ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 01945954

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

COMPANY INFORMATION

Directors	Mr S I Francis
	Mr A J McMullen


Company secretary	Mr S I Francis


Registered number	01945954


Registered office	Unit 21 Empire Close
	Brickyard Road
	Aldridge
	West Midlands
	WS9 8UR


Independent auditors	PKF Smith Cooper Audit Limited
	Statutory Auditors
	Cornerblock
	2 Cornwall Street
	Birmingham
	B3 2DX


Bankers	HSBC Bank Plc
	South East Midlands Commercial Centre
	Church Green West
	Redditch
	Worcestershire
	B97 4EA

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of comprehensive income	9
Balance sheet	10
Statement of changes in equity	11
Notes to the financial statements	12 - 27

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Principal activities

The Company’s principal activities continued to be the manufacturing and sale of adhesives and adhesive application equipment.

Business review

We aim to present a balanced and comprehensive review of the Company's development and performance during the year, and its position at year-end. Our review is consistent with the Company's size and non-complex nature and is written in the context of the risks and uncertainties we face.

During 2025, the Company experienced a decrease in turnover due to a more challenging economic environment; however, it achieved an increase in gross margin. As a trusted UK manufacturer of industrial adhesives with a history spanning four decades, we have provided industry-leading adhesive solutions and delivered first-class service and support to our longstanding customer base. We have continuously evolved and expanded our product portfolio to cater for many industries, including automotive, commercial manufacturing, construction, foam, furniture, panel lamination, raised access flooring, and more. We strive to provide adhesive solutions that result in exceptional quality and performance. We are certified to ISO 9001 and ISO 14001; our commitment to quality management and environmental responsibility is at the core of everything we do. We are also proud holders of the EcoVadis Committed badge, reflecting our ongoing commitment to upholding industry-leading standards in safety, ethics, and sustainability.

Principal risks and uncertainties

As with many companies of our size, the business environment in which we operate remains challenging. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control. However, we will continue to show flexibility and respond to market conditions and opportunities as they arise. The ongoing military conflict in the Middle East has created significant disruptions across global supply chains. Chemique production setup allows us to safeguard product availability and to maintain a high level of supply reliability, even in the face of global instability. We have been moving quickly to secure the supply of all necessary products. Our objective is to maintain continuity of supply for our customers who rely on our products for essential, everyday needs.

Trade debtors are managed for credit and cash flow risks through policies governing the credit offered to customers and regular monitoring of outstanding amounts against time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

Management monitors and reviews exposure to the volatility of the US Dollar/Sterling and Euro/Sterling exchange rates to minimise it where possible.

Financial key performance indicators

We consider our key financial performance indicators to be those that communicate the Company's overall financial performance and strength: turnover and gross profit. During the year, the Company's turnover decreased by 3% to £15.8m from £16.3m, while gross profit remained at £5.81m. Overall, the directors are satisfied with the performance in 2025 and will continue to strive for future growth.

Page 1

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

This report was approved by the board on 18 May 2026 and signed on its behalf.

Mr S I Francis

Director

Page 2

CHEMIQUE ADHESIVES AND SEALANTS 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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company'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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £329,044 (2024 - £284,706).

Dividends of £34,452 (2024 - £85,290) were paid during the year.

Directors

The directors who served during the year were:

Mr M J McMullen (resigned 26 November 2025)

Mr S I Francis

Mr A J McMullen

Future developments

Attention in the short to medium term has been on managing cashflow and working capital in general with the directors of the opinion that the Company can continue to operate within its current and future financial parameters and so continue to meet its debts as they fall due.

The Company's longer term strategy for beyond 2025 is to maintain its market share and profitability and ultimately, to achieve some growth. The directors have continued to put measures in place to try and expand the markets in which the Company operates in order to achieve this. As such, the directors believe the Company to be a going concern and have adopted this assumption in preparing the financial statements.

Page 3

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Engagement with employees

The company maintained its practice of consultation and communication with employees both by formal and informal methods.

Disabled employees

The Company gives full consideration to applications for employment from disabled persons, to the training and promotion of disabled employees and to the continuation of employment from those becoming disabled.

Matters covered in the Strategic report

Details on the principal risks and uncertainties are contained in the strategic report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been interim dividends of £56,570 paid since the balance sheet date.

Auditors

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 on 18 May 2026 and signed on its behalf.

