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REGISTERED NUMBER: 07000324 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Makin Metal Powders (UK) Limited

Makin Metal Powders (UK) Limited (Registered number: 07000324)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Statement of Directors' Responsibilities 7

Report of the Independent Auditors 8

Statement of Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


Makin Metal Powders (UK) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: S J Ellis
J R Hood
T Shi
H He





REGISTERED OFFICE: Buckley Road
Rochdale
Greater Manchester
OL12 9DT





REGISTERED NUMBER: 07000324 (England and Wales)





AUDITORS: Shinewing Wilson Accountancy Limited
Chartered Certified Accountants
and Statutory Auditors
9 St Clare Street
London
EC3N 1LQ

Makin Metal Powders (UK) Limited (Registered number: 07000324)

Strategic Report
for the Year Ended 31 December 2023

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

RESULTS AND DIVIDENDS
The profit for the year, after taxation, amounted to £34,512 (2022 - £340,028).

FINANCIAL KEY PERFORMANCE INDICATORS

2023 £ 2022 £ Variance
Turnover 36,976,512 47,992,889 -22.95%
Gross profit 2,757,505 2,317,246 19.00%
Operating profit 358,889 638,712 -43.81%
PBT 149,924 508,811 -70.53%

Net assets at 31 December 2023 amounted to £8,770,136 (2022: £8,739,360). A dividend of £200,000 (2022 - £300,000) was paid during the year.

The business continued to develop, to take on new customers and to grow product and logistics capability in an increasingly global market.

Although some sectors performed well, others, including the automotive industry, experienced a more cautious outlook, with pressure to reduce inventories and cost impacting on order books and longer-term commitment.

Global supply chains continued to experience disruption, having recovered previously from the impacts of COVID, then the Russian invasion of Ukraine in 2022 and more recently, events in the Red Sea. The business sources certain materials in Asia and sells globally, so has not been immune to these events, but has been able to respond quickly to these challenges and found new or alternative solutions.

Against a backdrop of generally increasing input costs, the business has faced a significant particular challenge due to increased energy prices. This challenge has been addressed through collaboration and support of our customers in relation to product pricing, through an aggressive focus on energy consumption, procurement and by launching a full solar PV project to be completed in the first half of 2024.

The business invested in a new group manufacturing facility in Thailand, due to come on stream in Q1 2024, that will provide market leading capability and considerably improve our competitiveness in one of our key product groups.

After a year of extreme volatility in raw materials price and availability in 2022, the business has worked hard on various aspects of procurement and inventory management, with resulting improvement in operating margins when compared to the previous year.


Makin Metal Powders (UK) Limited (Registered number: 07000324)

Strategic Report
for the Year Ended 31 December 2023

MITIGATION OF PRINCIPAL RISKS AND UNCERTAINTIES
The Directors, using 'risk review' and management procedures, continuously address strategic and operational risks facing the company, including geo-political factors, credit risk, FX risk, technical, environmental, health, social and ethical aspects. The review and management procedures consider all aspects of the business - the market sector in which the company operates, nature and quality of it's customers, the contracts it selects, the product it supplies, the quality of suppliers, partners, sub-contractors and other stakeholders in the performance of those contracts.

Principal risks and uncertainties affecting, or potentially affecting the business include the following, including mitigating actions:

Maintaining good practice developed in 2020/2021 so as to be able to react very quickly in the situation where another major pandemic may occur.

Maintaining contingency options of supply in instances where geopolitical factors make existing options unwise, or inefficient.

The regional extension of our Only Representative network, engagement of appropriate external specialist companies to ensure that the company is able to trade in all appropriate regions.

The continued background volatility and speculation in commodity and currency markets; in addition to management of currency and exchange risks. The Company continues to investigate ad implement appropriate facilities to guard against substantial movements in LME.

Ongoing review of direct and fixed costs, especially in the light of recent trends in energy pricing, close monitoring of energy markets and utilising analytical tools to procure most effectively.

As a company actively engaged in international trade and investment, we recognize the inherent challenges posed by currency fluctuations. Therefore, our Financial Instrument Risk Management strategy revolves around the prudent use of foreign currency forward contracts, serving as pivotal tools to mitigate the impact of exchange rate volatility.

HEALTH AND SAFETY
The company continued to place a high priority on health and safety and constantly seeks to reduce the incidence of reportable accidents (RIDDOR). Measures taken by the company to further improve health & safety in the workplace, together with an active risk assessment and review of procedures culture, support the goal of the directors to work towards 'zero reportable accidents'. We continue to focus on 'near misses' and to use these to promote continuous improvement in our working practices.

