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

The principal activity of the company continued to be that of the manufacture and distribution of fish feed.

The profit for the year after taxation amounted to £8.1m (2023 - £6.6m). Dividends of £6m were paid in the year to 31 December 2024 (2023 - £3m).

The market for salmon feed within the UK is extremely consolidated with four salmon farming companies accounting for over 95% of the total volume. Three of these farming companies have invested in their own feed manufacturing plants. During this period, the two remaining independent feed producers have followed a strategy of supplementing UK sales with exports of specialised high value products.

The company has a strong core base of UK volume which is contracted for 1-3 years but has developed a strategy of supplementary earnings from a growth in export markets. In addition, the company has been successful in supplying speciality feeds to integrated farming and feed manufacturing companies within the UK.

The company had no environmental incidents or issues in the year, and it remains a core objective for the company to make positive improvements on environmental matters.

The company's key performance indicators are analysed below. These were as follows:

An assessment of the key business risks of the company has been completed on a group wide basis. The management of the business and the execution of its strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from other suppliers as well as changes in the cost and availability of raw materials, the cost of energy, and the disruption of production output in the event of a power cut or other catastrophic event.

Financial risk management

The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The company's ultimate parent, Aktieselskabet Schouw and Co manages these financial risks. The use of financial derivatives is governed by policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. BioMar Limited does not use derivative financial instruments for speculative purposes.

Cash flow risk

The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company uses foreign exchange forward contracts to hedge these exposures.

Credit risk

The company's principal financial assets are bank balances and cash, trade and other receivables and investments. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for doubtful receivables is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. The company has no significant concentration of credit risk, with exposure spread over a number of counterparties and customers.

Liquidity risk

The company aims to mitigate liquidity risk by managing cash generated by its operations. Capital expenditure is approved at group level. In addition, the company has a line of credit through our Group that can be accessed at short notice.

Price risk

The company is exposed to commodity price risk as a result of its operations and this risk is managed where possible through the normal procurement and sales processes inherent in the company. The appropriateness and effectiveness of these procedures are continually monitored on an ongoing basis. The company has no exposure to equity securities price risk, as it holds no listed or other equity investments.

Foreign currency risk

Risk from exchange fluctuations of sales and purchases is minimised by the company's policy of covering future currency requirements with forward contracts. Forward contracts are only placed when a purchase or sale contract has been concluded and are placed immediately without delay. Flexibility regarding the exercise date of the currency contracts is always obtained as deliveries of raw materials can be delayed by transport or weather problems.

Interest rate risk

The company invests surplus cash in a floating interest yielding bank deposit account. Interest is charged on a receivable loan finance and group loans payable. Therefore, financial assets, liabilities, interest income, interest charges and cash flows can be affected by movements in interest rates. However, the exposure is reduced as these cash flows largely offset each other.

Global macroeconomics and geopolitical aspects

Ongoing conflicts could impact the company's supply chain, for example the availability or price of key ingredients within aquaculture feed, or the price of energy. The company manages the risk by seeking alternative materials and where necessary passing price increases on to its customers.

The board of directors recognises that it has a number of key stakeholders and endeavours to align the business objectives with their interests.

Customers

The board and management of the company meet regularly with our customers to understand their key biological and business objectives in rearing their livestock and advise on feed and feeding strategies to ensure these requirements. This usually results in supplying bespoke products to customers specifically tailored to meet their objectives in fish performance and quality. The company provides technical support and monitoring and advises on ongoing performance and re-engineers diets to ensure optimum customer performance.

The board recognises that the success of the business is built upon a fit, healthy, engaged and included workforce. There are regular formal and informal communications between board members and employees on business activities and performance which also give employees the opportunity to raise any issues. The company also conducts an annual employee survey which provides insights into any potential employee issues. In addition, the company promotes health and fitness by enrolling all employees into a health scheme which provides medical cover and promotes activity.

We see our ability to source key raw materials that meet the nutritional specification at the lowest cost to our customers as a key success factor within our business and building a successful supplier relationship is the key driver for this success. This involves regular meetings with suppliers and feedback on product specification and format, supply chain and introduction of novel raw materials.

