ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 02448159

KROMACHEM HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

KROMACHEM HOLDINGS LIMITED

COMPANY INFORMATION

Directors	E J Kensbock
	U S Kensbock


Registered number	02448159


Registered office	Unit 10 Moor Park Industrial Centre
	Tolpits Lane
	Watford
	Hertfordshire
	WD18 9ER


Independent auditor	Hillier Hopkins LLP
	Chartered Accountants & Statutory Auditor
	Radius House
	51 Clarendon Road
	Watford
	Hertfordshire
	WD17 1HP


Bankers	HSBC
	73 High Street
	Watford
	Hertfordshire
	WD17 2DS

KROMACHEM HOLDINGS LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3 - 4
Independent auditor's report	5 - 9
Consolidated statement of comprehensive income	10
Consolidated balance sheet	11 - 12
Company balance sheet	13
Consolidated statement of changes in equity	14
Company statement of changes in equity	15
Consolidated statement of cash flows	16 - 17
Consolidated analysis of net debt	18
Notes to the financial statements	19 - 40

KROMACHEM HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

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

Business review

1.The Company is an investment holding company and the principal activity of its subsidiary undertakings in the UK, Europe and the USA continues to be the manufacture of pigment dispersions and additives for the printing ink and coating markets as well as the distribution of pigments, micronised waxes and other third-party products to the paint, printing inks and coatings industries.
2. The results of the Group for the year show a loss on ordinary activities before tax of £3,280,387 (2023: Profit of £1,879,419).
3. The business has reported an improved gross profit margin for the year, with overall gross profit increasing from £6.2M to £7.3M. In part this is due to a slightly improved margin percentage (from 42.1% to 44.1%) but primarily due to the increased turnover.
4. Overheads for 2024 are significantly higher than in the previous year, primarily reflecting a number of bonuses paid to key personnel.
5. Turnover increased 12.5% to £16,5M during 2024, reflecting
5.1 An adjustment of customer stock levels after Covid related overstocking in 2022 (leading to lower 2023 sales).
5.2 Post Covid normalisation of product availability enabling the delivery of 2023 orders in early 2024.
6. The European business has benefitted from supply chain and administrative improvements during the year as a number of key processes have been centralised into the UK operation.
7. During the year the Group continued to invest and innovate through its research and development activities which have assisted with the satisfaction of customers new and existing requirements, aiding productivity in the manufacturing process and developing potential new products.
8. The shareholders’ funds of the Group total £17,751,994 (2023: £20,305,070).

Page 1

KROMACHEM HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

The principal risks from the Group’s business are:
1. The end of PTFE based products (Q4 2025) which represent a significant proportion of company profitability and value.
2. Regulatory changes in particular for food packaging and general chemical hazard classification and labelling.
3. Tariff uncertainty.
4. Currency volatility.
5. The Group is also at risk of technological developments in the market rendering some of the company’s products obsolete.
In addition, smaller risks which are of note are:
1. Keeping high levels of raw material in stock where a regulatory change could change the stock valuation.
The directors monitor the Group's performance through the use of regular financial information and management reports. The directors focus on the company's level of profitability, liquidity and the management of foreign exchange risk, together with the balance sheet strength. The results of the key performance indicators can be seen on the profit and loss account and balance sheet.

Financial key performance indicators

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

................................................

U S Kensbock

Director

Date: 10 September 2025

Page 2

KROMACHEM HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

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

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

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The loss for the year, after taxation and non-controlling interests, amounted to £2,328,590 (2023 - profit £1,408,483).

During the year dividends were paid of £Nil (2023: £314,596)

Directors

The directors who served during the year were:

E J Kensbock

U S Kensbock

Disclosure of information to auditor

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

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Page 3

KROMACHEM HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Auditor

The auditor, Hillier Hopkins LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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

................................................

