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Registered number: 02395270 OXERRA PIGMENTS UK LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
01483 755 399 hamlyns.com
OXERRA PIGMENTS UK LIMITED COMPANY INFORMATION
Directors | Timothy Southgate
| Kwan Yau Yu
| Kwan Ping David Yu
Registered number | 02395270
Registered office | Oxerra UK Limited
| Liverpool Road East
| Kidsgrove
| Stoke-On-Trent
| Staffordshire
| ST7 3AA
Independent auditors | Hamlyns Limited
| Chartered Accountants & Statutory Auditors
| Sundial House
| High Street
| Horsell
| Woking
| Surrey
| GU21 4SU
OXERRA PIGMENTS UK LIMITED CONTENTS
| Page
Strategic report | 1
Directors' report | 2 - 3
Independent auditors' report | 4 - 7
Statement of income and retained earnings | 8
Balance sheet | 9
Statement of cash flows | 10
Analysis of net debt | 11
Notes to the financial statements | 12 - 24
OXERRA PIGMENTS UK LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
Introduction
The directors present their strategic report for the year ended 31st December 2025.
Business review
The company made a loss after taxation of £672k (2024: £345k loss). Turnover has decreased by 25% to £9,583k due to the general market conditions in the industry. Net assets at 31 December 2025 were £8,665k (2024: £9,337k), the decrease being as a result of the loss for the year. Trade Debtors have decreased by £22k to £17k as a result of all sales now going through internal companies. Trade creditors have decreased by £554k to £651k predominantly due to decreasing stock purchases.
Principal risks and uncertainties
The company's principal financial assets are accounts receivable balances from fellow group undertakings. The company holds the majority of its receivable balances with trade debtors. As a result, the directors consider that credit risk is limited. The company purchases in foreign currencies and is therefore exposed to some foreign exchange risk; this risk is partially mitigated through sales in foreign currencies and foreign currency exchange at a group level. Development and performance Oxerra Pigments has continued to focus on the manufacture and research & development of its core Dispersions and CICP products during 2025 bringing new products to the market and widening its international customer base via the OXERRA Groups Global sales network. The company saw a solid financial performance in 2025 with particularly strong sales in 1st half of 2025.
Financial key performance indicators
Oxerra's key performance indicators allow the business to measure both the financial value created for its stakeholders and the strategic value in growing the business and delivering on its purpose.
The directors consider that the company has the following financial KPIs as a measure of its performance and position: 2025 2024 Change £'000 £'000 % Revenues 9,583 12,700 -25% Operating loss (672) (498) 35% Loss after tax (672) (345) 95% Equity shareholders' funds 8,665 9,337 -7% This report was approved by the board on 26 May 2026 and signed on its behalf.
___________________________ Timothy Southgate Director
Page 1
OXERRA PIGMENTS UK 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 judgments 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.
Principal activity
The principle activity of the entity is the production of organic pigments and food dyes.
Results and dividends
The loss for the year, after taxation, amounted to £672,233 (2024 - loss £345,395). No dividends have been recommended or paid post year end.
Directors
The Directors who served during the year were:
Timothy Southgate
Kwan Yau Yu
Kwan Ping David Yu
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. Page 2
OXERRA PIGMENTS UK LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Auditors
The auditors, Hamlyns Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 26 May 2026 and signed on its behalf.
Timothy Southgate Director
Page 3
OXERRA PIGMENTS UK LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA PIGMENTS UK LIMITED
Opinion
We have audited the financial statements of Oxerra Pigments UK Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows 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 loss 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.
