Company registration number 08399355 (England and Wales)
CHEM ARROW EUROPE LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
CHEM ARROW EUROPE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CHEM ARROW EUROPE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 1 -
31 December 2025
31 March 2025
Notes
£
£
£
£
Fixed assets
Intangible assets
3
117,926
162,146
Tangible assets
4
2,588
645
120,514
162,791
Current assets
Stocks
5
50,033
57,766
Debtors
6
239,522
251,865
Cash at bank and in hand
84,288
75,683
373,843
385,314
Creditors: amounts falling due within one year
7
(230,804)
(241,546)
Net current assets
143,039
143,768
Total assets less current liabilities
263,553
306,559
Creditors: amounts falling due after more than one year
8
(816,705)
(791,705)
Net liabilities
(553,152)
(485,146)
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
(554,152)
(486,146)
Total equity
(553,152)
(485,146)

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 2 April 2026 and are signed on its behalf by:
Mr NA Stoodley
Director
Company registration number 08399355 (England and Wales)
CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 2 -
1
Accounting policies
Company information

Chem Arrow Europe Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2-4 Packhorse Road, Gerrards Cross, Buckinghamshire, SL9 7QE.

1.1
Reporting period

These financial statements are prepared for a shortened reporting period of nine months to align with group reporting requirements. The comparative figures relate to a twelve‑month period and therefore are not wholly comparable with those of the current period.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.3
Going concern

The financial statements have been prepared on a going concern basis. The directors have considered the financial position of the company, its forecasts and available financial resources for a period of at least 12 months from the date of approval of these financial statements.true

Chem Arrow Europe Ltd is part of the wider MotulTech Group, following the acquisition of its immediate parent entity, Chem Arrow Corporation (USA), by MotulTech in October 2024. As part of a larger group structure, the company benefits from access to a broader pool of financial and operational resources. The directors' are confident that Chem Arrow Europe remains strategically important for the Group and group wide synergies would have positive impact on business performance in the future. The directors have received confirmation from Chem Arrow Corporation (USA) that financial support will be made available, if required, to ensure that the company is able to meet its liabilities as they fall due.

1.4
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer.

Sales of goods: Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recover able.

R endering of services: Revenue relating to the provision of services is recognised in the period in which the services are performed, by reference to the stage of completion.

Royalty income: Royalty income is recognised on an accruals basis according to the substance of the relevant agreements, and when it is probable that economic benefits will flow to the company.

CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 3 -
1.5
Research and development expenditure

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

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

1.6
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.7
Tangible fixed assets

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

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:

Leasehold improvements
25% reducing balance
Office equipment
25% reducing balance and 33% straight line

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.

1.8
Impairment of fixed assets

At each reporting period 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.

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.

CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 4 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

1.9
Stocks

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

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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.11
Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Basic financial assets

Debtors

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

Basic financial liabilities

Creditors

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

1.12
Taxation

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

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.

CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 5 -
Deferred tax

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.

1.13
Retirement benefits

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the average rates of exchange for each month. 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.

2
Employees

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

2025
2025
Number
Number
Total
8
9
3
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2025 and 31 December 2025
589,627
Amortisation and impairment
At 1 April 2025
427,481
Amortisation charged for the period
44,220
At 31 December 2025
471,701
Carrying amount
At 31 December 2025
117,926
At 31 March 2025
162,146
CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 6 -
4
Tangible fixed assets
Leasehold improvements
Office equipment
Total
£
£
£
Cost
At 1 April 2025
-
0
9,383
9,383
Additions
1,675
460
2,135
At 31 December 2025
1,675
9,843
11,518
Depreciation and impairment
At 1 April 2025
-
0
8,738
8,738
Depreciation charged in the period
69
123
192
At 31 December 2025
69
8,861
8,930
Carrying amount
At 31 December 2025
1,606
982
2,588
At 31 March 2025
-
0
645
645
5
Stocks
2025
2025
£
£
Work in progress
-
3,688
Finished goods and goods for resale
50,033
54,078
50,033
54,078
6
Debtors
2025
2025
Amounts falling due within one year:
£
£
Trade debtors
220,294
232,894
Amounts owed by group undertakings
1,350
-
0
Other debtors
17,878
18,971
239,522
251,865
CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 7 -
7
Creditors: amounts falling due within one year
2025
2025
£
£
Trade creditors
193,303
192,579
Taxation and social security
12,722
23,502
Other creditors
24,779
25,465
230,804
241,546
8
Creditors: amounts falling due after more than one year
2025
2025
£
£
Amounts owed to group undertakings
816,705
791,705

The balance represents promissory notes issued by Chem Arrow Corporation, the immediate parent undertaking based in the United States. These notes are unsecured, bear interest at a rate of 1.9 5% per annum, and are not repayable within twelve months from the date of approval of these financial statements. Accordingly, they have been classified as non-current liabilities in the current year after change in payment terms.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

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 loss for the period 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.

Senior Statutory Auditor:
Daniel Palmer FCA
Statutory Auditor:
Nunn Hayward LLP
Date of audit report:
2 April 2026
10
Operating lease commitments
As lessee
CHEM ARROW EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
10
Operating lease commitments
(Continued)
- 8 -

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

2025
2025
£
£
Total commitments
120,571
49,490
11
Events after the reporting date

Subsequent to the reporting date, the conflict in Iran and the wider Gulf region has continued to escalate, resulting in disruption to global energy flows. International reports indicate that the suspension of crude oil and natural gas supplies from the affected region has had a notable impact on Europe. In accordance with FRS 102 Section 32, these developments are considered non‑adjusting post balance sheet events. Management has assessed the situation and does not identify any material impact on the carrying values of assets or liabilities recognised at the reporting date.

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