Company registration number 03896797 (England and Wales)
WATER TREATMENT PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
WATER TREATMENT PRODUCTS LIMITED
COMPANY INFORMATION
Directors
Mrs S Strom
Mr J Viström
(Appointed 5 February 2025)
Company number
03896797
Registered office
Bradbury House
Mission Court
Newport
Gwent
NP20 2DW
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
Bankers
HSBC
38 Gwent Square
Cwmbran
Newport
NP44 1XL
WATER TREATMENT PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
WATER TREATMENT PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

The results for the period and financial position of the company are as shown in the annexed financial statements. Turnover has increased by 3% whilst gross profit has increased to 58.2% from 58% in the prior year.

The balance sheet net assets have decreased from £10.3m to £10.2m.

The directors are satisfied with the company's performance in a market that remains challenging.

Principal risks and uncertainties

T he water treatment sector remains very competitive, and the directors believe that the market will remain this way in the foreseeable future. The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial instruments is monitored by the directors. The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company. The company does not use derivative financial instruments for speculative purposes.

Cash flow risk

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade and other receivables. The company manages credit risk in respect of t rade debtors by regularly monitoring credit limits and balances outstanding. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. 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.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company maintains a large amount of cash within its bank accounts. The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments. The company manages the balance outstanding as part of its overall working capital management. The company obtains the majority of fixed assets through outright direct payments.The board is cognisant of the company's working capital requirements and has concluded the facilities currently in place are appropriate to the size and complexity of operations.

Price risk

The company is exposed to p rice risk particularly chemical prices but manages this risk by giving due consideration to the chemical market place ensuring they are in contact with various suppliers who can offer the company competitive prices.

Future prospects

The company is focused on maintaining its industrial business, while always looking for new opportunities. 2025 has been another tough year with cost control and economic factors both domestic and around the world.

Cost control challenges have been maintaining our supply lines for raw materials and packaging, while trying to minimise the cost implications. The decision was made towards the end of 2025 to discontinue the leisure part of the business to allow us to concentrate on our industrial and test kits business for 2026.

Energy costs and wages continue to increase year on year and legislation continues to play a big part in this.

Despite these hurdles we are confident we will continue to be able to supply our customers through 2026 and beyond.

WATER TREATMENT PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

On behalf of the board

Mrs S Strom
Director
19 February 2026
WATER TREATMENT PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

Principal activities

The principal activity of the company in the year under review was that of chemical production and technical consultancy.

Results and dividends

The results for the year are set out on page 8. A fair review of the business is set out in the strategic report on page 1.

Ordinary dividends were paid amounting to £4,000,000 (2024: £2,3 00,000). The directors do not recommend payment of a further dividend.

Directors

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

Mr F Navjord
(Resigned 5 February 2025)
Mrs S Strom
Mr J Viström
(Appointed 5 February 2025)
Auditor

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

Statement of disclosure to auditor

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.

On behalf of the board
Mrs S Strom
Director
19 February 2026
WATER TREATMENT PRODUCTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -

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; 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.

WATER TREATMENT PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WATER TREATMENT PRODUCTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Water Treatment Products Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, 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 December 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 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' r eport 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.

WATER TREATMENT PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WATER TREATMENT PRODUCTS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

Auditor's responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and ISO standards;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

WATER TREATMENT PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WATER TREATMENT PRODUCTS LIMITED
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Mr John Griffiths (Senior Statutory Auditor)
for and on behalf of UHY Hacker Young
19 February 2026
Chartered Accountants
Newport
Statutory Auditor
Gwent
United Kingdom
WATER TREATMENT PRODUCTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
12,432,652
12,046,804
Cost of sales
(5,196,066)
(5,055,403)
Gross profit
7,236,586
6,991,401
Administrative expenses
(3,597,472)
(3,374,229)
Operating profit
6
3,639,114
3,617,172
Interest receivable and similar income
7
256,875
420,712
Profit before taxation
3,895,989
4,037,884
Tax on profit
8
(947,552)
(1,003,808)
Profit for the financial year
2,948,437
3,034,076

