CHEMICAL AND ALLIED PRODUCTS : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

FINANCIAL

STATEMENTS

FOR THE PERIOD

ENDED

31 March 2024

Chemical and Allied Products Plc

Unaudited Financial Statements

For the Period Ended 31 March 2024

Contents
Financial Highlights	3
Statement of profit or loss and other comprehensive income	4
Statement of financial position	5
Statement of cash flows	6
Statement of change in Equity	7
Notes to the Financial Statements	8-40

2

Chemical and Allied Products Plc

Unaudited Financial Statements

For the Period Ended 31 March 2024

Financial highlights

Revenue

Operating profit

Finance income

Profit before taxation

Taxation

Profit for the period

Total equity and liabilities

Additions to property, plant & equipment (PPE) Depreciation on PPE

Cash and cash equivalents

Earnings per share (kobo) - Basic and diluted Net asset per share (kobo) - Basic

3 Months to	3 Months to	%
Mar 2024	Mar 2023
₦'000	₦'000	change
8,505,762	3,971,244	114
1,062,414	390,894	172
840,841	208,099	304
1,902,892	576,496	230
(627,954)	(187,361)	235
1,274,938	389,135	228
19,412,575	15,112,129	28
200,198	126,082	59
120,598	107,869	12
4,707,136	3,746,530	26
156	48	228
1,135	887	28

3

Chemical and Allied Products Plc

Unaudited Statement of Profit or Loss and Other For the Period Ended 31 March 2024

Revenue

Cost of sales

Gross profit

Selling and Marketing expenses Administrative expenses Other income

Operating profit

Finance income

Finance cost

Net Finance income

Profit before taxation

Income tax expense

Profit for the period

Other comprehensive income for the period net of tax

Total comprehensive income for the period

Earnings per share for profit attributable to the equity holders of the company:

Notes

5

7i

7iii

7ii

6

9

10

11

3 Months to	3 Months to
Mar 2024	Mar 2023
₦'000	₦'000
8,505,762	3,971,244
(5,463,042)	(2,612,882)
3,042,720	1,358,362
(833,771)	(341,262)
(1,309,722)	(735,735)
163,187	109,530
1,062,414	390,894
840,841	208,099

1. (22,496)
   840,478185,602

1,902,892576,496

(627,954)(187,361)

1,274,938389,135

--

1,274,938389,135

Basic and diluted EPS (kobo)

13

15648

The accompanying notes to the financial statements form part of these financial statements.

4

Chemical and Allied Products Plc Unaudited Statement of Financial Position For the Period Ended 31 March 2024

Assets

Non-current assets Property, plant and equipment Right of use asset Intangible assets

Finance lease receivable

Current assets

Inventories

Trade and other receivables Prepayments

Cash and cash equivalents

Assets held for sale

Total assets

Liabilities

Non-current liabilities

Lease Liability

Deferred taxation liabilities

Current liabilities

Trade and other payables Provision

Current income tax liabilities Import finance facility Dividend payable

Total liabilities

Ordinary share capital Share premium

Other Reserves from business combination

Retained Earnings

Equity attributable to equity holders of the Company

Total equity

Total equity and liabilities

Mr. Folasope Aiyesimoju

Chairman FRC/2019/IODN/00000019806

	2024	2023
Notes		₦'000	₦'000
14	2,063,396	1,990,608
16	7,028	7,028
15	308,674	327,648
18b		10,372	10,372
		2,389,470	2,335,656
17	8,489,809	5,019,523
18a	1,441,872	948,385
19	2,195,321	1,846,529
20		4,707,136	4,996,425
	16,834,137	12,810,862
	188,967	227,003
	17,023,104	13,037,865
	19,412,575	15,373,521
24	8,323	7,959
23	489,095	489,094
		497,417	497,053
21	6,310,902	4,141,180
21	100,254	100,254
11	1,749,742	1,121,788
26			39,830
12	1,509,615	1,503,710
		9,670,513	6,906,761
	10,167,930	7,403,814
22	407,374	407,374
22	523,850	523,850
22	968,267	968,267
	7,345,154	6,070,215
	9,244,645	7,969,707
	9,244,645	7,969,707
	19,412,575	15,373,521

Mrs. Bolarin Okunowo	Mrs. Gbonjubola Sanni
Managing Director	Finance Controller
FRC/2020/003/00000020616	FRC/2024/PRO/ICAN/001/737793

The financial statements have been approved and authorised for issue by the Board of Directors on 26 April 2024

The accompanying notes to the financial statements form part of these financial statements.

