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REGISTERED NUMBER: 00644949 (England and Wales)

Pafra Adhesives Limited

Strategic Report, Directors' Report and

Audited Financial Statements

for the Year Ended 31 December 2024

| Pafra Adhesives Limited (Registered number: 00644949) |

Contents of the Financial Statements

for the year ended 31 December 2024

Page |

| Company Information | 1 |

| Strategic Report | 2 |

| Directors' Report | 3 |

| Independent Auditors' Report | 4 |

| Statement of Comprehensive Income | 7 |

| Balance Sheet | 8 |

| Statement of Changes in Equity | 9 |

| Notes to the Financial Statements | 10 |

| Pafra Adhesives Limited |

Company Information

for the year ended 31 December 2024

| Directors: | A G Steward

| X Desimpel

| P D Lee

| Secretary: | A G Steward

| Registered office: | Pafra House

| Bentalls

| Basildon

| Essex

| SS14 3BU

| Registered number: | 00644949 (England and Wales)

| Auditors: | Cooper Parry Group Limited

| Statutory Auditor

| New Derwent House

| 69-73 Theobalds Road

| London

| WC1X 8TA

| Pafra Adhesives Limited (Registered number: 00644949) |

Strategic Report

for the year ended 31 December 2024

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

On behalf of the board:

P D Lee - Director

31 July 2025

| Pafra Adhesives Limited (Registered number: 00644949) |

Directors' Report

for the year ended 31 December 2024

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

Principal activity

The principal activity of the company in the year under review was that of product research, development and production of high quality water based and hot melt adhesives for paper converting markets.

Dividends

Dividend of £813,120 were paid during the year.

Directors

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

A G Steward

X Desimpel

P D Lee

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- | select suitable accounting policies and then apply them consistently;

- | make judgements and accounting estimates that are reasonable and prudent;

- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Statement as to disclosure of information to auditors

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

On behalf of the board:

P D Lee - Director

31 July 2025

Independent Auditors' Report to the Members of

Pafra Adhesives Limited

Opinion

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

In our opinion the financial statements:

- | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- | the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Independent Auditors' Report to the Members of

Pafra Adhesives Limited

Matters on which we are required to report by exception

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

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

- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- | the financial statements are not in agreement with the accounting records and returns; or

- | certain disclosures of directors' remuneration specified by law are not made; or

- | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the management the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.

Independent Auditors' Report to the Members of

Pafra Adhesives Limited

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. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Moughton (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

31 July 2025

| Pafra Adhesives Limited (Registered number: 00644949) |

Statement of Comprehensive

Income

for the year ended 31 December 2024

2024 | 2023 |

| Notes | £ | £

Turnover | 11,059,541 |  | 11,623,656 |  |

Cost of sales | (7,909,014 | ) | (8,647,851 | ) |

Gross profit | 3,150,527 |  | 2,975,805 |  |

Administrative expenses | (2,059,735 | ) | (1,922,676 | ) |

1,090,792 |  | 1,053,129 |  |

Other operating income | 3,982 |  | 26,667 |  |

1,094,774 |  | 1,079,796 |  |

Other finance income | 19 | 76,000 |  | 72,000 |  |

1,170,774 |  | 1,151,796 |  |

Interest payable and similar expenses | 5 | - |  | (6,408 | ) |

Profit before taxation | 6 | 1,170,774 |  | 1,145,388 |  |

Tax on profit | 7 | (314,542 | ) | (239,230 | ) |

Profit for the financial year | 856,232 |  | 906,158 |  |

Other comprehensive income |

Actuarial gain/(loss) | 523,529 |  | 61,000 |  |

Income tax relating to other comprehensive income | (167,529 | ) | (45,750 | ) |

Other comprehensive income for the year, net of income tax | 356,000 |  | 15,250 |  |

Total comprehensive income for the year | 1,212,232 |  | 921,408 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Balance Sheet

