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REGISTERED NUMBER: 03232713 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 August 2023

for

Avalon Metals Limited

Avalon Metals Limited (Registered number: 03232713)

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

Profit and Loss Account 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 14


Avalon Metals Limited

Company Information
for the year ended 31 August 2023







Directors: S A Howell
A R Howell



Secretary: S A Howell



Registered office: Lloyd George House
Fordshill Road
Rotherwas Industrial Estate
Hereford
HR2 6NS



Registered number: 03232713 (England and Wales)



Senior statutory auditor: Robin Mason



Auditors: Acre Accountancy Limited
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

Avalon Metals Limited (Registered number: 03232713)

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 directors are content with the company's results for the year and are looking forward to progress in the coming year.

The trading results for the year and the company's financial position at the end of the year are shown in the attached financial statements. The Board uses key performance indicators in the management of the key risks of the business and as a measure of the business efficiencies of the company. The key performance indicators used to monitor the company's performance are revenue and gross profit. Revenue has increased by 4.49% on the prior year but gross profit margin has decreased to 42.56% for the year ended 31 August 2023 compared to 44.23% in the prior year.

Principal risks and uncertainties
The company's activities expose it to a number of financial risks including price risk, credit risk, cashflow risk and liquidity risk. The use of financial instruments is monitored by the Board of directors; the company does not use financial instruments for speculative purposes.

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds to finance the company's operations.

Cash flow risk
The company has few interest bearing assets and liabilities which minimises the uncertainty of cash flows.

Credit risk
The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade and other receivables.

The company manages credit risk in respect of trade debtors by regularly monitoring credit limits and balances outstanding. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term finance. The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments.

On behalf of the board:





S A Howell - Director


5 January 2024

Avalon Metals Limited (Registered number: 03232713)

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 principle activity of the company continued to be that of recycling scrap metal and waste.

Dividends
An interim dividend of £513.35 per share was paid on 5 April 2023. The directors recommend a final dividend of £370.25 per share, making a total of £883.60 per share for the year ended 31 August 2023.

The total distribution of dividends for the year ended 31 August 2023 will be £ 883,600 .

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

S A Howell
A R Howell

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Avalon Metals Limited (Registered number: 03232713)

Report of the Directors
for the year ended 31 August 2023


Auditors
The auditors, Acre Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:



S A Howell - Director


5 January 2024

Report of the Independent Auditors to the Members of
Avalon Metals Limited


Opinion
We have audited the financial statements of Avalon Metals Limited (the 'company') for the year ended 31 August 2023 which comprise the Profit and Loss Account, 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
Avalon Metals 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 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 enquired with management about the legal framework that the company operates in. We also enquired about the risk of fraud and whether they were aware of any instances of fraud.

We communicated the outcome of this risk assessment with the audit team and planned our audit work accordingly. Our work in these areas is limited to analytical procedures and inspection of relevant documentation. Where a breach of operational regulations is not disclosed to us, or it is not evident from documentation that we receive during the audit, an audit will not detect that breach.

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
Avalon 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.




Robin Mason (Senior Statutory Auditor)
for and on behalf of Acre Accountancy Limited
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

5 January 2024

Avalon Metals Limited (Registered number: 03232713)

Profit and Loss Account
for the year ended 31 August 2023

2023 2022
Notes £    £   

TURNOVER 5 23,602,754 22,587,871

Cost of sales (13,558,003 ) (12,597,590 )
GROSS PROFIT 10,044,751 9,990,281

Administrative expenses (7,504,676 ) (6,613,089 )
2,540,075 3,377,192

Other operating income 6 16,796 67,217
OPERATING PROFIT 8 2,556,871 3,444,409

Interest receivable and similar income 46,706 1,889
2,603,577 3,446,298

Interest payable and similar expenses 9 (116,085 ) (100,620 )
PROFIT BEFORE TAXATION 2,487,492 3,345,678

Tax on profit 10 (523,281 ) (811,662 )
PROFIT FOR THE FINANCIAL YEAR 1,964,211 2,534,016

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,964,211

2,534,016

Avalon Metals Limited (Registered number: 03232713)

Balance Sheet
31 August 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 12 4,935,198 5,379,635

CURRENT ASSETS
Stocks 13 2,353,927 1,608,665
Debtors 14 13,320,507 8,753,718
Investments 15 460,423 460,423
Cash at bank and in hand 889,512 5,807,731
17,024,369 16,630,537
CREDITORS
Amounts falling due within one year 16 (4,938,185 ) (3,839,997 )
NET CURRENT ASSETS 12,086,184 12,790,540
TOTAL ASSETS LESS CURRENT
LIABILITIES

