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

Prefere Resins UK Limited is the operational entity of the Prefere Resins Group business in the UK. The immediate parent company is Prefere Resins UK Holding Limited (Company number 11693770); Bota Parent GmbH is the ultimate group parent.

The Company maintained stable trading conditions throughout 2024 with the easing of global supply chain and energy uncertainty. There was a small decrease in gross margin to 7.4% (2023: 9.9%). The Company’s trading benefited from the stable market conditions which resulted in a profit before tax of £2,129k (2023: £2,760k as restated).

The key business risks and uncertainties affecting the Company are considered to be competition from similar manufacturing and distribution companies, key employee retention and feedstock availability. The Company’s management and directors actively monitor these risks in order to appropriately respond to any significant changes or threats to the Company.

In order to remain economically competitive, the Company has prioritised productivity increases through the de-bottlenecking of existing operations and process optimisation.

Prefere Resins UK Ltd continues to place a high focus upon environmental compliance and employee health and safety – both are key cornerstones of Prefere Resins Group Operations Strategy.

The Directors expect the Company to perform satisfactorily in the coming year.

The Company’s directors use key performance indicators to evaluate company performance and focus efforts to enhance profitability and sustainability. The main performance indicators include revenue, operational profitability, and working capital.

In aggregate the Company’s revenue decreased to £47.7m (2023: £48.8m). Operational profitability reduced to £2.1m (2023: £2.7m as restated). The Company has taken measures to stabilise external costs. The increase in cost of sales is due to market pricing on raw material and utility costs, both of which are stabilising on the global markets and are key focus areas for the directors when considering operational yield and energy consumption efficiencies. Working capital decreased to £9.0m (2023: £12.8m).

The Company also closely monitors other important non-financial key performance indicators, such as Health, Safety & Environmental related metrics i.e. loss time incidents, the Company performed in line with targets. Health & Safety performance was closely reviewed in 2024; Environmental performance is included in the Energy and Emissions Summary within the SECR disclosure.

These key performance indicators are used to enact and measure appropriate actions by the Company.

The Company’s operations expose it to a variety of financial risks that include the effect of changes in debt, credit risk, liquidity risk, exchange rate risk and interest rate risk. The Company follows Prefere Resin Group policies regarding credit risk management supported by robust credit insurance. The Company manages liquidity risk through a Prefere Resins Group cash pooling arrangement which can be used to maintain working capital requirements where required. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of currency exposure. The Company utilises a natural currency hedge to reduce exchange rate risk and carries minimal interest-bearing borrowings to reduce interest rate risk.

The directors are aware under s.172 of the Companies Act 2006 that they have the duty to act in a way which they consider, in good faith, would be the most likely to promote the success of the Company for the benefit of the members as a whole.

The directors of the Company are members of the Prefere Resins Group senior management team, including the Group Chief Executive Officer, who are tasked with implementing the Group strategy.

The Group strategy is designed to have sustainable long-term beneficial impacts on the Company and its success in delivering high quality products to an international customer base. The directors are conscious of the impact the Company’s decisions have on stakeholders and the wider society.

• The directors believe the Company’s employees are fundamental to the execution of the Group strategy. They aim to be responsible employers in the approach to pay and benefits for employees. Health and safety of the employees is paramount and is supported through the Group ‘Vision Zero’ initiative. Local initiatives are also introduced to support physical and mental wellbeing.

• Business relationships are monitored to ensure the strategy provides high quality products to our customers while maintaining robust service levels. The directors also aim to act fair and responsibly with suppliers, where appropriate local suppliers are engaged to help support the surrounding community.

• The impact of the Company’s operations on the environment is at the forefront of the Company’s activities. Energy consumption and waste production is monitored closely with target KPI’s to continue to reduce the environmental impact over the longer-term. The directors also oversee Group initiatives which are introduced to involve all employees of the Company and wider Group, rewarding those who make the largest contribution to optimisation and reducing the carbon footprint.

• The Company considers the impact on the local communities from standard operations by ensuring compliance with emissions standards, using local suppliers where possible and providing support to community charitable events. The communities are also considered in emergency planning with prioritised actions to protect the health and environment of the community on the mitigated chance there should be a major incident.

Due to the nature of the Company’s operations within the wider Prefere Resins Group, the directors do not have direct engagement with all stakeholders. In these instances, local management are deemed to have responsibility to implement and oversee the director’s stakeholder strategy.

