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REGISTERED NUMBER: 02319502 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 July 2023

for

Steelco (UK) Limited

Steelco (UK) Limited (Registered number: 02319502)






Contents of the Financial Statements
for the Year Ended 31 July 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Financial Statements 13


Steelco (UK) Limited

Company Information
for the Year Ended 31 July 2023







DIRECTORS: A Fowle
N Fowle
M E Fowle
E N Fowle
S E I Fowle





SECRETARY: A Fowle





REGISTERED OFFICE: Tremlon House
Menzies Road
Hastings
East Sussex
TN38 9BQ





REGISTERED NUMBER: 02319502 (England and Wales)





AUDITORS: Deeks Evans Audit Services Limited
Statutory Auditor
First Floor, West Barn
North Frith Farm, Ashes Lane, Hadlow
Tonbridge
Kent
TN11 9QU

Steelco (UK) Limited (Registered number: 02319502)

Strategic Report
for the Year Ended 31 July 2023

The directors present their strategic report for the year ended 31 July 2023.

REVIEW OF BUSINESS
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and it's position at the year end. Our review is consistent with the size and non-complex nature of our business and is in the context of the risks and uncertainties we face.

The company principle trade is as steel processors, stockists and traders based in Dudley and founded in 1988.

Of course this year has not been as good as the last two exceptional years , however in a very difficult market with steel prices falling by around £400 per tonne and with further up and down swings in price as we entered 2023 to make just under £1.5 million net profit is a commendable achievement.

The new year has started well and inspite of the uncertainties caused by the current well known conflicts
adding to the volatility of our market we are confident that this new financial year will show continued positive results.
As I have said before our company has an excellent team, looking after its many customers with a commitment to first class service.
Our principal risks and uncertainties relate to the volatility of steel prices and fluctuating demand , business is risk and we constantly monitor the steel market , movements in the global economy , subscribing to a number of market guides to gauge which way future demand and steel prices are heading.

Key performance indicators
2023 2022
£ £
Turnover 29,179,170 36,718,578
Net profit before interest and taxation 1,487,800 8,148,433

Steelco have excellent staff and are well led, our company ends the year with £12.3 million net worth, no borrowings and we are confident having in the last 2 years put the company in a much stronger financial position that we will continue to grow in the future providing a committed service to our many customers.

ON BEHALF OF THE BOARD:





A Fowle - Director


24 January 2024

Steelco (UK) Limited (Registered number: 02319502)

Report of the Directors
for the Year Ended 31 July 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a steel service and processing centre and trader in steel.

DIVIDENDS
The total distribution of dividends for the year ended 31 July 2023 was £530,000 (2022 - £2,180,000) in respect of A ordinary shares and nil (2022 - nil) in respect of B ordinary shares.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

A Fowle
N Fowle

Other changes in directors holding office are as follows:

M E Fowle - appointed 27 February 2023
E N Fowle - appointed 27 February 2023
S E I Fowle - appointed 27 February 2023

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;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-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.

Steelco (UK) Limited (Registered number: 02319502)

Report of the Directors
for the Year Ended 31 July 2023


AUDITORS
The auditors, Deeks Evans Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



A Fowle - Director


24 January 2024

Report of the Independent Auditors to the Members of
Steelco (UK) Limited

Opinion
We have audited the financial statements of Steelco (UK) Limited (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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 31 July 2023 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.

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.

Report of the Independent Auditors to the Members of
Steelco (UK) Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material affect on the financial statements from our understanding of the company and its industry, through verbal and written communications with the directors and other management and through inspection of the company's regulatory and legal correspondence.

We discussed with directors and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to the audit team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential affect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including the company's constitution, relevant reporting standards, company law, tax legislation and distributable profits legislation. We have assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material affect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arsing from litigations. We have identified the following areas as those most likely to have such an affect: employment legislation, health and safety legislation, trade legislation, data protection legislation and anti-bribery and corruption legislation.

International Standards on UK Auditing UK limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

Report of the Independent Auditors to the Members of
Steelco (UK) Limited


In relation to fraud we have performed the following specific procedures in addition to those already noted:

- Discussions with management including consideration of known or suspected instances of non-compliance with
laws and regulations and fraud;
- identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account
combinations, journal entries crediting cash or any revenue account and journal entries posted by senior
management;
- performing analytical procedures to identify unexpected movements in account balances which may be indicative
of fraud; and
- ensuring that testing undertaken on transactions and the balance sheet includes a number of items selected on a
random basis.

The procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation or the override of controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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.

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.




Richard Young (Senior Statutory Auditor)
for and on behalf of Deeks Evans Audit Services Limited
Statutory Auditor
First Floor, West Barn
North Frith Farm, Ashes Lane, Hadlow
Tonbridge
Kent
TN11 9QU

24 January 2024

Steelco (UK) Limited (Registered number: 02319502)

Income Statement
for the Year Ended 31 July 2023

2023 2022
Notes £    £   

TURNOVER 29,179,170 36,718,578

Cost of sales (25,337,687 ) (26,082,835 )
GROSS PROFIT 3,841,483 10,635,743

Distribution costs (764,863 ) (756,039 )
Administrative expenses (1,585,103 ) (1,725,713 )
OPERATING PROFIT 4 1,491,517 8,153,991

Interest receivable & similar income - 25
1,491,517 8,154,016

Interest payable and similar expenses 5 (3,717 ) (5,583 )
PROFIT BEFORE TAXATION 1,487,800 8,148,433

Tax on profit 6 (379,141 ) (1,547,519 )
PROFIT FOR THE FINANCIAL YEAR 1,108,659 6,600,914

Steelco (UK) Limited (Registered number: 02319502)

Other Comprehensive Income
for the Year Ended 31 July 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,108,659 6,600,914


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,108,659

6,600,914

Steelco (UK) Limited (Registered number: 02319502)

Balance Sheet
31 July 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 3,660,502 3,557,826

CURRENT ASSETS
Stocks 9 1,956,090 2,744,244
Debtors 10 8,194,322 9,670,138
Cash in hand 664 1,177
10,151,076 12,415,559
CREDITORS
Amounts falling due within one year 11 1,043,536 3,904,302
NET CURRENT ASSETS 9,107,540 8,511,257
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,768,042

12,069,083

PROVISIONS FOR LIABILITIES 15 405,200 284,900
NET ASSETS 12,362,842 11,784,183

CAPITAL & RESERVES
Called up share capital 16 201,000 201,000
Revaluation reserve 17 1,222,766 1,246,258
Retained earnings 17 10,939,076 10,336,925
SHAREHOLDERS' FUNDS 20 12,362,842 11,784,183

The financial statements were approved by the Board of Directors and authorised for issue on 24 January 2024 and were signed on its behalf by:





N Fowle - Director


Steelco (UK) Limited (Registered number: 02319502)

Statement of Changes in Equity
for the Year Ended 31 July 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 August 2021 201,000 5,892,519 1,269,750 7,363,269

Changes in equity
Profit for the year - 6,600,914 - 6,600,914
Total comprehensive income - 6,600,914 - 6,600,914
Dividends - (2,180,000 ) - (2,180,000 )
Transfer between reserves - 23,492 (23,492 ) -
Balance at 31 July 2022 201,000 10,336,925 1,246,258 11,784,183

Changes in equity
Profit for the year - 1,108,659 - 1,108,659
Total comprehensive income - 1,108,659 - 1,108,659
Dividends - (530,000 ) - (530,000 )
Transfer between reserves - 23,492 (23,492 ) -
Balance at 31 July 2023 201,000 10,939,076 1,222,766 12,362,842

Steelco (UK) Limited (Registered number: 02319502)

Cash Flow Statement
for the Year Ended 31 July 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 21 1,996,040 4,680,162
Interest paid (3,639 ) (3,533 )
Interest element of hire purchase or finance
lease rental payments paid

-

(1,844

)
Finance costs paid (78 ) (206 )
Tax paid (1,108,750 ) (2,086,826 )
Net cash from operating activities 883,573 2,587,753

Cash flows from investing activities
Purchase of tangible fixed assets (399,526 ) (156,496 )
Sale of tangible fixed assets 45,500 18,000
Interest received - 25
Net cash from investing activities (354,026 ) (138,471 )

Cash flows from financing activities
Capital repayments in year - (268,342 )
Equity dividends paid (530,000 ) (2,180,000 )
Net cash from financing activities (530,000 ) (2,448,342 )

(Decrease)/increase in cash and cash equivalents (453 ) 940
Cash and cash equivalents at beginning
of year

