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REGISTERED NUMBER: 01518503 (England and Wales)













Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 August 2023

for

Whitehead Alloys Limited

Whitehead Alloys Limited (Registered number: 01518503)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


Whitehead Alloys Limited

Company Information
for the Year Ended 31 August 2023







DIRECTORS: A F Spalding
W Whitehead



SECRETARY: A F Spalding



REGISTERED OFFICE: 4 Buck Street
Middlesbrough
TS2 1LW



REGISTERED NUMBER: 01518503 (England and Wales)



SENIOR STATUTORY AUDITOR: David Shawcross FCA



AUDITORS: Anderson Barrowcliff LLP
Statutory Auditor
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

Whitehead Alloys Limited (Registered number: 01518503)

Strategic Report
for the Year Ended 31 August 2023

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

REVIEW OF BUSINESS
The results for the year and financial position of the company are as shown in the annexed financial statements.
The directors consider that the results for the year and the financial position at the end of the year were satisfactory. The company has made a pre tax profit of £811,244 (2022 - £1,794,618) and had net assets of £5,054,543 (2022 - £5,941,768).
The company's trading performance decreased during the year in line with a reduction in tonnage output. The decrease in gross profit margin has resulted primarily from higher energy costs in the year.

PRINCIPAL RISKS AND UNCERTAINTIES
In common with other businesses in the metal industry sector, the company is dependent on the world metal market and would also be affected by the loss of a major customer or supplier, however the directors believe that they have taken adequate steps to mitigate these risks and continue to be profitable.

KEY PERFORMANCE INDICATORS
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the entity, and that all relevant financial information has been disclosed within the financial statements.

FUTURE DEVELOPMENTS
The directors are continually exploring new opportunities in respect of new customers, new products and services and new markets.

ON BEHALF OF THE BOARD:





A F Spalding - Secretary


19 April 2024

Whitehead Alloys Limited (Registered number: 01518503)

Report of the Directors
for the Year Ended 31 August 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of reclamation of alloys from scrap and there has been no significant change during the year.

DIVIDENDS
The total distribution of dividends for the year ended 31 August 2023 is £1,500,000 (2022 - £1,000,000) in respect of the ordinary A shares.

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

A F Spalding
W Whitehead

FINANCIAL INSTRUMENTS
The company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the company's policies which provide written principles on the use of financial derivatives to manage these risks.

Cash flow risk
The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company uses foreign exchange forward contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk
The company's principal financial assets are bank balances and cash and trade and other receivables.

The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk
In order to maintain liquidity to ensure sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long term and short term debt finance.


Whitehead Alloys Limited (Registered number: 01518503)

Report of the Directors
for the Year Ended 31 August 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). 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.

ON BEHALF OF THE BOARD:



A F Spalding - Secretary


19 April 2024

Report of the Independent Auditors to the Members of
Whitehead Alloys Limited

Opinion
We have audited the financial statements of Whitehead Alloys Limited (the 'company') for the year ended 31 August 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 August 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.

Report of the Independent Auditors to the Members of
Whitehead Alloys Limited


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 four, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.


Report of the Independent Auditors to the Members of
Whitehead Alloys Limited


Audit procedures performed by the engagement team included:

- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
- Challenging estimates and judgements made by management in their significant accounting estimates.
- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.




David Shawcross FCA (Senior Statutory Auditor)
for and on behalf of Anderson Barrowcliff LLP
Statutory Auditor
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

19 April 2024

Whitehead Alloys Limited (Registered number: 01518503)

Statement of Comprehensive
Income
for the Year Ended 31 August 2023

2023 2022
Notes £    £   

TURNOVER 2 18,635,066 20,928,521

Cost of sales 16,408,621 18,323,328
GROSS PROFIT 2,226,445 2,605,193

Administrative expenses 1,447,886 822,973
778,559 1,782,220

Other operating income 8,400 12,602
OPERATING PROFIT 786,959 1,794,822

Interest receivable and similar income 24,285 -
811,244 1,794,822

Interest payable and similar expenses 4 - 204
PROFIT BEFORE TAXATION 5 811,244 1,794,618

Tax on profit 6 198,469 342,225
PROFIT FOR THE FINANCIAL YEAR 612,775 1,452,393

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

612,775

1,452,393

Whitehead Alloys Limited (Registered number: 01518503)

Balance Sheet
31 August 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 1,345,099 1,042,277

CURRENT ASSETS
Stocks 9 1,231,187 1,870,255
Debtors 10 3,478,477 4,895,359
Cash at bank and in hand 2,222,933 1,133,322
6,932,597 7,898,936
CREDITORS
Amounts falling due within one year 11 2,894,322 2,614,264
NET CURRENT ASSETS 4,038,275 5,284,672
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,383,374

6,326,949

CREDITORS
Amounts falling due after more than one
year

12

(56,831

)

(241,181

)

