The directors present the strategic report for the year ended 31 March 2025.

The Darent Wax Company Limited (the “Company”) specialises in the formulation, manufacture, and global supply of technically advanced wax compounds for industrial and consumer applications.

Operating from its purpose-built facilities in the United Kingdom, the Company combines technical innovation, manufacturing expertise, and customer collaboration to deliver tailored solutions that meet evolving market demands for innovation, performance, sustainability, and cost efficiency.

The Company’s strategic objective is to achieve sustainable and profitable growth through innovation, customer focus, and continued development of manufacturing capabilities. The strategy is underpinned by the following key priorities:

• Customer partnerships: working closely with clients to deliver bespoke formulations and technical support, strengthening long-term relationships.

• Operational efficiency: investing in process automation and energy management to reduce waste, improve productivity, and enhance cost competitiveness.

• Market diversification: expanding into adjacent technical markets and developing export opportunities globally.

• Sustainability and innovation: developing eco-friendly wax blends using renewable and recycled feedstocks to meet increasing customer and regulatory expectations.

The financial year to 31 March 2025 delivered a solid performance and showcased the Company’s sustained resilience despite challenging market conditions.

Turnover for the year was £11,127,960 (2024: £11,335,191), with an operating profit of £1,292,403 (2024: £1,105,088). Margins strengthened despite ongoing cost pressures from energy and raw materials, reflecting enhanced production efficiency and disciplined procurement practices.

Operating cash flow remained positive throughout the year, and the balance sheet remains robust, providing a strong platform for continued investment in research and development, infrastructure and organisational resources.

The directors oversee and manage the Company’s performance using comprehensive monthly accounts together with a series of operational and quality-related performance measures. Key metrics relating to financial performance, cash management and stock control include:

The Directors regularly review and monitor risks through established management processes to ensure that appropriate actions and controls are in place. The principal risks and uncertainties facing the Company include:

• Raw material and energy price volatility: mitigated through multi-sourcing strategies, long-term supplier relationships, and forward purchasing where appropriate.

• Global economic, market conditions and tariff volatilities: the business remains exposed to wider economic uncertainty, including fluctuations in international trade tariffs and duties that can affect the cost and availability of imported raw materials. These risks are mitigated through close monitoring of global market trends, maintaining flexible sourcing options, and managing a broad and diverse customer base that provides resilience.

• Challenging UK operating environment: manufacturing businesses continue to face elevated input costs, energy price instability, skills shortages, and ongoing supply chain disruption. The Company mitigates these pressures through operational efficiency improvements, careful cost management, production planning, and maintaining strong relationships with key suppliers.

The Company is committed to an ambitious long-term programme of investment in advanced manufacturing capabilities, the research and development of innovative products, and sustainability initiatives, all of which are expected to accelerate growth and enhance market leadership. Demand across the Company’s core sectors is anticipated to strengthen further, supported by expanding customer partnerships, a growing order pipeline and the Company’s unwavering commitment to quality, innovation and operational excellence.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The Darent Wax Company Limited (the “Company”) specialises in the formulation, manufacture, and global supply of technically advanced wax compounds for industrial and consumer applications.

The results for the year are set out on page 7.

The Company achieved an operating profit of £1,292,403 (2024: £1,105,088) on a turnover of £11,127,960 (2024: £11,335,191).

Ordinary dividends of £784,563 were paid during the year (2024: £3,750,000). The Directors do not recommend the payment of a final dividend for the year ended 31 March 2025 (2024: £nil).

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

WP Audit Services LLP 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.

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;

• 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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of The Darent Wax Company Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 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. As part of an audit, in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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

We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the company, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified the Companies Act 2006 and FRS 102.

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the company’s operations and to avoid material penalties, including the General Data Protection Regulation, health and safety, employment law and ISO 9001:2015 certification.