Mr S I Francis

Director

Page 4

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHEMIQUE ADHESIVES AND SEALANTS LIMITED

Opinion

We have audited the financial statements of Chemique Adhesives and Sealants Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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).

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 Auditors' 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 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHEMIQUE ADHESIVES AND SEALANTS LIMITED (CONTINUED)

Other information

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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic report or the Directors' report.

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

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.

Page 6

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHEMIQUE ADHESIVES AND SEALANTS LIMITED (CONTINUED)

Auditors' 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 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 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 Company and industry, we identified the key laws and regulations affecting the Company are:

• Companies Act 2006;
• Tax legislation; and
• Health and safety and employment legislation.

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 Company's 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, regulations and fraud;
• Reviewing legal expenditure in the year to identify instances of non-compliance with laws, 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 the valuation of stock.

It is the primary responsibility of management, with the 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.

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.

Page 7

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHEMIQUE ADHESIVES AND SEALANTS LIMITED (CONTINUED)

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.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.

Richard Haydon (Senior Statutory Auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors

Cornerblock

2 Cornwall Street

Birmingham

B3 2DX

20 May 2026

Page 8

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	15,828,454	16,288,498
Cost of sales		(10,018,450)	(10,477,304)
Gross profit		5,810,004	5,811,194
Distribution costs		(816,900)	(751,338)
Administrative expenses		(4,729,643)	(4,873,221)
Other operating income	5	121,402	24,674
Operating profit	6	384,863	211,309
Interest receivable and similar income	9	41,243	46,238
Profit before tax		426,106	257,547
Tax on profit	10	(97,062)	27,159
Profit for the financial year		329,044	284,706

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

The notes on pages 12 to 27 form part of these financial statements.

Page 9

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

REGISTERED NUMBER: 01945954

BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	12		3,600,503		3,695,021
Investment property	13		245,000		245,000
			3,845,503		3,940,021
Current assets
Stocks	14	1,905,580		1,858,618
Debtors: amounts falling due within one year	15	2,727,919		2,538,543
Cash at bank and in hand	16	2,859,982		2,443,524
		7,493,481		6,840,685
Creditors: amounts falling due within one year	17	(1,964,287)		(1,813,843)
Net current assets			5,529,194		5,026,842
Total assets less current liabilities			9,374,697		8,966,863
Provisions for liabilities
Deferred tax	18		(499,893)		(386,651)
Net assets			8,874,804		8,580,212

Capital and reserves
Called up share capital	19	45,000	45,000
Capital redemption reserve	20	5,000	5,000
Profit and loss account	20	8,824,804	8,530,212
		8,874,804	8,580,212

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 May 2026.

Mr S I Francis

Director

The notes on pages 12 to 27 form part of these financial statements.

Page 10

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024	45,000	5,000	8,330,796	8,380,796

Profit for the year	-	-	284,706	284,706
Dividends	-	-	(85,290)	(85,290)

At 1 January 2025	45,000	5,000	8,530,212	8,580,212

Profit for the year	-	-	329,044	329,044
Dividends	-	-	(34,452)	(34,452)
At 31 December 2025	45,000	5,000	8,824,804	8,874,804

The notes on pages 12 to 27 form part of these financial statements.

Page 11

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Chemique Adhesives and Sealants Limited, is a private company, limited by shares, incorporated in England and Wales. The address of the registered office is given in the company information section. The nature of the Company's operations and its principal activities are set out in the strategic report.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Chemique UK Limited as at 31 December 2025 and these financial statements may be obtained from Chemique UK Limited, Unit 21, Empire Close, Brickyard Road, Aldridge, West Midlands, WS9 8UR.

Page 12

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised on despatch of goods to customer.

2.4

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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2%
Leasehold land and buildings	-	over the term of the lease
Plant and machinery	-	10%
Fixtures and fittings	-	33%
Demo equipment	-	33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively, if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

2.5

Investment property

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of comprehensive income.

Page 13

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of comprehensive income.

2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment.

2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.9

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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Page 14

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.10

Creditors

Short-term creditors are measured at the transaction price.

2.11

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of comprehensive income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pound Sterling. The financial statements are rounded to the nearest £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within administrative expenses.

2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.14

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the lease term.

Page 15

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.15

Research and development

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 if 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.

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.

2.16

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

2.17

Pensions

Defined contribution pension plan

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.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.18

Equity instruments

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.

Page 16

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements in conformity with generally accepted accounting principles requires the Directors to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results in the future could differ from those estimates. In this regard, the Directors believe that the critical accounting policies where judgements or estimation are necessarily applied are summarised below.

