ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 12329338

ALFA CHEMICALS GROUP LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

ALFA CHEMICALS GROUP LIMITED

COMPANY INFORMATION

Directors	Dr E K Wale
	R M Parr
	Dr T W Mathers
	S C Bungay


Registered number	12329338


Registered office	Arc House
	Terrace Road South
	Binfield
	Bracknell
	Berkshire
	RG42 4PZ


Independent auditor	James Cowper Kreston Audit
	Chartered Accountants and Statutory Auditor
	Apex
	Forbury Road
	Reading
	Berkshire
	RG1 1AX

ALFA CHEMICALS GROUP LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3 - 4
Independent auditor's report	5 - 7
Consolidated statement of comprehensive income	8
Consolidated balance sheet	9
Company balance sheet	10
Consolidated statement of changes in equity	11
Company statement of changes in equity	12
Consolidated statement of cash flows	13
Consolidated analysis of net debt	14
Notes to the financial statements	15 - 28

ALFA CHEMICALS GROUP LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

The company has two subsidiaries, Alfa Chemicals Limited and Alfa Chemicals Nordic ApS.

Business review and future developments

The Group operates in markets which remain highly competitive. Group turnover for 2025 increased by 6%, from £20.2m in 2024 to £21.4m in 2025. Profit after tax for 2025 increased by 39% from £225k in 2024 to £312k in 2025.

The results of the Group are predominately driven by the main operating subsidiary, Alfa Chemicals Limited (“ACL”).

ACL’s turnover increased by 5%, from £18.12m in 2024 to £18.98m in 2025.

Market conditions remained challenging throughout the year. In response, the Company continued to strengthen its resilience by deepening distributor relationships, expanding into new markets with new principals, and implementing targeted sales initiatives to drive organic growth. The manufactured product range launched in 2023 has continued to perform strongly, with an established global distribution network providing a platform for future growth.

Performance across the divisions reflected both opportunities and market developments. The Industrial division benefited from increased sales, driven by higher customer stockholding following the discontinuation of a significant product range early in the year. This was offset by a decline in the Pharmaceutical division, specifically in sales of legacy, custom-manufactured agricultural products supplied to US customers, which have become less viable in the modern commercial environment. Overall, this highlights the importance and strength of the Company’s diversified market exposure.

The Company continues to differentiate itself through a focus on service quality and reliability, which contributed to an increase in gross profit margins from 25% in 2024 to 26% in 2025.

Profit for 2025 decreased marginally by 1% to £0.6m, compared to £0.7m in 2024. The improvement in gross margin enabled the Company to broadly maintain profitability whilst absorbing higher operating costs. These cost increases reflect ongoing investment in people, systems and customer engagement, as well as the impact of inflationary pressures.

The company remains profitable, well-positioned within its markets and focused on strengthening relationships with key customer and supplier to support sustainable long-term growth and continued market resilience.

Principal risks and uncertainties

The Group seeks to manage the risk of losing Principals by the provision of added value services that they would be unable to provide. In addition the Group focuses on retaining and increasing its customer base by improving the service to customers by reducing response times in the supply of products and also in the handling of customer queries, while maintaining strong relationships and local representation with key customers.

The main financial risks arising from the Group's activities are credit risk, exchange rate and liquidity risk. These are monitored by the board of directors and were not considered to be significant at the balance sheet date.

The Group's policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made and to monitor payments against contractual agreements for existing customers.

The Group's policy in respect of exchange rate risk is to maintain bank accounts denominated in Euros and US Dollars to facilitate day to day trading transactions; exposure to movements in exchange rates is mitigated by transferring funds into sterling accounts on a timely basis.

The Group's policy in respect of liquidity risk is to maintain readily accessible bank deposit accounts to ensure the company has sufficient funds for operation.

Page 1

ALFA CHEMICALS GROUP LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Financial key performance indicators

Turnover, margin and net profit are the main measures used to monitor the performance of the Group. Each of these measures is discussed in the business review.

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

S C Bungay

Director

Date: 8 June 2026

Page 2

ALFA CHEMICALS GROUP 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.

Principal activity

The company, which is non trading, has two subsidiaries, Alfa Chemicals Limited and Alfa Chemicals Nordic ApS, which are engaged in the distribution of specialty raw materials from, primarily, overseas principals to the Pharmaceutical, Personal Care and Industrial markets.

Results and dividends

The profit for the year, after taxation, amounted to £311,809 (2024 - £225,078).

The directors did not recommend the payment of a dividend for the year.

Directors

The directors who served during the year were:

Dr E K Wale

R M Parr

Dr T W Mathers

S C Bungay

Directors' responsibilities statement

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.

