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

During the year the principal activity of the Company was the manufacture and supply of speciality chemicals.

The results for the year and the financial position of the Company are shown in the financial statements. Details on the Company’s financial performance are set out in the Financial key performance Indicators section of the strategic report.

The board of Directors are pleased with the results and financial position for the year. The Company is forecast to continue to be profitable in 2026.

Despite tough market conditions in 2025 all divisions within the Company have made significant contribution and although total gross profit was slightly behind budget, gross profit of 38.5% (2024: 38.3%) exceeded budget by almost 3 percentage points.

The success of the company is testament to the contribution of our employees. Their dedicated effort throughout the year has once again has proved invaluable and I would like to thank everyone involved.

The Directors are pleased to report that terms were agreed and contracts exchanged by the shareholders for the sale of 100% of the share capital of Airedale Group to Brenntag UK Holding Limited on 16th December 2025, subject to the usual regulatory approvals. The sale completed on 27th February 2026. The board see this as a positive step forward to enable the company to develop further and look forward to the exciting next chapter.

Credit risk

The Company manages credit risk by assessing each customer and applying credit limits using data from credit checking agencies. Limits are then reviewed on a regular basis by management to ensure the Company minimises its exposure to possible over trading with companies seen to be a credit risk.

Foreign exchange risk

The Company purchase chemicals in foreign currencies, and as such the Company recognise exposure to currency rate fluctuations. The Company has continued to adopt a strategy to forward purchase currency to minimise foreign currency rate fluctuations.

The board have continued the strategy to de-risk and forward purchase currency to protect gross margin.

Liquidity risk

The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The main risk arising from financial instruments is liquidity risk and, in this respect, cash flow is monitored by the Directors on a regular basis. Bank balances are structured to enable cash to be available when required.

Liquidity risk is impacted by the growth in outstanding intercompany balances; however, the Company maintains a strong financial position therefore this does not restrict the free flow of cash or delay the ability to meet immediate financial obligations.

Economic and political disruption

We continue to monitor economic and geo-political pressures that have the potential to have an impact on the business, including ongoing global conflicts and inflationary pressures and increases in the cost of living in the UK. We are continually monitoring supply chains and operations, not limited to, but including availability of products and the potential impact on supply chain costs and domestic costs impact by inflation.

The current business outlook shows that there is still a high demand for products we offer and changes to the economic environment could continue to increase this demand. We are structured well to optimise these opportunities and continue to review our cost / spend to ensure we run lean. We remain focused on supporting our teams during this period of rising costs.

Key performance indicators

Statement of comprehensive income

It remains a core focus that Key Performance Indicators (KPIs) are monitored to ensure the business performs in line with expectations. The three main financial indicators monitored are gross margin and percentage and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation). Other key performance indicators are shown below.

Revenue for the period ended 31 December 2025 was £77.3 million (2024 - £80.1 million). Revenue is generated from sales to both domestic and overseas markets. Revenue generated from overseas markets was £4 million (2024 - £4.7 million). We are confident in delivering growth in 2026.

Gross profit in the year amounted to £29.6 million (2024 - £30.7 million). Market conditions have again proved difficult in 2025, as commodity chemicals become more readily available and supply chain disruption lessens margin expectations reduce slightly as the focus on retaining volume becomes more important. We have had numerous successes in 2025, with new contract wins in quarter 2 and quarter 3. This has allowed us to increase volume on core products. We continue to approach the sales through our five divisions, and with expertise on product ranges, through product management, this allows us to grow margin in the end markets.

The Company uses adjusted EBITDA to monitor the company’s performance. Adjusted EBITDA for 2025 was £14.4 million (2024: £16.9 million). Adjusted EBITDA consists of Operating Profit of £10.5 million (2024: £13.5 million) adding back share-based payments of £2.0 million (2024: £1.7 million), depreciation of £1.7 million (2024: £1.5 million) and amortisation of £0.2 million (2024: £0.2 million).

Statement of financial position

Key Performance Indicators (KPIs) are investment levels, stock levels, debtor days (DSO) and liquidity.

Investment in tangible fixed asset amounted to £1.7 million (2024 - £1.6 million) during the year. Fixed assets projects were undertaken in line with budget.

Stock as at 31 December 2025 was £3.6 million (2024 - £3.8 million). Stock levels reduced slightly in line with expectations.

Trade debtors at 31 December 2025 were £11.1 million (2024: £10.5 million) and DSO was 49 days (2024: 48 days). The Company invests significant time into working capital management which is reflected in the DSO ratio, which is relatively consistent with prior year.

The Company continually monitors cashflow to ensure we convert EBITDA to cash efficiently and to ensure the Company has sufficient liquidity to meet the Company’s requirements.

Health and safety, quality and environmental

We have continued to work closely with the Health and Safety Executive and environmental bodies to ensure obligations are met.