PROVISIONS FOR LIABILITIES 17 (272,000 ) (144,000 )
NET ASSETS 5,054,543 5,941,768

CAPITAL AND RESERVES
Called up share capital 18 5,100 5,100
Retained earnings 19 5,049,443 5,936,668
SHAREHOLDERS' FUNDS 5,054,543 5,941,768

The financial statements were approved by the Board of Directors and authorised for issue on 19 April 2024 and were signed on its behalf by:





W Whitehead - Director


Whitehead Alloys Limited (Registered number: 01518503)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2021 5,100 5,484,275 5,489,375

Changes in equity
Dividends - (1,000,000 ) (1,000,000 )
Total comprehensive income - 1,452,393 1,452,393
Balance at 31 August 2022 5,100 5,936,668 5,941,768

Changes in equity
Dividends - (1,500,000 ) (1,500,000 )
Total comprehensive income - 612,775 612,775
Balance at 31 August 2023 5,100 5,049,443 5,054,543

Whitehead Alloys Limited (Registered number: 01518503)

Cash Flow Statement
for the Year Ended 31 August 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,014,715 1,744,014
Interest paid - (204 )
Tax paid (50,618 ) (265,021 )
Net cash from operating activities 2,964,097 1,478,789

Cash flows from investing activities
Purchase of tangible fixed assets (904,624 ) (374,193 )
Sale of tangible fixed assets 7,005 46,500
Interest received 24,285 -
Net cash from investing activities (873,334 ) (327,693 )

Cash flows from financing activities
Amount introduced by directors 712,500 -
Amount withdrawn by directors (371,559 ) 146,268
Equity dividends paid (1,500,000 ) (1,000,000 )
Net cash from financing activities (1,159,059 ) (853,732 )

Increase in cash and cash equivalents 931,704 297,364
Cash and cash equivalents at beginning of
year

2

1,133,322

835,958

Cash and cash equivalents at end of year 2 2,065,026 1,133,322

Whitehead Alloys Limited (Registered number: 01518503)

Notes to the Cash Flow Statement
for the Year Ended 31 August 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 811,244 1,794,618
Depreciation charges 229,174 208,374
Loss/(profit) on disposal of fixed assets 365,623 (29,790 )
Government grants - (8,400 )
Finance costs - 204
Finance income (24,285 ) -
1,381,756 1,965,006
Decrease/(increase) in stocks 639,068 (656,378 )
Decrease/(increase) in trade and other debtors 1,397,031 (774,893 )
(Decrease)/increase in trade and other creditors (403,140 ) 1,210,279
Cash generated from operations 3,014,715 1,744,014

2. 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 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 2,222,933 1,133,322
Bank overdrafts (157,907 ) -
2,065,026 1,133,322
Year ended 31 August 2022
31.8.22 1.9.21
£    £   
Cash and cash equivalents 1,133,322 839,383
Bank overdrafts - (3,425 )
1,133,322 835,958


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22 Cash flow At 31.8.23
£    £    £   
Net cash
Cash at bank and in hand 1,133,322 1,089,611 2,222,933
Bank overdrafts - (157,907 ) (157,907 )
1,133,322 931,704 2,065,026
Total 1,133,322 931,704 2,065,026

Whitehead Alloys Limited (Registered number: 01518503)

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

1. ACCOUNTING POLICIES

Basis of preparing the financial statements
Whitehead Alloys Limited is a private company, limited by shares, incorporated in the United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and its principal activities are set out in the Strategic report and Report of the Directors on pages 2 to 4 .

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Turnover from the sale of metal is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost, 6% on cost, 5% on cost and over the period of the lease
Plant and machinery - 20% on cost and 10% on cost
Fixtures and fittings - 33% on cost and 10% on cost
Motor vehicles - 25% on cost

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Whitehead Alloys Limited (Registered number: 01518503)

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

1. ACCOUNTING POLICIES - continued

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.

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

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss in other administrative expenses.

Derivatives
Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. The company uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The company does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Judgements and key sources of estimation uncertainty
In the application of the companies' accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Whitehead Alloys Limited (Registered number: 01518503)

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

2. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 9,811,939 8,865,582
Europe 8,823,127 12,062,939
18,635,066 20,928,521

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 618,916 582,840
Social security costs 60,098 57,374
Other pension costs 10,216 9,062
689,230 649,276

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

Directors 2 2
Production 14 14
Administration 2 2
18 18

2023 2022
£    £   
Directors' remuneration 23,300 21,958

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

Money purchase schemes 2 2

4. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest on corporation tax - 204

Whitehead Alloys Limited (Registered number: 01518503)

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

5. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 229,174 208,374
Loss/(profit) on disposal of fixed assets 365,623 (29,790 )
Auditors remuneration 7,500 7,300
Operating leases - land & buildings 25,000 25,000
Foreign exchange (gain)/loss 50,081 (9,246 )
(Gain)/loss on derivative (97,040 ) 126,771