17,021,382

18,170,175

CREDITORS
Amounts falling due after more than one year 17 (283,633 ) (2,481,928 )

PROVISIONS FOR LIABILITIES 21 (952,091 ) (970,066 )

ACCRUALS AND DEFERRED INCOME 22 (30,016 ) (43,150 )
NET ASSETS 15,755,642 14,675,031

CAPITAL AND RESERVES
Called up share capital 23 1,000 1,000
Retained earnings 24 15,754,642 14,674,031
SHAREHOLDERS' FUNDS 15,755,642 14,675,031

The financial statements were approved by the Board of Directors and authorised for issue on 5 January 2024 and were signed on its behalf by:





S A Howell - Director


Avalon Metals Limited (Registered number: 03232713)

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 1,000 12,760,815 12,761,815

Changes in equity
Dividends - (620,800 ) (620,800 )
Total comprehensive income - 2,534,016 2,534,016
Balance at 31 August 2022 1,000 14,674,031 14,675,031

Changes in equity
Dividends - (883,600 ) (883,600 )
Total comprehensive income - 1,964,211 1,964,211
Balance at 31 August 2023 1,000 15,754,642 15,755,642

Avalon Metals Limited (Registered number: 03232713)

Cash Flow Statement
for the year ended 31 August 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,211,388 6,184,791
Interest paid (76,110 ) (58,770 )
Interest element of hire purchase payments paid (39,975 ) (41,850 )
Tax paid (593,432 ) (687,819 )
Net cash from operating activities 1,501,871 5,396,352

Cash flows from investing activities
Purchase of tangible fixed assets (794,867 ) (1,319,598 )
Purchase of fixed asset investments - (64,400 )
Sale of tangible fixed assets 230,658 249,450
Interest received 46,706 1,889
Net cash from investing activities (517,503 ) (1,132,659 )

Cash flows from financing activities
Loan repayments in year (2,232,837 ) (35,582 )
New HP agreements in year 120,000 625,500
Capital repayments in year (506,153 ) (669,339 )
Amount introduced by directors 3,283,600 620,800
Amount withdrawn by directors (5,683,597 ) (620,780 )
Equity dividends paid (883,600 ) (620,800 )
Net cash from financing activities (5,902,587 ) (700,201 )

(Decrease)/increase in cash and cash equivalents (4,918,219 ) 3,563,492
Cash and cash equivalents at beginning of
year

2

5,807,731

2,244,239

Cash and cash equivalents at end of year 2 889,512 5,807,731

Avalon Metals Limited (Registered number: 03232713)

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 2,487,492 3,345,678
Depreciation charges 1,110,623 1,012,754
Profit on disposal of fixed assets (101,977 ) (92,969 )
Government grants (13,134 ) (13,134 )
Finance costs 116,085 100,620
Finance income (46,706 ) (1,889 )
3,552,383 4,351,060
Increase in stocks (745,262 ) (86,181 )
(Increase)/decrease in trade and other debtors (2,166,863 ) 1,907,876
Increase in trade and other creditors 1,571,130 12,036
Cash generated from operations 2,211,388 6,184,791

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 889,512 5,807,731
Year ended 31 August 2022
31.8.22 1.9.21
£    £   
Cash and cash equivalents 5,807,731 2,244,239


Avalon Metals Limited (Registered number: 03232713)

Notes to the Cash Flow Statement
for the year ended 31 August 2023


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 5,807,731 (4,918,219 ) 889,512
5,807,731 (4,918,219 ) 889,512

Liquid resources
Current asset investments 460,423 - 460,423
460,423 - 460,423
Debt
Finance leases (961,415 ) 386,153 (575,262 )
Debts falling due within 1 year (232,837 ) 232,837 -
Debts falling due after 1 year (2,000,000 ) 2,000,000 -
(3,194,252 ) 2,618,990 (575,262 )
Total 3,073,902 (2,299,229 ) 774,673

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements
for the year ended 31 August 2023


1. STATUTORY INFORMATION

Avalon Metals 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. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration take into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and it is recorded at the fair value of the consideration received or receivable.

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 - 5% on cost
Plant and machinery - 20% on reducing balance and 7% reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance

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

Stocks
Stocks are valued at the lower of cost and net realisable value. Cost for non-processed inventory, is the average purchase price of the raw materials. Processed ferrous inventory is valued at the cost of the raw materials and direct costs for the stage of processing incurred. Non- ferrous processed inventory, where cost cannot be determined is valued at selling price less margin, based on normal levels of activity, which is deemed to be akin to cost. Net realisable value is based on estimated selling price less further processing costs and delivery charges, where applicable.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


3. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 account in other admin expenses.