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. Page 4
OXERRA PIGMENTS UK LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA PIGMENTS UK LIMITED (CONTINUED)
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 2, 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 5
OXERRA PIGMENTS UK LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA PIGMENTS UK 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: We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are the Companies Act 2006, the reporting framework of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and UK taxation legislation. We understood how the company was complying with those frameworks through discussions with management and those charged with governance. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. Based on our understanding of the entity and its environment we identified the following areas as key risks and designed our audit approach as detailed to ensure material misstatements and irregularities would be detected in these areas: Management over-ride: We undertook testing of controls and systems to gain assurance these have been operating as expected during the period. We also performed journal testing to test the efficacy of journals posted during the period. Additionally, we have reviewed the disclosures in the accounts and the Directors report to ensure they agree with our findings from the audit testing carried out. Related parties: Our testing in this area has followed the requirements of ISA 550 (UK). We have issued the Directors with related party declarations to fill out and sign and have compared the information gathered against our knowledge and used this as one way for identifying potential related party disclosures. We have reviewed the disclosure in the financial statements and ensured this agrees with our findings from our audit work. Revenue recognition: The main area of risk identified with Income recognition lies with cut off and completion of income. To ensure this is not materially misstated or manipulated we have carried out substantive testing on income cut off and completion. Stock: The main risk area in terms of stock is stock valuation. Substantive testing will be carried out on the stock balance to ensure it is not materially misstated. 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. Page 6
OXERRA PIGMENTS UK LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OXERRA PIGMENTS UK LIMITED (CONTINUED)
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. Oliver Spevack ACA FCCA (Senior statutory auditor) for and on behalf of Hamlyns Limited Chartered Accountants Statutory Auditors Sundial House High Street Horsell Woking Surrey GU21 4SU 27 May 2026 Page 7
OXERRA PIGMENTS UK LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | 2024
| £ | £
Turnover | 4 | 9,583,433 | 12,699,678
Cost of sales |  | (8,337,606) | (11,508,551)
Gross profit |  | 1,245,827 | 1,191,127
Administrative expenses |  | (1,918,060) | (1,689,557)
Operating loss | 5 | (672,233) | (498,430)
Interest payable and similar expenses | 8 | - | (903)
Loss before tax |  | (672,233) | (499,333)
Tax on loss | 9 | - | 153,938
Loss after tax |  | (672,233) | (345,395)
Retained earnings at the beginning of the year |  | 1,137,189 | 1,482,584
|  | 1,137,189 | 1,482,584
Loss for the year |  | (672,233) | (345,395)
Retained earnings at the end of the year |  | 464,956 | 1,137,189
Page 8
OXERRA PIGMENTS UK LIMITED REGISTERED NUMBER: 02395270 BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
|  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 1,455,687 |  | 1,634,977
Investments | 12 |  | 1,010,550 |  | 1,010,550
|  |  | 2,466,237 |  | 2,645,527
Current assets |  |  |  |  |
Stocks | 13 | 4,059,907 |  | 3,354,587 |
Debtors: amounts falling due within one year | 14 | 9,567,186 |  | 10,473,092 |
Cash at bank and in hand | 15 | 134,944 |  | 318,030 |
|  | 13,762,037 |  | 14,145,709 |
Creditors: amounts falling due within one year | 16 | (4,802,107) |  | (4,685,965) |
Net current assets |  |  | 8,959,930 |  | 9,459,744
Total assets less current liabilities |  |  | 11,426,167 |  | 12,105,271
Provisions for liabilities |  |  |  |  |
Other provisions | 17 | (2,761,212) |  | (2,768,083) |
|  |  | (2,761,212) |  | (2,768,083)
Net assets |  |  | 8,664,955 |  | 9,337,188
Capital and reserves |  |  |  |  |
Called up share capital | 19 |  | 2,999,999 |  | 2,999,999
Capital redemption reserve | 20 |  | 5,200,000 |  | 5,200,000
Profit and loss account | 20 |  | 464,956 |  | 1,137,189
|  |  | 8,664,955 |  | 9,337,188
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 May 2026.
