Company registration number 01016104 (England and Wales)
BASILDON CHEMICAL CO. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
BASILDON CHEMICAL CO. LIMITED
COMPANY INFORMATION
Directors
P Bering
D N Degville
M Price
Company number
01016104
Registered office
Kimber Road
Abingdon
Abingdon on Thames
Oxfordshire
UK
OX14 1RZ
Auditor
Xeinadin Audit Limited
Suite 2D Building 1
Eastern Business Park
St Mellons
Cardiff
CF3 5EA
BASILDON CHEMICAL CO. LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
BASILDON CHEMICAL CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Principal activities

The principal activity of the company continued to be that of the development, production, procurement and supply of a range of silicone and non-silicone based speciality chemicals and intermediaries to agreed specifications and to regulated markets including pharmaceuticals, food, and cosmetics.

Review of the business

The company reported an increase in sales in 2025 compared to 2024. The growth in sales was mostly driven by customers in Europe and the UK with a decline in the Middle East and USA.

The increase in demand in 2025 was caused by a stable market and share growth.

The company continues to manufacture silicone and non silicone based speciality chemicals and entered into a tolling service agreement with GmbH. Under the terms of this agreement, the Company provides manufacturing services for GmbH. The company received compensation for these services on a cost- plus fee basis.

In addition, the company continues to recognise the revenue with its customers, being charged by GmbH for the finished products associated with the sales.

Principal risks and uncertainties

The company is exposed to low levels of price, credit, liquidity and cashflow risk. The company manages these risks by financing its operations through retained profits and has access to a full range of financial support available from its parent company is the need should ever arise.

The management's objective are to retain sufficient liquid funds to enable it to meet its day to day trading requirements to minimise the company's exposure to fluctuation customer cash flow, and manages future cash flows expected to arise from the company's trading activities.

The company makes use of financial instruments other than an operation bank account so its exposure to price, risk, credit risk, liquidity risk and cashflow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.

Strategy for Growth

Basildon Chemical Co. Limited continues to strengthen the existing product portfolio through the technical resources within the company, the acquisition of complimentary products targeted at our key markets and by the utilisation of the significant Research and Development capabilities in Momentive Performance Materials that provides access to innovative and novel technology.

Momentive Performance Materials has continued to strengthen Basildon Chemical Co. Limited, in terms of geographic coverage and enhanced relationships with key customers. The expectation is an improvement in the global economy in 2026 resulting in improved orders and sales to our target customers and markets going forward.

In September 2018, MPM Holdings Inc, a global silicones and advanced materials company, and SJL Partners LLC, KCC Corporation and Wonik QnC Corporation (collectively, the "Investor Group"), entered into a definitive merger agreement whereby the Investor Group would acquire Momentive in a transaction valued at approximately $3.1 billion, including the assumption of net debt, pension and OPEB liabilities.

In January 2021 KCC Corp sold it Silicone division, including 100% of the shares in Basildon Chemical to MPM Holdings Inc. Subsequently the company was acquired by Momentive Performance Materials Holdings UK Limited. Based on the expected strategic synergy effects, the planned system and business integration combined with on-going development of our technology platforms will enable the company to grow the business and improve earnings going forward.

BASILDON CHEMICAL CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Key performance indicators

The company uses a range of performance measures to monitor and manage the business effectively. These are both financial and non-financial and the most significant of these are the key performance indicators (KPIs). The KPIs for the year ended 31 December 2025 with comparatives for 2024 and 2023 are summarised below:

|  |  |  | 2025 | 2024 | 2023
Gross Profit % |  |  | 16% | 20% | 16%
Turnover (£) |  |  | 25,109,870 | 24,463,384 | 24,108,475
Profit before tax (£) |  |  | 2,316,478 | 2,682,051 | 1,083,075

On behalf of the board

P Bering
Director
8 July 2026
BASILDON CHEMICAL CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P Bering
D N Degville
M Price
Research and development

The company develops specialist silicone and natural oil-based chemicals used in small but critical quantities across a wide range of applications. Its experienced R&D team supports both established products and the development and scale-up of new, high-value solutions, helping the company compete in niche markets and serve major global customers. Since its acquisition by Momentive Performance Materials in 2021, R&D activities have accelerated, leveraging the company’s unique expertise within a larger international group.

Post reporting date events

The directors confirm that no significant events have arisen since the year end.

Auditor

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the following matters:

- Principal activities of the company

- Business review including principal risks and uncertainties

- Strategy for Growth

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

BASILDON CHEMICAL CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
On behalf of the board
P Bering
Director
8 July 2026
BASILDON CHEMICAL CO. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; and

- 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 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.