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 the Group and of the profit or loss of the Group for that period.

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 judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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.

Page 3

ALFA CHEMICALS GROUP LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Engagement with employees

The Group is committed to promoting equal opportunities in employment. Its employees and job applicants will receive equal treatment regardless of age, disability, gender reassignment, marital or civil status, pregnancy or maternity, race, colour, nationality, ethnic or national origin, religion or belief, sex or sexual orientation.

The directors regularly engage with employees to seek their views and provide briefings and presentations on key developments and operating performance. Employees are encouraged to offer suggestions and views and to raise queries with directors and managers.

To aid in retention, a benefits package incorporating death in service and permanent health insurance, together with a contributory pension scheme is offered to all employees, in addition to salary. A discretionary bonus scheme and divisional incentive schemes are also available.

Political and charitable contributions

During the year the Group made charitable contributions of £33,183 (2024: £27,463). There were no political contributions.

Qualifying third-party indemnity provisions

The Group has maintained directors' liability insurance in respect of its directors.

Disclosure of information to auditor

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 and the Group's auditor is 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 and the Group's auditor is aware of that information.

Auditor

The auditor, James Cowper Kreston Audit, 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.

S C Bungay

Director

Date: 8 June 2026

Page 4

ALFA CHEMICALS GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS GROUP LIMITED

Opinion

We have audited the financial statements of Alfa Chemicals Group 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 analysis of net debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the Parent Company's affairs as at 31 December 2025 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

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 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.

Page 5

ALFA CHEMICALS GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS GROUP LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 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.

Matters on which we are required to report by exception

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.

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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

ALFA CHEMICALS GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ALFA CHEMICALS GROUP LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

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.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

∙Enquiry of management and those charged with governance around actual and potential litigation and claims;

∙Enquiry of management and those charged with governance to identify any material instances of non compliance with laws and regulation;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions.

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 Auditor's report.

Use of our report

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

Alexander Peal BSc (Hons) FCA DChA (Senior Statutory Auditor)

for and on behalf of

James Cowper Kreston Audit

Chartered Accountants and Statutory Auditor

Apex

Forbury Road

Reading

Berkshire

RG1 1AX

8 June 2026

Page 7

ALFA CHEMICALS GROUP LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	21,440,613	20,154,876
Cost of sales		(15,839,524)	(14,989,580)
Gross profit		5,601,089	5,165,296
Administrative expenses		(5,114,076)	(4,724,905)
Operating profit	5	487,013	440,391
Interest receivable and similar income		21,770	12,686
Interest payable and similar expenses		(5,596)	(48,845)
Profit before taxation		503,187	404,232
Tax on profit	9	(191,378)	(179,154)
Profit for the financial year		311,809	225,078

There was no other comprehensive income for 2025 (2024: £NIL).

The notes on pages 15 to 28 form part of these financial statements.

Page 8

ALFA CHEMICALS GROUP LIMITED

REGISTERED NUMBER: 12329338

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	10		909,991		1,139,884
Tangible assets	11		114,435		93,202
			1,024,426		1,233,086
Current assets
Stocks	13	2,302,096		2,711,058
Debtors: amounts falling due within one year	14	2,703,588		2,001,839
Cash at bank and in hand	15	1,717,853		2,007,911
		6,723,537		6,720,808
Creditors: amounts falling due within one year	16	(1,865,947)		(2,389,133)
Net current assets			4,857,590		4,331,675
Total assets less current liabilities			5,882,016		5,564,761
Provisions for liabilities
Deferred tax	17	(26,234)		(20,788)
			(26,234)		(20,788)
Net assets			5,855,782		5,543,973

Capital and reserves
Called up share capital	18	100	100
Profit and loss account	19	5,855,682	5,543,873
		5,855,782	5,543,973

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

S C Bungay

Director

Date: 8 June 2026

The notes on pages 15 to 28 form part of these financial statements.

Page 9

ALFA CHEMICALS GROUP LIMITED

REGISTERED NUMBER: 12329338

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Investments	12		7,477,785		7,477,785
			7,477,785		7,477,785
Current assets
Debtors: amounts falling due within one year	14	99		99
		99		99
Creditors: amounts falling due within one year	16	-		(300,000)
Net current assets/(liabilities)			99		(299,901)
Total assets less current liabilities			7,477,884		7,177,884


Net assets			7,477,884		7,177,884

Capital and reserves
Called up share capital	18	100	100
Profit and loss account carried forward		7,477,784	7,177,784
		7,477,884	7,177,884

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

S C Bungay

Director

Date: 8 June 2026

The notes on pages 15 to 28 form part of these financial statements.