31 December 2024

2024 | 2023 |

| Notes | £ | £ | £ | £

Fixed assets

Intangible assets | 9 | 522,652 |  | 685,824 |  |

Tangible assets | 10 | 2,998,180 |  | 2,944,235 |  |

Investments | 11 | 1,401,441 |  | - |  |

4,922,273 |  | 3,630,059 |  |

Current assets

Stocks | 12 | 1,166,701 |  | 1,251,584 |  |

Debtors | 13 | 2,483,393 |  | 2,360,666 |  |

Cash at bank | 272,277 |  | 1,299,021 |  |

3,922,371 |  | 4,911,271 |  |

Creditors

Amounts falling due within one year | 14 | 2,459,546 |  | 2,132,675 |  |

Net current assets | 1,462,825 |  | 2,778,596 |  |

Total assets less current liabilities | 6,385,098 |  | 6,408,655 |  |

Provisions for liabilities | 16 | (315,034 | ) | (305,685 | ) |

Pension asset | 19 | 1,683,750 |  | 1,251,750 |  |

Net assets | 7,753,814 |  | 7,354,720 |  |

Capital and reserves

Called up share capital | 17 | 873,710 |  | 873,710 |  |

Share premium | 18 | 194,474 |  | 194,474 |  |

Revaluation reserve | 18 | 2,033,662 |  | 2,033,662 |  |

Capital redemption reserve | 18 | 810,816 |  | 810,816 |  |

Retained earnings | 18 | 3,841,152 |  | 3,442,058 |  |

Shareholders' funds | 7,753,814 |  | 7,354,720 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2025 and were signed on its behalf by:

P D Lee - Director

| Pafra Adhesives Limited (Registered number: 00644949) |

Statement of Changes in Equity

for the year ended 31 December 2024

Called up |  |

share | Retained | Share |

capital | earnings | premium |

| £ | £ | £

Balance at 1 January 2023 | 873,710 |  | 3,220,650 |  | 194,474 |  |

Changes in equity

Total comprehensive income | - |  | 921,408 |  | - |  |

Dividends | - |  | (700,000 | ) | - |  |

Balance at 31 December 2023 | 873,710 |  | 3,442,058 |  | 194,474 |  |

Changes in equity

Total comprehensive income | - |  | 1,212,232 |  | - |  |

Dividends | - |  | (813,138 | ) | - |  |

Balance at 31 December 2024 | 873,710 |  | 3,841,152 |  | 194,474 |  |

Capital |  |

Revaluation | redemption | Total |

reserve | reserve | equity |

| £ | £ | £

Balance at 1 January 2023 | 2,033,662 |  | 810,816 |  | 7,133,312 |  |

Changes in equity

Total comprehensive income | - |  | - |  | 921,408 |  |

Dividends | - |  | - |  | (700,000 | ) |

Balance at 31 December 2023 | 2,033,662 |  | 810,816 |  | 7,354,720 |  |

Changes in equity

Total comprehensive income | - |  | - |  | 1,212,232 |  |

Dividends | - |  | - |  | (813,138 | ) |

Balance at 31 December 2024 | 2,033,662 |  | 810,816 |  | 7,753,814 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements

for the year ended 31 December 2024

1. | Statutory information

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

2. | Accounting policies

| Basis of preparing the financial statements

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

| The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts

| Financial Reporting Standard 102 - reduced disclosure exemptions

| The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

| • | the requirements of Section 7 Statement of Cash Flows.

| Related party exemption

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

| Turnover

| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

| Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer on dispatch of the goods and when sales invoices are issued.

| Goodwill

| Goodwill acquired is capitalised and amortised over 10 years as in the opinion of the directors this represents the period over which the goodwill is effective.

| Intangible assets

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

| Customer list are being amortised evenly over their estimated useful life of 5 years.

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

| Freehold property | - | 2% on reducing balance

| Plant and machinery | - | 10% on reducing balance

| Fixtures and fittings | - | 25% on reducing balance

| Motor vehicles | - | 25% on reducing balance

| Computer equipment | - | 25% on reducing balance

| Investments in subsidiaries

| Investments in subsidiary undertakings are recognised at cost less impairment.

| Stocks

| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

2. | Accounting policies - continued

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive incomeStatement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

| Current or deferred taxation assets and liabilities are not discounted.

| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

| Deferred tax

| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

| Research and development

| Expenditure on research and development is expensed in the year in which it is incurred.

| Foreign currencies

| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| Pension costs and other post-retirement benefits

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

| The company operates a defined benefit scheme which was withdrawn for all contributing members with effect from 31 October 2001.

| The company adopted FRS17-'Retirement Benefits' in full in 2005. As a result of this, the regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.

| Payments in respect of other post-retirement benefits are charged to profit or loss in the period to which they relate.

