Annual Report andConsolidated
Financial Statements
For the year ended 31 December 2023

Tato Holdings Limited
Registered No. 03258156

TATO HOLDINGS LIMITEDCONTENTS

Page
Company information

1

Strategic Report2

Directors’ Report

18

Statement of Directors’ Responsibilities

21

Independent Auditor’s Report

22

Consolidated Statement of Comprehensive Income

26

Consolidated Balance Sheet

27

Company Balance Sheet

28

Consolidated Statement of Changes in Equity

29

Company Statement of Changes in Equity

30

Consolidated Statement of Cash Flows

31

Notes to the Financial Statements

32 - 55TATO HOLDINGS LIMITEDCOMPANY INFORMATION

Directors

D A Hewitt (British)
P Hahn (German)
G De Lucia (Italian)
Q Zheng (Chinese)
R Baum (German)
D Siroky (American)
P J McDonald (British)
I Lobley (British) – Non-Executive Director
A Sanders-Champney (British) – Non-Executive Director (Appointed 30.06.2023)

Registered Office

Wincham Avenue
Wincham
Northwich
Cheshire
CW9 6GB

Auditors

Forvis Mazars LLP
One St Peter’s Square
Manchester
M2 3DE

Secretary

S Pearson-1-

TATO HOLDINGS LIMITEDSTRATEGIC REPORTFOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their strategic report for Tato Holdings Limited and its subsidiaries (collectively the“Group”) for the year ended 31 December 2023.
REVIEW AND ANALYSIS OF THE BUSINESS DURING THE CURRENT YEAR
The chemicals sector, in particular the European chemicals sector, has witnessed a decline in volumes during2023, and Tato has not been immune to this. During COVID, many of the sectors which the Group services
experienced strong increases in volumes and our customer-base built inventories in order to be able meet
unprecedented levels of short-term demand. In 2023, demand for our customers’ products fell considerably
driven by low consumer confidence caused by the cost-of-living crisis, high interest rates and rising inflation.
This demand crunch was further compounded by a need to reduce inventories across our customers’ supply
chain to conserve cash. The impact of this lower demand and de-stocking was a reduction in the Group’s
volumes of 4.3% year on year. However, similar to our customers, Management reacted to the volume
downturn early and took a decision to reduce inventories in order to protect cash. Production volumes were
down 8.9% year on year as a consequence.
Due to the macro-economic climate and the crisis in consumer confidence during 2023, the Group’s revenue
was down year on year for the first time following 13 years of consecutive growth. Turnover declined in theyear by 6.8%, on a constant exchange basis the reduction in sales was 5.2%. Volume was the primary reason
for this reduction, but price pressures during the second half of the year also contributed to the decline inturnover.
Uncertainty and a rapidly changing socio-political and macro-economic background have becomecommonplace in our trading environment and that of most industries. At Tato we recognise this, and ourbusiness processes and management systems have evolved to be able to adapt. Our strength lies in our people
and the freedom they are given to do what they believe to be right for our customers and for the business ingeneral. Our Executive Board provides strong leadership and direction, and our local business unit leaders
provide effective and flexible management allowing our workforce to be able to adapt rapidly to the everchanging customer demands and supply chain uncertainties.
The ongoing conflict in Gaza and the extent to which other countries across the Middle East are being drawn
in is a cause of concern for the Group. Whilst the Group does not have any employees in the affected countries,
we do have customers. Since the conflict started the Group continues to make sales in the region and has
implemented additional controls to monitor the ageing of receivables in affected and neighbouring countries.
To date, the Group does not have any concerns with regards to the recoverability of these debtors.
During 2023 raw material prices reached their peak and as demand dropped, so did raw material prices. At the
beginning of 2023, the Group was carrying high levels of inventory and in particular, high levels of strategic
raw materials which had been purchased at the height of the market. It took some months for these expensive
raw materials to work their way through inventories and during this time, with demand reducing across mostmarkets, sales prices were starting to fall. This combination of falling market prices and high value inventories
resulted in a margin impact for the Group in the first half year of 2023. During this time the Group continued
to service its customers and absorbed the margin impact until the high value inventories worked their way
through.
By the second half of 2023, raw material prices had started to decline and the Group no longer carried
expensive inventory and so there was a recovery in Gross Margin percentage. The second half year was thencharacterised by falling demand and pressure on selling prices as the market competed to secure businessagainst a backdrop of lower volumes.

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TATO HOLDINGS LIMITED

During the year, the Group secured some significant new business and was able to maintain its volume share
across most key customers, mitigating some of the decline in market volumes.
The Executive Board continues to develop and improve business processes as the business continues to growits Group functions. Having appointed a Group CFO in 2022, the Group appointed new Heads of Digital, Audit& Risk and Financial Planning & Analysis during 2023. During 2023 the Group re-vamped its budgeting
process and introduced a mid-year forecast monitoring process.
During this process, the Group identified the likely impact on EBITDA of lower market demand andcommunicated measures to protect profitability and conserve cash. Amongst these measures were delays tonon-essential capital expenditure, a drive to reduce inventories and controls around discretionary spend. The
measures were very successful in conserving cash and delivered a cash conversion ratio of 138%.
Despite the controls around cash, the business continued to invest in strategic, health & safety andenvironmental projects during 2023. These investments will deliver capacity growth and improve our ESG
credentials across all our regions in 2024 and beyond.
The Group continues to have a strong business model based around innovation, quality and high levels ofcustomer and technical service and it is this core that has seen us through another challenging year andcontinues our journey of long-term sustainable growth. Continuing this journey is a testament to the hard workand commitment of every single employee and I would again like to thank everyone for their dedication,
resilience, and ongoing passion to keep delivering for our customers.

Key performance indicators
The directors consider the significant financial key performance indicators for the Group to be as follows:

Activity indicators:
Margin indicators:
Working Capital indicators:

Organic Growth - Turnover
Organic Growth – Volumes
Gross Margin
EBITDA indicators
Average stock days
Average debtors days

2023
-7%
-4%
29.4%
16.4%
145
60

2022
+14%
-7%
32.9%
20.4%
210
57

Development and financial performance during the year
The Group turnover decreased by 6.8% in the year to €642,380,000 (2022: €688,906,000). This reduction insales was primarily volume driven. Price was, to a less extent, a factor in the sales reduction, offset by an
improved mix as our customers continue to move towards higher value, more regulated product solutions
across the market.
Volumes were lower than prior year across all our regions and all our strategic business units. The impact of
the cost-of-living crisis and customer de-stocking has been felt right across the Group, particularly during thesecond half of the year.
Sales prices remained relatively stable during the first half year, despite signs that raw material prices werebeginning to soften. During the second half year, however, with raw material availability high and prices
considerably lower than at the start of the year, the pressure on selling prices in the market, combined with theneed to maximise capacity utilisations, resulted in a marginal decrease in average selling prices.
Turnover suffered from currency translation losses in the year upon consolidation, mainly due to the weakeningof the Chinese Yuan, South African Rand and US Dollar against the Euro, somewhat mitigated by thestrengthening of the Mexican Peso. The combined effect of using 2023 exchange rates compared to 2022 rates
was to reduce turnover by €10,980,000 or 1.7%.

-3-

TATO HOLDINGS LIMITED

Gross Margin percentage in the year was 29.4% (2022: 32.9%), and the absolute level of Gross Profit was
down by 16.6%, driven by lower volumes. The Group started 2023 with high inventories, across a number ofstrategic raw materials, in keeping with its policy of buying long in times of raw material scarcity or supply
chain uncertainty, so as to protect our customers. Gross Margins were significantly adversely impacted during
the first five months of the year as the higher value inventories were sold through. The Group chose to absorb
most of the impact of these higher value raw materials, rather than passing them on to customers.
During the latter part of the second quarter of 2023, selling prices started to reduce, but this coincided with thecycling of our raw material inventories and cost of goods sold reduced to be in line with the rest of the market.
Gross Margin percentages therefore increased significantly during the second half of the year, despite lower
volumes and lower sales prices.
During 2023 the Group adopted a carefully managed inventory reduction policy in order to release cash fromthe balance sheet, whilst always ensuring that customer demand could be satisfied. This proved very
successful, and our inventories were reduced in a way that allowed us to keep ahead of the downturn incustomer demand. The decision to reduce inventories to release cash from the business compounded the impactof the drop in market volumes on our operations and resulted in a drop in production volumes of 8.9% vs prioryear.
The improved resilience and reliability of global supply chains during 2023 and the increased availability of
raw materials, coming from lower demand, made this inventory reduction policy possible and ensured we werestill able to service our customers.
Sales and distribution costs reduced by 4.6% from 2022, driven by lower volumes and a focus on discretionary
spend such as sales exhibitions and travel. This reduction was delivered despite wage inflation pressures being
felt across the business.
Administrative expenses increased by 4.6% in the year, and this was principally due to inflationary pressures,
particularly wage inflation, offset by a recruitment and travel freeze and savings in discretionary spend items.
Similar to turnover, the movements in the exchange rates during the year for the currencies used inconsolidation reduced sales and distribution costs by €582,000 and administration expenses by €140,000 overwhat they would have been if the rates had remained the same as 2022.
The combined effect of the above means that EBITDA for the year was 16.4% (2022: 20.4%) and the groupprofit before tax decreased to €88,220,000 (2022: €123,452,000).
For 2023 the underlying tax rate was 26.5% (2022: 24.8%). This increase is due to €667,000 more withholding
tax suffered on dividends and the geographical split of profit for the year.
The profit for the year after taxation was €64,858,000 (2022: €92,835,000). A dividend of €2 per share waspaid in April 2023 and one of €3 per share in October 2023 (2022: €3 per share in March 2022 and December2022) giving a total of €51,900,000 for the year (2022: €62,280,000). The Group experienced currencytranslation gains of €6,454,000 (2022: €4,694,000) on the consolidation of its non-Euro denominatedsubsidiary companies because of the exchange rate movements against the Euro between the beginning andthe end of the year. The balance of retained profit totalling €17,187,000 (2022: €34,021,000) was transferred
to reserves.
Working capital measures are focussed mainly on inventories and debtors where measurement is based on
average stock and debtor days and monitored on an entity-by-entity level.
Financial position at the reporting date
The consolidated balance sheet shows that the Group’s net assets at the year-end have increased from€630,430,000 to €647,617,000. The Group’s stockholding decreased by 29% to €157,011,000 (2022:-4-

TATO HOLDINGS LIMITED€219,897,000) as a result of lower inventory levels and a lower inventory cost per kilogramme from the lower
raw material prices in the market.
This business generated €67,313,000 cash in 2023 resulting in a balance of €156,933,000 (2022: €89,620,000)
and a cash conversion ratio of 138%. The measures which the Group put in place to reduce inventories anddelay non-essential capital spend to the following year, generated a very strong cash performance, despite
challenging trading conditions. From existing cash resources, the Group invested €21,901,000 (2022:€29,525,000) in fixed assets to expand capacity to meet future demand and improve processes. The Group also
paid dividends of €51,900,000 (2022: €62,280,000) to its shareholders, down 17% on previous year.

PRINCIPAL RISKS AND UNCERTAINTIES FACING THE BUSINESSManagement continually monitors the key risks facing the Group together with assessing the controls used for
managing these risks. During 2023, Management completed the recruitment of a new Group Head of Audit &Risk to bring more focus to the risk agenda and also approved a new Enterprise Risk Management process
which the new Group Head of Audit & Risk will implement in 2024.
The principal risks and uncertainties facing the Group are as follows:•Global economic conditions – macro-economic uncertainty and geo-political instability continues torepresent a key risk to the sales and profitability of the Group. The Group acknowledges the importanceof maintaining close relationships with its customers and suppliers, continually innovating and delivering/ demanding best in class quality and service. The prospects for the Group as a whole remain positive
because of this, as it seeks to improve efficiencies without compromising the high levels of service tocustomers.

•

Regulatory controls – many of the products manufactured by the Group are covered by strict regulatory
and registration regimes, such as UK BPR, European REACH, EPA in the US and COFEPRIS in Mexico.
The costs and capital expenditures relating to regulatory and registration matters are subject to evolving
requirements and changes in regulations could require extra work or capital expenditure. Consequently,
regulatory matters could result in un-anticipated costs or liabilities. The Group works to ensure that itcomplies with all applicable environmental, regulatory, employment and health and safety legislation andcommunicates any relevant matters to appropriate staff to ensure risk is minimised.

