseeable future and for a period of at least twelve months. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Research and development

The Company is engaged in research and development projects to support products supplied to our existing customer base and also in the development of new products as part of our ongoing strategy. The Company expensed £448,601 (2023 - £580,000) to the Income statement in the year ended 31 December 2024.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company has taken the exemption available to subsidiary companies not to disclose information in respect of greenhouse gas emissions, energy consumption and energy efficiency action given this is disclosed in the consolidated financial statements of the ultimate parent company, Airedale NewCo Limited.

The comparative energy and carbon statement can be found in the statutory accounts of the Airedale Group Holdings Limited for the year ended 2023, which was the parent company at the time.

AIREDALE CHEMICAL COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

Matters covered in the Strategic Report

Disclosures required under S416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the Company.

 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

Auditor

BDO LLP were appointed as auditors during the year. They will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

On behalf of the board
C Thomson
Director
17 July 2025
AIREDALE CHEMICAL COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

AIREDALE CHEMICAL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AIREDALE CHEMICAL COMPANY LIMITED
- 7 -
Opinion on the financial statements

In our opinion the financial statements:

 

We have audited the financial statements of Airedale Chemical Company 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 notes to the financial statements, including 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).

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 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.

 

Independence

 

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.

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 report. 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.

 

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.

AIREDALE CHEMICAL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIREDALE CHEMICAL COMPANY LIMITED
- 8 -

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of our audit:

 

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

AIREDALE CHEMICAL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIREDALE CHEMICAL COMPANY LIMITED
- 9 -

Non-compliance with laws and regulations

 

Based on:

 

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations.

 

Our procedures in respect of the above included:

 

Fraud

 

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

 

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls, unusual journal entries in respect of revenue recognition and potential fraud relating to a lack of segregation in the payroll cycle.

 

Our procedures in respect of the above included:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

AIREDALE CHEMICAL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIREDALE CHEMICAL COMPANY LIMITED
- 10 -

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 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 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.

Neil Ebdon (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
21 July 2025
Leeds, UK
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
AIREDALE CHEMICAL COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
80,142,916
94,653,583
Cost of sales
(49,415,187)
(63,388,071)
Gross profit
30,727,729
31,265,512
Distribution costs
(3,695,685)
(3,265,372)
Administrative expenses
(12,023,309)
(10,368,592)
Other operating income
105,097
119,364
Share-based payment expense
4
(1,660,342)
(3,412,978)
Operating profit
5
13,453,490
14,337,934
Interest receivable and similar income
9
292,965
242,188
Interest payable and similar expenses
10
(236,420)
(310,488)
Profit before taxation
13,510,035
14,269,634
Tax on profit
11
(2,949,191)
(3,940,579)
Profit for the financial year
10,560,844
10,329,055

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

 

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 33 form part of these financial statements.

AIREDALE CHEMICAL COMPANY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
422,821
558,159
Tangible assets
14
9,956,730
9,772,317
10,379,551
10,330,476
Current assets
Stocks
15
3,835,013
4,243,689
Debtors
16
22,240,745
16,817,960
Cash at bank and in hand
3,617,953
8,807,961
29,693,711
29,869,610
Creditors: amounts falling due within one year
17
(14,167,289)
(25,645,728)
Net current assets
15,526,422
4,223,882
Total assets less current liabilities
25,905,973
14,554,358
Creditors: amounts falling due after more than one year
18
(2,114,560)
(1,892,686)
Provisions for liabilities
Deferred tax liability
21
871,956
309,832
(871,956)
(309,832)
Net assets
22,919,457
12,351,840
Capital and reserves
Called up share capital
22
11,000
11,000
Capital contribution reserve
5,851,215
4,190,873
Profit and loss reserves
17,057,242
8,149,967
Total equity
22,919,457
12,351,840

