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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
COMPANY INFORMATION
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LAKE CHEMICALS AND MINERALS LIMITED
CONTENTS
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LAKE CHEMICALS AND MINERALS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their Strategic Report for Lake Chemicals and Minerals Limited ("Lake" or the "Company") for the year ended 31 December 2025.
Lake is a Technical Distribution Specialist, selling specialty chemicals, ingredients, formulations and services providing real value for manufacturers and brand owners trading in industrial and life science markets. Sales are in the UK and Ireland, and export sales remain important. Driving increases in sales for exclusive Suppliers is directly linked to sustainable growth.
Customer facing sales Divisions offer services, ingredients and raw materials to markets including industrial, pharmaceutical, personal care and food. The common denominator is a unique and pervasive offering of technical, service and commercial value to enable the growth of customer businesses. Each Division has crafted a distinct set of implementable business strategies that are focussed on both the need to deliver sales now and into a sustainable future. Strategies are aligned to market needs through a continuous customer feedback loop where data is collected by a high performing technical and commercial sales team, then collated and trends analysed by the management team. Strategic direction is developed with exclusive global suppliers of speciality materials and by in house market analysis. Strategies developed through Lake’s own analysis of market opportunity are critical to long-term success. For example, ubispoke® is a strategy and brand launched in 2025 to fulfil needs of customers in the large niche pharmaceutical and agrochemical sectors for specific molecules required for advanced intermediates. Valysis® Epoxy is a strategy that concentrates on solutions for the industrial coatings market, specifically focussing on large niche SME industrial coating players. Strategies are implemented within a business culture of best-in-class. Excellent business infrastructure and capability have been developed over the last decade. It is the collaboration of internally networked support teams that enables successful strategy implementation. Ultimate Customer Value is a mission for a unique Lake commercial offering to customers. It is the business Vision to strive to achieve best-in-class performance that influences investment in capability and personnel. Market strategic insights uncover evolving technical commercial landscapes to provide meaning to end-product brand owners. Speciality ingredients and raw materials offer solutions that are realised through Lake’s investment in Research and Development, and manufacturing the finished product is unique. In this way, Lake is a true leader in the speciality distribution industry, standing out from competitors by offering customers a curated journey from ideation to fulfilment, what Lake calls Ultimate Customer Value. Investment in and utilisation of this capability takes time and at the close of 2025 Lake is in a strong position. Constant and significant investment is in employee skills. Experience and loyalty are embedded in Lake’s business culture. Your Growth Mindset, an asynchronous learning management system, continues to promote a solution seeking culture with training and education available to employees. Understanding employee wellbeing and providing personalised daily solutions increase job satisfaction. Lake has always understood the fundamental need of a chemicals business to protect the health and safety of employees. The most recent investment in personnel expands the provision of dedicated quality, regulatory, environmental, health and safety support for manufacturing in industrial, cosmetic, pharmaceutical and food sectors. Maximising the capacity utilisation of Lake’s manufacturing investment is converting a drain on profit into a profitable operation, and this activity was boosted significantly in 2025. It takes 2 to 3 years to develop a manufacturing capability from scratch. The coupling of R&D with finished product delivery under one roof provides customer delight. Lake is a company that intimately understands how to accelerate a successful journey for entrepreneurs.
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LAKE CHEMICALS AND MINERALS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Having a business model proven to be robust to the challenges of economic downturn and pandemic, it is increasingly important to focus on Operational Excellence to drive the growth in profit. The investment in modern ERP software in 2021 continues to reap rewards in productivity and improving customer satisfaction. As an expert in multiple fields, Lake embraces the AI revolution which is seen as a tool to clarify business decisions and improve productivity. The AI ecosystem at Lake protects customer data and complies with GDPR requirements. Receiving instant feedback on a variety of business scenarios is proving to be a useful application of AI in addition to evaluating large data sets. Lake’s cloud-based IT infrastructure is scalable and supports the needs of a growing business.
Development of credible ESG activity underpins a successful business. In 2025, Lake actively supported local schools through career development initiatives, including career workshops, mentoring sessions, and offering internship opportunities to help students achieve their aspirations. Lake has comprehensive Governance policies engaging with employees. Environmental and carbon reduction programmes have been reviewed and an achievable route map that meets Supplier, Customer and Government needs will be completed in 2026. The sudden and intermittent stalling of global and UK economies in 2025 at a time of significant investment for Lake provided a challenging environment. However, Lake has maintained market position whilst investing in capability and Lake’s unique business model seeks out success for customers and suppliers, ensuring sustainable long-term growth.