BASILDON CHEMICAL CO. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BASILDON CHEMICAL CO. LIMITED
- 6 -
Opinion

We have audited the financial statements of Basildon Chemical Co. Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 UK, including the FRC’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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

BASILDON CHEMICAL CO. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BASILDON CHEMICAL CO. LIMITED (CONTINUED)
- 7 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

- The nature of the industry and sector, control environment and business performance including the company's performance targets and tenders for new contracts;

- Results of the enquiries of management about their own identification and assessment of the risks of irregularities;

- Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, provisions for foreseeable losses on contracts and value of stocks. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

BASILDON CHEMICAL CO. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BASILDON CHEMICAL CO. LIMITED (CONTINUED)
- 8 -

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reviewing correspondence with HMRC;and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Nigel Williams BCom FCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Chartered Accountants
Suite 2D Building 1
Eastern Business Park
St Mellons
Cardiff
CF3 5EA
8 July 2026
BASILDON CHEMICAL CO. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
25,109,870
24,463,384
Cost of sales
(21,194,251)
(19,639,976)
Gross profit
3,915,619
4,823,408
Distribution costs
(800,561)
(345,456)
Administrative expenses
(2,178,700)
(1,891,916)
Other operating income/(expenses)
871,901
(386,849)
Operating profit
4
1,808,259
2,199,187
Interest receivable and similar income
7
508,219
482,864
Profit before taxation
2,316,478
2,682,051
Tax on profit
8
(633,403)
(662,517)
Profit for the financial year
1,683,075
2,019,534

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BASILDON CHEMICAL CO. LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,823,767
5,136,746
Current assets
Stocks
12
335,617
254,300
Debtors
13
19,675,710
13,120,571
Cash at bank and in hand
2,532,893
2,252,247
22,544,220
15,627,118
Creditors: amounts falling due within one year
14
(7,030,086)
(1,324,663)
Net current assets
15,514,134
14,302,455
Total assets less current liabilities
21,337,901
19,439,201
Creditors: amounts falling due after more than one year
15
(27,342)
(24,517)
Provisions for liabilities
Deferred tax liability
17
746,995
534,195
(746,995)
(534,195)
Net assets
20,563,564
18,880,489
Capital and reserves
Called up share capital
19
100,000
100,000
Profit and loss reserves
20,463,564
18,780,489
Total equity
20,563,564
18,880,489

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 8 July 2026 and are signed on its behalf by:
P Bering
D N Degville
Director
Director
Company registration number 01016104 (England and Wales)
BASILDON CHEMICAL CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2024
100,000
20,718,205
20,818,205
Year ended 31 December 2024:
Profit and total comprehensive income
-
2,019,534
2,019,534
Dividends
9
-
(3,957,250)
(3,957,250)
Balance at 31 December 2024
100,000
18,780,489
18,880,489
Year ended 31 December 2025:
Profit and total comprehensive income
-
1,683,075
1,683,075
Balance at 31 December 2025
100,000
20,463,564
20,563,564
BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Accounting policies
Company information

Basildon Chemical Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kimber Road, Abingdon, Abingdon on Thames, Oxfordshire, UK, OX14 1RZ.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Momentive Performance Materials Holdings UK Limited. These consolidated financial statements are available from its registered office, 5 Cranfield Road Lostock Industrial Estate, Lostock, Bolton, BL6 4SB.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the value of goods and services supplied to customers in the ordinary course of business, net of value added tax, trade discounts, rebates and returns.

Revenue from the sale of manufactured chemical products is recognised at the point in time when control passes to the customer, which is generally on dispatch of the goods or, where contractually agreed, when the goods are made available for collection or delivered.

Revenue from services and ancillary activities is recognised over time as the services are performed, where the outcome can be estimated reliably, by reference to the stage of completion. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that costs incurred are expected to be recoverable.

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
Straight line over 3 years
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
Straight line over 40 years and Straight line over 30 years
Plant and equipment
Straight line 15 years
Fixtures and fittings
Straight line over 3-15 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

The company values all stock at average cost. More complex products have an overhead added to them using a standard basis of calculation. the more complex the product is to manufacture, the higher the overhead rate attributed.

