The directors present the strategic report for the year ended 31 December 2025.
Clariant Oil Services UK Ltd ('the Company') is a subsidiary of the global speciality chemicals business, Clariant AG ('the Group'). The Group is organised into three global business units: Catalysts, Adsorbents &
Additives and Care Chemicals. The Company is part of the Care Chemicals business unit.
Clariant’s strategic approach is a purpose led strategy, focusing on Customers, Innovation, Sustainability and People. This purpose led strategy underpins Clariant’s purpose with clear priorities and targets. Clariant has transformed its portfolio into a high value speciality chemical Company.
Clariant is committed to creating shareholder value and aims to develop towards the top quartile performance versus speciality chemical peers. Focus is on growing our markets and further improving profitability.
The Company received zero dividends within the year (2024 - £Nil).
The Company paid no interim dividend within the year (2024 - £Nil).
No final dividend was paid or proposed in the year (2024 - £Nil).
Turnover of the Company decreased by 13% in 2025 to £34,051,000 (2024 £39,288,000). The decrease is mainly due to a reduction in overseas sales moving closer to their respective market.
The results of the Company show a profit before taxation of £772,000 (2024 £5,426,000), The Company's assets exceeded its liabilities at the end of the year by £14,423,000 (2024 £13,817,000).
The marketplace within which the Company operates remains highly competitive and challenging. The Company will therefore continue to focus attention on remaining competitive by seeking new business, improving the efficiency of systems and processes, and controlling costs where applicable. It is envisaged that the Company will continue to trade profitably in 2026.
The Company's management is continuing to monitor the impact of the Middle East Conflict and its potential tensions on the business. Profitability and cashflow will move in line with sales and purchases, and the Directors are satisfied that the Company will have sufficient liquidity to continue its business for the foreseeable future.
As a supplier of chemicals and services to the oil industry, the Company is exposed to various general and sector specific risks. These include, but are not limited to, environmental, product and country risks. These are reviewed and managed with the assistance of specialists within the Group and external advisers. Specific risk evaluations may be carried out by functions such as Internal Audit, Environmental, Health and Safety and Legal. The Company maintains appropriate levels of insurance cover.
Environmental risks
Environmental and safety issues are addressed as part of the focus on sustainable development in all aspects of production, transport, distribution and use of products and services. The risks identified are routinely reviewed and regular audits monitor compliance with legislative requirements and Group guidelines.
Mandatory principles on Environment, Safety and Health ("ESH") are laid down in the Group's ESH regulations which form an integral part of business processes and strategic planning.
Corporate Sustainability & Regulatory Affairs have built on the Group's principles by drawing up an ESH strategy, a set of guidelines and targets that are mandatory worldwide and by assigning responsibilities. As well as complying with national laws and regulations, the ESH policy commits Clariant to ethical and sustainable operations in all business activities by participation in the Global Responsible Care initiative of the chemical industry.
Product Risks
The group’s integrated product policy ensures the inclusion of environmental and safety issues in all processes along the entire supply chain. From supplier selection to providing customers with comprehensive information and services. The Company ensures its products are used in ways that are safe, which minimize environmental impact and can be properly disposed of. The Company continues to ensure its products remain compliant with UK applicable regulations.
Country Risks
The Company is trading with partners in some countries which have higher than average socio-political risks. These risks are regularly reviewed, and appropriate measures are taken to mitigate where considered necessary. It should be noted that trading risk has been partially reduced as a result of overseas sales being strategically redirected closer to their respective markets, thereby limiting exposure to external market volatility.
The management team uses a series of KPls to monitor and manage performance against strategic objectives. The principal KPls include:
Growth of sales (%)
Control of selling, general and administrative overheads ("SG&A" costs) as a percentage of turnover Improvement in net working capital (debtor and stock days)
Turnover for the financial year was £34,051,000 which was 13% below the previous year due to a reduction in sales in overseas markets. SG&A costs as a percentage of turnover were 42% in 2025 compared to 26% in 2024. Within SGA costs is an increase in other operating expenditures.