•

Competitor pressure – the Group sells its range of products in a competitive, global environment, andcompetes worldwide for sales on the basis of product quality, price, technology and customer service.
Increased levels of competition could result in lower prices or sales volume, which could have a negative
impact on the Group’s results. The Group manages this risk by innovating and providing quality productsthat meet the customer’s needs and by providing excellent levels of technical service.

•

Chemical safety – concerns regarding the safe use of chemicals in commerce and their potential impact on
health and the environment reflect a growing trend in demands for increasing levels of product safety andenvironmental protection, resulting in more restrictive regulations and legislation. These concerns could
also influence public perceptions on the desirability of certain products in the market. As governments
continue to propose new regulations relating to chemical safety, the security of chemical plant locations
and the transportation of hazardous chemicals could result in increased costs and capital expenditure for
the Group.

•

Cyber security – A significant failure or interruption in our IT networks and systems could have a
detrimental impact on our business. Cyber-attacks could result in disruption of service to our customers ordata theft. A failure to appropriately process, store or share information could result in the loss ofintellectual property, or the theft of data. We continue to review and invest where appropriate in the-5-

TATO HOLDINGS LIMITED

development and maintenance of our IT infrastructure, systems and processes and information security.
We operate a firewall and antivirus software, monitor any attempted breaches and take action where
necessary to ensure our infrastructure remains robust and appropriate. Furthermore during 2023, the Grouphas recruited a new Group Head of Digital Transformation who is working to ensure the appropriate levelof IT controls and cyber security across all Group entities.
•

Raw material availability and supply chain disruption – operating within a Global supply chain, we havea reliance on our supply chain partners to manufacture and deliver to our production requirements. We
continually monitor and have dialogue with these partners, seek out stable long term supply agreements
and approve multiple supply partners where possible.

•

Exposure to foreign exchange movements – as a global business operating across many countries andmany currencies, Tato is exposed to foreign exchange rate risk. The Group operates a general policy of
not hedging and prefers to take the positive and negative impact of exchange movements as they occur.
However, where the Group has specific market positions or exposures, the local Management teams havethe flexibility to hedge on a short term basis. In order to further consolidate our position and validate our
non-hedging policy, the Group has undertaken a three month treasury optimisation project during 2023
and produced a Group Treasury policy to guide business behaviour.

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENTAt Tato, we understand the importance of minimising our business impact on the environment, including on
our climate. We recognise that climate change poses profound challenges to our business, our stakeholders,
and the global community. We are committed to playing our part in the transition to a low-carbon economy
while ensuring the long-term resilience and success of our company.
The Group is required to report under the Streamlined Energy and Carbon Reporting (SECR) requirements for
its UK operations. The Group fully endorses the principles of the regulations and so has decided to extend
them to cover the Group as a whole. The table below therefore outlines the data for the Group and the UK
during 2023. The figures for manufacturing and non-manufacturing sites have been separated to provide
greater transparency.
Group
2023
Scope 1 Emissions
Gas (tCO2e) –Manufacturing sites
Gas (tCO2e) – NonManufacturing sites

Travel (tCO2e)
Scope 2 Emissions
Electricity (tCO2e) –Manufacturing sites
Electricity (tCO2e) –Non-Manufacturing sites

Group
2023

8,990

UK
2023

Group
2022

1,252

9,756

58
─────

UK
2022

Group
Group
2022
2022
As previously reported

1,588

8,220

62
─────
9,048
489

17,738

993

188
─────

19,222

911

-6-

6,856

21

834

198
─────
19,420

2,260

1,588

8,282
519

21

198
─────

27,463

UK

62
─────
9,818
519

15

17,926
Total Scope 1 & 2
Emissions

Group
2022
Restated

29,757

7,054

2,520

15,855

2,443

TATO HOLDINGS LIMITED

Energy Consumption
used to calculate above
emissions
Scope 1 Emissions
Gas (kWh) –Manufacturing sites
Gas (kWh) – NonManufacturing sites

42,036,983

6,844,850

45,031,290

316,362

341,122─────Travel (litres diesel)
Travel (litres petrol)
Travel (kWh)Scope 2 Emissions
Electricity (kWh) –Manufacturing sites
Electricity (kWh) – NonManufacturing sites─────
42,353,345
41,183
181,479
45,31635,615,926

45,372,412
56,913
170,062
28,680

830
6,036
3,051

4,414,700

35,452,972

915,151─────Travel (KgCO2e / Mile)
Shipped production
tonnes used above

2,584
6,494
907

4,315,000

1,021,411
─────
36,531,077

Intensity ratio; tCO2
(gross Scope 1 + 2) /Intensity Factor
Energy – Manufacturing
sites (KgCO2e / Shipped
production tonne)
Energy – NonManufacturing sites(KgCO2e / Floor area)

8,702,152

183.8

36,474,383

209.8

10.9

185.0

226.4

11.8

94.6

11.8

0.23

0.23

0.28

0.34

148,910

10,773

159,435

11,1300.28➢ Methodology applied to above figures
The reported Gas and Electricity and travel data is taken from the Group’s internal reporting system. Electricity
consumption is on a location-based basis. Travel is based on business miles travelled in company vehicles.
The carbon emission factors are taken from the respective Conversion Factors for the country in which theemissions are generated. Previously the UK Government GHG Conversion Factors for Company Reporting
were used for all countries. The 2022 figures for the emissions and the intensity ratios have therefore been
restated using the revised methodology. The energy consumption is the same for both calculations. This has
resulted in higher emissions figures than those previously reported, because of the energy generation methods
in each country compared to the UK, e.g. a higher reliance on coal-powered generating than the UK willproduce more emissions.
➢ Efficiency Measures
The Group prioritise investments which are designed to improve Health and Safety, or reduce our carbon
footprint. In 2023 we continued our investment in solar panels at our Spanish site, with a view to extending
the roll out to other sites. During 2023, we also began the roll out of LED lighting across a number of ourbiggest sites. The group has also committed to ensuring that its fleet of Motor Vehicles will move to PHEV’sor full electric where feasible to, within the next 3 years.
Sustainability is becoming an increasing strategic priority for our business and is now influencing both how
we develop as a business as well as our product portfolio. The Group has started the process to recruit a Group
Head of Sustainability to help marshal and drive this important focus for our business.
For 2023, the Group has produced its first Task Force on Climate-related Financial Disclosures (TCFD) reportin line with CRFD requirements. This report represents a significant step forward in our commitment to

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217.7

0.34

TATO HOLDINGS LIMITED

transparency across sustainability topics, reflecting our dedication to addressing climate-related risks andopportunities.
Climate change, biodiversity and inequality are now having an increased influence in consumer choice andwill provide opportunities for us to help our customers satisfy these changing consumer demands.

Climate Related Financial Disclosures
The Group understands the importance of minimising our business impact on the environment, including on
our climate. The Group recognises that climate change poses profound challenges to our business, ourstakeholders, and the global community and is committed to playing its part in the transition to a low-carbon
economy while ensuring the long-term resilience and success of the company. This Task Force on Climaterelated Financial Disclosures (TCFD) report, in line with CRFD requirements, represents a significant step
forward in the Group’s commitment to transparency across sustainability topics, reflecting our dedication toaddressing climate-related risks and opportunities.
In 2022, the UK government’s Department for Business, Energy & Industrial Strategy released mandatory
Climate-related Financial Disclosure (CFD) requirements for companies across the UK. These CFD
requirements have been developed and adapted from the Task Force on Climate-related Financial Disclosures(TCFD). As a UK headquartered company with more than 500 employees and a turnover exceeding £500m,
Tato Holdings Limited (the Group) falls within scope of the UK CFD.
The CFD has eight disclosure requirements for companies to consider. These broadly cover the same four‘areas’ used by the TCFD, including: Governance, Risk Management, Strategy, and Metrics &Targets. Within this section, we provide a summary of how the Group is managing its impact on climatechange, and climate change’s impact on the business, in alignment with the UK’s CFD recommendations.
Governance
The Group recognises that clear governance structures are essential to ensure that climate-related risks andopportunities are managed responsibly and effectively. As sustainability has become increasingly important tostakeholders, the Group is aiming to integrate sustainability and climate matters further into business
operations and governance structures.
The Board of Directors has overall accountability and oversight for the management of sustainability andclimate-related policies and initiatives and climate change is a regular item on Board meeting agendas. To
enhance the Board’s oversight of its climate responsibilities and the climate-related risks and opportunities
that face the Group, the Board draws on the advice of the Audit and Risk Committee (ARC). The ARC meets
twice annually, whereas the Board meets 4 times per year. In future, responsibility for sustainability andclimate-related matters will sit with the ESG Committee.
The Group plans to integrate climate-related risk and opportunity monitoring within the responsibility of theGroup Audit and Risk Committee. The primary business process for identifying and managing risks andopportunities is within the Enterprise Risk Management cycle. Further details on our processes for managing
risk can be found in the ‘Risk Management’ section.
Climate-related responsibilities are currently shared across our Board of Directors, Group Head of Audit &Risk and Group Compliance Manager. We have plans to recruit an ESG lead in 2024 to further drive
implementation of the sustainability strategy, including the management of climate-related risks andopportunities. The Group Compliance Manager is responsible for collecting and assessing data on ESG topics,
including climate-related issues (energy consumption, waste, water, and emissions) across each of thesubsidiaries. The Group Head of Audit & Risk is responsible for managing the Enterprise Risk Management-8-

TATO HOLDINGS LIMITED

process, which includes climate risks and opportunities. At the subsidiary level, each Managing Director isaccountable to the regional Chief Operating Officer on sustainability including climate-related matters.
Risk Management
Ensuring risks and opportunities are appropriately and systematically managed is an important element of theGroup’s operations. The Group is currently rolling out an approach to identifying and assessing climate-relatedrisks and opportunities, as part of the Enterprise Risk Management (ERM) framework. To facilitate an
improved understanding of the climate-related risks and opportunities, the Group engaged a third-party
consultant to complete a risk and opportunity identification exercise and a detailed climate scenario analysis(details of each of these processes can be found in the ‘Strategy’ section).
The Group also engaged a third-party insurance broker to conduct a risk evaluation and analysis across five of
the Group’s key manufacturing sites. This comprised of an analysis of physical risk from climate hazards
including storms, flooding, and wildfires to assist the Group in identifying key risks including climate-related
issues to be planned for as part of our risk protection measures across the business.
The Group’s Audit and Risk Committee is the primary committee responsible for assessing risk, inclusive of
climate-related risks and opportunities. The Committee works to monitor the key risks facing the Group andassesses the controls used for managing risks. As part of the increasing focus on sustainability within theGroup, the Audit and Risk Committee has also supported the Board in ensuring that sustainability is part of
the ERM framework. The ERM framework is intended to set a framework across the Group for theidentification, management, mitigation and reduction of risks related to both operational and strategic
objectives. The ERM process consists of the following stages: Risk identification, Risk Evaluation, Risk
Response, Risk Monitoring and Risk Governance. The process is intended to identify events or circumstances
which may negatively impact the Group’s strategic objectives, assess these in terms of likelihood andmagnitude of impact, determine a response strategy, and a monitoring process and ensure there is adequate
governance in place. The ERM framework has been designed and agreed by the Board and is currently beingrolled out.
As a workstream of the ERM process, climate related risks and opportunities will be assessed at each of the
14 operating units. Through a combination of one-to-one meetings, workshops and focus groups the key risks
and opportunities are drawn out from the operating units. These risks and opportunities will be assessed interms of impact and likelihood using a level of operating unit materiality and then being rolled up to a
consolidated set of risks and opportunities, applying a Group level materiality. Factors such as financial,
reputational and operational impact on the strategic objectives will be used to assess the risks. These risks arethen compared to the Group’s risk appetite level to determine any mitigation measures which may benecessary. The Group’s risk appetite for climate-related risks has been determined as LOW.
A separate climate risk & opportunities register will be maintained to manage the climate risks & opportunities
with significant risks also being reflected in the ERM risk registers.
Local operating unit management teams will re-assess the climate risks/opportunities and their evaluation
twice annually, following which they are taken to the Regional Chief Operating Officers for approval. The
output from this risk assessment process will be reviewed by the ESG Committee (once formed), twice
annually. The Group ERM risk registers are also reviewed by the Audit and Risk Committee twice annually.
The respective Board Committees are then responsible for sharing the outputs with the Main Board.
The output will include a detailed risk matrix, tailored by region and owned at a regional level as well as asuite of reports summarising the top risks / opportunities. The ERM framework specifically includes a risk
category for ESG, ensuring that climate related risks and opportunities are fully embedded into the Group’s
ERM framework and decision-making processes.