The ultimate parent undertaking is Aktieselskabet Schouw and Co incorporated in Denmark. The company's strategic objectives are aligned with that of the shareholder through a periodic strategic review, the last of which was undertaken in 2019. The company's short-term budgets are aligned with these objectives and performance on operational targets are monitored on a monthly and quarterly basis in both written reports and regular meetings between directors and the shareholders representatives.

Communities

The directors understand that the business is not an entity in isolation and endeavours to involve themselves and the company officers in both the local community and the wider business community. The company is an active member of a number of trade organisations such as the Scottish Salmon Producers Organisation and Agriculture Industries Confederation. One of the directors also serves on the board of Scottish Aquaculture Innovation Centre which was introduced to drive growth in areas of key economic and social importance.

On behalf of the board

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

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £6,000,000 during the year (2023 - £3,000,000).

Subsequent to the year end, a dividend of £8,000,000 was paid in March 2025.

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.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the company at the year end were equivalent to 89 day's purchases (2023 - 66) day's purchases, based on the average daily amount invoiced by suppliers during the year.

The Company finances its activities with a combination of retained cash, trade creditors and intercompany loans. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities. The Company also enters into derivative transactions, principally forward currency contracts.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 financial instruments and associated risks.

The UK aquacultural feed market is very competitive with over capacity driven by several recent investments downstream from integrated salmon farming companies. The industry is still growing however, and the company is confident that it can maintain its market share whilst also actively targeting new export markets in order to maintain turnover and profitability.

Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

As a company, BioMar has always had our impact on the environment at the forefront of our activities. We have been members of the AIC, CCA scheme since 2007 and have continually met our emissions goals and targets year on year. Energy consumption is monitored with a view to being efficient in usage across the site.

Annual Report

Though production utilisation and energy use have reduced over the past year, extensive Research & Development is conducted by BioMar Group to ensure the optimisation and sustainability of Raw Materials within feeds. This is encompassing our new product range such as the Blue Impact feed range which is dedicated to sustainability.

Energy Fuel and Water Consumption

Energy use is monitored monthly. Electricity is used for general use, with most of the consumption related to production and a small proportion used by the offices.

Natural gas is used almost exclusively in production with a small proportion used for the welfare facilities. LPG is used to provide power for Forklift trucks. Fuel oil is only ever used as a backup fuel source if there is a problem with the gas or electricity supplies.

No fuel oil was used in this reporting period.

Water is utilised in our odour abatement process (biofilter), in boiler steam production, during the production process and in our washroom facilities and offices.

Quantification and reporting methodology

Calculations were done through Carbon Trust using the government conversion rates.

Electricity

Electricity consumption was calculated for the site by taking meter readings every month. Consumption is based on actual usage which is a measure of the directly consumed electricity in KW/h and not primary electricity which takes into consideration emissions related to the production of electricity. No Electricity is produced on site.

In August 2020, BioMar made procurement choices ensuring all Electricity is purchased with GHG approved renewable Energy Guarantee of origin (REGO’s) certificates.

9,078,721 KW/h = zero Kg CO2e.

Natural gas

Natural Gas consumption was calculated by taking meter readings every month.

22,319,189 KW/h = 4,082,849 Kg CO2e.

Fuel oil

Fuel Oil consumption is calculated based on actual usage for fuel oil delivered and used during the year to support boiler downtime. During 2024 this was not required.

0 kWh = 0 kg CO2e.

LPG

LPG consumption was calculated for the site by taking the actual volume LPG delivered during the reporting year.

61,548 Litres used = 95,838 Kg CO2e.

Company Vehicles

Company Vehicles all company vehicles are diesel fuel and a total of 26,243 litres was used in the reporting year.

26,961 litres diesel = 67,728 Kg CO2e.

Summary of CO2 Emissions

Measures taken to improve energy efficiency

Motors

Focus was placed on the larger motors around site and with this our grinder motors have been upgraded for efficiency to VSD control during 2024. This will reduce consumption on startup of the 200kw motors as the previous soft start units used considerable start up amps.

This focus continued into 2025, with our Mixer and Biofilter fan motors replaced with increased efficiency motors. This has resulted in increased savings on kw/h as these motors run permanently during operations.