___________________________ Timothy Southgate
Director
The notes on pages 12 to 24 form part of these financial statements. Page 9
OXERRA PIGMENTS UK LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Loss for the financial year | (672,233) | (345,395)
Adjustments for: |  |
Depreciation of tangible assets | 278,157 | 286,506
Impairments of fixed assets | - | 392,202
Interest paid | - | 903
Taxation charge / (credit) | - | (153,938)
(Increase)/decrease in stocks | (705,320) | 2,297,599
Decrease in debtors | 3,397 | 108,266
Decrease/(increase) in amounts owed by group undertakings | 193,778 | (2,641,839)
(Decrease)/increase in creditors | (663,972) | 232,224
Increase/(decrease) in amounts owed to group undertakings | 1,488,845 | (464,299)
(Decrease) in provisions | (6,871) | (7,049)
Corporation tax received | - | 153,938
Net cash generated from / (used in) operating activities | (84,219) | (140,882)
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (98,867) | (99,015)
Net cash from / (used in) investing activities | (98,867) | (99,015)
Cash flows from financing activities |  |
Interest paid | - | (903)
Net cash used in financing activities | - | (903)
Net (decrease) in cash and cash equivalents | (183,086) | (240,800)
Cash and cash equivalents at beginning of year | 318,030 | 558,830
Cash and cash equivalents at the end of year | 134,944 | 318,030
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 134,944 | 318,030
| 134,944 | 318,030
Page 10
OXERRA PIGMENTS UK LIMITED 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 | 318,030 | (183,086) | 134,944
| 318,030 | (183,086) | 134,944
Page 11
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | General information
Oxerra Pigments UK Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address are shown below: Registered number: 02395270 Registered address: Oxerra UK Limited, Liverpool Road East, Kidsgrove, Stoke-On-Trent, Staffordshire, England, ST7 3AA. 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 judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Exemption from preparing consolidated financial statements
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
| 2.3 | Going concern
The directors have gained assurances from the ultimate parent undertaking, Cathay Pigments Holdings Limited, that continued financial support will be provided. The ultimate parent company has shown its commitment to the directors that it will provide continuous and sufficient financial resources to the company for the foreseeable future, being a period of at least twelve months from approval of these financial statements. This will ensure liabilities are met as they fall due and will enable Oxerra Pigments UK Limited to carry on its business. The board of directors have concluded that the business will continue to demonstrate strong sales and increased levels of profitability throughout 2026. The demand for the companies key UK manufactured product ranges (Complex Inorganic Colour Pigments & Liquid Colorants) continues to be strong and has been further strengthened by the expansion of the Oxerra Group's sales network in both the UK and key global export markets. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. Page 12
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.4 | Foreign currency translation
Functional and presentation currency The Company'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.
| 2.5 | 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.
| 2.6 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.7 | 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. Page 13
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.8 | 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 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 Company in independently administered funds.
| 2.9 | Taxation
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 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 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.
| 2.10 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Page 14
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.11 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is 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 | - | maximum of thirty years
|  |  |  | Land | - | not depreciated
|  |  |  | Plant and machinery | - | maximum of fifteen years
|  |  |  | Tools and equipment | - | maximum of fifteen years
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.
| 2.12 | Impairment of fixed assets and goodwill
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
| 2.13 | Fixed asset investments
Investments in subsidiaries are measured at cost less accumulated impairment. Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
| 2.14 | 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. Work in progress and finished goods include labour and attributable overheads. 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 profit or loss. Page 15
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.15 | 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.
| 2.16 | 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 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 Company's cash management.
| 2.17 | 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.
| 2.18 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.19 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 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 Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Page 16
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.19 | Financial instruments (continued)
Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. 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 Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. 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. Page 17
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The directors have not made any critical accounting judgements in the process of applying the company's accounting policies, that could have a significant effect on the amounts recognised in the Financial Statements.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Sale of goods | 9,583,433 | 12,699,678
|  | 9,583,433 | 12,699,678
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 9,583,433 | 12,699,678
|  | 9,583,433 | 12,699,678
5. | Operating loss
| The operating loss is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange differences | 944 | 68,557