The lead into 2025 was challenging for business with a planned rise in employer NI and an economy weighed down with CGT increases and freezing of personal tax bands limiting available free cash. CPI inflation increased from 2.6% to 3.8% throughout 2025. Government investment did not impact economic progress on key promises. GDP growth started at a poor 1.1% in 2024, rose to 1.3% in 2025 and is forecast to achieve a meagre 1.4% in 2026 before the Middle East conflict. Controversy and U-turns in policy have plagued the government, further reducing confidence in the economy. The threat and implementation of tariffs by the USA deepened the reduction in business confidence. In total these measures made customers stall new product launches and reduced the available market. The Beauty and Health sectors were an exception. Businesses operating in defence benefitted from global turmoil. In total, economic conditions created a headwind for the growth of Lake in 2025.
The current conflict in the Middle East will have limited impact for Lake. Some sales will be postponed, and inevitable raw material and transport cost increases will be reviewed as they occur. UK GDP is expected to fall, and this challenging backdrop will limit growth in some sectors as customers respond yet again by deferring purchasing decisions. Key cost drivers for Lake are labour, energy, logistics, transport, and business premises while raw material costs vary across product types. Further increases in cost focus on compliance. The constant change in criteria by government implementing policy in plastic and waste packaging causes pervasive disruption as the business dedicates resource to respond. Carbon reduction exercises demand more resource. In a SME business with many suppliers located around the world, operating in multiple markets and with customers with varied expectations, the environmental compliance challenge can be considerable. In this difficult environment, Lake invested in resource, increasing cost whilst chasing growth in an unhelpful economy where historical repeat sales reduced. Lake responded to these challenges by developing new business strategies to increase success rate in a new dynamic of an unpredictable, slow economy. Agility of thinking and response is a strength of Lake. A wide range of activities were completed in 2025 that made Lake more robust and ready to take advantage of growth opportunities in 2026. For example, Marketing Insights and Communications was a high energy activity that saw the launch of an impactful website, meaningful posts on LinkedIn and the development of the ubispoke® and Valysis® brand strategies.
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LAKE CHEMICALS AND MINERALS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Lake is alert to the importance of secure GDPR whilst taking advantage of Artificial Intelligence opportunities. Cybercrime remains a constant threat and in addition to computer hardware and software meeting the highest standards, employees are constantly trained how to recognise and avoid phishing attacks. In comparison to prior years, unexpected foreign currency exchange rate variations were limited however these pose a limited threat to the business. Experience gained by managing currency events over previous years minimises impact. The most effective deterrent to risk is the continuous development of a transformational management team operating at the heights of trust and strategic performance. Considerable focus and investment were placed on training of Line Managers and superior capabilities will positively impact Lake’s performance in 2026.
The financial performance of Lake in 2025 was on one hand admirable and on the other disappointing. What has historically been considered as immaterial balance sheet items are now viewed as material. This is a transient occurrence on a business that is built for resilience. Employees rose to complex economic challenges, strategies were renewed, activity was high and the business became more robust, agile and capable. This positive energy was carried out in an economy that can be likened to trudging through heavy mud. Apart from one key sale deferred into 2026, sales maintenance was robust in comparison to 2024.
Lake’s strong business development capability supported by significant strategic investment augurs well for the future. The unique offer of Ultimate Customer Value is being recognised by more customers and suppliers as a game changer in technical distribution. Constant high value marketing and sales activities penetrate customer psyche and make Lake the customer’s first choice as the partner for growth. Bottom line profit will improve with increased manufacturing utilisation. Lake has the capacity to significantly increase sales using existing resource and infrastructure. The business culture amongst employees supports Drive, Teamwork, Growth Mindset and Freedom to operate within a rich operational Framework. The management team are pleased with Lake’s 2025 performance. Results were below expectations, however sales were maintained, and speciality margins realised. Strategic investments in infrastructure and employee development were made. Overheads and expenditure were controlled. Long term debt was paid off.
Turnover in 2025 decreased by 2% compared with 2024, Gross Profit decreased by 14% and Gross Margins were maintained. Overheads were 2% higher than 2024 and Operating Profit decreased by 109%. This financial performance is measured to be positive when taken in the context of a challenging economy.
Management of working capital continues to be important. Achieving an acceptable return on investment is the focus for 2026 and beyond.
This report was approved by the board and signed on its behalf.
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LAKE CHEMICALS AND MINERALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £39,588 (2024 - profit £520,358).
The directors do not recommend the payment of a dividend.