The notes on pages 14 to 33 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 17 July 2025 and are signed on its behalf by:
R Ward
Director
Company Registration No. 01149113
AIREDALE CHEMICAL COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
11,000
777,895
12,151,112
12,940,007
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
10,329,055
10,329,055
Dividends
12
-
-
(14,330,200)
(14,330,200)
Credit to equity for fair value of share-based payments contributed by parent
-
3,412,978
-
0
3,412,978
Balance at 31 December 2023
11,000
4,190,873
8,149,967
12,351,840
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
10,560,844
10,560,844
Dividends
12
-
-
(1,653,569)
(1,653,569)
Credit to equity for fair value of share-based payments contributed by parent
-
1,660,342
-
0
1,660,342
Balance at 31 December 2024
11,000
5,851,215
17,057,242
22,919,457

The notes on pages 14 to 33 form part of these financial statements.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

Airedale Chemical Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Airedale Mills, Skipton Road, Crosshills, Keighley, West Yorkshire, England, BD20 7BX.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

The Company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this Company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The Company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the Company are consolidated in the financial statements of Airedale Newco Limited as at 31 December 2024. These consolidated financial statements are available from its registered office, Airedale Mills, Skipton Road, Crosshills, Keighley, West Yorkshire, BD20 7BX.

1.2
Going concern

The Company remains optimistic about its resilience and ability to continue to deliver strong operating profits and positive cash flows. Furthermore, the strength of the Company’s balance sheet and the significant levels of headroom within Group financing facilities mean the Company is well placed to deal with any adverse market scenarios that may arise. true

Airedale Group produces regular forecasts, which include review by the Board of Director’s performed on a quarterly basis of current trading conditions; and has concluded that sufficient headroom exists within the Group's current facilities. Following the year end, there has been no breach of covenants, furthermore, there are no issues highlighted in the forecasts.

There have been no significant changes in the Company’s principal activities in the year under review, and the Directors believe the business is ideally placed to fully realise its growth potential in the coming years.

At the time of preparing and date of approving these financial statements the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future for a period for at least twelve months. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover from the provision of goods is recognised when the risks and rewards of ownership of goods have been transferred to the customer. The risk and rewards of ownership of goods are deemed to have been transferred to the customer when the goods are delivered to, or are picked up by, the customer for UK based sales. For overseas based sales, the risks and rewards of ownership are deemed to have been transferred based upon relevant incoterms.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
10% - 33.3% on costs
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% on costs
Freehold improvements
2% on costs
Plant and equipment
20% reducing balance, 20% on costs
Fixtures and fittings
20% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Assets under construction are not depreciated. Once brought into use, they are transferred to the relevant category of tangible fixed assets, and depreciated at the rate detailed above.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.6
Impairment of fixed assets

At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Intermediate bulk containers ("IBC's") are used in the business to transport certain chemicals to customers. Dependent on the type of chemical, the directors are uncertain of the estimated useful life. The directors have taken the prudent approach to write off IBC's in full in the year they are purchased.

1.8
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.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and 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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans that are classified as debt, 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 payments 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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Monte-Carlo model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

The share based payments are over the ultimate parent company's shares (being Airedale Newco Limited, during the year). Where options are issued by one group entity for settlement in its own shares, and these options are granted to employees of a subsidiary entity, the issuing entity recognises the charge as an increase in cost of investment, whilst the subsidiary recognises this as a capital contribution in the Statement of Changes in Equity.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of non-monetary assets

Determined whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Share based payments

The ultimate parent company, Airedale Newco Limited, granted new Growth Shares during the year to certain employees of the Company (Airedale Chemical Company Limited). The Growth Shares are split into various classes which each carry rights to participate in returns above certain hurdles.

Fair value of the Growth shares

The Growth shares are fair valued at the grant date, and the resultant share based payment expense is spread over the expected vesting period of the instruments. The shares granted during the year were valued using the Monte Carlo model. This model requires a number of assumptions including the vesting period of the shares.

The key judgements in this calculation are the classification of the share-based payment and the vesting period, which are discussed below. All other factors had limited bearing on the option valuation. In respect of the share based payment expense to be recognised the key judgement, other than the valuation and the vesting period, is the vesting percentage which is also discussed below.

Share-based payment classification

The newly issued Growth Shares have been initially classified as equity settled.