Net working capital is monitored continuously to maximise cash flow, a dedicated treasury team monitor cash flow throughout the year. Trade receivables on hand reduced from 100 days in 2024 to 55 days in 2025.
Inventory days on hand increased from 40 days in 2024 to 41 days in 2025
As part of its commitment to its environmental health and safety obligations the Company monitors the lost time accident rate, which for 2025 was 0 (2024 – 0). A LTA is recorded where an employee is off work the day after an accident, and the rate is calculated per 200,000 hours worked. There were no prosecutions, major accidents or environmental incidents in the current or prior year.
Promoting the success of the company
In accordance with section 172 of the companies Act 2006, each of the directors acts in the way they consider, in good faith would promote the success of the company for the benefit of its members as a whole. In addition to Company law, Clariant provides a clear framework within which the directors must operate, and these are set out within the Clariant Bylaws of the Executive Steering Committee and the associated Terms of Reference. New Bylaws were introduced in 2023. The directors ensure that they act in good faith, using their own skill and judgement to assess the long-term consequences of their decisions, in order to promote the overall success of the Company. The directors recognise the need to fully engage with a diverse range of stakeholders and consider the interests of these groups when making decisions to ensure that they act fairly between members. The directors promote the Company's values and reinforce the Clariant Code of Ethics throughout the organisation to support employees and the wider workforce to act in line with these values and safeguard compliance with local regulations.
Employees
The strength of a business is built on hard work and dedication of its employees. The company focuses on the development and progression of employees through personal goals that are harmonised with the Companies core values. Learning and development programmes have been implemented to encouragee employees to up their skills and talents. Employment policies are in place to ensure there are equal opportunities for all without discrimination.
Customers
The Company continues to invest in their relationships with customers to understand their needs and view to develop and maintain long term partnerships ensuring value for money and customer satisfaction. The Company is focused on the highest level of service through the expertise of its employees.
Suppliers
The board recognises the importance of their supplier relations in order to sustain long term growth. The board seek to balance the benefit of a strong relationship with the suppliers along with the needs of other stakeholders. The board acknowledges its responsibilities to have robust processes and systems to ensure supplier payment terms are met.
Communities
The board recognises that as a responsible business, our impact on local communities and the environment influences our ability to grow sustainably. Creating opportunities to recruit and develop local people. The Company is committed to making positive contributions to local communities and make donations to charities and sponsored events throughout the year.
Government and Regulations
We focus on compliance with laws, regulations and health and safety. The board is updated on legal and regulatory developments and take these into account when considering future actions.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 11.
Details of dividends are given in the Strategic Report.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The directors' view on the future outlook for the Company is outlined in the Strategic Report.
Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements. In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.
The way we do business is a key element for our reputation. Clariant wants to be perceived as a world-class performance Company and, by the same token, as a reliable and integral partner of our stakeholders all over the world. We are convinced that sustainable business success is closely linked to compliance with laws, regulations and ethical standards, and in defining the management structure, organisation, and processes of the Clariant Group, the corporate governance principles aim to provide stakeholder value and transparency to promote this sustainable long-term success.
Both the Group and the Company are committed to local and international standards of corporate governance by following the respective statutory provisions and rules applicable in the UK.
The board of directors are ultimately responsible for the governance of the Company, but the Clariant Code of Ethics provides the comprehensive framework and outlines the compliance principles for all Clariant employees. Clariant does not tolerate any violation of the Code of Ethics and encourages employees to report non-compliance behaviour to the compliance organisation. The Company guarantees utmost confidentiality with a dedicated Integrity Line where reporting can be done anonymously. In addition, the Company actively promotes the Code of Ethics as an opportunity to conduct business in a sustainable way, ensuring good quality and ethical decision making across the organisation.
This streamlined Energy and Carbon (“SECR”) relates to the activities of Clariant Oil Services UK Ltd for the financial year 1st January 2025 – 31st December 2025.
The chosen intensity measurement ratio are the total gross emissions in metric tonnes CO2e per £M turnover and the per production volume (tonnes). In addition, the Total Energy (kWh) per production volume (tonnes).
