REGISTERED NUMBER: |
AURA METALS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
REGISTERED NUMBER: |
AURA METALS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Income and Retained Earnings | 11 |
Statement of Financial Position | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 16 |
AURA METALS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
Second Floor |
34 Lime Street |
London |
EC3M 7AT |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
The directors present their strategic report for the year ended 31st December 2021. |
PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
2021 | 2020 | 2019 | 2018 |
Turnover | £51,855,595 | £21,854,494 | £36,248,325 | £45,481,285 |
Gross Profit margins | 4.36% | 4.58% | 3.28% | 3.08% |
Profit before tax | £965,481 | £451,196 | £265,709 | £321,922 |
Liquidity ratio (Current assets/current liabilities) | 1.15 | 1.19 | 1.17 | 1.10 |
Gearing ratio (Total borrowings/total assets) | 0.40 | 0.37 | 0.33 | 0.48 |
The principal activities of the business are international metal trading, UK foundry ingot supplies and UK scrap processing. |
The turnover of the company more than doubled in 2021 due both to an increase in business and higher metal prices. Tightened supply chains and the company's world-wide supplier and customer base gave good opportunity for the international business, although there were substantial additional and unavoidable shipping costs during the year. The UK foundry ingot business also saw buoyant demand and business remained robust following the 2020 lock-downs. During the year, the company also opened a scrap business, which supplies the UK market as well as exports. This saw an increase both in employee numbers and market-reach. The yard surpassed the best-case budgeted scenario in the first six months of opening. All three areas of the business were, once again, supported by Lloyds Bank PLC. Employees were the key to the success in what proved to be a good year for the company. |
The first quarter of 2022 continued the performance of 2021, however world affairs will cause a slowdown in demand for metal in the international business in Q2 and Q3. The principal risks are the on-going pandemic restrictions in China, the knock-on effect of the Ukraine invasion in Europe, the continued shipping costs/disruption and the noticeable slow-down in the major economies because of these factors. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks of the company are, |
Credit Risk: |
Credit risk arises principally from the company's trade receivables, prepayments for stocks, and cash and cash equivalents. It is the risk that the counterparty fails to discharge its obligations in respect of the instrument. The company's exposure to credit risk represents its receivables as disclosed. |
Prior to accepting new customers, a credit check is carried out. Based on this information, credit limits and payment terms are established and authorised by the directors. The directors review monthly the trade receivable balance and ageing profile of each individual customer. No individual trade receivable balance is considered to represent a significant portion of the total balance. The directors believe that credit risk is minimised by credit insurance and regular reviews and the diversification of trade receivables across a large section of customers and different geographical regions. |
Liquidity risk: |
Liquidity risk arises from the company's management of working capital and the finance charges and principal repayments on its debt instruments. |
The company's financial assets and liabilities were due within one year throughout the review period. The company's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The directors review the cash availability on a regular basis to determine whether the company has sufficient cash reserves and facilities to meet future working capital requirements and to take advantage of the business opportunities. |
Market risk: |
Price risk is the risk of loss arising from adverse movements in the level or volatility of market prices. The company monitors this risk on a daily basis and when appropriate by hedging on the London Metal Exchange. The impact of such movements in market price can mean that the net realisable value of inventories falls below that of the original cost, which results in provisions being made against such stock items in order to include them in the financial statements at the lower of cost and net realisable value in the accordance with the company's accounting policies. |
Interest rate risk: |
Interest rate risk arises from interest bearing financial liabilities of the company. Interest is payable on bank overdrafts at an agreed variable rate. |
Currency risk: |
The company's trading activities exposes it to currency risk relating to its monetary assets and liabilities. The company's policy is to economically hedge currency risk using forward currency contracts for foreign currency receivables and payables. Forward foreign currency contracts are also used for currency exposures arising on the expected sales and purchases for the following period.Last year the directors were concerned by world trade disputes and a lack of clarity relating to future trading terms between the EU and the UK. This year we can add the problems relating to Covid-19. The directors will do their utmost to monitor and reduce risk in the current difficult trading climate. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
This report was approved by the board of directors and signed on behalf of the board by: |
ON BEHALF OF THE BOARD: |
14th September 2022 |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
The directors present their report with the financial statements of the company for the year ended 31st December 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of international metal trading, UK foundry ingot supplies and UK scrap processing. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st December 2021 will be £ |
Particulars of dividends are detailed in the notes to the financial statements. |
FUTURE DEVELOPMENTS |
Due to the current situation with respect to Covid-19, the company's plans for future developments are three fold: |
Sustaining employment, supporting long standing customers and suppliers and finally ensuring the safe completion of all trading activities. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company uses forward currency contract to reduce exposure to the variability of foreign exchange rates by fixing the rate of any material payments in a foreign currency. For further details see note to the financial statements. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Sinclairs Bartrum Lerner, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AURA METALS LIMITED |