Taxation
Taxation for the year comprises current and deferred tax. The tax currently payable is based on the taxable profit for the tear. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax
Deferred tax liabilities are generally recognised for all timing difference and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Hire purchase and leasing commitments
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rents payable under operating leases, including any lease incentives received, ar charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease assets are consumed.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Employee benefits
The cost of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of stock or fixed assets.

The costs of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Contaminated land costs
Remedial works for contaminated land have been professionally valued and are being provided for over the remaining terms in accordance with the leases.

4. CRITICAL ACCOUNTING 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 estimates) have the most significant effect on amounts recognised in the financial statements.

Valuation of stocks
Quantities of stocks are determined using various estimation techniques, including observation, weighing and other industry methods, and are subject to periodic physical verification.

5. 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:

2023 2022
£    £   
Scrap sales 20,714,247 20,075,843
Waste disposal sales 114,928 65,780
General works and hire 2,492,059 2,093,047
Spares sales 281,520 353,201
23,602,754 22,587,871

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


5. TURNOVER - continued

An analysis of turnover by geographical market for the year ended 31 August 2022 is given below:

£   
United Kingdom 22,532,545
Europe 55,326
22,587,871

This analysis is not considered to be applicable to the year ended 31 August 2023.

6. OTHER OPERATING INCOME

20232022
££

Insurance claims3,66254,083
Grants received13,13413,134




7. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,802,871 2,734,912
Social security costs 286,302 294,173
Other pension costs 54,839 50,570
3,144,012 3,079,655

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

Directors 2 2
Administrative staff 9 8
Production staff 60 55
71 65

2023 2022
£    £   
Directors' remuneration 70,888 320,888
Directors' pension contributions to money purchase schemes 439 439

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


8. OPERATING PROFIT

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

2023 2022
£    £   
Other operating leases 337,500 137,500
Depreciation - owned assets 1,110,623 1,012,754
Profit on disposal of fixed assets (101,977 ) (92,969 )
Auditors' remuneration 9,989 8,811
Government grants 13,134 13,134

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 12 27
Bank loan interest 75,158 58,743
Other interest 940 -
Hire purchase 39,975 41,850
116,085 100,620

10. 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 541,256 493,625

Deferred tax (17,975 ) 318,037
Tax on profit 523,281 811,662

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


10. 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:

2023 2022
£    £   
Profit before tax 2,487,492 3,345,678
Profit multiplied by the standard rate of corporation tax in the UK of 21.515%
(2022 - 19%)

535,184

635,679

Effects of:
Expenses not deductible for tax purposes 2,241 4,110
Income not taxable for tax purposes (2,825 ) (2,495 )
Depreciation in excess of capital allowances 202 -


Super deduction (9,015 ) (58,449 )
Increase in deferred tax due to increase in rate to 25% (2,506 ) 232,817
disposal treatment
Total tax charge 523,281 811,662

11. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Final 370,250 255,900
Interim 513,350 364,900
883,600 620,800

During the year, total dividends of £883,600 (2022 - £620,800) were paid to directors.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


12. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Cost
At 1 September 2022 652,054 9,246,556 47,263 3,353,510 13,299,383
Additions - 254,668 55,821 484,378 794,867
Disposals - (85,400 ) - (422,538 ) (507,938 )
At 31 August 2023 652,054 9,415,824 103,084 3,415,350 13,586,312
Depreciation
At 1 September 2022 77,474 5,988,374 36,206 1,817,694 7,919,748
Charge for year 31,208 626,352 10,996 442,067 1,110,623
Eliminated on disposal - (82,330 ) - (296,927 ) (379,257 )
At 31 August 2023 108,682 6,532,396 47,202 1,962,834 8,651,114
Net book value
At 31 August 2023 543,372 2,883,428 55,882 1,452,516 4,935,198
At 31 August 2022 574,580 3,258,182 11,057 1,535,816 5,379,635

The net carrying value of tangible fixed assets includes £1,475,855 (2022 - £1,394,471) in respect of assets held under finance leases or hire purchase contracts.The depreciation charged in respect of these assets for the year was £418,003 (2022 - £346,411).

13. STOCKS
2023 2022
£    £   
Raw materials 1,798,614 1,140,641
Work-in-progress 555,313 468,024
2,353,927 1,608,665

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 5,686,334 3,234,036
Other debtors 4,772,148 5,126,489
Directors' current accounts 2,399,926 -
Prepayments 462,099 393,193
13,320,507 8,753,718

Other debtors balance is in relation to related party inter-company balances.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


15. CURRENT ASSET INVESTMENTS
2023 2022
£    £   
Unlisted investments 460,423 460,423

Unlisted investments include vintage cars, vehicle registration plates and paintings.