Full provision is made for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

Bank overdrafts do not form part of cash and cash equivalents. Where overdrafts exist, they are classified as borrowings within current liabilities in the balance sheet.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible assets

The useful economic lives of tangible assets are reviewed annually. Where the review identifies a change in expected useful life due to technological developments, patterns of economic use or physical condition, the depreciation or amortisation charge is adjusted prospectively

Deferred taxation

Deferred tax is recognised on all timing differences arising at the reporting date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Other estimates

The directors review provisions for doubtful debts and inventory obsolescence annually, based on historical experience, current economic conditions and specific customer or stock‑related factors. Actual results may differ from these estimates.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
3,644,945
3,546,460
Europe
15,324,624
13,485,642
United States of America
328,608
702,705
South America
95,415
174,578
Middle East
2,112,272
2,668,298
Rest of World
3,604,006
3,885,701
25,109,870
24,463,384
2025
2024
£
£
Other revenue
Interest income
508,219
482,864
Royalty income
26,132
59,843
BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(758,633)
533,677
Research and development costs
435,681
434,925
Fees payable to the company's auditor for the audit of the company's financial statements
14,545
13,358
Depreciation of tangible fixed assets
556,104
553,923
Loss/(profit) on disposal of tangible fixed assets
5,996
(7,394)
Operating lease charges
274,092
231,190
5
Employees

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

2025
2024
Number
Number
Distribution & Admin
26
28
Manufacturing
32
30
Total
58
58

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
2,929,677
2,906,432
Social security costs
340,304
259,387
Pension costs
158,582
153,584
3,428,563
3,319,403
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
128,123
110,507
Company pension contributions to defined contribution schemes
8,697
13,826
136,820
124,333

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
4,483
(14,181)
Interest receivable from group companies
503,736
497,045
Total income
508,219
482,864
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
382,798
646,079
Adjustments in respect of prior periods
37,805
-
0
Total current tax
420,603
646,079
Deferred tax
Origination and reversal of timing differences
212,800
16,438
Total tax charge
633,403
662,517

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
2,316,478
2,682,051
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
579,120
670,513
Tax effect of expenses that are not deductible in determining taxable profit
1,744
310
Gains not taxable
-
0
(1,847)
Adjustments in respect of prior years
37,805
(22,819)
Double tax relief
(2,613)
-
0
Permanent capital allowances in excess of depreciation
17,347
-
0
Depreciation on assets not qualifying for tax allowances
-
0
(78)
Deferred tax adjustments in respect of prior years
-
0
16,438
Taxation charge for the year
633,403
662,517
BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
9
Dividends
2025
2024
£
£
Interim paid
-
0
3,957,250
10
Intangible fixed assets
Software
£
Cost
At 1 January 2025 and 31 December 2025
163,465
Amortisation and impairment
At 1 January 2025 and 31 December 2025
163,465
Carrying amount
At 31 December 2025
-
0
At 31 December 2024
-
0
11
Tangible fixed assets
Freehold property
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2025
3,955,002
8,308,069
1,131,150
13,394,221
Additions
-
0
1,154,155
94,966
1,249,121
Disposals
-
0
(1,467,453)
(13,941)
(1,481,394)
Transfers
-
0
(114,182)
114,182
-
0
At 31 December 2025
3,955,002
7,880,589
1,326,357
13,161,948
Depreciation and impairment
At 1 January 2025
1,389,312
5,955,940
912,223
8,257,475
Depreciation charged in the year
63,470
466,183
26,451
556,104
Eliminated in respect of disposals
-
0
(1,461,457)
(13,941)
(1,475,398)
At 31 December 2025
1,452,782
4,960,666
924,733
7,338,181
Carrying amount
At 31 December 2025
2,502,220
2,919,923
401,624
5,823,767
At 31 December 2024
2,565,690
2,352,129
218,927
5,136,746
BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
12
Stocks
2025
2024
£
£
Finished goods and goods for resale
335,617
254,300
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,196,478
3,333,915
Corporation tax recoverable
156,951
-
0
Amounts owed by group undertakings
15,104,214
9,094,313
Other debtors
1,017,147
522,033
Prepayments and accrued income
200,920
170,310
19,675,710
13,120,571

Included within amounts owed to group undertakings is a loan to a fellow subsidiary of £15,081,062 (2024: £7,828,093). The loan is repayable on demand. Interest is charged at the 3m Euribor rate plus a margin of 1.5%.

14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
1,071
-
0
Trade creditors
514,298
288,705
Amounts owed to group undertakings
5,871,164
40,595
Corporation tax
-
0
494,938
Other taxation and social security
75,281
61,598
Accruals and deferred income
568,272
438,827
7,030,086
1,324,663
15
Creditors: amounts falling due after more than one year
2025
2024
£
£
Other creditors
27,342
24,517
BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
16
Loans and overdrafts
2025
2024
£
£
Bank overdrafts
1,071
-
0
Payable within one year
1,071
-
0

The overdraft represents short term timing differences in the recognition of transactions of the company.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
746,995
534,195
2025
Movements in the year:
£
Liability at 1 January 2025
534,195
Charge to profit or loss
212,800
Liability at 31 December 2025
746,995

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
158,582
153,584

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Pension contributions outstanding and due at the year-end amounted to £27,342 (2024: £24,517).