Improvements to energy efficiency have also been established with ongoing improvement to our direct drive motors, including the removal of belts and chains for more efficient operation.

Moving forward, we have developed a template to identify all motors above a certain threshold in order to identify the energy efficiency and utilisation savings for replacement of these motors in the future.

Motor replacement and VSD replacement has been part of our reliability strategy with replacement of old generation motor gearboxes with energy efficient motors ongoing into 2025. Motors are now considered for energy efficiency with all new motors being IE4 or higher efficiency.

Lighting

Lighting upgrades have taken place around site which has seen the replacement of all old lamp high energy use type to energy efficient LED lights. This process started in 2023 and has continued in 2024 with our Final goods sheds fitted with LED and PIR and as such are now off when not in operation. This has extended to both factory warehouses in 2025.

Medicated line and factory areas have also been upgraded to energy efficient LED and external and office lighting have additionally been upgraded to low energy LED and dusk to dawn where appropriate.

Car charger stations

Two electrical car charger stations were fitted in 2023 as the company vehicle fleet was replaced with electric vehicles. A further 2 were installed in 2024 and six more in 2025. A total of 10 are installed to date.

Heat loss and Insulation

In 2024 a continuation of renewed and upgraded steam pipework and insulation around site was undertaken, to ensure efficiency of condensate return and minimise heat loss.

End of life insulation on one of the main oil tanks was replaced resulting in less heat loss which enabled the reduction of the heating temperature.

In 2025 we have created templates to identify all surface areas with potential energy loss to enable a strategy of investment for further conservation of energy in the future.

This in tandem with Steam trap surveys and steam monitoring trials which will enable efficient use of our heating systems. Increase efficiency and minimising heat loss will continue as a strategy into 2025, working in partnership with Spirax Sarco a key player in the steam industry.

Other

The company installed an energy monitoring system across the Electrical systems in partnership with an industry expert and has used this data to develop a Net zero strategy including with the aim of achieving the science-based Target initiative 1.5 degree obligation. This is a pilot that is still running.

Ongoing and future projects

We seek to increase our ability to utilise renewable energy, and we are working to reduce our scope 3 emissions through various actions many of which are regarded as confidential currently.

The UK Team will work with a new dedicated resource in BioMar Group in 2024 and local projects engineer in 2025 to evaluate various energy saving opportunities.

A global energy manager will lead the sites on improving energy focus and equipment technologies to enable best practice and low energy solutions. The site has undergone a major upgrade of the control system to allow future energy monitoring to be integrated with the control system to give BioMar maximum opportunity of data and energy management.

Investigation projects are being evaluated in tandem with our site audit in 2025 to evaluate replacement of our largest motor a DC (Direct current) motor with improved AC (Alternating current) motor.

Feasibility and development of a road map to electrification on site, including such potential for use of solar, heat pumps, turbines will take place through 2025/26.

Feasibility studies will also be made in 2025/26 to look at the potential for roof mounted Photovoltaic energy sourcing. The energy model will assist in the potential for where this energy may be best harnessed and utilised

BioMar Global is piloting a monitoring system which would be integrated with our new MES Scada control system. The pilot will be concluded in 2025, and a feasibility is being undertaken to install this energy management system into Grangemouth in 2026. This system will look to monitor all our key energy assets in line with running conditions of our products. This will allow enhanced energy monitoring across assets and product portfolios to benefit change on future energy management strategy.

In 2025, we will conduct a full site energy audit including the creation of a Sankey model to allow us clearing understanding of all our energy streams. We are also looking to place CTs (Current Transformers measurement) within the site on all key assets with the identification and purchase of measurement equipment to facilitate real time energy monitoring. This is a priority step to set up the MES energy monitoring system.

Such information will allow us to develop our feasibility for a longer-term investment model on potential electrification and decarbonisation of site.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

In satisfaction of their responsibility, the directors have considered the company’s ability to meet its liabilities as they fall due. This assessment considers the principal risks and uncertainties and is dependent on a number of factors including financial performance and available financial resources.

To this end, the directors have reviewed the company's cash flow forecasts, associated risks and downside sensitivities. These forecasts consist of the company's annual forecast to December 2025 and 3 year extended forecasts to December 2028.

