Air Products Plc Company Analysis (00103881)
Executive Summary
[Air Products Public Limited Company](/company/00103881) (company number 00103881) is an active UK operating subsidiary of US-listed Air Products and Chemicals, Inc., engaged in the manufacture and distribution of industrial, medical, and specialty gases. For the financial year ended 30 September 2024, the company recorded turnover of £463,493,000 (up 9.7% from £422,401,000 in FY23) and an operating profit of £89,596,000, supported by net assets of £931,000,000. Key analytical considerations include £529,192,000 in related-party receivables, off-balance sheet third-party bank guarantees of £187,491,000, and a post-balance sheet loan of £150,000,000 issued to its immediate parent company in March 2025.
Financial Performance and Balance Sheet Structure
The company's five-year reporting trajectory demonstrates revenue expansion, margin recovery, and structural recapitalisation funded by its corporate group.
Five-Year Financial Summary
| Metric | FY24 (£) | FY23 (£) | FY22 (£) | FY21 (£) | FY20 (£) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Turnover | 463,493,000 | 422,401,000 | 451,808,000 | 353,962,000 | 331,365,000 |
| Gross Profit | 185,047,000 | 128,008,000 | 153,391,000 | Not reported | Not reported |
| Gross Margin (%) | 39.92% | 30.30% | 33.95% | N/A | Not reported |
| Operating Profit | 89,596,000 | 55,392,000 | 74,743,000 | 48,877,000 | 55,861,000 |
| Operating Margin (%) | 19.33% | 13.11% | 16.54% | 13.81% | 16.86% |
| Profit Before Tax | 149,343,000 | 81,904,000 | 72,907,000 | 48,565,000 | Not reported |
| Net Assets | 931,000,000 | 662,000,000 | 634,744,000 | 14,088,000,000* | 491,420,000 |
| Dividends Paid | 55,000,000 | 0 | 18,000,000 | 19,000,000 | 129,420,000 |
Note: FY21 reported net assets reflect group consolidation figures extracted in statutory filings, whereas standalone operational KPI turnover for the UK entity was £353,962,000.
Revenue Direction and Profitability Analysis
Turnover expanded by 9.7% in FY24 to £463,493,000, recovering from a temporary dip to £422,401,000 in FY23. The core industrial gases segment accounted for 93% of FY24 turnover (£433,237,000), with growth driven by customer price adjustments and contractual energy surcharge pass-through mechanisms. The global gases and equipment sales division generated the balance (£30,256,000), which included progress on a construction project in Jubail, Saudi Arabia.
Gross profit rose by 44.6% to £185,047,000 in FY24, yielding a gross margin of 39.92% compared to 30.30% in FY23. Operating profit surged to £89,596,000 (19.33% operating margin), reflecting operational efficiency and energy recovery formulas built into long-term customer supply agreements.
Capital Structure, Working Capital, and Intercompany Exposure
Net assets expanded significantly from £662,000,000 in FY23 to £931,000,000 in FY24. This capital strengthening followed an equity allotment on 23 April 2024, in which the company issued 173,608,000 ordinary £1 shares for £173,608,000 to its immediate parent company, Air Products Group Limited, taking fully paid share capital to £632,424,000.
The balance sheet shows substantial working capital asymmetry:
1. Current assets of £711,619,000 easily exceed current liabilities of £155,879,000.
2. Trade debtors stand at £692,530,000, dominated by intercompany balances. Amounts owed by related parties totaled £529,192,000 as at 30 September 2024 (up from £467,868,000 in 2023), including £196,736,000 collectible after more than one year.
3. Cash at bank dropped from £8,398,000 in FY23 to £2,224,000 in FY24, as treasury management is conducted via an overarching group cash pooling arrangement.
4. Amounts owed to related parties within current liabilities fell sharply from £396,058,000 in FY23 to £50,776,000 in FY24.
Directors and Ownership Structure
Controlling Ownership and Corporate Chain
Under the provisions of the Companies Act 2006, the person with significant control (PSC) register confirms control held by a corporate entity:
- Immediate Parent Company: Air Products Group Limited (Company No. 03101747), holding between 75% and 100% of share capital since 6 April 2016.
- Ultimate Parent Entity: Air Products and Chemicals, Inc., a publicly traded corporation listed in the United States.
The company is exempt from preparing consolidated group accounts under s.401 of the Companies Act 2006, as its results are consolidated into the parent group's annual statements.
Board Composition and Key Officers
As of May 2026, the public register maintained at Companies House records three active directors and one company secretary:
- Suzanne Natarlie Miriam Lowe: Appointed 22 October 2019 (English, born September 1964).
- Benjamin McGovern Hussa: Appointed 15 December 2021 (American, born May 1978).
- Jose Bernardo Escorihuela Urbina: Appointed 15 February 2022 (British, born April 1969).
- Mark Jamie Sambrook: Appointed Company Secretary on 26 May 2017.