-9-TATO HOLDINGS LIMITEDThe Group has contracted third-party consultants to support the development of the ESG strategy to help
further integrate the management of ESG and climate-related risks and opportunities into the wider risk
management and business strategy framework.
Strategy
The Group understands the importance of fully considering how climate change could impact our business. As
a result, the Group undertook an assessment to help improve the understanding of the Group’s exposure tophysical and transition risks and opportunities. This assessment was comprised of two main steps: climate risk
and opportunity identification, and climate scenario analysis.
The climate risk and opportunity identification stage involved creating a longlist of physical and transition
climate-related risks and opportunities. Here the Group aligned with the TCFD guidance, identifying potential
climate-related risks and opportunities across the categories of policy and legal, technology, market,
reputation, acute physical, and chronic physical. Each identified item was given a significance score based on
its potential impact and likelihood on a 5x5 matrix. The significance scores of a set of shortlisted risks andopportunities were then reviewed by stakeholders across our business, including the CEO, CFO, Group
Compliance Manager, and the Group Financial Manager. This allowed the Group to identify the key physicaland transition risks and opportunities to take forward to the scenario analysis stage.
The physical climate scenario analysis was conducted on ten of the Group’s most significant sites, including
the main manufacturing and blending facilities, in addition to the consideration of ten physical risks andopportunities. The transition scenario analysis was conducted at the organisational level based on ten key
transition risks and opportunities. To assess how climate-related risks and opportunities could impact businessin the future, the physical and transition assessments utilised climate scenario data. For the physical climate
risk assessment, the Intergovernmental Panel on Climate Change’s (IPCC) Shared Socioeconomic Pathway(SSP) scenarios were used. The transition risk and opportunity assessment used scenarios from theInternational Energy Agency’s (IEA) World Energy Outlook 2023.
High Emissions Scenarios
PhysicalLow Emissions Scenarios

IPCC

A business-as-usual, high emission scenario

IPCC

A scenario aligned to the current

SSP5-8.5

with no additional climate policies. Demand

SSP1- 2.6

commitments set under the Paris

Time horizons:baseline, 2030
and 2050

for energy triples by 2100, dominated byAgreement. The world reaches net-fossil fuels. Current CO2 emissions levels

zero emissions by the second half of

double by 2050, and there are many

the century with renewables

challenges to mitigation. This scenario is

accounting for over half the energy

associated with warming expected to besupply by 2050.

>3.8°C by the end of the century.

Transition
Time horizons:
2025, 2030,
2040 and 2050

StatedThis scenario reflects current policies based

Net ZeroThis is an ambitious scenario that

Policies

on a sector-by-sector and country-by-country

Emissionslimits global warming to 1.5°C

Scenarioassessment of the energy-related policies that

Scenario

above pre-industrial levels in 2100.

(STEPS)are in place as of the end of August 2023, as(NZE)

The NZE scenario also meets thewell as those that are under development.

key energy-related UN Sustainable
Development Goals.

The main climate-related risks and opportunities, as identified through the climate scenario analysis
assessment, are summarised below. The risk/opportunity categories are included, alongside a description of
their potential impact. The Group’s responses to the key climate-related risks and opportunities facing us are- 10 -

TATO HOLDINGS LIMITED

explained, although due to the recent completion of the climate scenario analysis, the Group is still in theprocess of identifying effective responses to several risks and opportunities.
Risk/Opportunity Score
High Risk
Moderate Risk
Low Risk
Limited Risk/Opportunity
Low Opportunity
Moderate Opportunity
High Opportunity➢ Physical Risks
Items

Risk Categories from SSP58.5

Risk Description

Responses

Baseline

2030

2050

Low

Moderate

Significant

Extreme heat events may impact the

Adjustments will be made to

Increase

Increase

health and safety of personnel working

working conditions as required.

impact on

on site, possibly resulting in decreased

Air conditioning and ventilation is

operations

operating efficiency. These events canalready provided where

also lead to an increase in operational

appropriate. Rest breaks arecosts to maintain appropriate

afforded as necessary. Solar

temperature ranges for temperaturepanels are being rolled out acrosssensitive areas such as storage facilities

relevant sites to mitigate any costand laboratories.

impact.

Extreme
Heat

ExtremeLow

Cold

MinimalModerate

Extreme cold can increase energy usage

A low risk with minimal to

Decrease

Decrease

as more energy is required to maintainmoderate increase is not expected

impact on

temperature-controlled areas (e.g.

to be material. This risk will be

operations

storage facilities) and equipment undermonitored but no immediate

prolonged cold events. This could result

action is deemed necessary.

in increased operational expenditures.

Wildfires
impact on
operations

LimitedMinimalModerate

Wildfire events may cause direct

The Group has not been impacted

Increase

Increasedamage to sites and nearby accessby wildfires and notes that the risk

points. In addition, smoke fromis limited. The Group will

wildfires may cause health and safetycontinue to review the risk andissues for personnel. Financial impacts

likelihood of wildfires in theof wildfires include increased

vicinity of the main manufacturing

expenditure to replace/repair damagedsites and will put in place

infrastructure and decreased revenue due

contingency measures as

to site production shutdown and loss ofnecessary.

potential stocks.

- 11 -

TATO HOLDINGS LIMITEDThe Group also identified and discussed some other physical risks through this exercise which represent a“Low” risk and for which there is no change or minimal change expected in either of the Low Emission or theHigh Emission scenarios. These are Tropical Cyclones, Water Stress & Drought impact and given the low risk
factor, further information is not presented here.
➢ Transition Scenario analysis
The transition scenario analysis provides a qualitative overview of the Group’s potential transition risk andopportunities in relation to the Group’s current business model and strategy. The results of the transition
analysis demonstrate that in a Net Zero scenario, an increasing demand for sustainable alternative products islikely to be the highest risk for the Group. Conversely, in a Net Zero scenario, the Group is well positioned tocapitalise on potential opportunities within the chemicals sector with improving operational efficiency andaccess to new markets associated with climate adaptation presenting the biggest opportunities. A more detailed
description of transition risks and opportunities impacting the Group are outlined below.
Items

Increasing

Risk/Opportunity
Categories (based on a Net
Zero scenario)

Risk/Opportunity Description

Responses

2030

2040

2050

LimitedModerateHigh

Demand for lower carbon product

Our products help preserve andincreaseincreasedemand forofferings that help customers

protect many global brands andsustainabledecarbonise is expected to increase,

will continue to do so. As

alternative

driven by end-user and customer

regulation continues to narrow the

products

demand, investor preference, andchemistry available to our industry,

government legislative and market-

the Group will continue to innovate

specific actions in response to climate

to deliver solutions to ourchange risks. Failure to react to thesecustomers. As a business we willtrends and manage the product portfolio

continue our journey ofand innovation activities accordingly

decarbonisation, working acrosscould decrease the competitiveness ofour supply chain and continuing to

products and result in de-selection as aprotect our customers’ products andsupplier of choice, losing revenue.

assets through lower carbon
offerings.

Increasing
carbonpricing

Low

Moderate

Moderate

Increasing scope of carbon taxes and/or

Our commitments to reducing

increaseincreaseincreasing market costs of Cap & Trade

carbon will help to mitigate our

pricing could lead to increased

exposure to carbon pricing andoperating costs for the Group if included

future environmental taxationin the mechanism. Increasing carbon

across our supply chain.

prices will also lead to higher indirect
costs for the Group as suppliers passthrough costs. CBAM could have both
effects depending on whether it isextended in the future to apply to theGroup products or inputs.

- 12 -

TATO HOLDINGS LIMITED

Increasing

Limitedcost of

Low

Moderate

The Group's global supply chain is

The Group always optimises its

increaseincrease

exposed to decarbonisationtransport cost and footprint throughrequirements due to national andplanning to ensure the mostcustomer climate targets, regulations,

optimum decisions from both aand consumer demand. As third-party

profitability and a carbon

logistics providers invest in alternative

perspective are taken. The Grouptechnologies, for example lower

has moved to using intermodal

emission fuels or vehicle types,

options in some territories andinvestment costs will likely be passed

works with customers to minimise

through to the Group. Modal shift could

small order sizes.

logistics

be a mitigation measure, which depends
on the product types and speed to plantor market requirements.

Improving

Limitedoperational

Low

Moderate

Investment in energy efficiency

increaseincreasemeasures will also improve the Group’s

efficiency

resilience to energy price volatility inthe long-term, further reducing
operating costs.

Productalignment to

LimitedThe Group prioritises investments
which deliver a carbon reduction
alongside a financial payback,examples of such investments are
solar panels, move to LED lighting
across UK, Spain & Germany,
installation of a new nitrogengeneration system and more energy
efficient chillers.

Low

Moderate

Decarbonisation is driving demand for

The Group invests in innovation toincreaseincreaseless resource intensive products,

ensure we are constantly keeping

the Net Zero

particularly products with lower carbon

up with the market. Carbon

transition

and water intensity. The opportunity for

reduction measures across ourthe Group is to develop alternative

assets and our product portfolio are

chemicals or lower emission precursor

prioritised by the Board to ensure

ingredients. The Group should focus on

we deliver on our carbon

the discovery and development of newcommitments and remaintechnologies that enable the transition tocompetitive.

a lower carbon economy, aligned withdemand in regional markets, across its
four product groups.

The Group also identified and discussed some other transition risks and opportunities through this exercise
which represent a “Low” risk and for which there is no change or moderate change expected in either of the
Low Emission or the High Emission scenarios. On the risk front, this related mainly to the mandated use ofcertain input materials or operational processes and Reputation risk associated with climate inaction, whilst on
the opportunities side, the implementation of renewable technologies, Reputation benefits from net zerotransition alignment and access to new markets associated with climate adaptation are seen as being a low level
opportunity with little expected change.
➢ The Impact of Climate-Related Risks and Opportunities on the Group’s Strategy- 13 -

TATO HOLDINGS LIMITED

Recognising the potential impacts that climate-related issues can have on the business, the Group currently has
several local climate-related strategies in place that aim to reduce our impact on the local environment andreduce costs. The local strategies encompass a number of capex related projects and other initiatives, amongst
which are water consumption reduction and solar PV initiatives. The Group has ambitions to build on these
initiatives going forward to continue integrating the management of climate-related risks and opportunities
into our wider business strategy.
Climate change has become an important area of focus at the Group. The Group’s business resilience to climatechange is still evolving, however it is the Group’s expectation that it will develop quickly as it continues todevelop climate-related processes. The Group has made progress in 2023, conducting a scenario analysis
exercise that helped identify, highlight, and assess potential risks and opportunities across different climate
scenarios. This is a key first step, and the Group plans to renew the climate scenario analysis every three years
to ensure that it remains up to date, however, the Group recognises that further steps will be necessary to
improve resilience. Therefore, the Group aims to improve the integration of climate change considerations into
the business model, strategy, and financial planning.
Metrics and targets
The Group recognises the importance of monitoring and measuring our progress against key metrics and targets
relating to greenhouse gas (GHG) emissions, energy, and waste. The Group collects climate-related metrics
monthly from each of the subsidiaries using a centralised digital platform. These climate-related metrics
include energy usage (gas and electricity), waste, product stewardship, and company car usage (inclusive offuel type and business mileage). The collection of this data also allows the Group to monitor progress against
climate-related targets.

35000
30000
25000

tCO2e

➢ Energy & GHG emissions
The Group collects monthly data onenergy consumption from the 14
subsidiaries. Additionally, in 2023 theGroup collected annual data onpurchased electrical energy fromrenewable sources and renewableenergy consumed from all sources(kWh) from each subsidiary.

20000
15000

The Group reports on Scope 1 and 2
10000
emissions across the Group in line with
the Streamlined Energy and Carbon
5000
Reporting (SECR) requirements in the
UK. For annual reporting we use the0
globally recognised Novata Carbon
Scope 1
Scope 2
Total Scope 1 & 2
Navigator with its country specific
2022
2023
conversion factors for company
reporting of Scope 1 and 2 emissions.
The Group also reports various emissions intensities including shipped production tonnes (KgCO2e /Shipped production tonnes) for manufacturing sites, floor area (KgCO2e / Floor area) for nonmanufacturing sites, and travel (KgCO2e / Mile). The Group has ambitions to report on Scope 3
emissions in the near future.
➢ WasteIn 2023, the Group’s annual data gathering process collected data on waste produced from each subsidiary.
Specifically, metrics include hazardous, non-hazardous, and total waste produced.