22

1,117

177

Cash and cash equivalents at end of
year

22

664

1,117

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements
for the Year Ended 31 July 2023

1. STATUTORY INFORMATION

Steelco (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year. Turnover is recognised when the significant risks and rewards have been transferred to the buyer, which is when they have accepted physical delivery and control of the goods. No revenue is recognised if there are significant uncertainties regarding the recovery of the amount due.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on valuation
Plant & machinery - 5% and 20% reducing balance
Fixtures & fittings - 15% on reducing balance
Motor vehicles - 12.5% on cost and Straight line over 6 years
Computer equipment - 25% on cost

Stocks
Raw materials and consumables are valued at the lower of cost and estimated selling price less costs to complete and sell. Finished goods which have been delivered to customers but not invoiced, are valued at the lower of cost, processing and delivery, and estimated selling price.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme and an employees personal defined contribution pension scheme are charged to the profit and loss account in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,653,733 1,729,428
Social security costs 198,772 212,066
Other pension costs 42,939 21,663
1,895,444 1,963,157

The average number of employees during the year was as follows:
2023 2022

Office and management 8 7
Production 10 11
Sales and distribution 11 11
29 29

2023 2022
£    £   
Directors' remuneration 20,020 -
Directors' pension contributions to money purchase schemes 20,108 -

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 2

4. OPERATING PROFIT

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

2023 2022
£    £   
Other operating leases 558 1,116
Depreciation - owned assets 213,279 201,715
Loss/(profit) on disposal of fixed assets 38,071 (2,021 )
Auditors' remuneration 11,585 5,800
Foreign exchange differences (22 ) 1,397

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other interest 3,639 3,533
Hire purchase - 1,844
Factoring interest 78 206
3,717 5,583

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 258,841 1,529,719

Deferred tax 120,300 17,800
Tax on profit 379,141 1,547,519

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,487,800 8,148,433
Profit multiplied by the standard rate of corporation tax in the UK of
21.005% (2022 - 19%)

312,512

1,548,202

Effects of:
Expenses not deductible for tax purposes 47 158
Super deduction allowances (14,962 ) (8,920 )
Deferred tax (overprovision)/underprovision in previous year (12,100 ) 8,079
Deferred tax changes in tax rate 93,634 -
Rounding 10 -
Total tax charge 379,141 1,547,519

7. DIVIDENDS

Dividends of £530,000 (2022 - £2,180,000) were paid on the A ordinary shares. and nil (2022 - nil) on the B ordinary shares.


The dividend in respect of the 8.75% preference shares has been waived, as in the previous year.

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

8. TANGIBLE FIXED ASSETS
Freehold Plant & Fixtures
property machinery & fittings
£    £    £   
COST OR VALUATION
At 1 August 2022 2,275,000 1,782,652 145,789
Additions - 10,887 3,895
Disposals - - -
At 31 July 2023 2,275,000 1,793,539 149,684
DEPRECIATION
At 1 August 2022 63,536 733,138 111,492
Charge for year 42,362 70,608 5,729
Eliminated on disposal - - -
At 31 July 2023 105,898 803,746 117,221
NET BOOK VALUE
At 31 July 2023 2,169,102 989,793 32,463
At 31 July 2022 2,211,464 1,049,514 34,297

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 August 2022 728,732 40,656 4,972,829
Additions 374,170 10,574 399,526
Disposals (233,676 ) - (233,676 )
At 31 July 2023 869,226 51,230 5,138,679
DEPRECIATION
At 1 August 2022 469,872 36,965 1,415,003
Charge for year 91,827 2,753 213,279
Eliminated on disposal (150,105 ) - (150,105 )
At 31 July 2023 411,594 39,718 1,478,177
NET BOOK VALUE
At 31 July 2023 457,632 11,512 3,660,502
At 31 July 2022 258,860 3,691 3,557,826

Included in cost or valuation of land and buildings is freehold land of £ 156,900 (2022 - £ 156,900 ) which is not depreciated.