The increase in total energy use during 2025 is due to a change in product mix which resulted in an increased use of raw materials that required warming before they could be processed.
Clariant Oil Services UK Ltd has been purchasing electricity that is from a supplier that guarantees 100% of its supply is from renewable sources since 2020. The guarantee is in the form of Renewable energy certificates (RECs).
Switching to electric Forklift Trucks has allowed the elimination of diesel as an energy source.
Operations Metrics
2025 2024
Production Volume/t 7,175 7,777
Turnover/£m 34 39
We have observed a small decrease in our overall energy usage and an increase in the intensity ratio attributed to a change in product mix with more raw materials requiring heating in the oven and heating chamber before processing through to finished goods.
Methodology
The chosen intensity measurement ratio are the total gross emissions in metric tonnes CO2e per £M turnover and the per production volume (tonnes). In addition, the Total Energy (kWh) per production volume (tonnes).
Carbon Reduction Incentives
Clariant Oil Services UK Ltd has been purchasing electricity that is from a supplier that guarantees 100% of its supply is from renewable sources since 2020. The guarantee is in the form of Renewable energy certificates (RECs).
Switching to electric Forklift Trucks has allowed the elimination of diesel as an energy source and the site is carbon neutral.
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
United Kingdom 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.
We have audited the financial statements of Clariant Oil Services UK Ltd (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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for 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' 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the trade;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company;
we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.
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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Clariant Oil Services UK Ltd ("the Company") manufactures and supplies chemicals and services to the oil industry, predominantly in the United Kingdom and Africa.
The Company is a private company, incorporated and domiciled in England, United Kingdom. The address of its registered office is Airedale House, 423 Kirkstall Road, Leeds, LS4 2EW.
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £'000.
As permitted by FRS 101, the Company has taken advantage of the following disclosure exemptions from the requirements of IFRS;
the requirements of paragraphs 45(b) and 46-52 if IFRS 2 Share Based Payments;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
Where required, equivalent disclosures are given in the group accounts of Clariant AG. The group accounts of Clariant AG are available to the public and can be obtained from Investor Relations at Hardstrasse 61, CH-4133, Pratteln, Switzerland.
The estimated useful lives range as follows:
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.
Assets under construction are not depreciated and are transferred to their appropriate category when they are available for use, at which point depreciation starts.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
At inception, the Company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the Company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the Company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the Company's estimate of the amount expected to be payable under a residual value guarantee; or the Company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(a) Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amounts and note 1.4 for the useful economic lives for each class of assets.
(b) Inventory provisioning
The Company manufactures and distributes chemical products which often have a finite shelf life. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 12 for the net carrying amount of the inventory and associated provision.
(c) Impairment of trade receivables
The Company makes an estimate of the recoverable value of trade and other receivables. When assessing impairment of trade and other receivables, management considers factors including the credit rating of the receivable, the ageing profile of receivables and historical experience. See note 13 for the net carrying value of the receivables and associated impairment provision.
(d) Provision for unpaid VAT in Angola
The company calculates a provision for unpaid VAT since the introduction of VAT in Angola in 2019. The impacted sales occurred between October 2019 and March 2023. The value of the provision is based on sales imported by the joint venture on behalf of Clariant Oil Services. The value of the provision is 14% import tax and 14% sales tax. There is also a provision for the amount of possible penalties and interest. The key judgements in making the calculation relate to which sales need to be included in the provision and the percentage of penalties and interest that will be levied. In making this provision the Company has obtained expert tax advice from a professional services firm and applied the relevant country specific requirements. See note 18 for the carrying amount of the provision.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
Only one director received remuneration through the Company for services. The other directors received no remuneration for their services to the Company during the year ended 31 December 2025 (2024 - £NIL). However, they are remunerated for their services to the UK Group and their costs are borne by a fellow subsidiary company, Clariant Services UK Ltd, and consequently no figures are included above.
The directors' emoluments paid by Clariant Services UK Ltd was solely in respect of duties under the directors contract of employment with Clariant Services UK Ltd and no separate directors’ fees are payable.
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
Tangible fixed assets includes right-of-use assets, as follows:
Stocks are stated after provisions for impairment of £194,000 (2024 - £95,000).