Airedale operates their quality system under ISO14001 and ISO9001-2015 standards, demonstrating our commitment to operate the business under a 'best practice' philosophy.

During the year, we have continued our commitments to REACH legislation.

Under section 172 (1) of the Companies Act 2006, the Board has a duty to act in a way that would be most likely to promote the success of the Company for the benefit of the shareholders and in doing so have regard to:

a. The likely consequences of any decision in the long term;

b. The interests of the Company’s employees;

c. The need to foster the Company’s business relationships with suppliers, customers and others;

d. The impact of the Company’s operations on the community and the environment;

e. The desirability of the Company maintaining a reputation high standards of business conduct; and

f. The need to act fairly between members of the Company

As part of the Board’s decision making and review process, the Directors consider the potential impact of decisions on all stakeholders and consider the key stakeholders to be:

Employees

Our employees are our most important asset and maintaining a positive culture is important to the continued success of the Company. The Board regularly communicate the objectives and performance of the business and have frequent interactions with our staff on all matters relating to Health & Safety, Social and Environmental matters. The Board actively encourages suggestions from throughout the business on improvement ideas and fosters a cooperative and collaborative working environment.

Customers and Suppliers

We work closely with our customers and suppliers to develop collaborative and supportive relationships across all areas with a continual stream of improvement ideas to assist with improving business relationships both up and down the supply chain. We provide our customers with access to products from many different manufacturers and complement this supplier reach with value added services to support further growth and sustainability goals. The Company has strong relationships with both its customers and suppliers, built over many years of successful cooperation. The Board takes direct responsibility for many customer and supplier relationships which has delivered strong mutual benefits for all stakeholders, and this will continue to be a focus area in the future.

Shareholders

The Company communicates on a regular basis with its shareholders to ensure alignment with the objectives of the owners and to communicate on performance. The Board believes it has a good relationship with its shareholders, and they support the objectives of the business. During the prior year, the ultimate parent company, Airedale Newco Limited, issued Growth shares to shareholders and Directors of the Company. Further details are included in the notes to these financial statements.

Local Community and Environment

The Company places high importance on its role in the community and environment. In addition to ongoing direct investment in local initiatives such as providing and maintaining defibrillators in the local area, we also commit time to support local schools and charities. The Board has directly supported members of staff in fundraising and sponsorship and encourages employees in other activities in support of good causes. The Board has also invested in external support to develop, implement and manage its ESG strategy which will enhance the Company’s role in this area and continue to support the protection of and improvement of the environment.

Business Standards

The Board is committed to ensuring the business and its employees act in a responsible manner and maintain the highest standards of conduct. During the year, policies have been regularly reviewed and communicated to support this commitment.

On behalf of the board

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

The principal activity of the Company continued to be that of the manufacture and supply of speciality chemicals.

The results for the year are set out on page 11.

The profit for the year, after taxation, amounted to £8,859,915 (2024: £10,560,844).

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

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

Going Concern

The Company remains optimistic about its resilience and ability to continue to deliver strong operating profits and positive cash flows. Furthermore, the strength of the Company’s balance sheet means the Company is well placed to deal with any adverse market scenarios that may arise.

The Company produces regular forecasts, which include a quarterly review by the Board of Directors of current trading conditions.

There have been no significant changes in the Company’s principal activities in the year under review, and the Directors believe the business is ideally placed to fully realise its growth potential in the coming years.

At the time of preparing and date of approving these financial statements the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future for a period for at least twelve months.

As such the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The Company is engaged in research and development projects to support products supplied to our existing customer base and also in the development of new products as part of our ongoing strategy. The Company expensed £339,980 (2024: £448,601) to the income statement during the year ended 31 December 2025.

The Company has taken the exemption available to subsidiary companies not to disclose information in respect of greenhouse gas emissions, energy consumption and energy efficiency action given this is disclosed in the consolidated financial statements of the ultimate parent company, Airedale NewCo Limited.

Matters covered in the Strategic Report

Disclosures required under S416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the Directors consider them to be of strategic importance to the Company.

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

• So far as the Director at the date of approving this report is aware, there is no relevant audit information of which the Company’s auditor is unaware.

• 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 auditor is aware of that information.

BDO LLP were re-appointed as auditors during the year. They will be proposed for re-appointment for the next financial year.

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;

• 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.

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.

We have audited the financial statements of Airedale Chemical Company Limited (the 'Company') for the year ended 31 December 2025 which comprise of the following:

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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

Independence

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.

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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's ability to continue as a going concern.

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 Directors are responsible for the other information. The other information comprises the information included in the Annual report and financial statements, other than the financial statements and our auditor’s report thereon. 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.

Other Companies Act 2006 reporting

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.

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.