U S Kensbock

Director

Date: 10 September 2025

Page 4

KROMACHEM HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KROMACHEM HOLDINGS LIMITED

Opinion

We have audited the financial statements of Kromachem Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the , the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting 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 Group's and of the Parent Company's affairs as at 31 December 2024 and of the Group's loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 5

KROMACHEM HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KROMACHEM HOLDINGS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual 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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

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

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

∙the Parent Company financial statements are not in agreement with the accounting records and returns; or

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

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

Page 6

KROMACHEM HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KROMACHEM HOLDINGS LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 7

KROMACHEM HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KROMACHEM HOLDINGS LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

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

•the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
• the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management, about their own identification and assessment of the risks of irregularities;
• any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, 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. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and relevant tax legislation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Page 8

KROMACHEM HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KROMACHEM HOLDINGS LIMITED (CONTINUED)

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.

Alexander Bottom ACA (Senior statutory auditor)

for and on behalf of

Hillier Hopkins LLP

Chartered Accountants

Statutory Auditor

Radius House

51 Clarendon Road

Watford

Hertfordshire

WD17 1HP

22 September 2025

Page 9

KROMACHEM HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	16,538,059	14,705,435
Cost of sales		(9,243,274)	(8,521,025)
Gross profit		7,294,785	6,184,410
Distribution costs		(86,893)	(84,348)
Administrative expenses		(10,548,840)	(4,297,549)
Other operating income	5	94,141	109,525
Operating (loss)/profit	6	(3,246,807)	1,912,038
Interest receivable and similar income	10	-	100
Interest payable and similar expenses	11	(33,580)	(32,719)
(Loss)/profit before taxation		(3,280,387)	1,879,419
Tax on (loss)/profit	12	950,351	(472,950)
(Loss)/profit for the financial year		(2,330,036)	1,406,469


Currency translation differences	(225,734)	(197,832)
Other comprehensive income for the year	(225,734)	(197,832)
Total comprehensive income for the year	(2,555,770)	1,208,637

(Loss)/profit for the year attributable to:
Non-controlling interests	(1,446)	(2,014)
Owners of the parent Company	(2,328,590)	1,408,483
	(2,330,036)	1,406,469

Total comprehensive income for the year attributable to:
Non-controlling interest	(1,446)	(2,014)
Owners of the parent Company	(2,554,324)	1,210,651
	(2,555,770)	1,208,637

The notes on pages 19 to 40 form part of these financial statements.

Page 10

KROMACHEM HOLDINGS LIMITED

REGISTERED NUMBER: 02448159

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible assets	14		6,521		963
Tangible assets	15		3,228,582		3,057,419
			3,235,103		3,058,382
Current assets
Stocks	17	5,716,301		5,486,307
Debtors: amounts falling due within one year	18	3,159,085		2,029,519
Cash at bank and in hand	19	13,366,936		11,532,936
		22,242,322		19,048,762
Creditors: amounts falling due within one year	20	(7,725,431)		(1,648,067)
Net current assets			14,516,891		17,400,695
Total assets less current liabilities			17,751,994		20,459,077
Provisions for liabilities
Deferred taxation	21		-		(154,007)
Net assets			17,751,994		20,305,070

Capital and reserves
Called up share capital	22	157,298	157,298
Share premium account	23	603,332	603,332
Revaluation reserve	23	452,214	452,214
Capital redemption reserve	23	213,902	213,902
Profit and loss account	23	16,325,428	18,879,752
Equity attributable to owners of the parent Company		17,752,174	20,306,498
Non-controlling interests		(180)	(1,428)
		17,751,994	20,305,070

Page 11

KROMACHEM HOLDINGS LIMITED

REGISTERED NUMBER: 02448159

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

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

................................................

U S Kensbock

Director

Date: 10 September 2025

The notes on pages 19 to 40 form part of these financial statements.