- 14 -

TATO HOLDINGS LIMITED➢ Water
The Group understands the importance to the planet of managing water resources. The Group operates insome regions which are at risk from potential drought and water stress, such as the sites in Brazil, Spainand Malaysia and are prioritising measures to mitigate these risks. The Group recycles water where
possible: Thor Germany recycles 77% (2600 tonnes) of its rinsing water back into its production process,whilst Thor Spain uses recycled water to manufacture products with a high salt content and much of thereactor and pipe cleaning water is also used to manufacture product. The Group will continue to improvereporting on water-related metrics during 2024 in line with the monthly reporting process across each of
our subsidiaries. Part of the 2023 annual data collection included measuring total water consumption andtotal wastewater.
BOARD OF DIRECTORS
Kevin Howes resigned as a Non-Executive Director in June 2023 and was replaced by Albert SandersChampney.

AUDIT and RISK COMMITTEE
The Audit and Risk Committee, consisting of David Hewitt, Simon Pearson, Ian Lobley and Philip McDonald,
met twice during the year to provide additional rigour to the Group’s reporting procedures.
The purpose of the committee is to oversee the financial reporting process and monitor the integrity of theGroup’s financial statements. It ensures the appropriateness of the accounting policies and any changes to theseand advises the Board on whether the Annual Report preparation process is balanced and understandable andprovides the required information for stakeholders to assess the Group’s position and performance.
The Audit and Risk Committee also has responsibility for reviewing the Group’s risk management systems.
A new Group Head of Audit and Risk was appointed during the year.

SECTION 172(1) STATEMENT
The Board of Directors is fully aware of its roles and responsibilities within the organisation and must always
act in ways that add sustainable long-term value to our business for the benefit of all our stakeholders. The
principal responsibilities of the Board is to lead the Group’s strategic purpose from Commercial, Financial,
Technological and Sustainable perspectives and ensure that the Group’s culture is fully aligned with these.
It monitors the Group’s performance in delivering its strategy, ensuring that the required resources are in place
for the Group to meet its objectives, analyse the trends and assess the opportunities and risks that they may
present. The Board has established a framework of prudent controls that enable these risks to be managed andengage with all stakeholders to ensure that its views and concerns are considered.
This will be achieved by carrying out a rolling agenda which will cover both past performance and thinking
for the future and will be reviewed against several specific KPI’s that are not just linked to financial
performance such as sales, profit, and working capital ratios but are correlated with our strategic vision that
includes environmental, community impact and governance aspects.
This process will be carried out by validation and engagement with all of the key drivers within our businessmodel; customers, employees, shareholders, suppliers, investment decisions, CSR Policy and corporate
governance.

- 15 -

TATO HOLDINGS LIMITEDThe Group has a Code of Conduct which was rolled out in 2022 and this aims to ensure that our values ofTrust, Honesty, Optimism, Respect are widely communicated across the Group. The Code provides guidanceon the standards of integrity and ethics expected by us to better enable the future development of our business.
The Group also operates a Whistleblowing line, which is monitored by the Group Compliance Manager andany necessary actions are taken.
The Board has appointed a sub-committee to bring a strong focus to ethics and compliance. The Ethics
Committee meets three times per year and is made up of the Group CEO, Group CFO, Group COO EMEA
and the Group Compliance Manager.
As expectations continue to increase about the role of business in society it is important that the Board hears
first hand from stakeholders about their perceptions of our performance and the opportunities and challenges
that lie ahead:--regular updates are provided to our major shareholder base through their attendance at Main Board
meetings with discussions focused on strategic planning, sustainability and corporate governance. This
will continue throughout the coming year with additional emphasis placed on the environment, climatechange and community impact. This enables a flow of communication in both directions so that theshareholders are able to express their wishes for the Group and the Board can explain the strategy toachieve these wishes having regard to other stakeholders.
There are two non-executive Directors appointed to the Board to provide additional oversight andexpertise as the Group looks to continue its Global expansion plans.
The Board creates excellent workplace environments to encourage staff retention and loyalty, this isborne out by low staff turnover and a high number of long serving employees.

During 2023, Management implemented the first Employee Engagement Survey (EES). All employees wereasked to provide their feedback on a range of topics, ranging from working conditions, to communication, topeer feedback, to employee safety, to pay and finally diversity and inclusion. The response rate was high at
75% allowing Management to gain a real perspective into what our employees thought. The result of this EES
has been the publication and implementation of an action plan based around seven key themes which cameacross in the employee responses. In addition to the Group action plan, each site produced their own local
action plan to address any issues highlighted which were more local in nature.
The Board believes that a close working relationship with our employee groups and our partners is key to thecontinued success of the Group and a cornerstone of our business model. Whilst 2023 proved to be anotherchallenging year, the Group have emerged from it stronger than ever, thanks to our robust business model andthe resilience and commitment of our employees and the long-term partnerships with customers and suppliers
alike.
As a result of our 2023 activities the Group will pay €24.4 million in current corporate taxes around the world
assisting our host Governments to provide important services to their citizens and to pursue their economic
objectives, and our direct economic contribution to the local communities in which we operate was €0.7
million, paid through our policy of donating a target percentage of pre-tax profits to local communities andcharitable organisations.
There were no political donations made during the year.
During the year the Company paid out €51,900,000 to its shareholders from its reserves. The Directors
considered the impact of this distribution on the Company’s long-term interests and its creditors in making thisdecision and concluded that the Company’s solvency and interests were not prejudiced in any way given the
Company’s available cash and distributable reserves. The Company will continue to review its on-going
dividend policy in line with its investment plans and business objectives.

- 16 -

TATO HOLDINGS LIMITED

We have learned from the period during the pandemic and understand the flexibility that some element ofworking from home affords to some families. We continue where possible to facilitate our employees working
from home, with regular contact in place with management to ensure employee well-being.
With the backdrop of a very dynamic and changing business environment, the Group has produced cashflow
forecasts for full year 2024 and financial plans through to 2028, and with a strong balance sheet and continuing
investment in high value growth, capability, employees and sustainability, the Group is well positioned to beresilient and thrive in a new world of complexity.
This report was approved by the board on June 6, 2024 and signed on its behalf by:

D A Hewitt
D A Hewitt (Jun 10, 2024 11:25 GMT+1)

D A Hewitt
Director- 17 -

TATO HOLDINGS LIMITED

DIRECTORS’ REPORTThe directors submit their annual report together with the audited financial statements of the Group for theyear ended 31 December 2023.
Principal Activities
The Group’s principal activity during the year was the manufacture and distribution of speciality chemicals.
Branch Offices
In addition to the subsidiary companies listed in Note 12 the Group also operates out of branch offices in New
Zealand, Sweden and Turkey.
Financial Instruments
The Group’s activities expose it to a number of financial risks including currency risk, credit risk and liquidity
risk. The Group does not use derivative financial instruments for speculative purposes.
Currency risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates.
The Group does not enter into any derivative instruments to manage this risk.
Credit risk
The Group’s principal financial assets are bank balances and cash, trade and other receivables.
The Group’s credit risk is primarily attributable to its trade receivables. The amounts shown in the balance
sheet are net of allowances for doubtful receivables.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future
developments, the Group utilises bank overdrafts and short-term loans when required.
Interest bearing assets are primarily held at fixed rates to ensure certainty of cash flows.
Dividends
Interim dividends of €51,900,000 (2022: €62,280,000) were paid during the year.
Events after the end of the reporting period
There are no material post-balance sheet events that need to be reported on.
Future Developments
The directors plan to develop the activities of the Group, taking into account the general economic conditions
that are likely to exist in the coming year.
Directors
The directors who held office during the year were as follows:D A Hewitt
P HahnG De Lucia
Q Zheng
R Baum
D Siroky
P J McDonald- 18 -

TATO HOLDINGS LIMITEDI Lobley – Non-Executive Director
K Howes – Non-Executive Director (Resigned 30.06.2023)
A Sanders-Champney – Non-Executive Director (Appointed 30.06.23)
Qualifying indemnity insurance in relation to the above-named directors is in force.
Research and Development
The Group continues to invest in research and development, both with the objective of cost optimisation andinnovation. The research and development team work closely with the manufacturing teams to develop andexpand the Group’s product range.
Anti-bribery and corruption
It is our policy to conduct all of our business in an honest and ethical manner. We take a zero-tolerance
approach to bribery and corruption and are committed to acting professionally, fairly and with integrity in all
our business dealings and relationships wherever we operate. Further, we operate and enforce effective systems
to counter bribery and corruption.
Going Concern
Based on current financial resources and continuance of recent historic trading patterns, the directors have areasonable expectation that the Group has adequate resources to continue in operational existence for theforeseeable future, therefore they continue to adopt the going concern basis for accounting in preparing theannual financial statements.
The Group has sufficient visibility over its next 12-month cash flows from the date of the audit report to be
confident of being able to manage through the crystallisation of any realistic material trading risks allowing us
to be assured in our going concern status. The company does not have a requirement to issue a specific viability
statement, however the Board have developed an Enterprise Risk Management framework which has been
discussed and approved by the Group Audit and Risk Committee. The business will continue to develop its“what if” scenario planning based around the identified risks and subsequent stress testing, but is confident in
its ability to weather any storms of the coming 5 year period thanks to its strong debt-free balance sheet, recordof cash generation and robust underlying business model. The Group produces a 5 year financial forecast which
underpins this confidence.
Customer and Supplier Interests
The long-term ethos of the Group has always been to build strategic partnerships with customers and suppliersas they are viewed as a key building block in operating a sustainable business model. We understand thatcurrent global events have made day-to-day operations difficult and complex for many of our smaller
customers and suppliers. We will always work with our customers to ensure they have payment terms which
are typical of the business environment in which they operate but will always be understanding where
additional short term support is required. As customer service is key for the Group, we also regularly hold highlevels of strategic inventories to ensure that any supply chain disruption is kept to a minimum for our customer
base. During 2023, the levels of inventory held have reduced in order to optimise cash, but still provide ourcustomers with several months’ worth of cover. Similarly, with suppliers, we are a good payer and always
strive to pay our invoices to terms.
Environmental Responsibilities
The Group is required to report under the Streamlined Energy and Carbon Reporting (SECR) requirements for
its UK operations. We fully endorse the principle of the requirements and consequently have extended thescope of the reporting to cover the whole Group. This reporting has been made in the Strategic Report above,alongside the new TCFD report.

Statement as to Disclosure of Information to Auditors
The directors have taken all the necessary steps to make themselves aware of any relevant audit informationand to establish that the auditors are aware of that information.

- 19 -

TATO HOLDINGS LIMITEDAs far as the directors are aware, there is no relevant audit information of which the Company’s auditors areunaware. This confirmation is given and should be interpreted in accordance with the provisions of s418 of
the Companies Act 2006.
Auditors
Forvis Mazars LLP (formerly Mazars LLP) have expressed their willingness to continue in office and the Audit
and Risk Committee has recommended to the Directors that they be re-appointed as such.

Approved by the board and issued on its behalf.

D A Hewitt
D A Hewitt (Jun 10, 2024 11:25 GMT+1)

D A Hewitt
Director
Date:- 20 -

TATO HOLDINGS LIMITED

STATEMENT OF DIRECTORS’ RESPONSIBILITIESThe directors are responsible for preparing the Strategic Report, Directors’ Report and the annual 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 thedirectors have elected to prepare the financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial
Reporting Standard applicable in the UK and Republic of Ireland” and applicable law). Under company law
the directors must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the Company and of the Group and of the profit, or loss, of the Group for that
period. In preparing these financial statements, the directors are required to:••••

Select suitable accounting policies and then apply them consistently;
Make judgments 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; andPrepare the financial statements on the going concern basis unless it is inappropriate to presume that thecompany will continue in business.

The directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy
at any time, the financial position of the Company and the Group and to enable them to ensure that the financial
statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of theCompany and the Group and hence for taking reasonable steps for the prevention and detection of fraud andother irregularities.