Principal decisions

During the year ended 31 December 2024, the directors oversaw the Group’s macroeconomic trading response to ensuring the Company emerged from the tougher trading conditions well positioned for continued success into 2025.

On behalf of the board

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

The principal activity of the company is the manufacturing, selling and distribution of phenol-based products.

The results for the year are set out on page 12. The results of the Company show a pre-tax profit of £2.1m for the year ended 31 December 2024 (year ended 31 December 2023 profit of £2.8m as restated) on turnover of £47.7m (year ended 31 December 2023 £48.8m).

Ordinary dividends were paid amounting to £6,000,000. The directors do not recommend a final dividend for the year ended 31 December 2024.

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Following the balance sheet date, the Company has felt the easing of global supply chain and utility pressures. The directors consider that there are no material events to report.

Johnston Carmichael LLP were appointed as auditor to the company during the year and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Going concern

The company meets its day to day working capital requirements through cash generated from operations. The company also holds a cash pooling arrangements with other members of the Bota Parent GmbH group.

The directors have prepared cash flow forecasts to the period ending 30 September 2026. The forecasts show that the company is expected to have sufficient financial resources available. These forecasts have been stress tested against a modelled reduction in sales volumes and supply chain disruptions. The company is able to weather the impacts in these scenarios and has access to sufficient liquidity where it does not require any new financing.

Based on the above the directors are confident that the company will continue to operate as a going concern; and are satisfied the financial statements should be prepared on this basis.

The Companies Act 2006 Regulations 2018 introduced requirements for large unquoted companies to disclose their annual energy use and greenhouse gas (GHG) emissions, and related information.

The directors have fulfilled this requirement with the following GHG emissions and energy use data for period 1 January 2024 to December 2024, including presentation of data for the comparative year.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

The primary source for gas energy consumption is supplier invoices.

Electricity is supplied by the neighbouring company and consumption data is taken from submetering data. Where data is not in line with the financial year a pro rata calculation has been used to estimate the usage which falls within the reporting period. It was confirmed that the electricity contract is 100% renewable.

Mileage data was used to calculate staff transport usage and litres delivered was used to calculate the gas oil used by on-site vehicles.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tonnes of production, the recommended ratio for the sector.

Operational efficiency and cost reduction have never been more important, making visibility into energy usage and the ability to proactively manage energy essential. The more we know about our energy, the better we can manage it. This drive was put back slightly in 2024 due the ongoing conflict in Ukraine and its effect on energy costs and raw material supplies, but still remains high on our agenda.

We aim to improve our business performance and drive through our energy strategy via actionable and real-time energy intelligence from our devices and utility meters. This strategy aims to effectively and holistically manage consumption, reduce power waste, improve operational efficiency, lower energy costs, prevent costly downtime, and create a comprehensive energy strategy.

Environmental KPIs have been put in place so that we can monitor our energy usage and make the necessary improvements.

Lean projects are being raised with an emphasis on improving both scopes 1 and 2.

The following projects took place within the last year:

• External Lighting: Being replaced with LED as and when failures occur, approx. 98.5% of external lighting now LED.

• The first change of forklift truck from Diesel powered to Electric powered has been agreed with delivery taking place soon.

The conflict in Ukraine, with non-delivery of main raw materials still continued in 2024. Nevertheless, we are looking ahead with optimism and are committed to further improving the environmental profile of our organisation. We are looking for new ideas, which will improve our Carbon Footprint.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments (to the extent applicable) and disclosures in respect of financial risk management.

In accordance with section 418 of the companies act 2006, so far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow directors and the Company’s auditor, each director has taken all the steps that he/she is obliged to take as a director in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of that information.

The directors are responsible for preparing the strategic report, 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).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of Prefere Resins UK Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

In the light of our 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 and the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement set out on page 7, 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.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• Companies Act 2006;

• VAT legislation;

• UK Tax legislation; and

• UK Generally Accepted Accounting Practice.

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls

• Revenue recognition

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit work procedures over the occurrence and cut-off of revenue including reconciling sales to cash remittances and evidence of cash received and the sales ledger and undertaking appropriate sales cut-off procedures;

• Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias;

• Completion of appropriate checklists and use of our experience to assess the company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance 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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

Prefere Resins UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Aycliffe Industrial Park, County Durham DL5 6UE.

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 £000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This 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 (to the extent applicable):

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Bota Parent GmbH. These consolidated financial statements are available from Prefere Resins Holdings GmbH, Dr.-Hans-Lebach-Straße 6, 15537 Erkner, Germany.