Page 12

KROMACHEM HOLDINGS LIMITED

REGISTERED NUMBER: 02448159

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	15		1,015,280		1,042,283
Investments	16		1,162,403		1,110,945
			2,177,683		2,153,228
Current assets
Debtors: amounts falling due within one year	18	3,964,747		2,118,797
Cash at bank and in hand	19	515,912		1,073,053
Creditors: amounts falling due within one year	20	(6,009,718)		(179,988)
Net current (liabilities)/assets			(1,529,059)		3,011,862


Net assets			648,624		5,165,090

Capital and reserves
Called up share capital	22		157,298		157,298
Share premium account	23		603,332		603,332
Revaluation reserve	23		93,088		93,088
Capital redemption reserve	23		213,902		213,902
Profit and loss account brought forward		4,097,470		4,280,922
Loss/(profit) for the year		(4,516,466)		131,144
Other changes in the profit and loss account		-		(314,596)
Profit and loss account carried forward			(418,996)		4,097,470
			648,624		5,165,090

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

................................................

U S Kensbock

Director

Date: 10 September 2025

The notes on pages 19 to 40 form part of these financial statements.

Page 13


		KROMACHEM HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Capital redemption reserve	Revaluation reserve	Profit and loss account	Equity attributable to owners of Parent Company	Non-controlling interests	Total equity
	£	£	£	£	£	£	£	£
At 1 January 2023	157,298	603,332	213,902	452,214	17,983,697	19,410,443	586	19,411,029
Comprehensive income for the year
Profit for the year	-	-	-	-	1,408,483	1,408,483	(2,014)	1,406,469
Currency translation differences	-	-	-	-	(197,832)	(197,832)	-	(197,832)
Total comprehensive income for the year	-	-	-	-	1,210,651	1,210,651	(2,014)	1,208,637
Dividends: Equity capital	-	-	-	-	(314,596)	(314,596)	-	(314,596)

At 1 January 2024	157,298	603,332	213,902	452,214	18,879,752	20,306,498	(1,428)	20,305,070
Comprehensive income for the year
Loss for the year	-	-	-	-	(2,328,590)	(2,328,590)	(1,446)	(2,330,036)
Currency translation differences	-	-	-	-	(225,734)	(225,734)	-	(225,734)
Total comprehensive income for the year	-	-	-	-	(2,554,324)	(2,554,324)	(1,446)	(2,555,770)
Capital contribution	-	-	-	-	-	-	2,694	2,694
At 31 December 2024	157,298	603,332	213,902	452,214	16,325,428	17,752,174	(180)	17,751,994

The notes on pages 19 to 40 form part of these financial statements.

Page 14


		KROMACHEM HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Share premium account	Capital redemption reserve	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 January 2023	157,298	603,332	213,902	93,088	4,280,922	5,348,542

Profit for the year	-	-	-	-	131,144	131,144
Dividends: Equity capital	-	-	-	-	(314,596)	(314,596)

At 1 January 2024	157,298	603,332	213,902	93,088	4,097,470	5,165,090

Loss for the year	-	-	-	-	(4,516,466)	(4,516,466)
At 31 December 2024	157,298	603,332	213,902	93,088	(418,996)	648,624

The notes on pages 19 to 40 form part of these financial statements.

Page 15

KROMACHEM HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
(Loss)/profit for the financial year	(2,330,036)	1,406,469
Adjustments for:
Amortisation of intangible assets	462	797
Depreciation of tangible assets	137,159	190,064
Loss on disposal of tangible assets	-	1,558
Interest paid	33,580	32,719
Interest received	-	(100)
Taxation charge	(950,351)	472,950
(Increase)/decrease in stocks	(229,994)	1,716,079
(Increase)/decrease in debtors	(11,801)	1,212,154
Increase/(decrease) in creditors	6,288,896	(362,813)
Corporation tax (paid)	(532,953)	(569,870)
Foreign Exchange Movement	(225,734)	(157,208)
Net cash generated from operating activities	2,179,228	3,942,799