- 21 -

TATO HOLDINGS LIMITEDINDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TATO HOLDINGS LIMITED
OpinionWe have audited the financial statements of Tato Holdings Limited (the ‘Parent Company’) and its subsidiaries(the ‘Group’) for the year ended 31 December 2023 which comprise the Consolidated Statement ofComprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of
Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows andnotes to the financial statements, including a summary of significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and
Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:• give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December
2023 and of the group’s profit for the year then ended;• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and• Have been prepared in accordance with the requirements of the Companies Act 2006
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) andapplicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are independent of the company in accordancewith 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 theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis ofaccounting 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 orconditions that, individually or collectively, may cast significant doubt on the company's ability to continue asa 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 therelevant 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, 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.

- 22 -

TATO HOLDINGS LIMITEDINDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TATO HOLDINGS LIMITED(Continued)
Our responsibility is to read the other information and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial
statements or a material misstatement of the other information. If, based on the work we have performed, weconclude 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 the audit:• the information given in the Strategic Report and the Directors’ Report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and• the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and the parent company and its environment obtainedin 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 by the parent company, or returns adequate for our
audit have not been received from branches not visited by us; orthe financial statements are not in agreement with the accounting records and returns; orcertain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Directors
As explained more fully in the statement of directors’ responsibilities set out on page 12, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fairview, 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 group’s and the parent
company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the group or theparent company or to cease operations, or have no realistic alternative but to do so.

- 23 -

TATO HOLDINGS LIMITEDINDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TATO HOLDINGS LIMITED(Continued)
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 freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance 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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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 ofirregularities, including fraud. Based on our understanding of the group and the parent company and its
industry, we considered that non-compliance with the following laws and regulations might have a material
effect on the financial statements: UK tax legislation, pensions legislation and anti-money laundering
regulation.
To help us identify instances of non-compliance with these laws and regulations, and in identifying andassessing the risks of material misstatement in respect to non-compliance, our procedures included, but were
not limited to:• Inquiring of management and, where appropriate, those charged with governance, as to whether thecompany is in compliance with laws and regulations, and discussing their policies and procedures
regarding compliance with laws and regulations;• Inspecting correspondence, if any, with relevant licensing or regulatory authorities;• Communicating identified laws and regulations to the engagement team and remaining alert to any
indications of non-compliance throughout our audit; and• Considering the risk of acts by the company which were contrary to applicable laws and regulations,
including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial
statements, such as the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent
manipulation of the financial statements, including the risk of management override of controls, anddetermined that the principal risks related to posting manual journal entries to manipulate financial
performance, management bias through judgements and assumptions in significant accounting estimates, inparticular in relation to revenue recognition (which we pinpointed to the cut-off assertion), and significant oneoff or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:• Making enquiries of the directors and management on whether they had knowledge of any actual,suspected or alleged fraud;• Gaining an understanding of the internal controls established to mitigate risks related to fraud;• Discussing amongst the engagement team the risks of fraud; and• Addressing the risks of fraud through management override of controls by performing journal entry
testing.

- 24 -

TATO HOLDINGS LIMITEDINDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TATO HOLDINGS LIMITED(Continued)
There are inherent limitations in the audit procedures described above and the primary responsibility for theprevention and detection of irregularities including fraud rests with management. As with any audit, there
remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentionalomissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of ourauditor’s report.
Use of the audit report
This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of theCompanies 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 thecompany’s members as a body for our audit work, for this report, or for the opinions we have formed.

Tim Hudson (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP (formerly Mazars LLP)
Chartered Accountants and Statutory Auditor
Forvis Mazars LLP, One St Peter’s Square, Manchester M2 3DE
Date:

10 June 2024

- 25 -

TATO HOLDINGS LIMITED
Company registered number 3258156
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2023

Continuing operations

€’000

Notes

TurnoverCost of sales

3

€’000

642,380(453,572)
─────
188,808

Gross profit
Sales & distribution costs
Administrative expenses

2023
€’000

(53,240)(52,613)─────Other operating income

2022
€’000
688,906(462,438)─────
226,468(55,828)(49,416)────(105,853)(105,244)

224
─────
83,179199
─────
121,423

Operating profit

8

Interest receivable and similar income

6

5,343

2,176

Interest payable and similar charges

7

(302)
─────

(147)
────
5,041
─────
88,2202,029
─────
123,452

9(23,362)─────
64,858(30,617)─────
92,835

Other comprehensive income:Currency translation differences on foreign
operations

8

6,454

4,694

Actuarial losses in the year20

(2,225)─────

(1,228)─────

69,087═════96,301═════

Profit on ordinary activities before taxation
Tax on profit on ordinary activities
Profit for the year attributable to owners of theparentTotal comprehensive income for the year
attributable to owners of the parent, net of tax

All results were derived from continuing operations.
The Company has elected to take the exemption under Section 408 of the Companies Act 2006 not to present
the Company profit or loss. The profit for the Company for the year was €76,413,000 (2022: €39,253,000).
The notes 1 to 23 are an integral part of these financial statements- 26 -

TATO HOLDINGS LIMITED
Company registered number 3258156
CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2023

Notes
Fixed Assets
Intangible assets
Tangible assets

Current Assets
Stocks
Debtors
Cash at bank and in hand

Creditors
Amounts falling due within one year

€’000

10
11

2023
€’000

€’000

3,453
283,138─────
286,591

2022
€’000

3,384
280,483─────
283,86713
14

157,011125,059
156,933─────
439,003219,897
125,771
89,620─────
435,28815(56,191)─────

(63,422)─────

Net Current Assets

382,812─────

371,866─────Total Assets less Current Liabilities

669,403655,733

Creditors
Amounts falling due after more than one year16

(4,000)(2,103)

Provision for Liabilities and Charges

17(17,786)─────
647,617═════(23,200)─────
630,430
═════

18

2,942
8
250
30,210614,207─────
647,617
═════

2,942
8
250
30,210597,020─────
630,430═════

Net Assets

Capital and Reserves
Called up share capital
Share premium account
Capital redemption reserve
Merger relief reserve
Profit and loss accountShareholders’ Funds

The notes 1 to 23 are an integral part of these financial statements
Approved by the board on June 6, 2024.

P J McDonald
Director- 27 -

TATO HOLDINGS LIMITED
Company registered number 3258156
COMPANY BALANCE SHEETAS AT 31 DECEMBER 2023

Notes
Fixed Assets
Investments
Current Assets
Debtors
Cash at bank and in hand

Creditors
Amounts falling due within one year

€’000

12

€’000

216,925

4,770
47,459─────
52,2295,348
22,286─────
27,634

15

(109)
─────

(27)
─────

Total Assets less Current Liabilities

18

Shareholders’ Funds

The notes 1 to 23 are an integral part of these financial statements
Approved by the board on

P J McDonald
Director- 28 -

2022€’000

216,925

14

Net Current Assets

Capital and Reserves
Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account

2023
€’000

52,120─────
269,045═════

27,607─────
244,532
═════

2,942
8
250
265,845─────
269,045
═════

2,942
8
250
241,332─────
244,532═════TATO HOLDINGS LIMITED
Company registered number 3258156
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYYEAR ENDED 31 DECEMBER 2023

At 1 January 2022
Retained profit for the year
Other comprehensive income:Currency translationdifferences on foreign
operations
Actuarial losses arising on
defined benefit pension
schemes
Dividends

At 31 December 2022
Retained profit for the year
Other comprehensive income:Currency translationdifferences on foreign
operations
Actuarial losses arising on
defined benefit pension
schemes
Dividends
At 31 December 2023

Share
Capital
€’000

Share
Premium
Account€’000

CapitalRedemption
Reserve€’000

MergerReserve€’000

Profit& Loss
Account
€’000

Total
€’000

2,942

8

250

30,210562,999

596,409

-

-

-

-

92,83592,835

-

-

-

-

4,694

4,694

-

-

-

-

(1,228)(1,228)

-

-

-

-

(62,280)(62,280)

─────
2,942

─────
8

─────
250

─────
30,210─────
597,020─────
630,430

-

-

-

-

64,85864,858

-

-

-

-

6,454

6,454

-

-

-

-

(2,225)(2,225)

─────
2,942
═════

─────
8
═════

─────
250
═════

─────
30,210═════(51,900)─────
614,207═════(51,900)─────
647,617═════

Reserves
Share premium account – This reserve represents the amount above the nominal value received for issued sharecapital, less transaction costs.
Capital redemption reserve – This reserve represents the nominal value of the shares re-acquired by theCompany for capital maintenance purposes.
Merger reserve – This reserve represents the application of merger accounting arising from previous group
reorganisations.
Profit and loss account – This reserve represents the cumulative profits and losses recognised.
The notes 1 to 23 are an integral part of these financial statements- 29 -

TATO HOLDINGS LIMITED
Company registered number 3258156
COMPANY STATEMENT OF CHANGES IN EQUITYYEAR ENDED 31 DECEMBER 2023

At 1 January 2022
Retained profit for the year
Dividends

At 31 December 2022
Retained profit for the year
Dividends
At 31 December 2023

Share
Capital
€’000

Share
Premium
Account€’000

CapitalRedemption
Reserve€’000

Profit& Loss
Account
€’000

Total
€’000

2,942

8

250

264,359

267,559---

39,253(62,280)

39,253(62,280)

─────
2,942

─────
8

─────
250

─────
241,332─────
244,532---

76,413(51,900)

76,413(51,900)

─────
2,942
═════

─────
8
═════

─────
250
═════

─────
265,845
═════

─────
269,045═════

Reserves
Share premium account – This reserve represents the amount above the nominal value received for issued sharecapital, less transaction costs.
Capital redemption reserve – This reserve represents the nominal value of the shares re-acquired by the Company
for capital maintenance purposes.
Profit and loss account – This reserve represents the cumulative profits and losses recognised.
The notes 1 to 23 are an integral part of these financial statements- 30 -

TATO HOLDINGS LIMITED
Company registered number 3258156
CONSOLIDATED STATEMENT OF CASH FLOWSYEAR ENDED 31 DECEMBER 2023
€’000

Notes
Cash flows from operating activities
Operating profit
Adjustments for:
Depreciation & impairment of tangible assets
Profit on disposal of tangible assets
Amortisation of intangible assets
Employer contributions to pension liability
Decrease in other provisions
Exchange rate losses/(gains)
Operating cash flow before movement inworking capital
Decrease/(Increase) in stocks
Decrease in debtors
Decrease in creditors
Interest received
Taxation paid

2023
€’000

€’000

83,179121,423

21,079(370)
1,415(1,251)(4,342)2,911
─────
102,621

17,892(444)
1,284(1,131)(5,582)(96)─────
133,346

66,035
4,011(7,055)
1,760(27,098)─────

(55,505)
3,350(2,881)
1,148(33,499)─────Net cash inflow from operating activities

140,274

Cash flows from investing activities
Proceeds from sale of tangible assets
Payments to acquire tangible assets
Payments to acquire intangible assets

622(20,408)(1,493)─────Net cash outflow from investing activities

45,959639(28,959)
(566)
─────
(21,279)

Cash flows from financing activities
Dividends paid
Interest paid

(51,900)(302)

Net cash outflow from financing activities

2022
€’000

(28,886)(62,280)
(147)
─────
(52,202)─────

(62,427)─────

Net cash increase/(decrease) in cash andcash equivalents

66,793(45,354)

Cash and cash equivalents at the beginning of
the year

89,620133,070

520
─────

1,904
─────

156,933═════

89,620═════Foreign exchange rate movement
Cash and cash equivalents at the end of the
year

21

- 31 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies

1.1 General Information
Tato Holdings Limited (‘the Company’) is a private Company limited by shares and incorporated in the
United Kingdom under the Companies Act and registered in England & Wales. The address of its registeredoffice and principal place of business is Wincham Avenue, Wincham, Northwich, Cheshire, CW9 6GB.
Tato Holdings Limited is a parent undertaking and therefore these consolidated financial statements present
the financial information of the Company and its subsidiary undertakings (together referred to as “theGroup”).
The principal activity of the Group is that of manufacture and distribution of speciality chemicals.
The financial statements are reported in Euros, this being the functional and reporting currency for the Group.
As required by the Registrar of Companies, the sterling exchange rate for the year ended 31 December 2023
is £1: €1.15 (2022: £1: €1.17).
All values are rounded to the nearest thousand (€’000), except when otherwise stated.
1.2 Basis of preparation
These financial statements have been prepared in accordance with FRS 102 ‘The Financial ReportingStandard Applicable in the UK and Republic of Ireland’ (‘FRS 102’) and applicable legislation as set out in
the Companies Act 2006 and Schedule 1 of The Large and Medium-sized Companies and Groups(Accounts and Reports) Regulations 2008. These financial statements have been prepared under thehistorical cost convention.
The Company has taken advantage of the following exemptions in preparing these financial statements;(i) from preparing a statement of cash flows in accordance with Section 7 Cash Flow Statements. This
information is provided on a consolidated basis for the Group as a whole;(ii) from providing the financial instrument disclosures, required under paragraphs 11.39 to 11.48A andparagraphs 12.26 to 12.29; this information is provided at a Group level in these consolidated financial
statements; and(iii) from disclosing the Company’s and the Group’s key management personnel compensation, as requiredby paragraph 33.7.
1.3

Basis of consolidation
The consolidated financial statements incorporate the results of the Company and its subsidiary
undertakings for the year ended 31 December 2023. Subsidiaries are included within the consolidation
where the Company has control over such entities, thereby having the power to govern the financial andoperating policies of the entity so as to obtain benefits from its activities. The financial statements ofsubsidiaries that are acquired or disposed of within the financial year are included within, or excluded
from, the consolidation from the date that the Company obtains, or loses, control.
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Where
necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used into line with those used by the Group. The accounting years of subsidiaries are coterminous
with those of the Company. Non-controlling interests in the net assets of consolidated subsidiaries are
identified separately from the Group’s equity.
The details of the subsidiaries within the Group are set out in note 12.
The Company has taken advantage of the exemption conferred by Section 408 of the Companies Act 2006
and, accordingly, a separate profit and loss account has not been presented.