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

WATER TREATMENT PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
£
£
Profit for the year
2,948,437
3,034,076
Other comprehensive income
-
-
Total comprehensive income for the year
2,948,437
3,034,076
WATER TREATMENT PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
626,965
487,675
Current assets
Stocks
12
960,352
1,008,138
Debtors
14
1,786,768
1,645,107
Cash at bank and in hand
16
7,767,984
8,973,878
10,515,104
11,627,123
Creditors: amounts falling due within one year
16
(1,766,976)
(1,758,643)
Net current assets
8,748,128
9,868,480
Total assets less current liabilities
9,375,093
10,356,155
Provisions for liabilities
17
(151,426)
(80,925)
Net assets
9,223,667
10,275,230
Capital and reserves
Called up share capital
19
2,430
2,430
Capital redemption reserve
1,000
1,000
Profit and loss reserves
9,220,237
10,271,800
Total equity
9,223,667
10,275,230
The financial statements were approved by the board of directors and authorised for issue on 19 February 2026 and are signed on its behalf by:
Mrs S Strom
Director
Company Registration No. 03896797
WATER TREATMENT PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2024
2,430
1,000
9,537,724
9,541,154
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
3,034,076
3,034,076
Dividends
9
-
-
(2,300,000)
(2,300,000)
Balance at 31 December 2024
2,430
1,000
10,271,800
10,275,230
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
2,948,437
2,948,437
Dividends
9
-
-
(4,000,000)
(4,000,000)
Balance at 31 December 2025
2,430
1,000
9,220,237
9,223,667
WATER TREATMENT PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

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.

Stock valuation

At 31 December 2025 the company held stock of £960,352 (2024: £1,008,138). Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgement to be made.

Carrying value of fixed assets

The company's fixed assets had a cost of £1,944,258 (2024: £1,669,661) and had a carrying value of £626,965 as at 31 December 2025 (2024: £487,675). The depreciation policy is set out at 1.5 above; depreciation of £148,428 was charged to the profit and loss account during the year (2024: £136,032). The estimation of useful economic life can have a significant impact on the depreciation charge and on the carrying value of assets.

WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
2
Accounting policies
Company information

Water Treatment Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bradbury House, Mission Court, Newport, Gwent, NP20 2DW.

2.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

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

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

- Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash f low and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

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

- Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

Sdiptech AB (Publ) is the parent of the largest group of which the company is a member for which consolidated accounts will be prepared. Copies of the Sdiptech AB (Publ) accounts are available from its website at: http://www.sdiptech.se/investor-relations/financial-information.

2.2
Going concern

The company has remained profitable, achieving excellent results in 2025. The board has prepared forecasts and therefore is confident that the company will be able to meet its debts as they fall due for the foreseeable future and hence they are satisfied that it is appropriate to adopt the going concern basis of accounting.true

2.3
Turnover

Turnover represents amounts receivable for goods and services provided in the normal course of business net of VAT. Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for goods provided. Where goods are despatched prior to the year end then turnover is recognised within that financial year.

Revenue from the sale of goods 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.

WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2
Accounting policies
(Continued)
- 14 -
2.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

2.5
Tangible fixed assets

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

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

Plant and machinery
25% on reducing balance
Fixtures and fittings
20% on cost and 25% on reducing balance
Motor vehicles
25% on reducing balance

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.

2.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials purchased plus any costs to bring the stock item to its present condition and location.

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.

2.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

2.8
Equity instruments

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

2.9
Taxation

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

WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2
Accounting policies
(Continued)
- 15 -
Current 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

Deferred tax liabilities are generally recognised for all timing differences. Such 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.

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 profit and loss account, 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.

2.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

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

2.11
Retirement benefits

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

2.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

2.13
Foreign exchange

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.

WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
3
Turnover and other revenue

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

2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
11,834,070
11,492,149
Europe
482,401
438,649
Rest of the World
116,181
116,006
12,432,652
12,046,804
2025
2024
£
£
Other revenue
Interest income
256,875
420,712
4
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,925
16,250
5
Employees

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

2025
2024
Number
Number
Directors
1
1
Management/Supervisors
8
8
Admin/Sales
20
21
Production/Drivers
25
24
Total
54
54
WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,768,460
1,737,556
Social security costs
213,129
152,059
Pension costs
86,900
61,772
2,068,489
1,951,387
6
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
5,839
2,544
Research and development costs
1,997
7,114
Depreciation of tangible fixed assets
148,428
136,032
Loss/(profit) on disposal of tangible fixed assets
819
(1,152)
Operating lease charges
412,829
381,350
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
256,875
420,712
WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
939,018
1,032,039
Adjustments in respect of prior periods
(61,967)
-
0
Total current tax
877,051
1,032,039
Deferred tax
Origination and reversal of timing differences
36,098
(28,231)
Adjustment in respect of prior periods
34,403
-
0
Total deferred tax
70,501
(28,231)
Total tax charge
947,552
1,003,808