 

Vesting period

Growth Share holders will normally only be able to exercise their options in connection with certain “exit events”. These exit events include a “share sale” (i.e. where a purchaser acquires a sufficient number of the parent company’s shares to acquire control of the parent company) or a “listing” (i.e. where the shares of the parent company are listed on a stock exchange).

At the grant date management considered 5 years from 31 December 2023 to represent a reasonable vesting period for the purposes of the share option valuation in the financial statements. However, as at the current reporting date, this assessment has reduced and management now consider 18 months to be a reasonable vesting period.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
75,434,673
90,217,514
EU
4,269,633
3,405,566
Non EU Countries
300,245
868,492
Rest of the World
138,365
162,011
80,142,916
94,653,583
4
Material items in the Statement of Comprehensive Income
2024
2023
£
£
Expenditure
Share-based payment expense
1,660,342
3,412,978

The share-based payment expense relates to the charge taken for equity-settled share-based payment arrangements which are settled in the parent company, Airedale Newco Limited. Further disclosures are not provided as a result of the disclosure exemptions detailed in note 1.1.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(213,760)
(387,726)
Research and development costs
448,601
580,000
Amortisation of intangible assets
230,336
273,387
Depreciation of tangible fixed assets
1,469,150
969,285
Loss on disposal of tangible fixed assets
31,779
50,444
Operating lease charges
351,552
358,089
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
87,000
79,200

The company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the consolidated accounts of the parent company.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management & Administration
49
41
Sales & Distribution
44
35
Technical Staff
7
6
Production
37
38
Total
137
120

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,521,422
5,663,103
Social security costs
612,680
500,584
Pension costs
276,609
309,749
7,410,711
6,473,436
Share-based payment
1,660,342
3,412,978
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
775,499
428,193
Company pension contributions to defined contribution schemes
93,522
132,500
869,021
560,693

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023: 7).

 

Four directors received shares during the year in ultimate parent company under a long-term incentive scheme (2023: none).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
300,202
273,066
AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Directors' remuneration
(Continued)
- 24 -

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £16,035 (2023: £nil).

 

The highest paid director received shares during the year in ultimate parent company under a long-term incentive scheme.

9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
292,965
242,188
10
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
80,341
254,872
Interest on finance leases and hire purchase contracts
48,648
37,616
Other interest on financial liabilities
107,431
18,000
236,420
310,488
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,546,923
3,888,000
Adjustments in respect of prior periods
(159,856)
(49,669)
Total current tax
2,387,067
3,838,331
Deferred tax
Origination and reversal of timing differences
15,190
(83,534)
Adjustments in respect of prior periods
546,934
185,782
Total deferred tax
562,124
102,248
Total tax charge
2,949,191
3,940,579
AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
13,510,035
14,269,634
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
3,377,509
3,356,218
Tax effect of expenses that are not deductible in determining taxable profit
434,176
872,295
Group relief
(1,179,993)
-
0
Differences between depreciation and capital allowances
95,687
47,500
Research and development tax credit
(96,449)
(132,327)
Other permanent differences
-
0
(1,032)
Tax relief on share options
-
0
(317,000)
Under/(over) provided in prior years
(159,855)
(49,669)
Deferred tax adjustments in respect of prior years
546,934
185,782
Patent box
(68,818)
(21,188)
Taxation charge for the year
2,949,191
3,940,579

The corporation tax rate was 25% throughout the year. Deferred tax balances are recognised at at rate of 25% (2023 - 25%).

12
Dividends
2024
2023
£
£
Interim paid
1,653,569
12,761,263
Other distributions
-
0
1,568,937
1,653,569
14,330,200

In prior year, other distributions reflected loan settlements undertaken with the immediate parent company, Airedale Group Holdings Limited ("AGHL"). This was in relation to the company's acquisition of the businesses of the fellow subsidiaries of AGHL. The distribution had the effect of settling amounts owed as receivable from a fellow subsidiary through a loan waiver, where the change in value had benefitted AGHL's investment in that subsidiary. A dividend of £1,653,569 was paid during the year, equating to £150.33 per share based on 11,000 shares in issue.