Depreciation and residual values

The Directors have reviewed the asset lives and associated residual values of all the fixed asset classes, and in particular, the useful economic life and residual values of plant and machinery, and have concluded that straight line depreciation policy is more appropriate as it reflects the useful economic lives of assets and their residual values more reliably than the reducing balance depreciation policy.

Fair value of investment property

The Directors have reviewed the current market rents and investment property yields for comparable real estate and concluded that the value of investment property is appropriate.

Stock provision

Stock is stated net of provisions for slow moving and obsolete stock, the calculation of which includes judgements. The directors review these periodically to ensure slow moving and obsolete stock is identified and provisions are appropriately calculated.

Page 17

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Turnover

The whole of the turnover is attributable to the Company's principal activity.

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	12,677,770	12,595,072
Rest of Europe	1,499,866	2,080,924
Rest of the world	1,650,818	1,612,502
	15,828,454	16,288,498

5.	Other operating income
		2025	2024
		£	£

Net rent receivable	12,600	4,674
Government grants receivable	-	20,000
Research & development expenditure credit	108,802	-
	121,402	24,674

Research and development charged as an expense	14,259	19,027
Depreciation of tangible fixed assets	340,439	312,084
Exchange differences	(32,426)	27,999
Fees payable to the Company's auditor for the audit of the Company's annual financial statements	23,500	23,000
Other operating lease rentals	491,433	451,222
Defined contribution pension costs	312,545	302,611
Bad debt expense	79,422	29,978
Stock - impairment loss movement recognised in cost of sales	2,144	16,147
Loss on disposal of fixed assets	5,750	-

Page 18

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Wages and salaries	3,188,196	3,286,874
Social security costs	415,860	393,453
Cost of defined contribution scheme	312,545	302,611
	3,916,601	3,982,938

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Manufacturing	42	43
Sales and administration	17	16

	59	59

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	1,021,251	1,238,571
Company contributions to defined contribution pension schemes	66,433	65,249
	1,087,684	1,303,820

	During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £443,966 (2024 - £543,592).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £33,216 (2024 - £33,000).

Page 19

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

9.	Interest receivable
		2025	2024
		£	£

Other interest receivable

41,243

46,238

Corporation tax
Adjustments in respect of previous periods	(16,180)	-

Total current tax	(16,180)	-

Deferred tax
Origination and reversal of timing differences	113,242	(27,159)
Total deferred tax	113,242	(27,159)


	Tax on profit	97,062	(27,159)

Page 20

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.Taxation (continued)

Profit on ordinary activities before tax

426,106

257,547

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	106,527	64,387
Effects of:
Fixed asset differences	4,869	-
Expenses not deductible for tax purposes	22,518	21,806
Adjustments to tax charge in respect to prior periods	(16,180)	-
Tax credits	(20,672)	-
Adjustments in research and development tax credit	-	(113,352)
Total tax charge for the year	97,062	(27,159)

Factors that may affect future tax charges

The company has estimated losses of £203,000 (2024 - £738,000) available for carry forward against future trading profits.

11.	Dividends
		2025	2024
		£	£

Ordinary shares

34,452

85,290

Page 21

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Tangible fixed assets

	Land and buildings	Plant and machinery	Fixtures and fittings	Demo equipment	Total
	£	£	£	£	£
Cost
At 1 January 2025	2,259,176	4,234,905	387,539	39,015	6,920,635
Additions	37,809	173,068	25,793	15,001	251,671
Disposals	-	(11,500)	-	-	(11,500)
At 31 December 2025	2,296,985	4,396,473	413,332	54,016	7,160,806
Depreciation
At 1 January 2025	615,809	2,198,785	372,858	38,162	3,225,614
Charge for the year	45,184	287,466	7,295	494	340,439
Disposals	-	(5,750)	-	-	(5,750)
At 31 December 2025	660,993	2,480,501	380,153	38,656	3,560,303
Net book value
At 31 December 2025	1,635,992	1,915,972	33,179	15,360	3,600,503
At 31 December 2024	1,643,367	2,036,120	14,681	853	3,695,021

Land amounting to £199,000 (2024 - £199,000) has not been depreciated.

Included in the net book value of land and buildings is freehold £930,207 (2024 - £940,684) and leasehold of £705,785 (2024 - £702,683).