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 18) - 232,837
Hire purchase contracts (see note 19) 291,629 479,487
Trade creditors 1,114,988 817,482
Tax 291,448 343,624
Social security and other taxes 52,075 48,474
VAT 585,771 247,721
Other creditors 242 27
Directors' current accounts - 71
Accruals and deferred income 2,602,032 1,670,274
4,938,185 3,839,997

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 18) - 2,000,000
Hire purchase contracts (see note 19) 283,633 481,928
283,633 2,481,928

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - 232,837

Amounts falling due between two and five years:
Bank loans - 2-5 years - 2,000,000

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 291,629 479,487
Between one and five years 283,633 481,928
575,262 961,415

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance leases are secured upon the assets to which they relate.

Non-cancellable operating leases
2023 2022
£    £   
Within one year 287,500 137,500
Between one and five years 1,028,125 465,625
In more than five years 1,687,500 775,000
3,003,125 1,378,125

20. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans - 2,232,837

National Westminster Bank PLC has an unscheduled mortgage debenture incorporating a fixed and floating charge over all assets of the company dated 14th November 1997.

21. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 952,091 970,066

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


21. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 September 2022 970,066
Provided during year (17,975 )
Balance at 31 August 2023 952,091

22. ACCRUALS AND DEFERRED INCOME
2023 2022
£    £   
Deferred government grants 30,016 43,150

23. CALLED UP SHARE CAPITAL

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

24. RESERVES
Retained
earnings
£   

At 1 September 2022 14,674,031
Profit for the year 1,964,211
Dividends (883,600 )
At 31 August 2023 15,754,642

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023


25. RELATED PARTY TRANSACTIONS

During the year the following sales, recharges and purchases took place with the following companies of which Mr A Howell and S Howell are key members of management personnel:

2023 2022
£ £

Name of company Type of transaction

Sigeric Limited Plant and equipment hire 90,785 87,663
Sale of fixed assets 25,000 -
Purchases (226 ) (245 )
Loan balance due at year end 329,268 272,268
Trade debtor balance 103,975 74,807

Wye Valley Demolition Limited Plant and equipment hire 745,966 620,718
Disbursements recharged 786,393 1,062,354
Purchases (4,711,891 ) (1,957,768 )
Loan balance due at year end 184,908 232,595
Trade debtor balance 157,814 159,678
Trade creditor balance (195,069 ) (91,377 )

Wye Valley Skips Limited Plant and equipment hire 473,634 261,896
Disbursements recharged 326,753 404,854
Purchases (76,603 ) (53,529 )
Loan balance due at year end 95,552 125,991
Trade debtor balance 122,842 16,442
Trade creditor balance (10,762 ) (10,080 )

Eastside 2000 Limited Sales 3,759 1,332
Rent, rates & utilities (533,817 ) (118,877 )
Disbursements recharged 6,332 (80,158 )
Loan balance due at year end 3,473,422 3,489,900
Trade creditor balance (114,336 ) (30,720 )

Warehouse 701 Limited Sales 44,023 110,837
Disbursements recharged 18,684 14,231
Purchases (33,883 ) (35,397 )
Loan balance due at year end 204,846 7,761
Trade debtor balance 23,713 122,634
Trade creditor balance (4,503 ) (4,847 )

UK Bus Dismantlers Limited Purchases - -
Loan balance due at year end 1,116 1,442

Bastion Mews Limited Sales - -
Purchases - -

Hussar Minerals Limited Loan balance due at year end 14 14

Wye Valley Green Energy Limited Loan balance due at year end 683 693


Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2023

Hereford Quarries Ltd Plant and equipment hire 289,406 268,017
Disbursements recharged 532,169 629,519
Purchases (29,115 ) (37,240 )
Loan balance due at year end 272,804 578,240
Trade debtor balance 79,184 134,300
Trade creditor balance (18,031 ) (12,363 )

Federated Scrap Ltd Sales 213,340 653,333
Purchases (26,158 ) (111,898 )
Loan balance due at year end 47,871 255,920
Trade debtor balance - 491,807
Trade creditor balance - (125,674 )

Hereford Self Storage Ltd Loan balance due at year end - -


HHD Developments Ltd Loan balance due at year end - -

British Metals Recycling Association Purchases - (3,903 )
Trade creditor balance - (36 )

Actual Aggregates Ltd Loan balance due at year end 161,664 161,664