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REGISTERED NUMBER: 11461388 (England and Wales)















Audited Financial Statements for the Year Ended 31 March 2023

for

Globus Metal Powders Ltd

Previously known as
Liberty Powder Metals Ltd

Globus Metal Powders Ltd (Registered number: 11461388)






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




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Globus Metal Powders Ltd

Company Information
for the Year Ended 31 March 2023







DIRECTORS: Mr A Roberts
Mr M Ruenz





SECRETARY: Ms M Hale





REGISTERED OFFICE: Parkway House
Unit 6 Parkway Industrial Estate
Pacific Avenue
Wednesbury
West Midlands
WS10 7WP





REGISTERED NUMBER: 11461388 (England and Wales)





AUDITORS: JBC Accountants Limited
Statutory Auditor
3B Lockheed Court
Preston Farm
Stockton on Tees
TS18 3SH

Globus Metal Powders Ltd (Registered number: 11461388)

Balance Sheet
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 4,657,766 4,873,848

CURRENT ASSETS
Stocks 279,741 197,575
Debtors 5 180,117 413,003
Cash at bank 582,861 958,335
1,042,719 1,568,913
CREDITORS
Amounts falling due within one year 6 6,911,448 5,276,600
NET CURRENT LIABILITIES (5,868,729 ) (3,707,687 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(1,210,963

)

1,166,161

CREDITORS
Amounts falling due after more than one
year

7

(3,637,333

)

(4,356,795

)

PROVISIONS FOR LIABILITIES 10 (64,900 ) (59,000 )
NET LIABILITIES (4,913,196 ) (3,249,634 )

CAPITAL AND RESERVES
Called up share capital 1 1
Retained earnings (4,913,197 ) (3,249,635 )
(4,913,196 ) (3,249,634 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2023 and were signed on its behalf by:





Mr A Roberts - Director


Globus Metal Powders Ltd (Registered number: 11461388)

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

1. STATUTORY INFORMATION

Globus Metal Powders Limited is a private company limited by shares incorporated in England and Wales. The registered office at the date of signing is Parkway House Unit 6 Parkway Industrial Estate, Pacific Avenue, Wednesbury, West Midlands, United Kingdom, WS10 7WP. The principal place of business is Materials Processing Institute, Eston Road, Middlesbrough, TS6 6US.

2. ACCOUNTING POLICIES

Accounting convention
These financial statements have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements
The following judgements (apart from those involving estimation) have had the most significant effect on amounts recognised in the financial statements:

Impairment of tangible fixed assets and stock
The company considers whether tangible fixed assets and stock are impaired annually at the balance sheet date. The Powder Metals market in which the company operates is newly established and subject to some uncertainties relating to their future operation as the market develops. These uncertainties could impact the long run returns anticipated from the business. At the period end and at the time of approving these accounts, management are satisfied that there are no indicators that a material impairment of the company's assets has occurred.

Provisions
Provisions are made for dilapidations and contingencies. These provisions require management's best estimates of the costs that will be incurred based on contractual requirements discounted at a risk free rate and costs base inflated at an appropriate rate. Ultimate costs are uncertain and can vary in many factors including change in legal requirements and new technology. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations requires managements' judgement. The carrying value of provisions is disclosed in note 14.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Globus Metal Powders Ltd (Registered number: 11461388)

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

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment: between 1 - 20 years

Assets held under finance lease or hire purchase contracts are depreciated in the same manner as owned assets.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks
Stocks are stated at either the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Net realisable value is based on estimated selling price less further costs to completion and sale.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 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 is recognised in respect of all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is not probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantially enacted by the end of the reporting period.

Globus Metal Powders Ltd (Registered number: 11461388)

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

2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Leasing and hire purchase contracts
Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets.

Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight-line basis.

Pensions
Payments to defined contribution pension schemes are charged as an expense as they fall due.

Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Finance costs
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount of charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Going concern
The company has made a loss of £1,663,562 during the year and the balance sheet is in deficit by £4,913,196. At the time of approving the financial statements, the directors assess that the company has adequate resources to continue in operational existence for the foreseeable future on the understanding that the company has the ongoing support of its holding company and its loan provider who is providing facilities to the company. Thus the directors have adopted the going concern basis of accounting in preparing the financial statements.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2022 - 15 ) .

Globus Metal Powders Ltd (Registered number: 11461388)

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

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 April 2022 5,308,445
Additions 112,127
At 31 March 2023 5,420,572
DEPRECIATION
At 1 April 2022 434,597
Charge for year 328,209
At 31 March 2023 762,806
NET BOOK VALUE
At 31 March 2023 4,657,766
At 31 March 2022 4,873,848

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and
machinery
etc
£   
COST
At 1 April 2022
and 31 March 2023 31,800
DEPRECIATION
At 1 April 2022 11,130
Charge for year 6,360
At 31 March 2023 17,490
NET BOOK VALUE
At 31 March 2023 14,310
At 31 March 2022 20,670

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 500 7,681
Other debtors 179,617 405,322
180,117 413,003

Globus Metal Powders Ltd (Registered number: 11461388)

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

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 8) 6,586 6,266
Trade creditors 208,707 240,939
Taxation and social security 14,931 14,777
Other creditors 6,681,224 5,014,618
6,911,448 5,276,600

Amounts owed to related parties are included in other creditors. The amount outstanding at 31 March 2023 was £5,730,308 (2022: £4,450,308), was non-interest bearing and was repayable on demand. These amounts were repaid in November 2023 following the change in company ownership and replaced with a loan advanced by the new parent company.

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 8) 8,709 15,295
Other creditors 3,628,624 4,341,500
3,637,333 4,356,795

Amounts falling due in more than five years:

Repayable by instalments
Other loans more 5yrs instal 183,156 1,142,770

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 6,586 6,266
Between one and five years 8,709 15,295
15,295 21,561

Non-cancellable operating leases
2023 2022
£    £   
Within one year 62,905 62,905
Between one and five years 251,620 251,620
In more than five years 723,407 786,312
1,037,932 1,100,837

Globus Metal Powders Ltd (Registered number: 11461388)

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

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Other loans 4,341,500 4,507,928

The loan is secured by way of a cross-guarantee from a related party company.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions 64,900 59,000

Other
provisions
£   
Balance at 1 April 2022 59,000
Credit in year 5,900
Balance at 31 March 2023 64,900

As part of the company's land leasing arrangement, there is an obligation to return the land back to its original state. The present value of the estimated final costs is capitalised and amortised to the Statement of Comprehensive Income over the life of the lease.

Provision for deferred tax

The company has carried forward tax losses of £3,814,186 and other tax deductions of £699,469. The company has not recognised a deferred tax asset in respect of these due to uncertainties surrounding their future recovery.

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mrs L Dickson (Senior Statutory Auditor)
for and on behalf of JBC Accountants Limited

12. RELATED PARTY DISCLOSURES

All transactions with related parties are made under normal market conditions as defined in the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. As such, no disclosure is required.

13. POST BALANCE SHEET EVENTS

On 10 November 2023, all of the share capital of the company was sold to Britannia Metals Parent Company. As part of the sale and purchase agreement, related party loans were repaid and immediately replaced with an equivalent loan from Britannia Metals Parent Company.

Globus Metal Powders Ltd (Registered number: 11461388)

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

14. PARENT COMPANY

The immediate and ultimate parent company is Britannia Metals Parent Company, a company registered in the USA.
At the balance sheet date, the parent company was LRC Three Pte. Ltd. Its registered office is 8 Marina View, Singapore.