Page 22

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Investment property

		Long term leasehold investment property
		£
	Valuation
	At 1 January 2025	245,000
	At 31 December 2025	245,000

The directors have determined the fair value of the investment property as at 31 December 2025.

14.	Stocks
		2025	2024
		£	£

Raw materials and consumables	1,447,231	1,358,842
Work in progress	77,174	67,613
Finished goods and goods for resale	381,175	432,163
	1,905,580	1,858,618

The carrying value of stocks is stated net of impairment losses totalling £26,713 (2024: £24,289).

15.

Debtors

					2025	2024
					£	£


Trade debtors	2,010,552	1,881,191
Amounts owed by related undertakings	336,956	380,395
Other debtors	2,577	-
Deferred tax asset	20,672	-
Prepayments and accrued income	269,032	276,957
Tax recoverable	88,130	-
	2,727,919	2,538,543

Page 23

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.Debtors (continued)

Debtors due from related undertakings are unsecured, interest free and repayable on demand.

Trade debtors are stated net of a bad debt provision of £89,916 (2024: £29,731).

16.	Cash and cash equivalents
		2025	2024
		£	£

	Cash at bank and in hand	2,859,982	2,443,524

17.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Trade creditors	1,369,244	1,309,506
Corporation tax	3,415	16,180
Other taxation and social security	482,604	371,384
Accruals and deferred income	109,024	116,773
	1,964,287	1,813,843

18.	Deferred taxation

		2025
		£

	At beginning of year	(386,651)
	Charged to statement of comprehensive income	(113,242)
	At end of year	(499,893)

Page 24

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	(571,226)	(571,077)
Expenditure credit step restrictions	20,672	-
Losses and other deductions	50,661	184,426
	(499,893)	(386,651)

19.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

45,000 (2024 - 45,000) Ordinary shares of £1.00 each	45,000	45,000

20.

Reserves

Capital redemption reserve

The capital redemption reserve represents the nominal amount of share capital transferred to reserves arising on the purchase of its own shares in the Company.

Profit and loss account

The profit and loss account represents all current and prior period retained profits and losses, net of dividends paid and other adjustments.

21.	Contingent liabilities

The Company is subject to and is one of a number of Defendants in a High Court claim brought by a customer concerning the supply of a product. The Company was a part of the supply chain for that product and others forming part of that supply chain are also named Defendants. The claim is being defended and as such, at this stage no estimate of the claim’s financial effect on the Company can be provided. The financial effect on the Company is uncertain at this stage as to the amount or timing of any outflow.

Page 25

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Contracted for but not provided in these financial statements

67,746

23.	Pension commitments

The Company operates a defined contributions scheme. The assets of the scheme, are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted £312,545 (2024 - £302,611). Contributions totalling £nil (2024 - £nil) were payable to the fund at the balance sheet date and are included in accruals.


Not later than 1 year	383,799	433,796
Later than 1 year and not later than 5 years	960,700	968,991
Later than 5 years	321,105	402,957
	1,665,604	1,805,744

25.	Transactions with directors

During the year the company advanced £19,645 (2024 - £143,158) to the directors and the directors repaid £19,645 (2024 - £157,144). At the balance sheet date, the amount due to the company was £nil (2024 - £nil). The amounts advanced were interest free and held no conditions.

26.

Related party transactions

M J McMullen and A J McMullen are also directors of Chemique Adhesives Inc. a company under common control and incorporated in the United States of America. During the year the Company made sales to Chemique Adhesives Inc. of £1,415,256 (2024 - £1,370,730). At 31 December 2025, a balance of £336,956 (2024 - £380,395) was due to the Company from Chemique Adhesives Inc. During the year, purchases of £950 (2024 - £6,242) were made from Chemique Adhesives Inc. by the Company and at 31 December 2025, a balance of £Nil (2024 - £Nil) was due to Chemique Adhesives Inc. from the Company.

27.	Post balance sheet events

There have been interim dividends of £56,570 paid since the balance sheet date.

Page 26

CHEMIQUE ADHESIVES AND SEALANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

28.	Ultimate parent company

The immediate and ultimate parent company is Chemique UK Limited. M J McMullen is the ultimate controlling party by virtue of his controlling interest in that company.

The largest and smallest group in which results of the company are consolidated is that headed by Chemique UK Limited, a company incorporated in England and Wales.

The consolidated financial statements of this group are available to the public and may be obtained from Chemique UK Limited, Unit 21 Empire Close, Brickyard Road, Aldridge, West Midlands, WS9 8UR.

Page 27