5

Chemical and Allied Products Plc

Statement of Cash Flows

For the Period Ended 31 March 2024

		2024	2023
	Notes	N'000	N'000
Profit after taxation		1,274,938	389,135
Depreciation of property plant and equipment	14	120,598	107,869
Depreciation of Right of Use assets	16		1,500
Amortisation	15	18,974	18,525
Profit on sale of PPE	6	(41,023)	(50,587)
Finance costs	10	363	22,496
Finance income	9	(36,650)	(75,773)
Impairment of trade and other receivables	7ii	55,838	2,795
Write down and write off on inventory	7ii	35,587	22,625
Income Tax expense	11	627,954	187,361
Net foreign exchange gains	9	(804,191)	-
Cash from operations before working capital changes
	1,252,389	625,946
Changes in inventory	17	(3,505,873)	(1,075,525)
Changes in trade and other receivables	18(a)	(553,426)	114,325
Changes in trade payables	21	2,169,722	1,218,672
Changes in prepayment	19	(348,792)	(797,897)
Cash (used in)/ generated from operations		(985,980)	85,520
Income taxes paid	11	-	-
Net cash (used in)/ generated from operating activities		(985,980)	85,520
Cash flows from investing activities
Purchase of property plant and equipment	14	(200,198)	(126,082)
Proceeds from disposal of PPE		39,973	61,982
Proceeds from sale of PPE - HFS		50,000	-
Interest received	9	36,650	75,773
Net cash flow (used in)/generated from investing activities		(73,575)	11,673
Cash flows from financing activities
Dividend refunded	12	5,905	-
Interest paid		-	(22,170)
Inflow of import finance facility	26	-	22,170
Repayment on import finance facility	26	(39,830)	(111,741)

Net cash flow used in financing activities Net decrease in cash and cash equivalents

Net foreign exchange gain

(33,925) (111,741)

(1,093,480) (14,548)

804,191-

Cash and cash equivalents at beginning of period	20	4,996,425	3,761,078
Cash and cash equivalents at end of period	20	4,707,136	3,746,530

The accompanying notes to the financial statements form part of these financial statements.

6

Chemical and Allied Products Plc

Unaudited Statement of Changes in Equity

For the Period Ended 31 March 2024

Statement of Changes in Equity
	Share	Share	Other	Retained	Total
	Capital	Premium	Reserves	Earnings	Equity
	₦'000	₦'000	₦'000	₦'000	₦'000
At 01 January 2023	407,374	523,850	968,267	4,700,110	6,599,601
Profit for the period				389,135	389,135
Total comprehensive income:				389,135	389,135
Balance at 31 March 2023	407,374	523,850	968,267	5,089,245	6,988,736
Balance at 1 January 2024	407,374	523,850	968,267	6,070,216	7,969,707
Additions during the year*
Profit for the period				1,274,938	1,274,938
Total comprehensive income:				7,345,154	9,244,645
Transactions with owners:
Dividend paid and proposed
Balance at 31 March 2024	407,374	523,850	968,267	7,345,154	9,244,645

The accompanying notes to the financial statements form part of these financial statements.

7

Chemical and Allied Products Plc

Notes to the Unaudited Financial Statements

For the Period Ended 31 March 2024

Notes to the Financial Statements

1. General information

1. Reporting Entity
   Chemical and Allied Products Plc ('the Company') is a company incorporated in Nigeria. The Company is involved in the manufacturing and sale of paints. The address of the registered office is 2 Adeniyi Jones Avenue, Ikeja, Lagos.
   The company is a public liability company, which is listed on the Nigerian Exchange domiciled in Nigeria. The Parent Company is UACN Plc, a Nigerian Company listed on the Nigerian Exchange.
2. Basis of accounting

i) Statement of compliance

The financial statements of Chemical and Allied Products Plc have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Standards) and the requirements of the Companies and Allied Matters Act (CAMA), 2020 and the Financial Reporting Council of Nigeria (Amendment) Act, 2023. The financial statements, which were prepared on a going concern basis, were authorized for issue by the Company's board of directors on 26 March 2024. Details of the Company's accounting policies, including changes thereto are included in Note 2.

ii) Basis of measurement

The financial statements have been prepared in accordance with the going concern assumption under the historical cost concept except for the following items, which are measured on an alternative basis on each reporting date:

1. • Non- derivative financial instruments - initially measured at fair value and subsequently at amortised cost.
   • Inventory - lower of cost and net realisable value
   • Lease liabilities - measured at present value of future lease payments
2. Functional and Presentation Currency
   Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in Naira (N), which is the Company's functional currency. All amounts have been rounded to the nearest thousand unless otherwise indicated.
3. Changes in material accounting policies
   a. Material accounting policy information
   The Company adopted Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) from 1 January 2023. Although the amendments did not result in any changes to the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements.
   The amendments require the disclosure of 'material', rather than 'significant', accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements.
   Management reviewed the accounting policies and made updates to the information disclosed in Note 2 Material accounting policies (2023: Significant accounting policies) in certain instances in line with the amendments.

8

Chemical and Allied Products Plc

Notes to the Unaudited Financial Statements

For the Period Ended 31 March 2024

Notes to the Financial Statements - Continued

2. Material significant accounting policies

2.0 Leases

The Company applies a single recognition and measurement approach for all leases. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

i) Right-of-use assets (ROU)

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

• Land	40 to 99 years
• Shop Space	5years

If ownership of the leased asset transfers to the company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (s) Impairment of non-financial assets.

ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases.

9

Chemical and Allied Products Plc

Notes to the Unaudited Financial Statements

For the Period Ended 31 March 2024

Notes to the financial statements - Continued

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. This has been recognised as finance lease receivable.

1. Foreign currency translation Transactions and balances
   Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.
   Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non- monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss and presented within other income or administrative expenses.
   Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
   Foreign exchange gains and losses are presented in the statement of profit or loss and other comprehensive income related to financial instruments.
2. Property, plant and equipment Recognition and measurement
   The cost of an item of property, plant and equipment is recognised as an asset when:
3. • it is probable that future economic benefits associated with the item will flow to the entity; and
   • the cost of the item can be measured reliably.

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Subsequent expenditure

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost can be measured reliably. The carrying amount of the replaced cost is derecognised. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial period in which they are incurred.

10