As explained more fully in Directors' responsibilities statement, 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 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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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:

Non-compliance with laws and regulations

Based on:

• Our understanding of the Company and the industry in which it operates;

• Discussion with management and those charged with governance; and

• Obtaining and understanding of the Company’s policies and procedures regarding compliance with laws and regulations;

we considered the significant laws and regulations to be the applicable accounting framework and UK tax legislation.

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be health and safety legislation, employment law, GDPR, statutory requirements, product safety standards and market compliance.

Our procedures in respect of the above included:

• Enquires of management whether there were any litigations and claims;

• Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;

• Review of financial statement disclosures and agreeing to supporting documentation; and

• Review of legal expenditure accounts to understand the nature of expenditure incurred.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

• Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

• Obtaining an understanding of the Company’s policies and procedures relating to:

  • Detecting and responding to the risks of fraud; and

  • Internal controls established to mitigate risks related to fraud.

• Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;

• Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

• Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted by these.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls, unusual journal entries in respect of revenue recognition and potential fraud relating to a lack of segregation in the payroll cycle.

Our procedures in respect of the above included:

• Testing a sample of journal entries throughout the year, which met defined risk criteria, by agreeing to supporting documentation;

• Testing a sample of revenue entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation; and

• Testing a sample of employees to supporting evidence to confirm existence of that employee.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

There was no other comprehensive income during the year (2024: £nil).

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

The notes on pages 14 to 32 form part of these financial statements.

The notes on pages 14 to 32 form part of these financial statements.

The notes on pages 14 to 32 form part of these financial statements.

Airedale Chemical Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Alpha House, Lawnswood Business Park, Redvers Close, Leeds, England, LS16 6QY.

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 amounts 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.

The 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. The Company has therefore taken advantage of exemptions 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 Airedale Newco Limited as at 31 December 2025. These consolidated financial statements are available from its registered office, Alpha House, Lawnswood Business Park, Redvers Close, Leeds, England, LS16 6QY.

The Company remains optimistic about its resilience and ability to continue to deliver strong operating profits and positive cash flows. Furthermore, the strength of the Company’s balance sheet means the Company is well placed to deal with any adverse market scenarios that may arise. true

The Company produces regular forecasts, which include a quarterly review by the Board of Directors of current trading conditions.

There have been no significant changes in the Company’s principal activities in the year under review, and the Directors believe the business is ideally placed to fully realise its growth potential in the coming years.

At the time of preparing and date of approving these financial statements the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future for a period for at least twelve months.

As such the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from the provision of goods is recognised when the risks and rewards of ownership of goods have been transferred to the customer. The risk and rewards of ownership of goods are deemed to have been transferred to the customer when the goods are delivered to, or are picked up by, the customer for UK based sales. For overseas based sales, the risks and rewards of ownership are deemed to have been transferred based upon relevant incoterms.

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:

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:

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.

Assets under construction are not depreciated. Once brought into use, they are transferred to the relevant category of tangible fixed assets, and depreciated at the rate detailed above.

At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

Intermediate bulk containers ("IBC's") are used in the business to transport certain chemicals to customers. Dependent on the type of chemical, the Directors are uncertain of the estimated useful life. The Directors have taken the prudent approach to write off IBC's in full in the year they are purchased.

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.

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, 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, 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.

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.

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.

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, including creditors and bank loans 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 payments 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. Amounts 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.

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 through 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.

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

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.

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

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.

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.

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

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Monte-Carlo model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

The share based payments are over the ultimate parent company's shares (being Airedale Newco Limited, during the year). Where options are issued by one group entity for settlement in its own shares, and these options are granted to employees of a subsidiary entity, the issuing entity recognises the charge as an increase in cost of investment, whilst the subsidiary recognises this as a capital contribution in the Statement of Changes in Equity.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases asset are consumed.

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.

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.

The following judgements (apart from those involving estimates) have had the most significant effect on the amounts recognised in the financial statements.

Assessed whether any indicators existed that the Company’s tangible assets may be impaired. This assessment considered factors such as the asset’s economic viability and its projected future financial performance. Where the asset forms part of a larger cash‑generating unit, the viability and expected future performance of that unit were also evaluated.

In the prior year, the ultimate parent company, Airedale Newco Limited, granted new Growth Shares to certain employees of the Company (Airedale Chemical Company Limited). The Growth Shares are split into various classes which each carry rights to participate in returns above certain hurdles.

Fair value of the Growth shares

The Growth Shares are fair valued at the grant date, and the resultant share based payment expense is spread over the expected vesting period of the instruments. The shares granted during the prior year were valued using the Monte Carlo model. This model requires a number of assumptions including the vesting period of the shares.

The key judgement in this calculation is the vesting period, which is discussed below. All other factors had limited bearing on the valuation of Growth Shares.