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 78,800 315,000
Under/(over) provided in
previous year (8,331 ) (2,775 )
Total current tax 70,469 312,225

Deferred taxation 128,000 30,000
Tax on profit 198,469 342,225

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 811,244 1,794,618
Profit multiplied by the standard rate of corporation tax in the UK of
21.515% (2022 - 19%)

174,539

340,977

Effects of:
Expenses not deductible for tax purposes 5,593 4,730
Adjustments to tax charge in respect of previous periods (8,331 ) (2,775 )
Movement in over provision (102 ) 4,697
Enhanced capital allowances (31,314 ) (5,404 )
Corporation tax rate difference 12,656 -
Deferred tax rate movement 45,435 -
Rounding in amount provided (7 ) -
Total tax charge 198,469 342,225

Whitehead Alloys Limited (Registered number: 01518503)

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

7. DIVIDENDS
2023 2022
£    £   
Ordinary A shares of £1 each
Dividends paid 1,500,000 1,000,000

8. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 September 2022 542,815 2,824,052 67,124 110,184 3,544,175
Additions 25,589 863,481 15,554 - 904,624
Disposals - (1,135,844 ) - - (1,135,844 )
At 31 August 2023 568,404 2,551,689 82,678 110,184 3,312,955
DEPRECIATION
At 1 September 2022 323,018 2,125,712 33,523 19,645 2,501,898
Charge for year 26,538 168,208 6,882 27,546 229,174
Eliminated on disposal - (763,216 ) - - (763,216 )
At 31 August 2023 349,556 1,530,704 40,405 47,191 1,967,856
NET BOOK VALUE
At 31 August 2023 218,848 1,020,985 42,273 62,993 1,345,099
At 31 August 2022 219,797 698,340 33,601 90,539 1,042,277

9. STOCKS
2023 2022
£    £   
Stocks 1,231,187 1,870,255

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,243,093 4,529,335
Other debtors 545 545
Social security and other taxes 133,128 152,979
Prepayments and accrued income 90,816 212,500
Derivative asset 10,895 -
3,478,477 4,895,359

Whitehead Alloys Limited (Registered number: 01518503)

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

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 157,907 -
Trade creditors 1,280,593 1,240,408
Social security and other taxes 90,028 330,514
Other creditors 634,771 397,424
Directors' current accounts 592,318 251,377
Accruals and deferred income 138,705 308,397
Derivative liability - 86,144
2,894,322 2,614,264

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Other creditors - 175,950
Deferred government grants 56,831 65,231
56,831 241,181

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 157,907 -

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 25,000 25,000
Between one and five years 28,125 53,125
53,125 78,125

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdraft 157,907 -

The bank facilities are secured by a debenture, incorporating a fixed and floating charge over the assets of the company.

Whitehead Alloys Limited (Registered number: 01518503)

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

16. FINANCIAL INSTRUMENTS

The carrying amounts of the company's financial instruments are as follows:

2023 2022
£ £
Financial assets/(liabilities)
Measured at fair value through profit or loss
- Derivative financial assets/(liabilities) 10,895 (86,144 )


The expenses, gains and losses attributable to the company's financial instruments are summarised as follows:

2023 2022
£ £
Interest income and expense
Total interest expenses for financial liabilities measured at amortised cost 12,935 14,550

Fair value (gains)/losses
On derivative financial assets/liabilities (97,040 ) 126,771
(84,105 ) 141,321

Forward foreign currency contracts are valued using quoted forward exchange rates matching maturities of the contracts. The contracts are all short term and mature within 6 months following the year end.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 272,000 144,000

Deferred
tax
£   
Balance at 1 September 2022 144,000
Provided during year 128,000
Balance at 31 August 2023 272,000

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,000 Ordinary A £1 5,000 5,000
1 Ordinary S £100 100 100
5,100 5,100

Whitehead Alloys Limited (Registered number: 01518503)

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

18. CALLED UP SHARE CAPITAL - continued

The 'S' Ordinary Share carries rights to participate in income, profits and distributions either as a single class of share, or together with all existing shares in the company (as if the same constituted a single class of shares), as the board may recommend from time to time. It is a non-voting share and is non-redeemable.
The 'S' Ordinary Shareholder is not entitled to a return of assets (whether in liquidation, capital reduction or otherwise) beyond its nominal value.

19. RESERVES
Retained
earnings
£   

At 1 September 2022 5,936,668
Profit for the year 612,775
Dividends (1,500,000 )
At 31 August 2023 5,049,443

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

20. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The charge for the year was £10,216 (2022 - £9,062). Contributions outstanding at the year end amounted to £643 (2022 - £506).

21. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 703,375

22. RELATED PARTY DISCLOSURES

The total remuneration for key management personnel for the year totalled £23,300 (2022 - £21,958), being remuneration disclosed in note 3.