Cash flows from investing activities
Purchase of intangible fixed assets	(6,020)	-
Purchase of tangible fixed assets	(350,840)	(215,135)
Sale of tangible fixed assets	42,518	30,636
Interest received	-	100
Net cash from investing activities	(314,342)	(184,399)
Cash flows from financing activities
Dividends paid	-	(314,596)
Interest paid	(33,580)	(32,719)
Capital contributions from non-controlling interests	2,694	-
Net cash used in financing activities	(30,886)	(347,315)
Net increase in cash and cash equivalents	1,834,000	3,411,085
Cash and cash equivalents at beginning of year	11,532,936	8,121,851
Cash and cash equivalents at the end of year	13,366,936	11,532,936

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	13,366,936	11,532,936

Page 16

KROMACHEM HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024	2023
		£	£

	13,366,936	11,532,936

The notes on pages 19 to 40 form part of these financial statements.

Page 17

KROMACHEM HOLDINGS LIMITED

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	11,532,936	1,834,000	13,366,936
Debt due within 1 year	(65,000)	-	(65,000)
	11,467,936	1,834,000	13,301,936

The notes on pages 19 to 40 form part of these financial statements.

Page 18

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Kromachem Holdings Limited is a private company limited by shares and incorporated in England and Wales. The registered office address is Unit 10 Moor Park Industrial Estate, Tolpits Lane, Watford, Herts, WD18 9ER.
The principal activity of the company is a holding company and the principal activity of the subsidiary undertakings is the manufacture and distribution of products within the paint, printing inks and coatings industries.

2.Accounting policies

2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Page 19

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.3

Going concern

The financial statements have been prepared on the going concern basis which assumes that the group will continue in operational existence for a period of at least 12 months following the approval of these financial statements.
The group has continued to generate increased revenue and gross profit margins during the period. As a result of bonuses paid to key personnel in the year the results are showing a loss position. The directors consider the group will able to withstand potential impacts on operations due to significant reserves held. As such the directors consider it appropriate to prepare the financial statements on the going concern basis.

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.5

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 21

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.10

Pensions

Defined contribution pension plan

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

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

Page 22

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 23

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.13

Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Freehold property	-	4-5 % straight line
Long-term leasehold property	-	4-5 % straight line
Plant and machinery	-	10-20 % straight line
Motor vehicles	-	25 % staight line
Fixtures and fittings	-	20-33 % straight line

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

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

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.16

Debtors

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

2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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

Page 24

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

2.21

Dividends

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

Page 25

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results in the future could differ from those estimates. In this regard, the directors believe that the critical accounting policies where judgements or estimates are necessarily applied are summarised below.
Depreciation and residual values
The directors have reviewed the asset lives and associated the residual values of all fixed assets and have concluded the asset lives and the residual values are appropriate.
Stock
Stock is included as per the accounting policy set out above. Management have assessed the need to write off or provide against any specific items based on the levels held at year end, and the expected sales of such items in the immediate period post year end.
Recoverability of trade debtors
The recoverability of trade debtors has been assessed as at the year end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all the available information, and their experience of the specific nature of trade debtor in question.

	Paint, Printing inks and coatings	16,538,059	14,705,435

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	2,849,009	2,855,455
Rest of Europe	9,012,712	8,446,549
Rest of the world	4,676,338	3,403,431
	16,538,059	14,705,435

Page 26

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Other operating income
		2024	2023
		£	£

	Other operating income	94,141	109,525

Research & development charged as an expense	7,134	197
Exchange differences	26,334	64,838
Other operating lease rentals	94,056	74,084

7.	Auditor's remuneration
		2024	2023
		£	£

Fees payable to the Group's auditor for the audit of the Group's annual financial statements	31,750	31,450
Fees payable to the Group's auditor and its associates in respect of:
Taxation compliance services	3,300	3,700

Page 27

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

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


Wages and salaries	7,396,298	1,979,094	5,536,711	332,999
Social security costs	959,296	226,878	791,555	44,286
Cost of defined contribution scheme	223,159	173,184	-	-
	8,578,753	2,379,156	6,328,266	377,285

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

	Group	Group	Company	Company
	2024	2023	2024	2023
	No.	No.	No.	No.