- 32 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies (Continued)

1.4 Going concern
These financial statements have been prepared on a going concern basis.
The current economic conditions present increased risks for all businesses. In response to such conditions,the directors have carefully considered these risks, including an assessment of uncertainty on future
trading projections for a period of at least twelve months from the date of approval of the financial
statements by the directors, and the extent to which they might affect the preparation of the financial
statements on a going concern basis.
Based on this assessment, the directors consider that the Group maintains an appropriate level of liquidity,
sufficient to meet the demands of the business including any capital and servicing obligations of external
debt liabilities.
In addition, the Group’s assets are assessed for recoverability on a regular basis, and the directors
consider that the Group is not exposed to losses on these assets which would affect their decision to adopt
the going concern basis.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt
upon the Group’s ability to continue as a going concern. Thus, the directors have continued to adopt thegoing concern basis of accounting in preparing these financial statements.
1.5 Revenue recognition
Sale of goods
Revenue is measured at the fair value of the consideration received or receivable and represents amounts
for the sale of goods and the rendering of services, net of discounts and other sales-related taxes.
Revenue arises from the sale of manufactured products and from the provision of associated services.
Revenue from the sale of goods is recognised when all the following conditions are satisfied:a) the goods have been despatched;b) the Group retains neither continuing managerial involvement to the degree usually associated withownership nor effective control over the goods sold;c) the amount of revenue can be measured reliably;d) it is probable that the economic benefits associated with the transaction will flow to the Group; ande) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Interest income
Interest income is recognised as interest accrues using the effective interest rate method.

- 33 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies (Continued)

1.6 Taxation
Tax expense for the period comprises current and deferred tax. Tax currently payable, relating to UK
corporation tax, is calculated on the basis of the tax rates and laws that have been enacted or substantively
enacted as at the reporting date.
Deferred tax is recognised on all timing differences that have originated but not reversed at the reporting
date. Transactions or events that result in an obligation to pay more tax in the future or a right to pay lesstax in the future give rise to a deferred tax liability or asset. Timing differences are differences between
taxable profits and total comprehensive income as stated in the financial statements that arise from theinclusion of income and expenses in tax assessments in periods different from those in which they arerecognised in the financial statements.
Deferred tax is also recognised in relation to revaluing certain assets. Income or expenses from a
subsidiary, which is recognised in the financial statements will be assessed to or allowed for tax in a future
period, except where the reporting entity is able to control the reversal of the timing differences, and it isprobable that the timing difference will not reverse in the foreseeable future. In addition, deferred tax isrecognised through fair value adjustments arising on business combinations.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted asat the reporting date that are expected to apply to the reversal of the timing difference. The tax expense
is recognised in the same component of comprehensive income or equity as the transaction or other eventthat resulted in the tax expense.
Deferred income tax assets are recognised only to the extent that, on the basis of all available evidence,
it is deemed probable that there will be suitable taxable profits from which the future reversal of theunderlying timing differences can be deducted.
Current and deferred tax assets and liabilities are offset only when there is a legally enforceable right to set
off the amounts and there is the intention either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
1.7 Foreign currencies
Foreign currency transactions are translated into the functional currency using the exchange rate prevailingat the date the transactions took place. Where this is not possible to determine, income and expense items
are translated using an average exchange rate for the period.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are reported at
the rates of exchange prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are translated at the rates prevailing at the date when the fair value wasdetermined. Non- monetary items that are measured in terms of historical cost in a foreign currency
are not retranslated. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at the reporting date of monetary assets and liabilities are reported in the statementof comprehensive income.

- 34 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies (Continued)

1.8 Intangible assets
Intangible assets comprise acquired software and product registration costs.
Intangible assets are initially recognised at cost, which is the purchase price plus any directly attributable
costs. Subsequently, intangible assets are measured at cost less any accumulated amortisation andimpairment losses.
Computer software is recognised as an intangible asset if it is operating as a separate intangible asset rather
than part of an item of property, plant and equipment.
Product registration costs capitalised as an intangible asset are those costs incurred to register products with
relevant legislative bodies to allow the sale of those products. Only costs generated by third-parties arecapitalised. Internally generated registration costs are not capitalised, but are expensed as they are incurred.
This policy applies when registration is required for the first time. Fees for ongoing maintenance of productregistrations are written off in the year in which they are incurred.
Amortisation is charged on a straight-line basis to administrative expenses in profit or loss over the shorterof the useful life of the asset or the contractual or legal rights arising on acquisition. The useful lives
are as follows:••

Product registration costs – the shorter of the registration period or the expected period from which
future economic benefits are expected to be generated from sales of the product. There is arebuttable presumption that this is not expected to exceed 10 years.
Computer software - 3 to 5 years

Intangible assets are tested for impairment where indication of impairment exists at the reporting date.
1.9 Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.
1.10 Tangible assets
Property, plant and equipment are initially recognised at cost which is the purchase price plus any
directly attributable costs. Subsequently property, plant and equipment are measured at cost lessaccumulated depreciation and impairment losses.
Depreciation is charged so as to allocate the cost of an asset, less its estimated residual value, overits estimated useful life using a straight-line basis as follows:
Freehold and leasehold buildings

5 to 50 years

Leasehold improvements

over the period of the lease

Plant, machinery, fixturesand fittings

4 to 15 years

Motor vehicles

4 to 5 years

Freehold land held is deemed to have an unlimited useful life and therefore is not depreciated.

- 35 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies (Continued)

1.11 Impairment of assets
At each reporting date the Group reviews the carrying value of its assets to determine whether there is
any indication that those assets have suffered an impairment loss. If any such indication exists therecoverable amount of the asset is estimated in order to determine the extent of the impairment loss.
The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in
use is the present value of the future cash flows expected to be derived from the asset, or cash generating
unit. The present value calculation involves estimating the future cash inflows and outflows to be derived
from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate
to those future cash flows.
Where the recoverable amount of an asset is less than the carrying amount, an impairment loss isrecognised immediately in profit or loss. An impairment loss recognised for all assets is reversed in a
subsequent period if, and only if, the reasons for the impairment loss have ceased to apply. Impairment
losses are charged to profit or loss in administration expenses.
1.12 Stock
Stock is stated at the lower of cost and net realisable value. Cost is calculated using the first-in first-out
method and consists of material and direct labour costs, together with an appropriate proportion of
production overheads.
1.13 Leases
Payments made under operating lease arrangements are charged to profit or loss on a straight-line basis
over the lease term.
1.14 Financial instruments
Financial assets and liabilities are recognised when the Group becomes party to the contractual provisionsof the financial instrument. The Group holds both basic financial instruments, which comprise cash
and cash equivalents, trade and other receivables, equity investments, trade and other payables, and loans
and borrowings, and other financial instruments. The Group has chosen to apply the provisions of FRS
102 in full in regards to Section 11 Basic Financial Instruments and Section 12 Other Financial
Instruments.
Financial assets – classified as basic financial instruments(i)Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held with banks, and other short-term highly
liquid investments with original maturities of three months or less.

(ii)

Trade and other receivables
Trade and other receivables are initially recognised at the transaction price, including any transaction
costs, and subsequently measured at amortised cost using the effective interest method, less any
provision for impairment. Amounts that are receivable within one year are measured at the undiscounted
amount of the cash expected to be received, net of any impairment.
At the end of each reporting period, the Group assesses whether there is objective evidence that any
receivable amount may be impaired. A provision for impairment is established when there is objective
evidence that the Group will not be able to collect all amounts due according to the original terms of
the receivables. The amount of the provision is the difference between the asset’s carrying amount- 36 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies (Continued)
and the present value of the estimated future cash flows, discounted at the effective interest rate. The
amount of the provision is recognised immediately in profit or loss.

(iii) Equity investments

Equity investments comprise holdings in ordinary equity shares. Equity investments in subsidiary
undertakings are initially recognised at fair value, which is the transaction price excluding transaction
costs and are subsequently measured at fair value through profit or loss where a reliable fair value canbe measured. Where the fair value cannot be measured reliably, the equity instruments are held as costless impairment.
Financial liabilities – classified as basic financial instruments(iv) Trade and other payables and loans and borrowings

Trade and other payables and loans and borrowings are initially measured at the transaction price,including any transaction costs, and subsequently measured at amortised cost using the effective
interest method. Amounts that are payable within one year are measured at the undiscounted amount of
the cash expected to be paid.
EquityEquity instruments are classified in accordance with the substance of the contractual agreement. An
equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting
all of its liabilities.
Equity instruments issued by the Group are recorded at the fair value of the cash or other resources
received or receivable, net of direct costs of issuing the equity instruments.
Forward exchange contracts and derivatives
Entities may enter into forward foreign exchange contracts as required by normal operating requirements.
Material open contracts at the year-end are recorded at fair value, with any gain or loss recognised
immediately in profit or loss.
1.15 Provisions
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past
event, it is probable that the obligation will be required to be settled, and a reliable estimate can bemade of the amount of the obligation. The amount recognised as a provision is the best estimate of
the consideration required to settle the present obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the obligation. Provisions are discounted when the timevalue of money is material.
1.16 Retirement benefits
The Group operates defined contribution pension schemes and defined benefit pension schemes.
Obligations for contributions to the defined contribution pension schemes are charged to profit or loss
in the period to which the contributions relate.
For the defined benefit schemes, the pension costs are assessed using the projected unit of credit method
and reviewed annually by independent actuaries. Service costs are charged to profit or loss so as to spreadthe costs over the service lives of employees. Net interest on the net defined benefit liability (asset) is
determined by multiplying the net defined benefit liability (asset) by the discount rate, as determined at thestart of the annual reporting period, taking account of any changes in the net defined benefit liability (asset)
during the period as a result of contribution and benefit payments. Net interest is charged to profit or loss
in the period.

- 37 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1.

Accounting Policies (Continued)
Re-measurements of the net defined benefit liability (asset) are charged through other comprehensive
income in the period in which they occur. Re-measurement of the net defined benefit liability recognisedin other comprehensive income is not reclassified to profit or loss in a subsequent period. Re-measurementsof the net defined benefit liability (asset) comprise actuarial gains and losses, the return on plan assets,
excluding amounts included in net interest on the net defined benefit liability (asset).
If the defined benefit plan has been curtailed or settled during the year, the defined benefit obligation isdecreased or eliminated, and the Group recognises the resulting gain or loss in profit or loss in the current
period.

2.

Critical accounting judgements and key sources of estimation uncertainty
In applying the Group’s accounting policies, the directors are required to make judgements, estimates andassumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements,
estimates and assumptions are based on the best and most reliable evidence available at the time when thedecisions are made, and are based on historical experience and other factors that are considered to be
applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions,the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised, if the revision affects only that period,or in the period of the revision and future periods, if the revision affects both current and future periods.
Critical accounting judgements
The critical accounting judgements that the directors have made in the process of applying the Group’s
accounting policies that have the most significant effect on the amounts recognised in the statutory financial
statements are discussed below.
(i)

Assessing indicators of impairment
In assessing whether there have been any indicators of impairment to assets, the directors haveconsidered both external and internal sources of information such as market conditions, counterparty
credit ratings and experience of recoverability.

