Syntor Fine Chemicals Limited

The principal activity of the company continued to be that of the supply of fine speciality chemicals. Going concern The business is trading profitably, but overall profit is reduced by management charges from the US and EU Group companies. Cash is managed through tight control of working capital. It is not reliant on external or wider group borrowings. The level of cash generation from last year is not expected to be repeated as sales are at a higher level in the final quarter than in 2024, which resulted in higher working capital at year end. The directors have reviewed the financial position of the Company and the cash flow forecast to 30 June 2026, taking into consideration the uncertainties arising from the economic environment and the possibility of a consequential unfavourable impact on trading. The directors have stress-tested the cash flow forecast by evaluating the cash flow forecast’s sensitivity to different levels of sales and working capital. Even after the effect of reasonably possible downside scenarios, including cost inflation arising from geographic/​​political risk and business interruption arising from supply chain issues, the business expects to remain cash-generative. On this basis the directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for at least 12 months from the date of the signing of these financial statements. Accordingly, the going concern basis has been adopted in preparing the financial statements.