Whilst inflationary pressures, high raw material prices and current economic and market conditions continue to impact, the company's forecasts indicate that it has sufficient liquidity due to its projected profitability and availability of the group credit facility, which is managed by way of a cash pooling arrangement.

Furthermore, the company considers that it has sufficient mitigating actions (such as direct variable costs, delaying capex spend, and managing dividend and related party payments) within their control that could reduce the impact of plausible downward scenarios.

Based on this assessment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

• 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 Biomar 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 101 Reduced Disclosure Framework (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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• 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, 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 is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

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

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and 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 reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

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

Biomar Limited is a private company limited by shares incorporated in Scotland. The registered office is North Shore Road, Grangemouth Docks, Grangemouth, Stirlingshire, United Kingdom, FK3 8UL. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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, except for the revaluation of The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, and intangible assets;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• a reconciliation of the number and weighted average exercise prices of share options, how the fair value of share-based payments was determined and their effect on profit or loss and the financial position;

• comparative narrative information;

• for financial instruments measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and

• related party disclosures for transactions with the parent or wholly owned members of the group.

Where required, equivalent disclosures are given in the group accounts of Aktieselskabet Schouw and Co. The group accounts are available to the public and can be obtained as set out in note 30.

Reclassification

The comparative figures presented include a reclassification between revenue and distribution costs. Recharges of haulage income had incorrectly been presented in the prior period on a net basis. This has increased revenue by £4.44m with a corresponding increase to distribution costs. There is no impact on reported profit or equity.

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. true

In satisfaction of their responsibility, the directors have considered the company’s ability to meet its liabilities as they fall due. This assessment considers the principal risks and uncertainties and is dependent on a number of factors including financial performance and available financial resources.

To this end, the directors have reviewed the company's cash flow forecasts, associated risks and downside sensitivities. These forecasts consist of the company's annual forecast to December 2025 and 3 year extended forecasts to December 2028.

Whilst inflationary pressures, high raw material prices and current economic and market conditions continue to impact, the company's forecasts indicate that it has sufficient liquidity due to its projected profitability and availability of the group credit facility, which is managed by way of a cash pooling arrangement.

Furthermore, the company considers that it has sufficient mitigating actions (such as direct variable costs, delaying capex spend, and managing dividend and related party payments) within their control that could reduce the impact of plausible downward scenarios.

Based on this assessment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

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

Interest income is recognised as interest accrues using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to its net carrying amount.

Dividend revenue is recognised when the Company's right to receive dividend payment is established.

The company recognises revenue from the following major sources:

• Manufacture and sale of fish feed

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from the manufacture and sale of fish feed is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Normal average payment terms vary from payment in advance to 60 days.

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

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

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

• IT Systems - between 2 and 5 years

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

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 recognised in the income statement.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

The company has elected to account for investments in associates using the equity method. Under the equity method, on initial recognition the investment in an associate is recognised at cost. The carrying amount is then increased or decreased to recognise the company's share of the subsequent profit or loss of the associate and to include that share of the profit or loss in the company's profit or loss. Distributions received from an associate reduce the carrying amount of the investment.

At each reporting 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.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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

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

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

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

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

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition as follow:

Raw materials, packaging and spare parts - purchase cost on a first-in, first-out basis.

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity, excluding borrowing costs.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date. Instruments within the scope of the requirements include loans and trade receivables.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

In applying this forward-looking approach, a distinction is made between:

• financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1’) and;

• financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2’);

• ‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.

‘12-month expected credit losses’ are recognised for the first category (ie Stage 1) while ‘lifetime expected credit losses’ are recognised for the second category (ie Stage 2). Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.

Trade receivables are recognised by the Company carried at original invoice amount less an allowance for any non-collectable or impaired amounts. The Company makes use of a simplified approach in accounting for trade and other receivables uses the IFRS 9 ECL model to measure loss allowances at an amount equal to their lifetime expected credit loss. A provision for doubtful amounts is made when there is objective evidence that collection of the full amount is no longer probable. Significant financial difficulty or significantly extended settlement periods are considered to be indicators of impairment. Normal average payment terms vary from payment in advance to 60 days. Balances are written off when the probability of recovery is assessed as remote. Where the time value of money is material, receivables are carried at amortised cost.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of selling or repurchasing it in the near term, or

• on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit taking, or

• it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

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

The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain purchase contracts. The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs.