The company's financial statements have been restated to correct for a prior period error identified in relation to the useful life assessment of the company's goodwill. Details of the prior period adjustment are outlined within note 25.

The company meets its day to day working capital requirements through cash generated from operations. The company also holds a cash pooling arrangements with other members of the Bota Parent GmbH group.true

The directors have prepared cash flow forecasts to the period ending 30 September 2026. The forecasts show that the company is expected to have sufficient financial resources available. These forecasts have been stress tested against a modelled reduction in sales volumes and supply chain disruptions. The company is able to weather the impacts in these scenarios and has access to sufficient liquidity where it does not require any new financing.

Based on the above the directors are confident that the company will continue to operate as a going concern; and are satisfied the financial statements should be prepared on this basis.

Turnover represents amounts receivable in respect of sales, net of trade and other discounts, excluding value added tax. Turnover is recognised on dispatch of goods sold, when the risks and rewards are passed to the customer. Turnover is all in respect of a single business activity, based in the United Kingdom.

Goodwill represents the excess of the cost of acquisition of a businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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

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

Assets in the course of construction are not depreciated.

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 the income statement.

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 the income statement.

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 the income statement.

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.

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 the income statement. Reversals of impairment losses are also recognised in the income statement.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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 statement of financial position 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, which include certain 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.

Financial assets 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 the income statement.

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 the income statement.

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.

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.

Basic financial liabilities, including certain creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.

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

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.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 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.

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 income statement, 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.

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.

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

Rentals payable under operating leases, including any lease incentives received, are charged to the income statement 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.

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 the income statement.

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.

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.

In assessing the useful life of goodwill, management are required to make estimates over the period which economic benefits linked to goodwill are expected to be derived. Where management are unable to make a reliable estimate of the useful life, FRS102 requires that the life shall not exceed 10 years. Having revisited their initial assessment (formerly 20 years) and in consideration of the requirements of FRS 102 and the information available both at the current and prior period reporting dates, a revision to useful life has been reflected. The useful life has now been assessed at 10 years with the adjustment reflected as a period period restatement.

The carrying value of goodwill at the reporting date is outlined at note 12. The impact of the prior period restatement is outlined at note 25.

An analysis of the company's turnover, all of which has been generated in the United Kingdom, is as follows:

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

Their aggregate remuneration comprised:

The directors are remunerated through other entities within the Prefere Resins Group with disbursements included in intercompany recharges where appropriate. There were no amounts accruing in relation to the director's pension contributions at 31 December 2024 (2023: None). No directors participated in the company pension scheme.

Only directors are considered to be key management personnel.

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:

Details of the restatement to goodwill is outlined at note 25.

Included in Freehold land and buildings above is freehold land, with an estimated cost of £193,000 (2023: £193,000), which is not depreciated.

The amounts owed by group undertakings include intercompany trading of £1,261,725 (2023: £1,476,882) and a non-trade receivable of £17,368,035 (2023: £5,781,328) from its parent company Prefere Resins UK Holding Limited. No interest is changed on the outstanding amount from Prefere Resins UK Holding Limited as it is wholly repayable upon demand.

The amounts owed to group undertakings relate to intercompany recharges for shared services rendered by other entities in the Bota Group.

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

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.

This reserve records the cumulative amount of profits and losses, less dividends paid, recorded since incorporation.

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

The directors consider that there are no material subsequent events to report.

The company has not disclosed transactions with other group companies, as it has taken advantage of the exemption contained within FRS 102.33.1A on the grounds that the company is a wholly owned subsidiary.

During the year 31 December 2024, the immediate parent undertaking was Prefere Resins Holding UK Limited, a company incorporated in the United Kingdom.

The smallest and largest group which consolidated the results of the company was headed by Bota Parent GmbH. The consolidated financial statements of Bota Parent GmbH may be obtained from Prefere Resins Holdings GmbH, Dr.-Hans-Lebach-Straße 6, 16637 Erkner, Germany. Bota Parent GmbH is controlled by investment funds headed by One Rock Capital Partners.

The prior period adjustment relates to a reassessment made during the year of the useful economic life of the company's goodwill. Following review, a useful economic life of 10 years straight line was determined to be a more appropriate and representative useful life than the company's previous policy of 20 years straight line. In restating the financial statements for this change, the directors have considered information which was available in comparative reporting periods and the requirements of FRS 102. The above adjustment outlines the impact associated with this revision on each financial statement line item as at 1 January 2023 and 31 December 2023.