BASILDON CHEMICAL CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
20
Operating lease commitments
As lessee

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

2025
2024
£
£
Within 1 year
268,790
487,924
Years 2-5
709,812
1,611,071
After 5 years
314,500
1,276,500
1,293,102
3,375,495
21
Ultimate controlling party

Momentive Performance Materials Holdings UK Limited is the immediate parent company and is the smallest group in which this company's results are consolidated: The registered office is:

Momentive Performance Materials Holdings UK Limited

5 Cranfield Road

Lostock Industrial Estate

Bolton

Lancashire

BL6 4QD

UK

KCC Corporation (incorporated in South Korea) is regarded by the directors as being the company's ultimate parent company and is the largest group in which this company's results are consolidated: The registered address and where the financials can be obtained:

KCC Corporation

344, Sapyeong-daero, Seocho-gu

Seoul

South Korea

2025-12-31 2025-01-01 false false false CCH Software CCH Accounts Production 2026.100 P Bering D N Degville M Price 01016104 2025-01-01 2025-12-31 01016104 bus:Director1 2025-01-01 2025-12-31 01016104 bus:Director2 2025-01-01 2025-12-31 01016104 bus:Director3 2025-01-01 2025-12-31 01016104 bus:RegisteredOffice 2025-01-01 2025-12-31 01016104 2025-12-31 01016104 2024-01-01 2024-12-31 01016104 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 01016104 core:RetainedEarningsAccumulatedLosses 2025-01-01 2025-12-31 01016104 2024-12-31 01016104 core:LandBuildings core:OwnedOrFreeholdAssets 2025-12-31 01016104 core:PlantMachinery 2025-12-31 01016104 core:FurnitureFittings 2025-12-31 01016104 core:LandBuildings core:OwnedOrFreeholdAssets 2024-12-31 01016104 core:PlantMachinery 2024-12-31 01016104 core:FurnitureFittings 2024-12-31 01016104 core:WithinOneYear 2025-12-31 01016104 core:WithinOneYear 2024-12-31 01016104 core:AfterOneYear 2025-12-31 01016104 core:AfterOneYear 2024-12-31 01016104 core:CurrentFinancialInstruments core:WithinOneYear 2025-12-31 01016104 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 01016104 core:ShareCapital 2025-12-31 01016104 core:ShareCapital 2024-12-31 01016104 core:RetainedEarningsAccumulatedLosses 2025-12-31 01016104 core:RetainedEarningsAccumulatedLosses 2024-12-31 01016104 core:ShareCapital 2023-12-31 01016104 core:RetainedEarningsAccumulatedLosses 2023-12-31 01016104 core:ShareCapitalOrdinaryShareClass1 2025-12-31 01016104 core:ShareCapitalOrdinaryShareClass1 2024-12-31 01016104 core:IntangibleAssetsOtherThanGoodwill 2025-01-01 2025-12-31 01016104 core:ComputerSoftware 2025-01-01 2025-12-31 01016104 core:LandBuildings core:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 01016104 core:PlantMachinery 2025-01-01 2025-12-31 01016104 core:FurnitureFittings 2025-01-01 2025-12-31 01016104 core:UKTax 2025-01-01 2025-12-31 01016104 core:UKTax 2024-01-01 2024-12-31 01016104 1 2025-01-01 2025-12-31 01016104 1 2024-01-01 2024-12-31 01016104 2 2025-01-01 2025-12-31 01016104 2 2024-01-01 2024-12-31 01016104 core:ComputerSoftware 2024-12-31 01016104 core:ComputerSoftware 2025-12-31 01016104 core:ComputerSoftware 2024-12-31 01016104 core:LandBuildings core:OwnedOrFreeholdAssets 2024-12-31 01016104 core:PlantMachinery 2024-12-31 01016104 core:FurnitureFittings 2024-12-31 01016104 2024-12-31 01016104 core:CurrentFinancialInstruments 2025-12-31 01016104 core:CurrentFinancialInstruments 2024-12-31 01016104 core:Non-currentFinancialInstruments 1 2025-12-31 01016104 core:Non-currentFinancialInstruments 1 2024-12-31 01016104 bus:OrdinaryShareClass1 2025-01-01 2025-12-31 01016104 bus:OrdinaryShareClass1 2025-12-31 01016104 bus:OrdinaryShareClass1 2024-12-31 01016104 core:BetweenTwoFiveYears 2025-12-31 01016104 core:BetweenTwoFiveYears 2024-12-31 01016104 core:MoreThanFiveYears 2025-12-31 01016104 core:MoreThanFiveYears 2024-12-31 01016104 bus:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 01016104 bus:FRS102 2025-01-01 2025-12-31 01016104 bus:Audited 2025-01-01 2025-12-31 01016104 bus:FullAccounts 2025-01-01 2025-12-31 xbrli:pure xbrli:shares iso4217:GBP