REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
for |
Avalon Metals Limited |
REGISTERED NUMBER: |
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: |
Secretary: |
Registered office: |
Registered number: |
Senior statutory auditor: |
Auditors: |
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: |
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 £ |
The total distribution of dividends for the year ended 31 August 2023 will be £ |
Directors |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
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: |
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. |
for and on behalf of |
Unit 2 Foley Works |
Foley Industrial Estate |
Hereford |
Herefordshire |
HR1 2SF |
Avalon Metals Limited (Registered number: 03232713) |
Profit and Loss Account |
for the year ended 31 August 2023 |
2023 | 2022 |
Notes | £   | £   |
TURNOVER | 5 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
2,540,075 | 3,377,192 |
Other operating income | 6 |
OPERATING PROFIT | 8 |
Interest receivable and similar income |
2,603,577 | 3,446,298 |
Interest payable and similar expenses | 9 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 10 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Avalon Metals Limited (Registered number: 03232713) |
Balance Sheet |
31 August 2023 |
2023 | 2022 |
Notes | £   | £   |
FIXED ASSETS |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Investments | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
ACCRUALS AND DEFERRED INCOME | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2023 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (64,400 | ) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
New HP agreements in year | 120,000 | 625,500 |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 3,283,600 | 620,800 |
Amount withdrawn by directors | (5,683,597 | ) | (620,780 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) | ( |
) |
Finance costs | 116,085 | 100,620 |
Finance income | (46,706 | ) | (1,889 | ) |
3,552,383 | 4,351,060 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the 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 | ( |
) | 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 |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
£   | £   |
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 |
Europe |
This analysis is not considered to be applicable to the year ended 31 August 2023. |
6. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Insurance claims | 3,662 | 54,083 |
Grants received | 13,134 | 13,134 |
7. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£   | £   |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Administrative staff | 9 | 8 |
Production staff | 60 | 55 |
2023 | 2022 |
£   | £   |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
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 |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Government grants |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£   | £   |
Bank interest |
Bank loan interest |
Other interest |
Hire purchase |
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 |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances | - |
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 |
Interim |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 August 2023 |
Depreciation |
At 1 September 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 August 2023 |
Net book value |
At 31 August 2023 |
At 31 August 2022 |
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 |
Work-in-progress |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£   | £   |
Trade debtors |
Other debtors |
Directors' current accounts | 2,399,926 | - |
Prepayments |
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) |
Hire purchase contracts (see note 19) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 585,771 | 247,721 |
Other creditors |
Directors' current accounts | - | 71 |
Accruals and deferred income |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£   | £   |
Bank loans (see note 18) |
Hire purchase contracts (see note 19) |
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 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
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 |
Between one and five years |
In more than five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£   | £   |
Bank loans |
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 |
Provided during year | ( |
) |
Balance at 31 August 2023 |
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: | £   | £   |
Ordinary | £1 | 1,000 | 1,000 |
24. | RESERVES |
Retained |
earnings |
£   |
At 1 September 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 August 2023 |
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 |