Page 10

ALFA CHEMICALS GROUP LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Equity attributable to owners of Parent Company	Total equity
	£	£	£	£
At 1 January 2024	100	5,318,795	5,318,895	5,318,895

Profit for the year	-	225,078	225,078	225,078

At 1 January 2025	100	5,543,873	5,543,973	5,543,973

Profit for the year	-	311,809	311,809	311,809
At 31 December 2025	100	5,855,682	5,855,782	5,855,782

The notes on pages 15 to 28 form part of these financial statements.

Page 11

ALFA CHEMICALS GROUP LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2024	100	6,127,784	6,127,884

Profit for the year	-	1,050,000	1,050,000

At 1 January 2025	100	7,177,784	7,177,884

Profit for the year	-	300,000	300,000
At 31 December 2025	100	7,477,784	7,477,884

The notes on pages 15 to 28 form part of these financial statements.

Page 12

ALFA CHEMICALS GROUP LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	311,809	225,078
Adjustments for:
Amortisation of intangible assets	229,893	229,893
Depreciation of tangible assets	46,854	42,708
Loss on disposal of tangible assets	301	(29,040)
Interest paid	5,630	48,863
Interest received	(21,804)	(12,704)
Taxation charge	191,378	179,154
Decrease in stocks	408,962	138,845
(Increase)/decrease in debtors	(701,749)	767,149
(Decrease) in creditors	(193,139)	(679,095)
Corporation tax (paid)	(215,980)	(127,287)
Net cash generated from operating activities	62,155	783,564

Cash flows from investing activities
Purchase of tangible fixed assets	(74,131)	(20,186)
Sale of tangible fixed assets	5,744	29,040
Interest received	21,804	12,704
Net cash from investing activities	(46,583)	21,558
Cash flows from financing activities
Repayment of other loans	(300,000)	(1,050,000)
Interest paid	(5,630)	-
Associates interest paid	-	(48,863)
Net cash used in financing activities	(305,630)	(1,098,863)
Net (decrease) in cash and cash equivalents	(290,058)	(293,741)
Cash and cash equivalents at beginning of year	2,007,911	2,301,652
Cash and cash equivalents at the end of year	1,717,853	2,007,911

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,717,853	2,007,911
	1,717,853	2,007,911

The notes on pages 15 to 28 form part of these financial statements.

Page 13

ALFA CHEMICALS GROUP LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025	Cash flows	At 31 December 2025
£	£	£

Cash at bank and in hand	2,007,911	(290,058)	1,717,853
Debt due within 1 year	(300,000)	300,000	-
	1,707,911	9,942	1,717,853

The notes on pages 15 to 28 form part of these financial statements.

Page 14

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Alfa Chemicals Group Limited is a private company limited by shares and incorporated in England and Wales. Its registered head office is Arc House, Terrace Road South, Binfield, Bracknell, Berkshire, RG42 4PZ.

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 Group management to exercise judgment 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 following principal accounting policies have been applied:

2.2

Basis of consolidation

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.

2.3

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 15

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Foreign currency translation (continued)

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group 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 Group 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.

2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.7

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss 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 Group in independently administered funds.

Page 16

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 and the Group operate and generate 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;

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.9

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 the Group's share 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 amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life of 10 years.

2.10

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.

Page 17

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

Depreciation 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:

				Motor vehicles	-	3%	straight line per month
				Fixtures and fittings	-	2%	straight line per month

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 profit or loss.

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.12

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

2.13

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.

2.14

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.15

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.

Page 18

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.16

Financial instruments

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

Basic financial assets

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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic financial liabilities

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, other loans and loans due to fellow group companies 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.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

2.17

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.

Page 19

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

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

The preparation of the financial statements require management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Stock provisions

Provisions are estimated by the group in respect of specific stocks based upon the age of the stock and knowledge of known issues.

Turnover

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	16,450,965	13,694,510
Rest of Europe	4,451,038	4,089,026
Rest of the World	538,610	2,371,340
	21,440,613	20,154,876

Amortisation	229,893	229,893
Depreciation	46,853	42,702
(Profit)/loss on disposal of fixed assets	301	(29,040)
Exchange differences	51,928	20,868
Other operating lease rentals	82,123	136,096

Fees payable to the Company's auditor for the audit of the consolidated and Parent Company's financial statements	18,100	17,135
Taxation compliance services	4,100	3,875
Accounts preparation services	5,500	5,150

Page 20

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

		Group	Group
		2025	2024
		£	£


Wages and salaries	2,959,417	2,787,961
Social security costs	358,242	294,789
Cost of defined contribution scheme	150,826	136,096
	3,468,485	3,218,846

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

	2025	2024
	No.	No.