(ii)

Assessing whether a defined benefit surplus should be recognised
A defined benefit surplus is only recognised if it meets the following criteria: if the Company has an
unconditional right to a refund or expects to be able to realise the surplus through payment holidays;
or if the Company can realise it at some point during the life of the scheme or when the scheme
liabilities are settled. If the criteria are not met then a defined benefit surplus is not recognised. In
addition, the relevant Trust Deed must specify that a surplus may be refunded to the Company.
Consideration will also be given to the effect of asset price volatility on any surplus and the prudenceof recognising it on the balance sheet.

(iii)

Assessing recognition of constructive obligation
The previous actions of a predecessor company have led to a liability to remediate waste products.
Although the obligation to remediate the waste was acquired by a third party, the directors haveconsidered the moral obligations and reputation of the Group in deciding to recognise a constructive
obligation for the liability.

- 38 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
2.

Critical accounting judgements and key sources of estimation uncertainty (Continued)
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have asignificant risk of causing a material adjustment to the carrying amounts of assets and liabilities within thenext financial year are discussed below.
(iv)

Estimating value in use
Where an indication of impairment exists, the directors will carry out an impairment review todetermine the recoverable amount, which is the higher of fair value less cost to sell and value in use.
The value in use calculation requires the directors to estimate the future cash flows expected to arise
from the asset or the cash generating unit and a suitable discount rate in order to calculate present
value.

(v)

Recoverability of receivables
The Group establishes a provision for receivables that are estimated not to be recoverable. Whenassessing recoverability, the directors consider factors such as the aging of the receivables, pastexperience of recoverability, and the credit profile of individual or groups of customers.

(vi)

Determining residual values and useful economic lives of property, plant and equipment and intangible
assetsThe Group depreciates tangible assets over their estimated useful lives. The estimation of the useful
lives of assets is based on historic performance as well as expectations about future use and therefore
requires estimates and assumptions to be applied by management. The actual lives of these assets canvary depending on a variety of factors, including technological innovation, product life cycles andmaintenance programmes. Judgement is applied by management when determining the residual values
for plant, machinery and equipment. When determining the residual value management aim to assess
the amount that the Group would currently obtain for the disposal of the asset, if it were already of thecondition expected at the end of its useful economic life. Where possible this is done with reference toexternal market prices.

(vii) Measurement of defined pension scheme obligation
The Group has obligations to pay pension benefits to certain employees. The cost of these benefits andthe present value of the obligation depend on a number of factors, including; life expectancy, salary
increases, assets valuations and the discount rate to be applied. Management estimates these factors indetermining the pension obligation in the balance sheet. The assumptions reflect historical experienceand current trends.
(viii) Recognition of deferred tax asset
Management judgment is required in the recognition of deferred tax assets. Management must assess
the probability that the deferred tax assets will be recovered from future taxable profits. The actual
results may differ from these estimates due to, among other factors, future changes in businessenvironment, changes in tax legislation, or results from inspections by tax authorities or by courts oflaw.

- 39 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
2.

Critical accounting judgements and key sources of estimation uncertainty (Continued)(ix)

Provisions for remedial works
The provisions for remedial works relate to ongoing and anticipated potential future work as a resultof previous activities. The estimates of costs to completion of any such works are provided byindependent experts. By their very nature, these costs are expected to extend for a number of years
into the future and are uncertain as to their extent and timing.

3.

TurnoverThe Group supplies speciality chemicals to customers on a worldwide basis. All turnover is generated fromthe sale of goods.
In the opinion of the directors the disclosure of the information required by Schedule 1: 68 (5) of the Large
and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 would be seriously
prejudicial to the interests of the Group.

4.

Staff Costs
Group

2023
€’000

2022
€’000

99,094
17,9069,845
─────126,845═════

94,41817,2029,544
─────121,164═════

Staff costs were as follows:
Salaries
Social security costs
Pension costs

The average number of employees during the year was 1,647 (2022: 1,638), of which 108 (2022: 101) arelocated in the UK, and may be analysed as follows:
Manufacturing
Administration- 40 -

830
817

849
789

─────

─────

1,647
════

1,638
════

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
5.

Directors’ Remuneration
Group

2023
€’000

2022
€’000

Emoluments
Contributions to money purchase pension scheme

3,788
201

2,768
146

─────

─────

3,989
════

2,914
════

The number of directors accruing benefits under pension schemes was as follows:
Money purchase schemes

5

5

─────

─────

5
════

5
════

Included above are the following amounts in respect of the highest paid director:

Emoluments
Contributions to money purchase pension scheme

€’000

€’000

897
════

863
════

Key management personnel are considered to comprise the Group directors.
6.

7.

Interest receivable and similar income
Group

2023
€’000

2022
€’000

Interest receivable
Other finance income relating to pension schemes(see note 20)

1,829

1,181

3,514

995

─────

─────

5,343
════

2,176
════

2023
€’000

2022
€’000

Interest payable and similar charges
Group

On bank loans and overdrafts- 41 -

302

147

─────

─────

302
════

147
════

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
8.

Operating profit
The operating profit is stated after charging/(crediting):
Group

2023
€’000

2022
€’000

Depreciation & impairment of tangible fixed assets
Amortisation of intangible fixed assets(Profit) on disposal of tangible fixed assets
Auditor’s remuneration- audit services- taxation compliance- other services
Other auditors of the group - audit services- taxation compliance- other services
Operating lease rentals
Net exchange rate losses/(gains)

21,079
1,415
(370)
501
51
84
134
17
4
1,605
2,911
════

17,892
1,284
(444)
447
68
82
135
17
18
1,306
(96)
════

The net exchange losses/(gains) above charged to operating profit during the year comprise realised
exchange losses/(gains) and unrealised exchange losses/(gains) on retranslation of monetary assets andliabilities at the year-end in accordance with note 1.7. There were no material open forward foreignexchange contracts at the year-end.
Exchange differences through operating profit are impacted by currency translation differences on retranslation of opening assets and liabilities denominated other than in Euros, recognised in othercomprehensive income, amounting to €6,454,000 gain (2022: €4,694,000 gain).

- 42 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
9.

Tax on Profit on Ordinary Activities before Taxation

€’000

2023
€’000

€’000

2022
€’000

a) Analysis of charge in period
Current tax
UK Corporation tax for the period
Adjustments in respect of previous years

719
────

1,438
(606)
────
719

Foreign Tax
Corporation tax
Adjustments in respect of previous years

23,403
1,154
────

832

28,17190
────
24,557────25,276

Total current tax
Deferred tax
Origination and reversal of timing differences
United Kingdom – current year
United Kingdom – previous years
Overseas – current year
Overseas – previous years

Tax on profit on ordinary activities581
16(2,511)────28,261────29,093

1,015
542
(168)
135
────
(1,914)────
23,362
════

1,524
────
30,617════88,220════123,452════

20,749
(320)
(302)
10
(291)
1,170
2,179
167
────
23,362════

23,456
25
(375)
(136)
52
(615)
161
8,731
(682)
────
30,617════b) Reconciliation and factors affecting tax charge
for year
Profit on ordinary activities before taxation
Profit on ordinary activities by standard rate ofcorporation tax in the UK of 23.52% (2022: 19.00%)
Expenses not deductible for tax purposes
Research and development tax credits
Income not taxable
Losses carried backAllowable losses
Adjustment to tax in respect of prior years
Adjustment to tax in respect of foreign tax rates
Other reconciling differences
Tax on profit on ordinary activities- 43 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
9.

Tax on Profit on Ordinary Activities before Taxation (Continued)c) Tax rate changes
The standard rate of tax applied to reported profit on ordinary activities is 23.52% (2022: 19%). An
increase in UK corporation tax rate to 25% (effective 1 April 2023) was substantively enacted on 24 May
2021. This will increase the Group’s future tax charge. The impact on the closing deferred tax balance atthe balance sheet date, in respect of balances greater than 12 months, is to increase the deferred tax
balance accordingly. The Directors are satisfied as to the recoverability of the recognised deferred tax
assets at 31 December 2023 based on their assessment of the levels of future forecast profitability, as
approved by the Board of Directors.

10.

Intangible Fixed Assets

Cost
At 1 January 2023
Exchange rate differences
Additions
Disposals
At 31 December 2023

Accumulated amortisation and impairment
At 1 January 2023
Exchange rate differences
Charge for the year
Disposals
At 31 December 2023

Carrying amounts
At 31 December 2023

At 31 December 2022

- 44 -

Computer
Software€’000

Product
Registration
€’000

Total
€’000

9,068
(66)
1,213
(105)
─────
10,110
═════

280
─────
280
═════

9,068
(66)
1,493
(105)
─────
10,390
═════

5,684
(57)
1,370
(105)
─────
6,892
═════

45
─────
45
═════

5,684
(57)
1,415
(105)
─────
6,937
═════

3,218
═════

235
═════

3,453
═════

3,384
═════

═════

3,384
═════

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
11.

Tangible Fixed Assets

Cost
At 1 January 2023
Exchange rate differences
Transfers between
categories
Additions
Disposals
At 31 December 2023

Accumulated depreciationand impairment
At 1 January 2023
Exchange rate differences
Transfers between
categories
Charge for the year
Disposals
Impairment charge
At 31 December 2023

Carrying amounts
At 31 December 2023

At 31 December 2022

Assets in thecourse ofconstruction€’000

Freehold &leaseholdland andbuildings
€’000

Plant
machinery
fixtures &fittings
€’000

Motor
Vehicles
€’000

Total
€’000

51,932
1,072

287,328
3,783

156,936
4,123

6,465
15

502,661
8,993(1,553)
9,528
(73)
─────
60,906
═════

8,007
2,803
(6)
─────
301,915═════(6,454)
5,282(1,056)─────
158,831
═════

1,646
(1,154)
─────
6,972
═════

19,259(2,289)─────
528,624═════-

118,558
1,337

100,003
2,921

3,617
8

222,178
4,266

981
─────
981
═════

9,386
(2)
597
─────
129,876
═════

8,441
(1,001)565
─────
110,929
═════

1,109
(1,034)
─────
3,700
═════

18,936(2,037)2,143
─────
245,486═════

59,925═════172,039═════

47,902
═════

3,272
═════

283,138═════

51,932═════

168,770═════

56,933
═════

2,848
═════

280,483═════

The impairment charge relates to certain manufacturing facilities in France and Mexico.

- 45 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
12.

Fixed Assets – Investments
Company€’000
Investment in group undertakings at cost
At 1 January and 31 December 2023

216,925═════

The Group’s subsidiary undertakings are as follows:Subsidiary

Country of Incorporation and Registered OfficeThor Specialties Inc

251 Little Falls Drive, Wilmington, DE 19808, UnitedStates of America
Alameda Caiapos 861, Tambore, Sao Paulo SP, Brazil
Wincham Avenue, Wincham, Northwich, Cheshire,
CW9 6GB, Great Britain
Fairmount CHS Ltd, Office No.1702 & 1703, Plot
Number 4,5&6, Sector Number 17, Sanpada, Navi
Mumbai Dist. Thane-400705 India
325 Rue des Balmes, ZIP, 38150 Salaise sur Sanne,
FranceLandwehrstrasse 1, 67346 Speyer, Germany
Via del Pontaccio 2, 21020 Casale Litta (VA), Italy
67 Newton Road, Wetherill Park, NSW 2164,
Australia
Poligono Industrial El Pla, Avda. de la Industria 1,
08297 Castellgali, Barcelona, Spain
3255 Fukaimizugaike-cho,Naka-ku, Sakai Osaka 5998237, Japan
No.9 Jalan 1/114, Kuchai Business Centre, Off Jalan
Kuchai Lama, Kuala Lumpur, Malaysia
Bramling House, Bramling, Canterbury, Kent,
CT3 1NB, Great Britain
6 Barham Road, Block C, Surry Park, Westville 3630,
RSA
Autopista Mexico-Queretaro Km 182 S/N, Pedro
Escobedo, Queretaro 76700, Mexico
Autopista Mexico-Queretaro Km 182 S/N, Pedro
Escobedo, Queretaro 76700, Mexico
No.182 Jingang Avenue, New District, Zhenjiang,
Jiangsu 212132, PRC

Thor Brasil Ltda
Thor Specialities (UK) Ltd
Thor Chemicals India Private
LimitedThor SARL
Thor GmbHThor Specialties SRL
Thor Specialties (Pty) Limited
Thor Especialidades SA
Thor Japan Limited
Thor Specialties SdnBhd
Thor Group Limited
Acti-Chem SA (Pty) Limited
Thor Quimicos de Mexico SA deCV
Servicios a la Industria Quimica
SA de CV
Thor
Specialty
Chemical(Zhenjiang) Co. Limited

All subsidiary undertakings are 100% owned by Tato Holdings Limited except for Thor SARL, which isheld 98% by Tato Holdings Limited and 2% by Thor Group Limited, and Thor Chemicals India Private
Limited, which is held 99% by Thor Specialities (UK) Limited and 1% by Tato Holdings Limited. All
investments related to holdings of ordinary shares.
The principal group undertakings are involved in the manufacture and distribution of speciality chemicals.