3. | Employees and directors

2024 | 2023 |

| £ | £

| Wages and salaries | 945,795 |  | 1,041,846 |  |

| Social security costs | 102,418 |  | 106,571 |  |

| Other pension costs | 94,972 |  | 116,525 |  |

1,143,185 |  | 1,264,942 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

3. | Employees and directors - continued

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

2024 | 2023 |

| Production | 15 |  | 16 |  |

| Admin and sales | 9 |  | 9 |  |

24 |  | 25 |  |

4. | Directors' emoluments

2024 | 2023 |

| £ | £

| Directors' remuneration | 169,040 |  | 181,348 |  |

5. | Interest payable and similar expenses |

2024 | 2023 |

| £ | £

| Other interest payable | - |  | 6,408 |  |

6. | Profit before taxation

| The profit is stated after charging/(crediting):

2024 | 2023 |

| £ | £

| Depreciation - owned assets | 86,339 |  | 104,604 |  |

| Goodwill amortisation | 71,172 |  | 98,004 |  |

| Customer list amortisation | 92,000 |  | 92,000 |  |

| Auditors' remuneration | 14,000 |  | 12,000 |  |

| Foreign exchange differences | (20,271 | ) | (13,136 | ) |

7. | Taxation

| Analysis of the tax charge

| The tax charge on the profit for the year was as follows:

2024 | 2023 |

| £ | £

| Current tax:

| UK corporation tax | 305,193 |  | 200,356 |  |

| UK corporation tax repayable | - |  | (7,878 | ) |

| Total current tax | 305,193 |  | 192,478 |  |

| Deferred tax | 9,349 |  | 46,752 |  |

| Tax on profit | 314,542 |  | 239,230 |  |

| Tax effects relating to effects of other comprehensive income |

2024 |

| Gross |  | Tax |  | Net |

| £ | £ | £

| Actuarial gain/(loss) | 523,529 |  | (167,529 | ) | 356,000 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

7. | Taxation - continued

2023 |

| Gross |  | Tax |  | Net |

| £ | £ | £

| Actuarial gain/(loss) | 61,000 |  | (45,750 | ) | 15,250 |  |

8. | Dividends

2024 | 2023 |

| £ | £

| Ordinary share capital shares of 1 each

| Interim | 813,033 |  | 699,895 |  |

| Preference share capital shares of 1 each

| Interim | 105 |  | 105 |  |

813,138 |  | 700,000 |  |

9. | Intangible fixed assets

Customer |

Goodwill | list | Totals |

| £ | £ | £

| Cost

| At 1 January 2024

| and 31 December 2024 | 980,018 |  | 460,000 |  | 1,440,018 |  |

| Amortisation

| At 1 January 2024 | 662,194 |  | 92,000 |  | 754,194 |  |

| Amortisation for year | 71,172 |  | 92,000 |  | 163,172 |  |

| At 31 December 2024 | 733,366 |  | 184,000 |  | 917,366 |  |

| Net book value

| At 31 December 2024 | 246,652 |  | 276,000 |  | 522,652 |  |

| At 31 December 2023 | 317,824 |  | 368,000 |  | 685,824 |  |

10. | Tangible fixed assets

Fixtures |

Freehold | Plant and | and |

property | machinery | fittings |

| £ | £ | £

| Cost

| At 1 January 2024 | 2,600,000 |  | 1,465,010 |  | 436,254 |  |

| Additions | - |  | 92,973 |  | - |  |

| At 31 December 2024 | 2,600,000 |  | 1,557,983 |  | 436,254 |  |

| Depreciation

| At 1 January 2024 | 33,000 |  | 1,163,579 |  | 426,166 |  |

| Charge for year | 16,340 |  | 39,220 |  | 2,522 |  |

| At 31 December 2024 | 49,340 |  | 1,202,799 |  | 428,688 |  |

| Net book value

| At 31 December 2024 | 2,550,660 |  | 355,184 |  | 7,566 |  |

| At 31 December 2023 | 2,567,000 |  | 301,431 |  | 10,088 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

10. | Tangible fixed assets - continued

Motor | Computer |

vehicles | equipment | Totals |

| £ | £ | £

| Cost

| At 1 January 2024 | 37,328 |  | 359,317 |  | 4,897,909 |  |

| Additions | - |  | 47,311 |  | 140,284 |  |

| At 31 December 2024 | 37,328 |  | 406,628 |  | 5,038,193 |  |

| Depreciation

| At 1 January 2024 | 9,332 |  | 321,597 |  | 1,953,674 |  |

| Charge for year | 6,999 |  | 21,258 |  | 86,339 |  |

| At 31 December 2024 | 16,331 |  | 342,855 |  | 2,040,013 |  |

| Net book value

| At 31 December 2024 | 20,997 |  | 63,773 |  | 2,998,180 |  |

| At 31 December 2023 | 27,996 |  | 37,720 |  | 2,944,235 |  |

| Included in cost of land and buildings is freehold land of £ 1,750,000 (2023 - £ 1,750,000 ) which is not depreciated.

| Freehold land and buildings were valued by Kemsley LLP on 4 March 2021. The figure above represents the valuation plus subsequent additions.