Share-based payment classification

The Growth Shares continue to be classified as equity-settled.

Vesting period

Growth Share holders will normally only be able to exercise their options in connection with certain “exit events”. These exit events include a “share sale” (i.e. where a purchaser acquires a sufficient number of the parent company’s shares to acquire control of the parent company) or a “listing” (i.e. where the shares of the parent company are listed on a stock exchange).

At the grant date, management considered 5 years from 31 December 2023 to represent a reasonable vesting period for the purposes of the share option valuation in the financial statements. However, as at the current reporting date, this assessment has been revised. Following the announcement of the proposed acquisition of the company after the year end, management now considers the remaining vesting period to be one month (2024: 18 months).

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

The share-based payment expense relates to the charge taken for equity-settled share-based payment arrangements which are settled in the ultimate parent company, Airedale Newco Limited. Further disclosures are not provided as a result of the disclosure exemptions detailed in note 1.1.

The company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the consolidated accounts of the ultimate parent company.

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

Their aggregate remuneration comprised:

The number of Directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2024: 6).

No Directors received any shares during the year in ultimate parent company under a long-term incentive scheme (2024: 4).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £16,035 (2024: £16,035).

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:

The corporation tax rate was 25% throughout the year. Deferred tax balances are recognised at at rate of 25% (2023 - 25%).

Patent and license costs relate to the cost of obtaining trade licenses, and these costs are amortised over the useful life of the licence.

The net carrying value of tangible fixed assets include the following in respect of assets held under finance leases or hire purchase contracts.

Impairment losses totalling £25,070 (2024: £nil) were recognised in the profit or loss.

There is no material difference between the replacement cost of the stock and the amounts presented above.

The impairment loss recognised in the profit and loss for the year in respect of bad and doubtful trade debtors was £50,662 (2024: £9,643).

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Amounts owed by group undertakings are presented as due within one year in line with statutory format Statement of Financial Position considerations of the Companies Act 2006. Key considerations include the funding not being provided to meet the capital requirements of the group undertaking and the legal repayable on demand position. The amounts are not though expected to be called within the next 12 months.

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Amounts owed to group undertakings are presented as falling due within year in line with statutory format Statement of Financial Position considerations of the Companies Act 2006.

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

At the reporting date, there are secured debt of £1,963,546 (2024: £1,881,060) included within creditors.

First legal Mortgage over the freehold property of Airedale Chemical Company Limited known as Airedale Mills, Skipton Road, Crosshills, Keighley dated 6 August 2012 in favour of HSBC.

Hire purchase creditors are secured on the assets to which the agreements relate.

The borrowings are repayable as follows:

• Term loan with HSBC commencing April 2020, repayable in monthly instalments over a period of ten years with interest payable at 3.35% over base rate.

• Term loan with HSBC commencing August 2020, repayable in monthly instalments over a period of ten years with interest payable at 3.35% over base rate.

• Term loan with HSBC commencing October 2020, repayable in monthly instalments over a period of ten years with interest payable at 3.35% over base rate.

HSBC borrowings are secured by a debenture comprising fixed and floating charges over all assets of the company.

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

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

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.

Contributions totalling £32,361 (2024: £33,098) were payable to the fund at the reporting date and are included within other creditors.

Share capital

Called up share capital represents the nominal value of the shares issued.

Capital contribution reserve

The capital contribution reserve represents contributions made by a parent company in relation to issuance of growth shares to employees of the Company.

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

There is a charge over the assets of the Company held by Alter Domus Trustees (UK) Limited as security agents in respect of the borrowings undertaken at the level of ultimate parent company, Airedale Newco Limited. This charge is held over all the assets in the group.

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

The Company has taken advantage of the exemption available in section 33.1A of FRS 102, whereby it has not disclosed transactions with the parent company or any wholly owned subsidiary undertaking of the group. Details of amounts outstanding at the year end are provided in notes 16 and 17.

As reported in the strategic report, Brenntag UK Holding Limited acquired 100% of the share capital of the ultimate parent company, Airedale NewCo Limited on 27th February 2026.  Completion of the sale happened after the 31 December 2025 reporting date and therefore is a non-adjusting event.  The transaction was completed on a cash free, debt free basis and its impact on the balance sheet has not been adjusted in these financial statements.

At the reporting date, the Company's immediate parent company is Airedale Group Holdings Limited and its ultimate parent company is Airedale Newco Limited.

Airedale Newco Limited is the smallest and largest group into which this company is consolidated. Copies of its financial statements can be obtained from its registered office at Alpha House, Lawnswood Business Park, Redvers Close, Leeds, England, LS16 6QY.

Following the sale of Airedale Newco Limited on 27 February 2026, the immediate parent company is still Airedale Group Holdings Limited. However, the ultimate parent company is Brenntag SE which is incorporated in Germany.