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:

2025
2024
£
£
Profit before taxation
3,895,989
4,037,884
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
973,997
1,009,471
Tax effect of expenses that are not deductible in determining taxable profit
1,119
587
Adjustments in respect of prior years
(27,564)
-
0
Deferred tax adjustments in respect of prior years
-
0
(6,250)
Taxation charge for the year
947,552
1,003,808
9
Dividends
2025
2024
£
£
Final paid
4,000,000
2,300,000
WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2025 and 31 December 2025
73,000
Amortisation and impairment
At 1 January 2025 and 31 December 2025
73,000
Carrying amount
At 31 December 2025
-
0
At 31 December 2024
-
0

11
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2025
1,142,714
272,586
254,361
1,669,661
Additions
281,161
8,626
-
0
289,787
Disposals
(15,190)
-
0
-
0
(15,190)
At 31 December 2025
1,408,685
281,212
254,361
1,944,258
Depreciation and impairment
At 1 January 2025
865,971
238,762
77,253
1,181,986
Depreciation charged in the year
94,746
9,405
44,277
148,428
Eliminated in respect of disposals
(13,121)
-
0
-
0
(13,121)
At 31 December 2025
947,596
248,167
121,530
1,317,293
Carrying amount
At 31 December 2025
461,089
33,045
132,831
626,965
At 31 December 2024
276,743
33,824
177,108
487,675
12
Stocks
2025
2024
£
£
Raw materials and consumables
960,352
1,008,138
WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
13
Cash at bank and in hand

Included within cash at bank and in hand is an amount of £7,767,984 (2024: £8,973,878) where the company has entered into a cash pooling arrangement with its ultimate parent company.

14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,427,064
1,449,707
Corporation tax recoverable
165,173
18,234
Other debtors
1,588
1,589
Prepayments and accrued income
192,943
175,577
1,786,768
1,645,107
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated Capital Allowances
152,166
81,694
Other - repayment
(740)
(769)
151,426
80,925
2025
Movements in the year:
£
Liability at 1 January 2025
80,925
Charge to profit or loss
70,501
Liability at 31 December 2025
151,426

The deferred tax liability set out above relates to accelerated capital allowances and is expected to reverse over the useful economic lives of the related assets.

WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
16
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
672,068
645,891
Amounts due to parent undertaking
205,741
171,949
Other taxation and social security
378,215
386,773
Other creditors
27,148
25,696
Accruals and deferred income
483,804
528,334
1,766,976
1,758,643
17
Provisions for liabilities
2025
2024
£
£
Deferred tax liabilities
15
151,426
80,925
151,426
80,925
18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,900
61,772

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.

19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,430
2,430
2,430
2,430

All ordinary shares rank pari passu.

WATER TREATMENT PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
20
Related party transactions

During the year the company made purchases of £73,133 (2024: £73,133) from its parent company Water Treatment Products Holdings Limited.

Also during the year, the company paid dividends of £4,000,000 (2024: £2,300,000) to Water Treatment Products Holdings Limited.

At the end of the year the company owed £205,741 (2024: £171,949 owed to) to its parent company Water Treatment Products Holdings Limited. These amounts were included within credit ors due within one year.

During the year the company was charged management fees from its ultimate parent company Sdiptech AB (Publ) of £72,488 (2024: £66,943).

21
Parent company and ultimate controlling party

The company is a 100% subsidiary of Water Treatment Products Holdings Limited.

Water Treatment Products Holdings Limited is 100% owned by Sdip Kimra Limited which is 100% owned by Sdip Holdings AB, a company registered in Sweden, which in turn is owned by Sdiptech AB (Publ) a company registered in Sweden and has shares listed on Nasdaq First North Premier in Stockholm. Therefore the Ultimate Parent Company at 31 December 2025 was Sdiptech AB (Publ).

Sdiptech AB (Publ) is the parent of the smallest and largest group of which the company is a member for which consolidated accounts will be prepared. Copies of the Sdiptech AB (Publ) accounts are available from its website at: http://www.sdiptech.se/investor-relations/financial-information.

There is no ultimate controlling party.

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