Opinion |
We have audited the financial statements of Aura Metals Limited (the 'company') for the year ended 31st December 2021 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes 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 Financial Reporting Standard 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 company's affairs as at 31st December 2021 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 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 of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AURA METALS LIMITED |
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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AURA METALS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Extent to which the audit is capable of detecting irregularities, including fraud |
We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. |
We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error. |
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors. |
Based on our understanding of the Company and industry, discussions with management and directors we identified financial reporting standards and Companies Act 2006 as having a direct effect on the amounts and disclosures in the financial statements. |
As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud. |
Our audit procedures included: |
- completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud; |
- enquiry of management about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance; |
- examining supporting documents for all material balances, transactions and disclosures; |
- enquiry of management, about litigation and claims and inspection of relevant correspondence; |
- analytical procedures to identify any unusual or unexpected relationships; |
- specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of accruals, provisions, investments, recoverability of trade debtors and revenue recognition; |
- considering management override of controls outside of the normal operating cycles including testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationale of significant transactions, outside the normal course of business. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). |
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us. |
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 our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AURA METALS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Second Floor |
34 Lime Street |
London |
EC3M 7AT |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,012,027 | 403,146 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 8 | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
STATEMENT OF FINANCIAL POSITION |
31ST DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Finance costs paid | (909 | ) | (22,568 | ) |
Tax paid | ( |
) | ( |
) |
Government grant |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Amount introduced by directors | 15,397 | - |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(1,895,866 |
) |
(1,189,944 |
) |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) | ( |
) |
Finance costs | 92,744 | 50,695 |
1,028,687 | 412,416 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31st December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 823,806 | 975,538 |
Bank overdrafts | ( |
) | ( |
) |
(4,411,519 | ) | (1,895,866 | ) |
Year ended 31st December 2020 |
31/12/20 | 1/1/20 |
£ | £ |
Cash and cash equivalents | 975,538 | 555,974 |
Bank overdrafts | ( |
) | ( |
) |
(1,895,866 | ) | (1,189,944 | ) |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/21 | Cash flow | At 31/12/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 975,538 | (151,732 | ) | 823,806 |
Bank overdrafts | (2,871,404 | ) | (2,363,921 | ) | (5,235,325 | ) |
(1,895,866 | ) | ( |
) | (4,411,519 | ) |
Debt |
Debts falling due within 1 year | (4,167 | ) | (5,833 | ) | (10,000 | ) |
Debts falling due after 1 year | (45,833 | ) | 10,497 | (35,336 | ) |
(50,000 | ) | 4,664 | (45,336 | ) |
Total | (1,945,866 | ) | (2,510,989 | ) | (4,456,855 | ) |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
1. | STATUTORY INFORMATION |
Aura Metals Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements ar continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Revenue recognition |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Tangible assets are initially recorded at cost and subsequently stated at costs less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the caring amount of an assets as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Derivative financial instruments are initially measured at fair value on the date on which the derivative contract is entered into and are subsequently measured at fair value through profit or loss. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Government grants |
Government Grant receivable are in respect of UK Government's support to businesses under the Coronavirus Job Retention Scheme and is recognised in the period in which the wages cost was incurred. |
Foreign currencies |
Foreign currency transactions are initially recorded at the HMRC exchange rate of the functional currency for the month concerned. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
Contributions to defined contribution schemes are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to reduction in future payments or a cash refund. |
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discount present value basis. The unwinding of the discount is recognised as finance cost in profit or loss in the period in which it arises. |
Debtors and creditors |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discount would be immaterial. In such cases the debtors are stated at cost less impairment losses for bad and doubtful debts. Trade and other debtors due less than 1 year ar stated at cost. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter at amortised cost using the effective interest method, unless the effect of discount would be immaterial. In such cases they are stated at cost. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2021 | 2020 |
£ | £ |
The whole of the turnover is attributable to the principal activity of the company and is wholly undertaken in the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Administrative staff |