Sales	8	8	-	-
Production	13	12	-	-
Administration	13	11	-	-
Directors	2	2	2	2

	36	33	2	2

9.	Directors' remuneration
		2024	2023
		£	£

	Directors' emoluments	5,747,670	531,599

The highest paid director received remuneration of £5,495,544 (2023 - £281,247).

10.	Interest receivable
		2024	2023
		£	£

Other interest receivable

100

Page 28

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Interest payable and similar expenses
		2024	2023
		£	£

Other loan interest payable	32,401	32,334
Other interest payable	1,179	385
	33,580	32,719

Corporation tax
Current tax on profits for the year	-	368,981
Adjustments in respect of previous periods	(3,050)	(24,666)
	(3,050)	344,315
Foreign tax
Foreign tax on income for the year	111,710	105,549
Total current tax	108,660	449,864

Deferred tax
Origination and reversal of timing differences	(1,059,011)	23,086
Total deferred tax	(1,059,011)	23,086


		(950,351)	472,950

Page 29

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.Taxation (continued)

(Loss)/profit on ordinary activities before tax

(3,280,387)

1,879,419

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)	(820,097)	441,663
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	361	98
Capital allowances for year in excess of depreciation	6,751	6,325
Higher rate taxes on overseas earnings	(32,457)	12,476
Adjustments to tax charge in respect of prior periods	(3,050)	(24,666)
Other timing differences leading to an increase (decrease) in taxation	(101,859)	18,326
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	-	19,237
Marginal relief	-	(509)
Total tax charge for the year	(950,351)	472,950

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

13.	Dividends
		2024	2023
		£	£

Dividends

314,596

Page 30

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Intangible assets
	Group

		Patents
		£
	Cost
	At 1 January 2024	30,641
	Additions	6,020
	At 31 December 2024	36,661
	Amortisation
	At 1 January 2024	29,678
	Charge for the year on owned assets	462
	At 31 December 2024	30,140
	Net book value
	At 31 December 2024	6,521
	At 31 December 2023	963

Page 31

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Tangible fixed assets
	Group

	Freehold property	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings
	£	£	£	£	£
Cost or valuation
At 1 January 2024	2,508,251	140,416	1,823,297	74,378	1,073,574
Additions	-	-	227,394	-	123,446
Disposals	-	-	(125,884)	-	(481,314)
At 31 December 2024	2,508,251	140,416	1,924,807	74,378	715,706
Depreciation
At 1 January 2024	235,814	112,332	1,184,540	74,378	955,433
Charge for the year on owned assets	27,003	-	88,005	-	22,151
Disposals	-	-	(125,884)	-	(438,796)
At 31 December 2024	262,817	112,332	1,146,661	74,378	538,788
Net book value
At 31 December 2024	2,245,434	28,084	778,146	-	176,918
At 31 December 2023	2,272,437	28,084	638,757	-	118,141

Page 32

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.Tangible fixed assets (continued)

		Total
		£
	Cost or valuation
	At 1 January 2024	5,619,916
	Additions	350,840
	Disposals	(607,198)
	At 31 December 2024	5,363,558
	Depreciation
	At 1 January 2024	2,562,497
	Charge for the year on owned assets	137,159
	Disposals	(564,680)
	At 31 December 2024	2,134,976
	Net book value
	At 31 December 2024	3,228,582
	At 31 December 2023	3,057,419

The net book value of land and buildings may be further analysed as follows:
	2024	2023
	£	£

Freehold	2,245,434	2,272,437
Long leasehold	28,084	28,084
	2,273,518	2,300,521

Page 33

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.Tangible fixed assets (continued)

	Company

		Freehold property
		£
	Cost or valuation
	At 1 January 2024	1,278,097
	At 31 December 2024	1,278,097
	Depreciation
	At 1 January 2024	235,814
	Charge for the year on owned assets	27,003
	At 31 December 2024	262,817
	Net book value
	At 31 December 2024	1,015,280
	At 31 December 2023	1,042,283

The net book value of land and buildings may be further analysed as follows:
	2024	2023
	£	£