Having reviewed the laws and regulations applicable to the company, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

• Selected a team with sector experience to perform the audits;

• Obtained and reviewed internal policies and procedures and external guidance;

• Reviewed the minutes of meetings held in the year by management for any evidence of non compliance with laws or regulations;

• Held discussions with management involved in the compliance functions, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; and

• Reviewed the completeness and accuracy of associated disclosures made in the financial statements.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the key risks were related to the understatement of revenue, and management bias in accounting estimates and areas of the financial statements requiring judgement. Such areas include, but are not limited to, the depreciation of tangible fixed assets, the carrying value of inventory, the bad debt provision for trade debtors and the impairment of intercompany group debtors. Audit procedures performed by us included:

• Assessing the systems and controls in place, and whether any weaknesses were identified which could suggest or allow fraud;

• Challenging assumptions made by management in arriving at accounting estimates and judgements;

• Considering the appropriateness of the depreciation rates used and ensuring that these had been applied consistently for all assets within each class;

• Reviewing the net realisable value of inventory and whether any provision is required for obsolete stock;

• Designing and performing audit procedures to obtain sufficient appropriate audit evidence in relation to the completeness and cut-off of income;

• Reviewing post year-end receipts to ensure the recoverability of trade debtors; and

• Reviewing the performance of group companies to ensure that intercompany group debtors do not require impairment.

The audit has been planned and performed in such a way as to best identify risks of material misstatement, however, because of the inherent limitations of audit procedures there is a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. For example, whilst we have properly planned and performed our audit in accordance with auditing standards, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely audit procedures are to identify it. Also, the risk of not detecting an irregularity due to fraud is higher than the risk of not detecting one resulting from error, due to probable deliberate concealment, override of controls, collusion or misrepresentations.

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.

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 profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The Darent Wax Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 The Mills, Station Road, South Darenth, Kent, DA4 9BD.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; loan defaults or breaches;

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

The financial statements of the company are consolidated in the financial statements of The Darent Wax Group Limited. These consolidated financial statements are available from its registered office, 1 The Mills, Station Road, South Darenth, Kent, DA4 9BD.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (on dispatch of the goods), 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.

Tangible fixed assets 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 credited or charged to profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stocks are valued in the accounts on an average cost basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

The company only has financial instruments which are classified as basic financial instruments.

Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in profit and loss.

Bank loans are initially recorded at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The salaries of production staff are included within stock to accurately reflect all elements of production costs incurred. In order to calculate this, management increase the cost of finished goods by a flat 20%, to recognise the cost of direct labour invested into finished goods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation is calculated to write off the cost or valuation of assets over their estimated useful economic lives. See note 1.4 for specific rates.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

The above bank loans are secured by fixed and floating charges over the assets of the company dated 5 February 2014 and 9 May 2017.

The loan bears interest at a rate of 2.99% and will be fully repaid by May 2026 as a result of monthly repayments.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Hire purchase interest of £10,530 (2024 - £15,978) was incurred in the year. Finance leases are secured against the assets to which they relate.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

There is a fixed and floating charge dated 28 June 2021 over the assets of The Darent Wax Company Limited in respect of an amount due to a director of the parent company, The Darent Wax Group Limited. The amount owed by the ultimate parent company in respect of this security at 31 March 2025 is £Nil (2024: £640,000). This charge was satisfied on 1 May 2025.

In addition, there is also a fixed and floating charge in respect of a loan held by fellow group company, Darent Wax Properties Limited. The cross-guarantee under this charge is limited to £2,250,000 and dated 9 May 2017. The amount owed by the fellow group company under this guarantee at 31 March 2025 amounted to £1,233,772 (2024: £1,555,319).

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

In April 2025, a group restructure was undertaken with Darent Wax 25 Ltd becoming the new ultimate parent company. As a result of the restructure, two fixed and floating charges were created on 19 May 2025 over the assets of The Darent Wax Company Limited in respect of £2,043,694 due to two directors of Darent Wax 25 Limited.

The following amounts were outstanding at the reporting end date:

During the year, £2,068 was owed to The Darent Wax Company Limited by a director of the company (2024: £2,918).

At the year end, £nil (2024: £9,595) was owed to The Darent Wax Company Limited by Darent Wax SAS, an entity controlled by a member of key management personnel. During the year, a balance of £9,911 was expensed.

The company has taken advantage of the exemption provided in 33.1A of FRS 102 not to include details of transactions with 100% group companies.

At the year end, the parent company was The Darent Wax Group Limited by virtue of owning the entire share capital of the company. Their address is the same as that of The Darent Wax Company Limited.

Post year end, the ultimate parent company is Darent Wax 25 Ltd, by virtue of indirectly owning the entire share capital of the company. Their address is the same as that of The Darent Wax Company Limited.

There is no ultimate controlling party.