REGISTERED NUMBER: 03880774 (England and Wales)

Birch Chemicals Limited

Financial Statements for the Year Ended 31st December 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P T Fitzgerald

P Hogan

C Fincher

A J Embleton

M Kiefer

B P Dell

A W Forman

REGISTERED OFFICE:

Melton Ross Quarries

Barnetby

North Lincolnshire

DN38 6AE

REGISTERED NUMBER:

03880774 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

FIXED ASSETS

Intangible assets

4

-

1,654

Tangible assets

5

240,529

371,301

Investments

6

9,763

9,763

250,292

382,718

CURRENT ASSETS

Stocks

7

234,960

848,135

Debtors

8

694,500

997,928

Cash at bank

1,270,432

712,442

2,199,892

2,558,505

CREDITORS

Amounts falling due within one year

9

539,003

769,050

NET CURRENT ASSETS

1,660,889

1,789,455

TOTAL ASSETS LESS CURRENT LIABILITIES

1,911,181

2,172,173

PROVISIONS FOR LIABILITIES

-

18,576

NET ASSETS

1,911,181

2,153,597

CAPITAL AND RESERVES

Called up share capital

11

10,000

10,000

Capital contribution reserve

354,706

354,706

Retained earnings

1,546,475

1,788,891

SHAREHOLDERS' FUNDS

1,911,181

2,153,597

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23rd September 2025 and were signed on its behalf by:

A W Forman - Director

A J Embleton - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared on under the historical cost convention.

The financial statements have been prepared in pound sterling rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

After the balance sheet date but before the date on which these financial statements were approved, the Board has taken steps to hive up the trade and assets of the Company to its parent undertaking, with the intention for the Company to cease trading within the next twelve months. Whilst the Company is unlikely to remain operational beyond that period-and consequently cannot adopt the going concern basis for the preparation of its financial statements-the Directors are satisfied that the carrying values of the assets and liabilities remain appropriate, as they are all considered to be fully recoverable and payable.

Turnover

Turnover is the revenue arising from sale of goods and services. It is stated at the fair value of the consideration receivable net of intra group transactions, value added tax, rebates and discounts.

Revenue from the sale of goods is recognised when the significant risks and benefits of ownership of the product have been transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms.

Intangible assets

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

Capitalised research and development costs are being amortised evenly over their estimated useful life of 5 years.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes those costs that are directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold buildings and leasehold property

- 10% on cost

Plant and machinery

- 10% - 20% on cost

Motor Vehicles

- 25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Pension costs and other post-retirement benefits

The parent company operates a defined contribution pension scheme. Contributions payable to the parent company's pension scheme on behalf of the company are charged to the profit and loss account in the period to which they relate.

Government grants

Government grants in respect of capital expenditure are credited to deferred income when received and are released over the useful economic life of the related asset on a basis consistent with the depreciation policy.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2023 - 16 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1st January 2024

and 31st December 2024

13,234

AMORTISATION

At 1st January 2024

11,580

Charge for year

1,654

At 31st December 2024

13,234

NET BOOK VALUE

At 31st December 2024

-

At 31st December 2023

1,654

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1st January 2024

1,405,116

Additions

2,873

At 31st December 2024

1,407,989

DEPRECIATION

At 1st January 2024

1,033,815

Charge for year

133,645

At 31st December 2024

1,167,460

NET BOOK VALUE

At 31st December 2024

240,529

At 31st December 2023

371,301

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakin

£

COST

At 1st January 2024

and 31st December 2024

9,763

NET BOOK VALUE

At 31st December 2024

9,763

At 31st December 2023

9,763

7.

STOCKS

2024

2023

£

£

Stocks

234,960

848,135

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

598,654

738,980

Amounts owed by group undertakings

50,113

-

Other debtors

-

1,211

VAT

13,245

39,478

Deferred tax asset

2,878

-

Prepayments and accrued income

29,610

218,259

694,500

997,928

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

80,317

204,818

Amounts owed to group undertakings

213,997

294,421

Tax

-

80,951

Other creditors

310

1,845

Accruals and deferred income

244,379

187,015

539,003

769,050

10.	LEASING AGREEMENTS

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

2024

2023

£

£

Within one year

-

16,800

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

10,000

Ordinary

£1

10,000

10,000

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Jamie Chilcott ACA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

13.	CONTINGENT LIABILITIES

The company is party to a composite multilateral guarantee and debenture together with its UK parent undertakings in respect of the group borrowings which are secured, in part, by fixed and floating charges over the assets of the company. The potential liability to the company under the arrangement at 31 December 2024 was £nil.

14.	RELATED PARTY DISCLOSURES

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

15.	ULTIMATE PARENT COMPANY AND ULTIMATE CONTROLLING PARTY

Singleton Birch Limited is the immediate parent company and its registered office is the same as is listed on page 1. Singleton Birch Limited is regarded as the parent undertaking of the smallest group for which group accounts are prepared and made publicly available. The ultimate parent company in the UK is Mississippi Lime UK Limited which owns 100% of the entire issued share capital of the Singleton Birch Limited. Copies of the group accounts can be obtained from Companies House.

HBM Holdings Company (incorporated in USA) is regarded by the directors as being the Company's ultimate parent holding company. Its registered office address is Suite 1050, 101 South Hanley Road, St. Louis, MO 63105, USA. The largest group in which the results of the company are consolidated is that headed by HBM Holdings Company however, these accounts are not publicly available.

There is no ultimate controlling party.