| Other operating lease rentals | - | 695
Page 18
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
6. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 15,750 | 15,000
7. | Employees
| Staff costs were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 2,428,940 | 2,010,304
| Social security costs | 260,692 | 209,779
| Cost of defined contribution scheme | 262,105 | 398,312
|  | 2,951,737 | 2,618,395
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Average number of employees | 58 | 54
8. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other loan interest payable | - | 903
|  | - | 903
Page 19
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
9. | Taxation
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Loss on ordinary activities before tax | (672,233) | (499,333)
| Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | (168,058) | (124,833)
| Effects of: |  |
| Capital allowances in excess of depreciation | (75,714) | (1,595)
| Other non-tax deductible items | 62 | 262
| Group relief | 243,710 | 126,166
| Tax refund | - | (153,938)
| Total tax charge/(credit) for the year | - | (153,938)
10. | Intangible assets
|  | Goodwill
|  | £
| Cost |
| At 1 January 2025 | 4,487,651
| At 31 December 2025 | 4,487,651
| Amortisation |
| At 1 January 2025 | 4,487,651
| At 31 December 2025 | 4,487,651
| Net book value |
| At 31 December 2025 | -
| At 31 December 2024 | -
Page 20
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
11. | Tangible fixed assets
|  | Freehold building | Plant and machinery | Land | Total
|  | £ | £ | £ | £
| Cost |  |  |  |
| At 1 January 2025 | 1,914,560 | 19,945,083 | 340,778 | 22,200,421
| Additions | 16,660 | 82,207 | - | 98,867
| At 31 December 2025 | 1,931,220 | 20,027,290 | 340,778 | 22,299,288
| Depreciation |  |  |  |
| At 1 January 2025 | 1,575,667 | 18,989,777 | - | 20,565,444
| Charge for the year on owned assets | 70,073 | 208,084 | - | 278,157
| At 31 December 2025 | 1,645,740 | 19,197,861 | - | 20,843,601
| Net book value |  |  |  |
| At 31 December 2025 | 285,480 | 829,429 | 340,778 | 1,455,687
| At 31 December 2024 | 338,893 | 955,306 | 340,778 | 1,634,977
12. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 January 2025 | 1,010,550
| At 31 December 2025 | 1,010,550
Page 21
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Holding
| Oxerra Australia Pty Ltd | 21 David Street, Dandenong VIC, 3175 | 100%
| Excalibur Realty UK Limited | Liverpool Road East, Kidsgrove, Stoke-On-Trend, ST7 3AA | 100%
| Oxerra Australia Pty's principal activity is to hold an investment in its subsidiary entity, Oxerra Pigments Pty Ltd, a company registered in Australia at 21 David Street, Dandenong, VIC, Australia, which is engaged in the blending, repackaging and sale of inorganic pigments. Excalibur's principal activity is to hold the land and buildings and plant and machinery purchases as part of the acquisition of the Elementis Plc Pigments business by the Company in 2007.
13. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Raw materials and consumables | 2,193,386 | 1,983,703
| Work in progress (goods to be sold) | 173,955 | 113,291
| Finished goods and goods for resale | 1,692,566 | 1,257,593
|  | 4,059,907 | 3,354,587
14. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 16,938 | 38,995
| Amounts owed by group undertakings | 9,372,606 | 10,275,115
| Prepayments and accrued income | 177,642 | 158,982
|  | 9,567,186 | 10,473,092
15. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 134,944 | 318,030
|  | 134,944 | 318,030
Page 22
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
16. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 650,593 | 1,195,357
| Amounts owed to group undertakings | 3,443,968 | 2,663,854
| Other taxation and social security | 279,456 | 392,317
| Other creditors | 48,910 | 116,122
| Accruals and deferred income | 379,180 | 318,315
|  | 4,802,107 | 4,685,965
17. | Provisions
|  | Dilapidation provision
|  | £
| At 1 January 2025 | 2,768,083
| Charged to profit or loss | (6,871)
| At 31 December 2025 | 2,761,212
| Following the closure of cadmium production at the Kidsgrove site in 2021 a review has been carried out on the necessary steps required to decommission the cadmium plant and as such a dilapidation provision has been entered into the accounts.
18. | Deferred tax note
Deferred tax assets in relation to fixed assets have not been recognised in 2025 as there is insufficient evidence that the assets will be recovered. Page 23
OXERRA PIGMENTS UK LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
19. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 2,999,999 (2024 - 2,999,999) Ordinary shares of £1.00 each | 2,999,999 | 2,999,999
20. | Reserves
Capital redemption reserve The capital redemption reserve as at 1 January 2025 was £5,200,000. There were no movements in the year. Profit and loss account Reserves as at 1 January 2025 were £1,137,189. The loss for the year is £672,233. No dividends were paid during the year ended 31 December 2025, resulting in a closing balance of £464,956.
21. | Pension commitments
The Company operates a defined contribution scheme for all employees. The pension charge for the year of £386k (2024: £364k) represents contibutions payable by the Company to the scheme. There was no outstanding or prepaid contributions at the begining or the end of the period.
22. | Related party transactions
| During the year the entity made sales amounting to £9,561,200 (2024: £12,450,813) to a fellow subsidiary Oxerra UK Limited. The balance owed by this fellow subsidiary at the year end is £7,217,086 (2024: £8,128,816). The Company owed £516,787 (2024: £516,787) to the subsidiary Excalibur Realty UK Limited as at the year end. The Company owed £237,343 (2024: £nil) to the parent Cathay Pigments Holding Limited as at the year end.
23. | Controlling party
The immediate parent company is Creambay Limited, a company incorporated in England and Wales. As at 31 December 2025 the ultimate parent undertaking of Creambay Limited was Cathay Pigments Holdings Limited, a company registered in the British Virgin Islands. The results of Oxerra Pigments UK Limited for the year ended 31 December 2025 have been consolidated in the financial statements of Cathay Pigments Holdings Limited, being the largest and smallest parent undertaking to prepare group financial statements.
Page 24