 

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
13
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2024
2,197,326
Additions
94,998
At 31 December 2024
2,292,324
Amortisation and impairment
At 1 January 2024
1,639,167
Amortisation charged for the year
230,336
At 31 December 2024
1,869,503
Carrying amount
At 31 December 2024
422,821
At 31 December 2023
558,159

Patent and license costs relate to the cost of obtaining trade licenses, and these costs are amortised over the useful life of the licence.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
14
Tangible fixed assets
Freehold buildings
Freehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
2,589,200
3,262,977
66,067
7,115,724
400,636
3,203,910
16,638,514
Additions
-
0
115,585
13,828
490,624
54,510
1,017,981
1,692,528
Disposals
-
0
-
0
-
0
(296,930)
(20,918)
(286,262)
(604,110)
Transfers
-
0
(95,832)
-
0
(60,294)
156,126
-
0
-
0
At 31 December 2024
2,589,200
3,282,730
79,895
7,249,124
590,354
3,935,629
17,726,932
Depreciation and impairment
At 1 January 2024
415,203
448,745
-
0
3,536,637
249,636
2,215,976
6,866,197
Depreciation charged for the year
51,785
65,683
-
0
907,504
74,815
369,363
1,469,150
Eliminated in respect of disposals
-
0
-
0
-
0
(285,623)
(19,987)
(259,535)
(565,145)
Transfers
-
0
(13,520)
-
0
(74,246)
87,766
-
0
-
0
At 31 December 2024
466,988
500,908
-
0
4,084,272
392,230
2,325,804
7,770,202
Carrying amount
At 31 December 2024
2,122,212
2,781,822
79,895
3,164,852
198,124
1,609,825
9,956,730
At 31 December 2023
2,173,997
2,814,232
66,067
3,579,087
151,000
987,934
9,772,317
AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Tangible fixed assets
(Continued)
- 28 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
28,467
66,755
Motor vehicles
1,342,812
671,245
Computers
-
0
19,164
Improvements to property
184,386
188,401
1,555,665
945,565
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,835,013
4,243,689

Impairment losses totalling £nil (2023: £nil) were recognised in the profit or loss.

There is no material difference between the replacement cost of the stock and the amounts presented above.

16
Debtors
2024
2023
£
£
Trade debtors
10,546,205
12,497,321
Corporation tax recoverable
454,610
-
0
Amounts owed by group undertakings
10,187,760
1,469,947
Prepayments and accrued income
660,311
2,826,830
Other debtors
391,859
23,862
22,240,745
16,817,960
AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Debtors
(Continued)
- 29 -

The impairment loss recognised in the profit and loss for the year in respect of bad and doubtful trade debtors was £9,643 (2023: £150,000).

 

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Amounts owed by group undertakings are presented as due within one year in line with statutory format Statement of Financial Position considerations of the Companies Act 2006. Key considerations include the funding not being provided to meet the capital requirements of the group undertaking and the legal repayable on demand position. The amounts are not though expected to be called within the next 12 months.

 

Following a reorganisation in 2023 Airedale Chemical Limited became the only trading company in the Airedale Group.  It is therefore necessary to recharge the parent company, Airedale NewCo Limited financing costs in relation to a facilities agreement signed between the parent company and PGIM. This is following the successful debt raise of £34 million on 21 December 2023. The loan balance between Airedale Chemical Limited and Airedale NewCo Limited is a current asset, even though there is an expectation it may not be paid within one year of the financial year end.

 

Prepayments and accrued income includes £nil (2023 - £2,366,287) of costs paid by the company but not yet recharged to Airedale Newco Limited, the parent at the year end date, in respect of costs covered by the company for its own acquisition.

17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
101,325
193,464
Obligations under finance leases
20
428,754
321,125
Trade creditors
7,739,147
9,563,026
Amounts owed to group undertakings
799,790
5,993,244
Corporation tax
84,375
2,457,112
Other taxation and social security
1,341,197
2,004,927
Tax scheme settlement
832,995
832,995
Accruals and deferred income
2,799,079
4,246,708
Other creditors
40,627
33,127
14,167,289
25,645,728

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Amounts owed to group undertakings are presented as falling due within year in line with statutory format Statement of Financial Position considerations of the Companies Act.