Cost or valuation at 31 July 2023 is represented by:

Freehold Plant & Fixtures
property machinery & fittings
£    £    £   
Valuation in 2006 (34,142 ) - -
Valuation in 2015 156,670 - -
Valuation in 2018 228,105 - -
Valuation in 2021 930,857 - -
Cost 993,510 1,793,539 149,684
2,275,000 1,793,539 149,684

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

8. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2006 - - (34,142 )
Valuation in 2015 - - 156,670
Valuation in 2018 - - 228,105
Valuation in 2021 - - 930,857
Cost 869,226 51,230 3,857,189
869,226 51,230 5,138,679

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 993,510 993,510
Aggregate depreciation 306,378 287,508

Value of land in freehold land and buildings 50,000 50,000

Freehold land and buildings were valued on an open market basis on 31 January 2021 by qualified independent chartered surveyors .

9. STOCKS
2023 2022
£    £   
Raw materials 1,570,052 2,193,029
Finished goods 386,038 551,215
1,956,090 2,744,244

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 8,106,492 9,588,104
Other debtors 40 -
Prepayments 87,790 82,034
8,194,322 9,670,138

Included in trade debtors are factored debts amounting to £8,104,758 (2022 - £9,585,883) made up as below. These debts are factored without recourse to the company for losses.

20232022
£   £   
Debtors factored without recourse
Gross debt8,119,0489,574,336
Non returnable proceeds(14,290)11,547
8,104,7589,585,883


Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans & overdrafts (see note 12) - 60
Trade creditors 579,398 2,690,914
Corporation tax 169,810 1,019,719
Social security & other taxes 243,391 144,880
Other creditors 9,715 13,239
Accruals & deferred income 41,222 35,490
1,043,536 3,904,302

12. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 60

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year - 558

14. SECURED DEBTS

There is a legal charge over the freehold property in support of loans made to Fowle & Co Limited by the Fowle Executive Pension Scheme. Fowle & Co Limited has a participating interest in Steelco (UK) Limited and is controlled by the same directors.

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 405,200 284,900

Deferred
tax
£   
Balance at 1 August 2022 284,900
Accelerated capital allowances 43,100
Property revaluations (8,000 )
Overprovision previous years (12,100 )
Movement re tax rate change 97,300
Balance at 31 July 2023 405,200

No deferred tax provision has been made in respect of the revaluation of freehold property as no unrecognised gain for tax purposes arose on the valuation after indexation has been applied.

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
600 Ordinary A Shares £1 600 600
400 Ordinary B Shares £1 400 400
200,000 8.75% Preference shares £1 200,000 200,000
201,000 201,000

Voting rights and rights on winding up are the same for both A ordinary and B ordinary shares.

17. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 August 2022 10,336,925 1,246,258 11,583,183
Profit for the year 1,108,659 1,108,659
Dividends (530,000 ) (530,000 )
Transfer between reserves 23,492 (23,492 ) -
At 31 July 2023 10,939,076 1,222,766 12,161,842

18. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Sales 204,211 257,496
Purchases 23,630,979 26,067,400
Transport income - 2,954
Management charge expense 48,000 48,000
Diesel and lorry rental expense 194,232 197,823
Lorries sold to related party 31,000 -
Amount due to related party 477,142 2,552,058

Purchases of materials have been charged to Steelco (UK) Limited at the cost at which the related party bought the materials originally.

The related parties are controlled by the same directors.

19. ULTIMATE CONTROLLING PARTY

The company is controlled by the directors A Fowle and N Fowle.

20. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2023 2022
£    £   
Profit for the financial year 1,108,659 6,600,914
Dividends (530,000 ) (2,180,000 )
Net addition to shareholders' funds 578,659 4,420,914
Opening shareholders' funds 11,784,183 7,363,269
Closing shareholders' funds 12,362,842 11,784,183

Steelco (UK) Limited (Registered number: 02319502)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

21. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,487,800 8,148,433
Depreciation charges 213,278 201,716
Loss/(profit) on disposal of fixed assets 38,071 (2,021 )
Finance costs 3,717 5,583
Finance income - (25 )
1,742,866 8,353,686
Decrease/(increase) in stocks 788,154 (896,575 )
Decrease in trade and other debtors 1,475,816 1,441,469
Decrease in trade and other creditors (2,010,796 ) (4,218,418 )
Cash generated from operations 1,996,040 4,680,162

22. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 664 1,177
Bank overdrafts - (60 )
664 1,117
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 1,177 177
Bank overdrafts (60 ) -
1,117 177


23. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 1,177 (513 ) 664
Bank overdrafts (60 ) 60 -
1,117 (453 ) 664
Total 1,117 (453 ) 664