The difference between purchase price or production cost of stocks and their replacement cost is not material.
Trade receivables, which are all due within one year, are stated after provisions for impairment of £462,000 (2024 - £528,000).
Amounts owed by group undertakings represents trading balances, which are unsecured, do not bear interest and are payable in accordance with the Group's inter-company payment terms.
The group operate a cash pooling arrangement with interest payable as follows, Euro balances at €STR+0.75%, GBP balances at SONIA+2.5%, and USD balances at SOFR+0.29%.
Amounts owed to group undertakings represent trading balances, which are unsecured, do not bear interest and are payable in accordance with the Group's inter-company payment terms.
Included in amounts owed to group undertakings is a loan payable of £NIL (2024: £6,646,000) denominated in Euros, repayable on demand with no interest charged.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Deferred tax assets are expected to be recovered within one year.
The VAT provision arises from the introduction of VAT in Angola in 2019. A globally recognised specialist firm of international tax experts found that Clariant Oil Services UK Ltd had a VAT registration risk. Once the risk was recognised, sales to Angola were stopped. Sales commenced once customers agreed to import the goods themselves and therefore there is no risk going forward.
The value of the provision was originally based on sales imported by the joint venture on behalf of Clariant Oil Services UK Ltd, between October 2019 and August 2020. During 2023 it was identified that another customer was impacted by this issue where sales had been made between July 2021 and September 2022. The Directors have conducted a review of all customer relationships and have satisfied themselves that all affected transactions have been identified and provided for.
The value of the provision is based on 14% import tax and 14% sales tax. Based on information provided by the tax experts, the estimated penalties are accrued at 25%. Within the balance there is also a provision for possible interest charges.
The dilapidation provision arises from the legal obligation to reinstate leasehold properties to their original state at the end of the lease terms. It is envisaged that these amounts will be settled at the end of the leases.
The Company is a participating employer of the Clariant Pension Plan (the "Plan"), a scheme which is managed by an independent Trustee body and comprises Defined Benefit sections. This is a closed scheme, which being in a surplus position does not require funding from the Company.
On 31 December 2001 the existing Defined Benefit Section of the Plan was closed to new members and a new Defined Contribution Section of the Plan was established for new employees from 1 January 2002.
The details of the scheme are as follows:
The Clariant Pension Plan - Defined Benefit Section
The most recent actuarial valuation was carried out at 1 April 2024 by an independent actuary using the projected unit method. The review indicated that the value of the assets of the Plan exceeded the benefits earned up to the valuation date by £11,800,000. The valuation assumptions included a discount rate based on the WTW nominal gilt yield curve plus 0.25% per annum for non‑insured members and the WTW nominal gilt yield curve for insured members. Future pension increases are linked to inflation and are subject to the specific caps and floors applicable to each category of benefit. The market value of the Plan's assets was £271,500,000 as at 1 April 2024.
On 1 April 2016 the Defined Benefit Section of the Plan was closed for future accrual and all employees transferred to the Defined Contribution Section of the Plan.
IAS 19 disclosures
As permitted by IAS 19 'Employee benefits' the contributions paid by the Company to the Plan are accounted for as though to a defined contribution scheme. This arises since the share of assets and liabilities relating to the Company cannot be separately identified.
At 31 December 2025 the surplus of the Plan was £22,925,000 (2024 - £23,972,000). Full details of the Plan are provided in the financial statements of the principal employer, Clariant Production UK Ltd, which are publicly available.
Clariant Retirement Savings Scheme - Defined Contribution Section
The Defined Contribution Section is funded by the payment of contributions into personal accounts held under trust. These personal accounts are independent of the Company and are invested with a professional investment manager appointed by the Trustee. The charge against profit is the amount of employer contributions payable to the pension scheme in respect of the accounting year. On 31 October 2022, the Company closed the Defined Contribution Section of the Clariant Pension Plan and moved on 1 November 2022 into a new ‘Master Trust’ pension arrangement with Legal & General (‘’L&G’’), named the Clariant Retirement Savings Scheme (the “New Scheme”).