	Freehold	1,015,280	1,042,283

Page 34

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

16.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	1,110,945
	Additions	51,458
	At 31 December 2024	1,162,403

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

Kromachem Limited	Unit 10 Moor Park Industrial Centre, Tolpits Lane, Watford, Hertfordshire, WD18 9ER	Ordinary	100%
Kromachem GmbH	Fürstenbergstr.17, D-51379 Leverkusen Germany	Ordinary	100%
Kromachem Inc	c/o RRBB 265 Davidson Ave Ste 10 Somerset NJ 08873-4120 USA	Ordinary	100%
Kromachem Analytical Services Limited	Unit 10 Moor Park Industrial Centre, Tolpits Lane, Watford, Hertfordshire, WD18 9ER	Ordinary	100%
Kromachem Holdings GmbH	Marktplatz 10 97215 Uffenheim Germany	Ordinary	95%

Page 35

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.	Stocks
		Group	Group
		2024	2023
		£	£

Raw materials and consumables	2,350,577	1,854,466
Finished goods and goods for resale	3,365,724	3,631,841
	5,716,301	5,486,307

The difference between purchase price or production cost of stocks and their replacement cost is not material.

18.

Debtors

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


Trade debtors	1,407,160	1,545,681	-	-
Amounts owed by group undertakings	-	-	2,759,483	2,019,452
Other debtors	594,379	238,106	3	-
Prepayments and accrued income	251,672	245,732	106,536	99,345
Deferred taxation	905,874	-	1,098,725	-
	3,159,085	2,029,519	3,964,747	2,118,797

19.	Cash and cash equivalents
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

	Cash at bank and in hand	13,366,936	11,532,936	515,912	1,073,053

Page 36

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Trade creditors	682,615	480,870	-	-
Corporation tax	105,714	255,131	-	47,441
Other taxation and social security	42,145	35,074	20,410	12,751
Other creditors	259,074	210,900	65,405	65,001
Accruals and deferred income	6,635,883	666,092	5,923,903	54,795
	7,725,431	1,648,067	6,009,718	179,988

Details of security are as follows:
Bank facilities are secured by way of a fixed and floating charges held over all the assets of the company.

21.	Deferred taxation
	Group

		2024
		£

	At beginning of year	(154,007)
	Charged to profit or loss	1,059,881
	At end of year	905,874

Page 37

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.Deferred taxation (continued)

Company

		2024
		£

	Charged to profit or loss	1,098,725
	At end of year	1,098,725

The deferred taxation balance is made up as follows:
	Group	Group	Company
	2024	2023	2024
	£	£	£

Accelerated capital allowances	(193,533)	(154,007)	-
Tax losses carried forward	1,098,725	-	1,098,725
Pension surplus	682	-	-
	905,874	(154,007)	1,098,725

Page 38

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

157,298 (2023 - 157,298) Ordinary A shares of £1.00 each	157,298	157,298

23.

Reserves

Share premium account

Share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Revaluation reserve

Revaluation reserve represents the cumulative effect of revalutions of freehold land and buildings which are revealed to be fair value at each reporting date.

Capital redemption reserve

Capital redemption reserve includes one share which was transferred to the company following the purchase of its own shares.

Profit and loss account

Profit and loss account includes all current and prior period retained profit.

24.	Pension commitments

The group contributes to personal pension funds. The assets of the scheme are held seperately from those of the group in an independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £223,159 (2023: £173,814). Total contributions owed at year end totalled £24,699 (2023: £15,679).

25.	Commitments under operating leases
	At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2024	2023
		£	£

Not later than 1 year	77,125	40,500
Later than 1 year and not later than 5 years	130,000	37,125
	207,125	77,625

Page 39

KROMACHEM HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26.	Related party transactions
	The group considers the Directors as Key Management personnel and their remuneration is disclosed under note 9, Directors Remuneration.

27.	Controlling party

Mr E Kensbock is the controlling party by virtue of his majority shareholding.

Page 40