The directors who served during the year were:
The director has chosen to set out in the Strategic report information required to be included in the directors report including a review of the business and principal risks and uncertainties. An indication of likely future developments in the business and research and development activities are also included in the Strategic report.
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LAKE CHEMICALS AND MINERALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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LAKE CHEMICALS AND MINERALS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED
We have audited the financial statements of Lake Chemicals and Minerals Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Consolidated Analysis of Net Debt, and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the Parent 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.
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LAKE CHEMICALS AND MINERALS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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LAKE CHEMICALS AND MINERALS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)
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 Auditors' 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 Group 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.
Based on our understanding of the Group, Parent Company and the industry in which it operates, key laws and regulations that we identified included:
∙Companies Act 2006;
∙Tax legislation;
∙Health and safety and employment legislation;
∙Medicines and Healthcare Products Regulatory Agency (MHRA); and
∙Medical Regulation Acts.
We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
∙Management bias in respect of accounting estimates and judgements made;
∙Management override of controls; and
∙Posting of unusual journals or transactions.
We focused on those areas that could give rise to a material misstatement in the financial statements.
Our procedures included, but were not limited to:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
∙Performing audit work over the risk of management 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 bias, in particular obsolete and slow moving stock provisions.
It is the primary responsibility of management, with oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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LAKE CHEMICALS AND MINERALS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE CHEMICALS AND MINERALS LIMITED (CONTINUED)
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Statutory Auditors
Cornerblock
2 Cornwall Street
B3 2DX
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LAKE CHEMICALS AND MINERALS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 37 form part of these financial statements.
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LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
REGISTERED NUMBER: 04306904
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 37 form part of these financial statements.
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LAKE CHEMICALS AND MINERALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Lake Chemicals and Minerals Limited is a private company limited by shares incorporated in England and Wales, United Kingdom. The address of the registered office and the company's registration number are given in the company information of these financial statements. The nature of the Group's operations and principal activities are described in the Strategic Report on page 1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The financial statements are presented in Sterling which is the functional currency of the Group and rounded to the nearest £.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
After making enquires and considering the principal risks and uncertainties the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The directors have undertaken extensive financial modelling to consider the current uncertainty in the UK and global markets and has taken appropriate steps to safeguard the future operations and finances of the Group. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Financial Statements.
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are taken into account in arriving at operating profit.
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Computer software is amortised on a straight line basis over a useful economic life of 5 years.
Website development costs are amortised on a straight line basis over a useful economic life of 3 years.
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Consolidated Statement of Comprehensive Income during the period in which they are incurred.
Depreciation is charged on a straight line basis so as to allocate the cost of assets less their residual value over their estimated useful lives as follows:
Leasehold property improvements - 11%
Fixtures and fittings - 10-25% Office equipment - 10-33.3% Computer equipment - 33.3-50% Warehouse equipment - 20% Laboratory and kitchen equipment - 11-12%
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Derivative financial instruments ("derivatives") are used to manage risks arising from changes in foreign currency exchange rates relating to the purchase of overseas sourced products. In accordance with the Group's foreign exchange policy, the Group does not enter into derivatives for speculative purposes. Derivatives are stated at their fair value, being the estimated amount that the Group would receive or pay to terminate them at the balance sheet date based on prevailing foreign currency exchange rates. However the fair value of derivatives was not material so derivatives have not been recognised in these financial statements.
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument previously recognised in equity is retained in equity until the hedged transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is then transferred to the Consolidated Statement of Comprehensive Income.
Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Carrying value of stocks Management review the market value of and demand for its stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. Management use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the company's products and achievable selling prices.
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The whole of the turnover is attributable to the principal activities of the Group.
Analysis of turnover by country of destination:
Page 25
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 26
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 27
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Taxation (continued)
There were no factors that may affect future tax charges.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £
Page 28
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 29
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
14.Intangible assets (continued)
Page 30
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 31
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 32
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 33
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 34
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 35
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
23.Deferred taxation (continued)
Foreign exchange reserve
Profit and loss account
Page 36
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LAKE CHEMICALS AND MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Group contributes to defined contribution pension schemes on behalf of employees. The assets of the scheme are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £103,385 (2024: £104,197). Contributions totaling £13,366 (2024: £13,085) were payable to the fund at the Balance Sheet date and are included in other creditors.
At the year end, as part of its normal trading activities, the Group had entered into an agreement for the forward purchasing of $2,250,000 (2024: $2,225,000), €2,550,000 (2024: €400,000) and JPY4,500,000 (2024: JPYnil).
The director considers there to be no ultimate controlling party.
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