The key assumptions used in valuing the derivatives are the exchange rates for GBP:USD, GBP:NOK and GBP:EUR.

The Company designates certain hedging instruments, including derivatives, as cash flow hedges.

At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in cash flows of the hedged item.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the 'other gains and losses' line item.

Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognised in the profit or loss in the same line as of the income statement as the recognised hedged item. However when the forecast transaction that is hedged results in the recognition of a non-financial asset or liability, the gains and losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability concerned.

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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 inventories or non-current 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.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined as follows:

-    Freehold property     2 - 40 years

-     Other leased assets    2 - 6 years

The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

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

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The company's inventory consists of raw material grains, compounds and processed feed. The storage of inventory takes place in Silos and in the company's warehouse. Due to the nature of the stock held, the assessment of the quantities of inventory held is subject to a degree of judgement.

Certain derivative contracts qualify and are designated as cash flow hedges. The fair value of such contracts is estimated at any given point in time through reference to published exchange rates on that date. The effectiveness of any cash flow hedge is monitored by the company on an ongoing basis. Judgement is exercised with regards to the portion of such hedges classified as effective and ineffective.

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

Their aggregate remuneration comprised:

Share-based payments

Executive Management in BioMar Limited is covered by the parent company Schouw & Co.'s share option program. The program entitles participants to acquire shares in Schouw & Co. at a price based per the officially quoted price at the time for granting plus a premium from the date of grant until the date of exercise. For the current year this was nil (2023 - DKK 567.60 and a premium of 2%).

The value of any share based payments is not material to the financial statements. The company has exercised the disclosure exemption under FRS 101 on reporting share-based payments.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

The number of directors who exercised share options during the year was 0 (2023 - 1).

From 1 April 2023, the standard rate of corporation tax in the UK increased to 25% from the previous rate of 19%. The effective tax rate for the financial year was 23.5%.

The charge for the year can be reconciled to the profit per the income statement as follows:

Property, plant and equipment includes right-of-use assets, as follows:

Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Loans and receivables above are secured by debenture over the assets of the customer and are receivable in installments up to December 2028.

Details of the company's associates at 31 December 2024 are as follows:

The investment in associate is accounted for using the equity method.

At the end of the year, the aggregate capital and reserves of the entity amounted to £2,867,000 (2023 - £2,390,000) and its profit for the year was £751,000 (2023 - £701,000).

The directors believe there is no material difference between the carrying value of stocks and their current replacement cost.

Raw materials includes packaging of £329,000 (2023 - £723,000) and spare parts of £557,000 (2023 - £538,000).

The company's bank facilities are part of the group's international cash pooling and secured by guarantee on behalf of Aktieselskabet Schouw & Co.

Except as detailed below, the directors consider that the carrying amounts of financial assets and liabilities carried at amortised cost in the financial statements approximate to their fair values.

The fair value of forward currency derivative contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

The company has lease contracts for various vehicles, buildings and equipment used in operations. The company does not face significant liquidity risk with regard to its lease liabilities and these are monitored as part of the overall process of managing cash flows.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

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.

Key management personnel are considered to be the directors of the company. The remuneration of the directors is set out in note 6 to the financial statements.

During the year the company entered into transactions in the ordinary course of business, with other related parties. The company has taken advantage of the exemption under paragraph 8(k) of FRS101 not to disclose transactions with fellow wholly owned subsidiaries. There were no transactions entered into, and no trading balances outstanding at 31 December with other related parties.

The ultimate parent undertaking is Aktieselskabet Schouw and Co, incorporated in Denmark.

The results of BioMar Limited are included in the consolidated financial statements of the immediate parent company. Biomar Group AS. incorporated in Denmark and in the consolidated statements of the ultimate parent Aktieselskabet Schouw and Co, incorporated in Denmark, both of which are available from BioMar Limited. North Shore Road, Grangemouth Docks, Grangemouth, FK3 SUL