Previous director resignations over the reporting window include David Leney (resigned 15 February 2022) and Richard John Boocock (resigned 19 January 2021).
Recent Activity and Strategic Restructuring
Acquisition and Liquidation of Cryoservice Limited
In August 2023, Air Products PLC acquired 100% of Cryoservice Limited for £173,608,000. In September 2023, Cryoservice Limited transferred its underlying trading business and asset base to Air Products PLC for £155,252,000. Following this transfer, Cryoservice Limited paid a final liquidation dividend of £205,757,540 to Air Products PLC on 24 June 2024. Consequently, Air Products PLC impaired 100% of its carrying investment in Cryoservice Limited (£174,916,146) in its FY24 financial statements, creating a net neutral cash and reserve rebalancing event within group accounts.
Infrastructure Investments and Overseas Branches
The strategic report details major clean energy investments, including the joint development of a large-scale green hydrogen production facility in the Port of Immingham in partnership with Associated British Ports. Overseas branches remain active in Saudi Arabia (supporting construction work in Jubail and the Jazan project) and Qatar (providing specialized site services).
Statutory Audit and Going Concern Assessment
Deloitte LLP issued an unqualified audit opinion for the year ended 30 September 2024. The auditors identified no material uncertainties regarding going concern. Deloitte highlighted manual revenue adjustments as a key audit matter, verifying percentage-of-completion calculations on long-term contracts against general subledgers.
Risk Indicators and What to Watch
When assessing credit limits or counterparty obligations for Air Products PLC, commercial finance teams should evaluate the following structural risk factors:
1. Substantial Parent Financing Disbursements: On 11 March 2025, post-balance sheet disclosures confirm the company issued a £150,000,000 loan to its immediate parent, Air Products Group Limited. This represents a significant cash outlay to group entities following the £55,000,000 dividend paid in FY24.
2. Third-Party Guarantee Commitments: The company maintains significant off-balance sheet contingent liabilities in the form of bank guarantees provided to third parties, which stood at £187,491,000 as at 30 September 2024 (down from £212,749,000 in FY23).
3. Energy Intensity and Environmental Costs: Approximately 90% of the UK business's carbon emissions stem from grid electricity utilized in the cryogenic distillation of air. Profitability remains sensitive to wholesale power markets, managed via contractual pass-through clauses and Climate Change Agreements under the British Compressed Gases Association.
4. Onerous Lease Provisions: Total provisions stood at £49,366,000 in FY24, including £36,950,000 allocated to onerous contracts (land leases expiring in 2037 and 2040 and legacy supply agreements tied to the exit from the Energy from Waste business).
5. Monitoring Ongoing Filings: Corporate counterparties should utilize free company monitoring to track future charge registrations, board changes, or financial filings as they occur on the public register.
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Legal advisers, lenders, and credit underwriters conducting counterparty risk assessments on UK public limited companies must ensure complete coverage of insolvency risks, court records, and encumbrances.
Manual Verification Workflow
A manual check requires navigating multiple statutory records:
- Searching the primary filing register at Companies House to verify active status and review accounts, PSC statements, and registered charges.
- Performing a manual search of statutory insolvency notices in The Gazette to detect petitions, winding-up orders, or liquidations.
- Contacting the High Court Chancery Division court cause lists or performing an independent court check to discover unadvertised winding-up petitions before publication.
- Carrying out a manual company charge check to inspect fixed and floating charges over corporate property.
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Frequently Asked Questions
What is the ultimate parent company of Air Products Public Limited Company?
Air Products PLC is a 100% owned direct subsidiary of Air Products Group Limited (Company No. 03101747). The ultimate controlling parent entity is Air Products and Chemicals, Inc., a US-listed corporation.
Why did the company record a £174.9m investment impairment in FY24?
In FY23, Air Products PLC acquired Cryoservice Limited for £173.6m and absorbed its trade and assets for £155.3m. Cryoservice Limited paid a final liquidation dividend of £205.8m back to Air Products PLC in June 2024, after which the carrying investment was fully impaired in accordance with FRS 102 accounting rules.
What contingent liabilities does Air Products PLC hold?
As at 30 September 2024, the company had outstanding third-party bank guarantees amounting to £187,491,000 (reduced from £212,749,000 in FY23). These guarantees represent off-balance sheet commitments issued in the ordinary course of business.
How are intra-group loans managed by the company?
Air Products PLC participates in a centralized group cash pooling facility. As of 30 September 2024, related parties owed the company £529,192,000 (including £196,736,000 due after one year). Furthermore, on 11 March 2025, the company issued a £150,000,000 loan to its immediate parent company.
How can a credit analyst perform a winding up search on a UK company?
Credit analysts can perform a winding up search on Corp Intel to query daily High Court cause lists and insolvency filings simultaneously, verifying whether any winding-up petitions or administration applications have been lodged against a company.