11. | Fixed asset investments

Shares in |

group |

undertakings |

| £

| Cost

| Additions | 1,401,441 |  |

| At 31 December 2024 | 1,401,441 |  |

| Net book value

| At 31 December 2024 | 1,401,441 |  |

| On 5 December 2024 Pafra Adhesives Limited acquired 100% of the share capital of Enterprise Adhesives & Chemicals Limited for a total cost of £1,401,441.

12. | Stocks

2024 | 2023 |

| £ | £

| Raw materials | 635,080 |  | 677,532 |  |

| Finished goods | 531,621 |  | 574,052 |  |

1,166,701 |  | 1,251,584 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

13. | Debtors: amounts falling due within one year |

2024 | 2023 |

| £ | £

| Trade debtors | 1,978,399 |  | 2,141,482 |  |

| Amounts owed by group undertakings | 121,300 |  | 156,000 |  |

| Other debtors | 33,916 |  | 216 |  |

| Tax | 288,419 |  | - |  |

| Prepayments | 61,359 |  | 62,968 |  |

2,483,393 |  | 2,360,666 |  |

14. | Creditors: amounts falling due within one year |

2024 | 2023 |

| £ | £

| Trade creditors | 1,105,976 |  | 1,104,733 |  |

| Amounts owed to group undertakings | 558,408 |  | 479,774 |  |

| Tax | 305,193 |  | 153,214 |  |

| Social security and other taxes | 33,700 |  | 37,658 |  |

| VAT | 149,748 |  | 205,552 |  |

| Other creditors | 73,143 |  | 56,884 |  |

| Accrued expenses | 233,378 |  | 94,860 |  |

2,459,546 |  | 2,132,675 |  |

15. | Leasing agreements

| Minimum lease payments under non-cancellable operating leases fall due as follows:

2024 | 2023 |

| £ | £

| Within one year | 36,010 |  | 40,836 |  |

| Between one and five years | 22,689 |  | 58,699 |  |

58,699 |  | 99,535 |  |

16. | Provisions for liabilities

2024 | 2023 |

| £ | £

| Deferred tax

| Other timing differences | 213,750 |  | 213,750 |  |

| Accelerated capital

| allowances | 101,284 |  | 91,935 |  |

315,034 |  | 305,685 |  |

Deferred tax |

| £

| Balance at 1 January 2024 | 305,685 |  |

| Deferred tax | 9,349 |  |

| Balance at 31 December 2024 | 315,034 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

17. | Called up share capital

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2024 | 2023 |

value: |  | £ | £

| 872,210 | Ordinary share capital | 1 | 872,210 |  | 872,210 |  |

| 1,500 | Preference share capital | 1 | 1,500 |  | 1,500 |  |

873,710 |  | 873,710 |  |

| The preference shares are non voting fixed cumulative shares with dividends of 7% payable per annum. The holders of preference shares have priority over the holders of ordinary shares in the event of the company being wound up.

18. | Reserves

Capital |  |

Retained | Share | Revaluation | redemption |  |

earnings | premium | reserve | reserve | Totals |

| £ | £ | £ | £ | £

| At 1 January 2024 | 3,442,058 |  | 194,474 |  | 2,033,662 |  | 810,816 |  | 6,481,010 |  |

| Profit for the year | 856,232 |  | 856,232 |  |

| Dividends | (813,138 | ) | (813,138 | ) |

| Actuarial gain/(loss) | 356,000 |  | - |  | - |  | - |  | 356,000 |  |

| At 31 December 2024 | 3,841,152 |  | 194,474 |  | 2,033,662 |  | 810,816 |  | 6,880,104 |  |

19. | Employee benefit obligations

| The pension scheme asset of £1,683,750 (2023: £1,251,750) consists of the scheme surplus of £2,245,000 (2023: £1,669,000) less the related deferred tax liability of £561,250 (2023: £417,250).

| The company operates a pension scheme providing benefits based on final pensionable pay. On 5 October 2001 the company withdrew the scheme for all contributing members with effect from 31 October 2001. The assets of the scheme are held separately from those of the company, being invested with an insurance company. The contributions of the scheme were previously charged to the profit and loss account so as to spread the cost of the pensions over employees' working lives with the company. The contribution were determined by a qualified actuary on the basis of triennial valuations using the projected unit method.

| The company adopted FRS17 - 'Retirement Benefits' in full in 2005. An independent actuarial assessment as at 31 December 2024 showed the market value of the scheme assets at the date as £4,673,000 (2023: £4,354,000).

| The actuary's statement, dated 7 May 2025, is based on a valuation with an effective date of 31 December 2024.