- 46 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
13. Stocks
Group

Raw materials and consumables
Finished goods and goods for resale

2023
€’000

2022
€’000

81,69975,312─────
157,011═════

101,030
118,867─────
219,897═════

The replacement cost of stocks is not materially different from the value included in the financial
statements. During the year €1,371,000 stock impairment losses were recognised (2022: €800,000
released). The total cost of stock recognised as an expense in the year was €351,540,000 (2022:€366,487,000).
14. Debtors

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Taxation recoverable
Deferred tax

Group
2023
€’000

Company
2023
€’000

Group
2022
€’000

Company
2022€’000

105,493
4,558
2,920
6,731
5,357
─────
125,059
═════

4,682
88
─────
4,770
═════

106,199
8,758
2,293
3,643
4,878
─────
125,771
═════

2,710
2,638
─────
5,348
═════

Within the deferred tax asset above, €nil (2022: €nil) represents previous tax losses that are expected to be
recoverable in the future and €830,000 (2022: €1,761,000) relates to the pension scheme deficit. The
remaining balance represents other timing differences.
15. Creditors - Amounts falling due within one year
Group
2023
€’000

Company
2023
€’000

Group
2022
€’000

Company
2022€’000

33,178
1,437
5,943
3,701
11,932────
56,191
════

88
21
────
109
════

33,425
1,394
6,565
7,983
14,055────
63,422
════

27
────
27
════

Amounts falling due within one year:
Trade creditors
Amounts owed to group undertakings
Corporation tax
Taxation and social security
Other creditors
Accruals and deferred income- 47 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
16. Creditors - Amounts falling due after more than one year

Amounts falling due after more than one year:
Other creditors

Group
2023
€’000

Company
2023
€’000

Group
2022
€’000

Company
2022
€’000

4,000

-

2,103

-

════

════

════

════

17. Provision for Liabilities and Charges
Group

At 1 January 2023
Exchange difference
Charged/(credited) to profit or loss
Transfer from creditors
Credited to other comprehensive
incomeUtilisation
At 31 December 2023

PensionLiability€’000

Deferred Remedial
Tax
Work
€’000
€’000

Other

Total

€’000

€’000

5,869
38
-

11,296
182(1,375)
-

5,837
(190)
-

198
5
1,105
2,302

23,200
(3)
(232)
2,302

(1,888)(1,251)
────
2,768
════

────
10,103════(4,145)
────
1,502
════

(197)
────
3,413
════

(1,888)(5,593)────17,786════The deferred tax provision represents the full potential liability arising from accelerated capital allowances.
The remedial work provision relates to the estimated costs of ongoing and anticipated potential future
remedial works in South Africa as a result of past activities of predecessor entities. It is expected that thesecosts will be incurred over the next year.
The other provision relates to similar costs for separate remedial works which are expected to be incurred
over the next two years, long term service awards and an unresolved tax liability.
18. Share Capital€’000

Company
Authorised:
At 1 January 2023 and 31 December 2023
12,500,000 shares of 20 pence each

3,542
════

Allotted and fully paid:
At 1 January 2023 and 31 December 2023
10,380,026 shares of 20 pence each

2,942
════

The ordinary shares of the company carry no right to fixed income and one voting right per share.

- 48 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
19. Operating Lease Commitments

The Group had total operating lease commitments to pay inrespect of operating leases which expire:Within one year
Within two and five years
After more than five years

Group
2023
€’000

Group
2022
€’000

1,780
4,467
4,239
────
10,486
════

1,205
1,099
7
────
2,311
════

20. Pensions
The Group operates retirement plans worldwide. Until 1 April 1996 the United Kingdom companies’ plan
was a defined benefit scheme. Thor GmbH also operates a defined benefit scheme, but otherwise all othergroup company schemes are defined contribution schemes.
a) Defined Benefit Schemes(i) UK Companies
Until 1 April 1996 the Thor Specialities (UK) Limited contributory pension scheme was a defined benefit
scheme and it was funded externally. The contribution rates over the remaining lives of the members of
the scheme were made in accordance with actuarial advice. The scheme was established on 18 December
1988 and its last actuarial valuation was undertaken on 5 April 2022. The valuation at that date calculated
that the market value of the assets of the scheme totalled €15,557,000, which reflected a level of fundingof 173% of actuarial liabilities.
With effect from 1 April 1996, the defined benefit scheme has been frozen. From that date a defined
contribution scheme has been in place.

The major assumptions used by the actuary in valuing the defined benefit element of the scheme were:Rate of increase in pensions in payment
Discount rate
Inflation assumption

As At
31/12/2023

As At
31/12/2022

3.40%
4.30%
3.40%

3.60%
4.80%
3.60%

The assumptions relating to mortality rates underlying the pension scheme liabilities at the balance sheet
date are based on the S3PA tables with improvement factor applied in accordance with the CMI 2022 modelusing a 1% improvement rate.

- 49 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
20.

Pensions (continued)
Amounts recognised in the balance sheet

Fair value of scheme assets
Present value of scheme liabilities
Surplus in scheme
Surplus not payable to company
Net pension surplus/(liability)

Value as at
31/12/2023€’000

Value as at
31/12/2022€’000

66,063(6,130)────59,933(59,993)────
════78,361(6,041)
────
72,320(72,320)
────
════

2023
€’000

2022
€’000

6,041
286
122
145
(464)
────
6,130
════

9,323
165
(2,636)
(501)
(310)
────
6,041
════

2023
€’000

2022
€’000

78,361
3,838(17,544)
1,872
(464)
────
66,063════77,9001,398
3,553(4,180)(310)
────
78,361════

Reconciliation of the present value of defined benefit obligation

Opening balance of scheme liabilities
Interest cost
Actuarial losses/(gains)
Foreign exchange losses/(gains)differences
Benefits paid
Closing balance of scheme liabilities

Reconciliation of the fair value of scheme assets

Opening balance of scheme assets
Interest on assets
Actuarial (losses)/gains
Foreign exchange gains/(losses)
Benefits paid
Closing balance of scheme assets- 50 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
20. Pensions (continued)
Value as at
31/12/2023€’000

Value as at
31/12/2022€’000

54,387
11,676────
66,063════75,3453,016
────
78,361════Equities
Other

The pension scheme assets include ordinary shares issued by Tato Holdings Limited with a fair value of€51,429,000 (2022: €66,516,000). The pension scheme assets do not include any property occupied by, orother assets used by, the Group.
The actual return on scheme assets in the year was €13,138,000 (2022: €5,003,000).
The Group expects to contribute €nil to its defined benefit pension scheme in the next financial year.

Analysis of total credit recognised in profit before tax

Interest credit
Total credit

2023
€’000

2022
€’000

(3,552)────(3,552)════(1,233)────
(1,233)════

The total credit is recognised in Interest Payable and similar charges in the Consolidated Statementof Comprehensive Income.

Analysis of total amount recognised in other comprehensive income

Actuarial (losses)/gains
Foreign exchange difference on opening unrecognised surplus
Change in unrecognised surplus
Loss recognised in other comprehensive income- 51 -

2023
€’000

2022
€’000

(17,666)
1,732
12,387────
(3,547)════

6,189(3,724)(3,743)────(1,278)════TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
20.

Pensions (continued)(ii) Overseas companies
Thor GmbH operates a defined benefit pension scheme for some of its employees as well as a defined
contribution scheme for other employees. The last full actuarial valuation of the defined benefit scheme
was carried out at 31 December 2022 by a qualified independent actuary.
The major assumptions used by the actuary in valuing the defined benefit scheme were:Rate of increase in salaries
Rate of increase in pensions in payment
Discount rate

As at
31/12/2023

As at
31/12/2022

0.00%
0.80%
4.00%

0.00%
0.80%
2.00%

The assumptions relating to mortality rates underlying the pension scheme liabilities at the balance sheet
date are based on German 2005 tables.
Amounts recognised in the balance sheet

Fair value of scheme assets
Present value of scheme liabilities
Deficit in the scheme
Related deferred tax asset
Net pension liability

Value as at
31/12/2023€’000

Value as at
31/12/2022
€’000

7,600
(10,368)────
(2,768)830
────
(1,938)════

7,084(12,953)────(5,869)1,761
────
(4,108)════The gross deficit is recognised in the consolidated balance sheet in Provision for Liabilities and Charges,
and the deferred tax asset is included in Debtors.

Reconciliation of the present value of defined benefit obligation

Opening balance of scheme liabilities
Interest cost
Actuarial (gains)/losses
Benefits paid
Closing balance of scheme liabilities- 52 -

2023
€’000

2022
€’000

12,953484(1,641)(1,428)────
10,368════13,584354
751(1,736)────
12,953════

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
20.

Pensions (continued)
Reconciliation of the fair value of scheme assets
2023
€’000

2022
€’000

7,084
446
247
1,251
(1,428)
────
7,600
════

6,741
126
822
1,131
(1,736)
────
7,084
════

Value as at
31/12/2023€’000

Value as at
31/12/2022
€’000

7,600
────
7,600
════

7,084
────
7,084
════

Opening balance of scheme assets
Interest on assets
Actuarial gains
Contributions by employer
Benefits paid
Closing balance of scheme assets

Cash

The pension scheme assets do not include any property occupied by, or other assets used by, the Group.
The actual return on scheme assets in the year was €nil (2022: €6,000).

Analysis of total expense recognised in profit before tax

Interest cost
Total expense

2023
€’000

2022
€’000

38
────
38
════

228
────
228
════

The total expense is recognised in Interest Payable and similar charges in the Consolidated Statement ofComprehensive Income.

- 53 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
20. Pensions (continued)
Analysis of total amount recognised in other comprehensive income

Actuarial gains
Deferred tax
Losses recognised in other comprehensive income

2023
€’000

2022
€’000

1,888
(566)
────
1,322
════

71
(21)
────
50
════

b) Defined contribution schemes
The group operates a number of defined contribution schemes in various countries. The amounts charged
in the profit and loss account for the year amounted to €9,845,000 (2022: €9,544,000). The contributions
payable at year end amounted to €100,000 (2022: €83,000).
21. Analysis of Net Funds
At
01/01/2023€’000

Cashflow

85,9523,668
────
89,620════69,729(2,936)
────
66,793════

Cash at bank
Short term deposits
Total

€’000

ExchangeAt
Difference 31/12/2023
€’000
€’000
707
(187)
────
520
════

156,388545
────
156,933
════

2023
€’000

2022
€’000

43,865════37,967════

22. Capital Commitments

Capital expenditure authorised or contracted for but not provided for in thefinancial statements

The Group has no other off-balance sheet arrangements.
23. Ultimate Controlling Party and Related Party Transactions
The directors regard Eurotrust to be the ultimate controlling party.
The Company has taken the exemption permitted under Section 33 Related Party Disclosures not to disclose
the related party transactions entered into between the company and wholly-owned Group subsidiaries. Alltransactions and balances between the Company and its subsidiaries have been eliminated on consolidation.

- 54 -

TATO HOLDINGS LIMITED
Company registered number 3258156
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
23. Ultimate Controlling Party and Related Party Transactions (continued)
Related party transactions that occurred in the year include dividends declared and paid to Eurotrust
amounting to €32,147,000 (2022: €38,576,000) and to 3i Plc amounting to €13,803,000 (2022:€16,563,000), and Non-Executive Director’s fees and expenses paid to 3i Plc of €64,000 (2022: €58,000)
of which €9,000 (2022: nil) was outstanding at the year end.

___________________________- 55 -