 

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
697,678
810,778
Obligations under finance leases
20
653,303
318,329
Tax scheme settlement
763,579
763,579
2,114,560
1,892,686
AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
19
Loans and overdrafts
2024
2023
£
£
Bank loans
799,003
1,004,242
Payable within one year
101,325
193,464
Payable after one year
697,678
810,778
799,003
1,004,242

At the reporting date there are secured debt of £1,881,060 (2023: £1,643,696) included within creditors.

 

First legal Mortgage over the freehold property of Airedale Chemical Company Limited known as Airedale Mills, Skipton Road, Crosshills, Keighley dated 6 August 2012 in favour of HSBC.

 

Hire purchase creditors are secured on the assets to which the agreements relate.

The banks loans are repayable as follows:

 

 

 

 

HSBC borrowings are secured by a debenture comprising fixed and floating charges over all assets of the company.

20
Finance lease obligations
2024
2023
The future minimum finance lease payments are as follows:
£
£
Not later than one year
483,099
350,832
Later than one year and not later than five years
700,762
334,835
Total gross payments
1,183,861
685,667
Less: future finance charges
(101,804)
(46,213)
Carrying amount of liability
1,082,057
639,454
AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,009,009
316,985
Short term timing difference
(137,053)
(7,153)
871,956
309,832
2024
Movements in the year:
£
Liability at 1 January 2024
309,832
Charge to profit or loss
562,124
Liability at 31 December 2024
871,956
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
11,000
11,000
11,000
11,000
23
Reserves

Share capital

Called up share capital represents the nominal value of the shares issued.

 

Capital contribution reserve

The capital contribution reserve represents contributions made by a parent company in relation to issuance of share-based options to employees of the company.

 

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
276,609
309,749

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
24
Retirement benefit schemes
(Continued)
- 32 -

Contributions totalling £33,098 (2023: £28,611) were payable to the fund at the reporting date and are included within other creditors.

25
Financial commitments, guarantees and contingent liabilities

There is a charge over the assets of the company held by Alter Domus Trustees (UK) Limited as security agents in respect of the borrowings at Airedale Newco Limited level.  This charge is held over all the assets in the group.

26
Operating lease commitments
Lessee

At the reporting date, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Not later than one year
314,919
275,295
Later than one year and not later than five years
701,230
471,941
1,016,149
747,236
27
Related party transactions

The company has taken advantage of the exemption available in section 33.1A of FRS 102, whereby it has not disclosed transactions with the parent company or any wholly owned subsidiary undertaking of the group. Details of amounts outstanding at the year end are provided in notes 16 and 17.

AIREDALE CHEMICAL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
28
Acquisition

On 1 January 2024, the company acquired the trade and associated assets and liabilities of McCann Chemicals Limited, pursuant to a formal asset purchase agreement.

 

The acquisition has been accounted for at book value, as carried by the predecessor company, with no adjustments to fair value or recognition of goodwill. The consideration was settled via the intercompany debts. Transfer at book value is acceptable as there are the same ultimate owners both before and after the transfer of the trade and associated assets and liabilities.

 

Details of the balances transferred are provided below.

Assets/ (liabilities)
Book Values
£
Stocks
301,916
Property, plant and equipment
-
Investments
1
Trade and other receivables
934,737
Cash and cash equivalents
2,009,244
Trade and other creditors
(526,318)
Total identifiable net assets
2,719,580
Total consideration
2,719,580
29
Ultimate controlling party

At the year end, the company's immediate parent company is Airedale Group Holdings Limited and its ultimate parent company is Airedale Newco Limited.

 

Airedale Newco Limited is the smallest and largest group into which this company is consolidated. Copies of its financial statements can be obtained from its registered office at Airedale Mills, Skipton Road, Crosshills, Keighly, West Yorkshire, England, BD20 7BX.

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