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

19. | Employee benefit obligations - continued

| The amounts recognised in the balance sheet are as follows:

| Defined benefit |

| pension plans |

2024 | 2023 |

| £ | £

| Present value of funded obligations | (2,428,000 | ) | (2,685,000 | ) |

| Fair value of plan assets | 4,673,000 |  | 4,354,000 |  |

2,245,000 |  | 1,669,000 |  |

| Present value of unfunded obligations | - |  | - |  |

| Surplus | 2,245,000 |  | 1,669,000 |  |

| Deferred tax liability | (561,250 | ) | (417,250 | ) |

| Net asset | 1,683,750 |  | 1,251,750 |  |

| The amounts recognised in profit or loss are as follows:

| Defined benefit |

| pension plans |

2024 | 2023 |

| £ | £

| Current service cost | - |  | - |  |

| Net interest on defined benefit liability | 118,000 |  | 123,000 |  |

| Past service cost | - |  | - |  |

118,000 |  | 123,000 |  |

| Actual return on plan assets | 203,000 |  | 131,000 |  |

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

| Defined benefit |

| pension plans |

2024 | 2023 |

| £ | £

| Opening pension scheme liabilities | 2,685,000 |  | 2,616,000 |  |

| Interest on scheme liabilities | 118,000 |  | 123,000 |  |

| Actuarial gains and losses on scheme liabilities | (247,000 | ) | 70,000 |  |

| Benefits paid | (128,000 | ) | (124,000 | ) |

2,428,000 |  | 2,685,000 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

19. | Employee benefit obligations - continued

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

| Defined benefit |

| pension plans |

2024 | 2023 |

| £ | £

| Opening fair value of scheme assets | 4,354,000 |  | 4,102,000 |  |

| Contributions by employer | 50,000 |  | 50,000 |  |

| Interest on scheme assets | 194,000 |  | 195,000 |  |

| Actuarial gains and losses on scheme assets | 203,000 |  | 131,000 |  |

| Benefits paid | (128,000 | ) | (124,000 | ) |

4,673,000 |  | 4,354,000 |  |

| The amounts recognised in other comprehensive income are as follows:

| Defined benefit |

| pension plans |

2024 | 2023 |

| £ | £

| Actuarial gains/(losses) | 450,000 |  | 61,000 |  |

| Tax relating to actuarial gains/(losses) | (144,000 | ) | (45,250 | ) |

306,000 |  | 15,750 |  |

| The major categories of scheme assets as amounts of total scheme assets are as follows:

| Defined benefit |

| pension plans |

2024 | 2023 |

| £ | £

| Equities | 4,147,000 |  | 3,722,000 |  |

| Bonds | 463,000 |  | 479,000 |  |

| Cash | 63,000 |  | 153,000 |  |

4,673,000 |  | 4,354,000 |  |

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

2024 | 2023 |

| Discount rate | 5.50% | 4.50% |

| Retail Prices Index | 3.20% | 3.20% |

| Consumer Prices Index | 2.60% | 2.50% |

| Mortality assumptions |  | 2024 |  | 2023 |  |

| Assumed life expectations on retirement at age 65: |  |

| Current age 65 |  |

| - Males |  | 86.9 |  | 86.9 |  |

| - Females |  | 89.3 |  | 89.2 |  |

| Current age 45 |  |

| - Males |  | 87.9 |  | 87.9 |  |

| - Females |  | 90.4 |  | 90.4 |  |

| Pafra Adhesives Limited (Registered number: 00644949) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

19. | - continued

| Defined contribution scheme

| The company operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the company. During the year the company contributed £94,972 (2023: £120,176).

20. | Parent undertaking

| As at 31 December 2024 the immediate parent company is Gluecom UK Limited, Shenstone Drive, Walsall, United Kingdom, WS9 8TP. The ultimate parent undertaking is DAM122 NV, a company incorporated in Belgium. The company's registered office and address for obtaining accounts is Pathoekeweg 122, 8000 Brugge, Belgium.