2021 | 2020 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31st December 2021 is as follows: |
2021 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
Losses/(Gains) on financial instruments |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Deferred taxation | 6,100 | (1,700 | ) |
General provision | (18,810 | ) | (29,203 | ) |
Total tax charge | 161,928 | 58,426 |
8. | DIVIDENDS |
Dividends paid during the year: |
2021 | 2020 |
£ | £ |
Dividends paid | 240,762 | Nil |
====== | ====== |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2021 |
Additions |
At 31st December 2021 |
DEPRECIATION |
At 1st January 2021 |
Charge for year |
At 31st December 2021 |
NET BOOK VALUE |
At 31st December 2021 |
At 31st December 2020 |
10. | STOCKS |
2021 | 2020 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Derivative financial asset | 44,934 | 42,879 |
VAT |
Prepayments and accrued income |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Other loans (see note 14) |
Trade creditors |
Tax |
PAYE and NIC taxes |
Other creditors |
Directors' current accounts | 15,397 | - |
Accruals and deferred income |
The company is required to comply with the provision of Registration, Evaluation, Authorisation & Restriction of Chemicals (REACH). A provision of £295,352 (2020: £295,352) has been made based on estimated costs of compliance and is included within accruals and deferred income. |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Other loans (see note 14) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Other loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 10,000 |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Bank overdrafts |
Bank overdrafts are secured by fixed and floating charges over the undertaking and all property and assets present and future of the company. |
The bank overdraft and other credit facilities are subject to review and the interest rates charged are variable. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
17. | FINANCIAL INSTRUMENTS |
The carrying amount for each category of financial instrument is as follows: |
2021 | 2020 |
£ | £ |
Financial assets measured at fair value through profit or Loss |
Included in debtors | 44,934 | 42,879 |
====== | ====== |
Financial liabilities measured at fair value through profit or loss |
Included in creditors | 45,843 | 65,447 |
====== | ====== |
The company enters into forward foreign currency contracts to mitigate the exchange risk of certain foreign currency receivables and payables. At 31 December 2021, all outstanding contracts mature within 6 months (2020: 6 months). |
The foreign currency forward contracts are not traded in active markets. These have been fair valued using observable forward exchange rates corresponding to the maturity of the contract. |
Foreign exchange transactional currency exposure |
The company is exposed to currency exchange rate risk due to a significant proportion of its receivables and operating expenses being denominated in non-sterling currencies. The net exposure of each currency is monitored and managed by the use of forward foreign exchange contracts, currency loans or overdrafts. |
Liquid risk |
The objective of the company is managing liquidity risk is to ensure that it can meets its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. In the even that the operating cash flows would not cover all the financial obligations, the company has credit facilities available. The company is in position to meet its commitments and obligations as the fall due. |
Customer credit exposure |
The company may offer credit terms to its customers which allow payment of the debt after delivery of the goods and services. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by credit insurance as well as the strong on-going customer relationships. |
Interest rate risk |
The company's borrowing are through trade finance where the nature of the business is transaction specific and short term. |
18. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1st January 2021 |
Charge to Statement of Comprehensive Income during year |
Balance at 31st December 2021 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary shares - A Shares | £1 | 23,225 | 23,225 |
Ordinary shares - B Shares | £1 | 17,500 | 17,500 |
Ordinary shares - C Shares | £1 | 16,825 | 16,825 |
Ordinary shares - D Shares | £1 | 7,600 | 7,600 |
Ordinary shares - E Shares | £1 | 6,850 | 6,850 |
3,000 | Ordinary shares - F Shares | £1 | 3,000 | 3,000 |
75,000 | 75,000 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1st January 2021 |
Profit for the year |
Dividends | ( |
) |
At 31st December 2021 |
Retained Earnings |
Includes all current and prior period retained profits and losses. |
21. | RELATED PARTY DISCLOSURES |
In the current and previous year, the company was under the control of the directors, C A Cohen, R O Cohen and A N Axson who own 62% of the issued share capital of the company between them. |
Key management personnel remuneration totalled £177,089 (2020: £126,602). |
Aura Metals EU Limited (registered in Ireland) is a wholly owned subsidiary of Aura Metals Limited. The company was dormant in the year and has not traded since incorporation. |
AURA METALS LIMITED (REGISTERED NUMBER: 04147608) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2021 |
22. | POST BALANCE SHEET EVENTS |
The COVID-19 pandemic has had a significant negative impact on the UK economy, and whilst the consequences of COVID-19 on the company has been limited during the year and since the year end, the directors recognise that in the longer term its effect may change. The principal risks are the on-going pandemic restrictions in China, the knock-on effect of the Ukraine invasion in Europe, the continued shipping costs/disruption and the noticeable slow-down in the major economies because of these factors. At this point in time any long-term effect on the company is unknown, but the directors remain confident of the financial position of the company. The directors believe that the company has sufficient reserves to withstand any further economic downturns created by the pandemic and are confident that it is correct to prepare the accounts on a going concern basis. |
After the year end, Aura Metals Limited purchased the goodwill and assets of a company, Par Metals Limited for £100,000 excluding VAT. |
23. | DEFINED CONTRIBUTION SCHEMES |
The amount recognised in profit or loss as an expense in relation to defined contribution scheme was £2,034 (2020: £1,160). |