Trading	26	25
Administration	17	16

	43	41

8.	Directors' remuneration
		2025	2024
		£	£

	Directors' emoluments	814,169	754,592

	During the year retirement benefits were accruing to 4 directors (2024 - 4) in respect of defined contibution pension schemes.
	The highest paid director received remuneration of £188,878 (2024 - £182,975).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,932 (2024 - £9,106).
	The directors are considered to be the key management personnel of the company.

Page 21

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Corporation tax
Current tax on profits for the year	185,932	184,622
	185,932	184,622

Total current tax	185,932	184,622

Deferred tax
Origination and reversal of timing differences	5,446	(5,472)
Adjustments in respect of prior periods	-	4
Total deferred tax	5,446	(5,468)


	Tax on profit	191,378	179,154

Profit on ordinary activities before tax

503,187

404,232

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	125,797	101,058
Effects of:
Expenses not deductible for tax purposes	65,581	78,092
Adjustments in respect of prior periods	-	4
Total tax charge for the year	191,378	179,154

Page 22

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Intangible assets
	Group

		Goodwill
		£
	Cost
	At 1 January 2025	2,298,928
	At 31 December 2025	2,298,928
	Amortisation
	At 1 January 2025	1,159,044
	Charge for the year	229,893
	At 31 December 2025	1,388,937
	Net book value
	At 31 December 2025	909,991
	At 31 December 2024	1,139,884

Page 23

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.	Tangible fixed assets
	Group

	Motor vehicles	Fixtures and fittings	Total
	£	£	£
Cost
At 1 January 2025	38,501	467,162	505,663
Additions	-	74,131	74,131
Disposals	(38,501)	(70,224)	(108,725)
At 31 December 2025	-	471,069	471,069
Depreciation
At 1 January 2025	38,501	373,960	412,461
Charge for the year	-	46,853	46,853
Disposals	(38,501)	(64,179)	(102,680)
At 31 December 2025	-	356,634	356,634
Net book value
At 31 December 2025	-	114,435	114,435
At 31 December 2024	-	93,202	93,202

Page 24

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost
	At 1 January 2025	7,477,785
	At 31 December 2025	7,477,785

The investment represents 100% of the issued share capital of Alfa Chemicals Limited, a company incorporated in England. The company's principal activity is the distribution of specialty raw materials from, primarily, overseas principals to the Pharmaceutical, Personal Care and Industrial markets in the UK and Ireland. The registered address is: Arc House, Terrace Road South, Binfield, Bracknell, Berkshire, RG42 4PZ.

Alfa Chemicals Limited has an investment representing 100% of the issued share capital (€7,000, translated at the investment date of 1 January 2019) of Alfa Chemicals Nordic ApS, a company incorporated in Denmark. The company’s principal activity is the sale of raw materials for the chemical industry and its registered address is\ Bredgade 20A, 2nd Floor, DK-1260, Copenhagen, Denmark.

13.	Stocks
		Group	Group
		2025	2024
		£	£

	Finished goods and goods for resale	2,302,096	2,711,058

Page 25

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	2,546,914	1,906,902	-	-
Other debtors	79,320	23,176	99	99
Prepayments and accrued income	77,354	71,761	-	-
	2,703,588	2,001,839	99	99

15.	Cash and cash equivalents
		Group	Group
		2025	2024
		£	£

	Cash at bank and in hand	1,717,853	2,007,911

16.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Loan notes	-	300,000	-	300,000
Trade creditors	971,044	1,187,302	-	-
Corporation tax	34,335	64,383	-	-
Other taxation and social security	460,748	412,229	-	-
Other creditors	79,163	142,030	-	-
Accruals and deferred income	320,657	283,189	-	-
	1,865,947	2,389,133	-	300,000

Page 26

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

17.	Deferred taxation
	Group

	2025	2024
	£	£

At beginning of year	(20,788)	(26,256)
Credited/(charged) to profit or loss	(5,446)	5,468
At end of year	(26,234)	(20,788)

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

	Fixed asset timing differences	(26,234)	(20,788)
		(26,234)	(20,788)

18.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

100 (2024 - 100) Ordinary shares of £1.00 each	100	100

19.

Reserves

Profit and loss account

Includes all current and prior periods retained profits and losses.

20.	Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £150,826 (2024: £136,096).

Page 27

ALFA CHEMICALS GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Related party transactions
	The company has taken advantage of the exemption under FRS 102 not to disclose related party transactions with wholly owned group companies.

22.	Controlling party

The Group is controlled by the directors by virtue of their shareholding in the parent company.

Page 28