The Company continued to strengthen and further develop our integrated management system in relation to ISO 9001, 14001 and 45001 and to closely monitor and react to any requirements arising from DSEAR, CoMAH and REACH regulations.

ENVIRONMENT
The company places considerable emphasis upon environmental compliance and responsibility in all areas of its business. This extends to striving to implement best practice wherever the opportunity presents itself. The Company is recognized as a COMAH and DSEAR establishment although, in both cases, hazards and risks are assessed as low. Nevertheless, much work continues to be done to improve the safety and security of people, wildlife and the environment in and around our site.

LEGAL AND ETHICAL
The company recognises and supports the need for a legal and ethical framework across geographical and political regions and has continued to make improvements and enhancements in this area. ISO 9001, 14001 and 45001 certifications are held, in addition to REACH registration; and full 'Conflict Minerals' compliance is adhered to. We have policies supporting our commitment to anti-slavery, anti-bribery, anti-corruption, anti-discrimination in all its forms and recognizing individuals' rights as they are set out in UK and international law. The company remains abreast of relevant legal and regulatory instruments, being cognisant of packaging and transportation regulations.


Makin Metal Powders (UK) Limited (Registered number: 07000324)

Strategic Report
for the Year Ended 31 December 2023

FUTURE DEVELOPMENT
The Company continues to believe that investment in our employees, infrastructure of the business and the equipment used is essential to maintain our competitive position and to provide continued security, business growth and profitability.

We contributed significantly to a major expansion of group manufacturing capacity in Thailand during 2023 and are working with colleagues in Asia to create robust supply processes to enable much greater penetration in our collective markets. This will begin to bear fruit in 2024.

We continue to develop our sales in all markets and geographies and to offer a physical presence where there is market demand, sometimes through strong collaboration with our sales agents.

We implemented SAP during the year and have been delighted with progress so far with this very important project. We expect to move from the basic implementation in 2023 toward our full project goals in 2024. We also launched our new website, which has been very well received.

While we continue to work on productivity in all areas of our business, we are focusing specifically on energy utilisation, cost and efficiency and, as with 2023, this will provide a very clear area of focus in the coming years.

ON BEHALF OF THE BOARD:





S J Ellis - Director


6 March 2024

Makin Metal Powders (UK) Limited (Registered number: 07000324)

Report of the Directors
for the Year Ended 31 December 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the production of copper and other non-ferrous metals.

DIVIDENDS
A dividend of £200,000 (2022: £300,000) was paid during the year.

RESEARCH AND DEVELOPMENT
The Directors recognise the value that an active R&D programme brings to both current profitability and future health of the business. To this end, Makin encourages collaborative work with customers, academia and third parties, and 2023 saw continued work on a range of R&D activities.

The nature of this work included projects which have had, or will have, benefits to customers (reduced costs, new products to support their new developments and reduced lead-time), projects internally to improve product quality, process reliability and continuous improvement, and projects to improve our environmental credentials through reducing carbon footprint and chemical risk to the environment.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

S J Ellis
J R Hood

Other changes in directors holding office are as follows:

Dr L Wang - resigned 23 February 2023
Z Yan - resigned 5 December 2023
T Shi - appointed 17 August 2023
H He - appointed 14 March 2023


Makin Metal Powders (UK) Limited (Registered number: 07000324)

Report of the Directors
for the Year Ended 31 December 2023

FINANCIAL INSTRUMENTS
The Company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk and interest rate risk.

Price Risk
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency receivables. These transactions and ongoing additions to the order book are monitored frequently. The Company does not enter into long term pricing agreements or fixed contracts.

Credit Risk
The Company's principal financial assets are cash balances and trade and other receivables. The Company's credit risk attributable to its receivables has been reviewed and no material risk was identified. The Company maintains regular contact with it's credit insurer, both for updated situations in relation to specific customers and to market trends in general. Credit terms are routinely reviewed and shortened where possible. New customers are credit checked before commencement of business. Terms and limits are assigned based on these checks.

Cash Flow Risk
The Company's activities expose it to the financial risks of changes in foreign currency exchange rates. The Company used foreign exchange forward contracts to hedge these exposures.

Liquidity Risk
To maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the Company ensures regular communication with creditors, debtors and Group.

Interest Rate Risk
The company finances its operations through a mixture of retained profits and invoice factoring facilities. These borrowing facilities have low-margin interest rates, the costs of which are covered through product pricing so interest rate risks are not considered to be significant.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen to disclose information regarding the future development opportunities for the company in the strategic report rather than the directors' report.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Shinewing Wilson Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S J Ellis - Director


6 March 2024

Makin Metal Powders (UK) Limited (Registered number: 07000324)

Statement of Directors' Responsibilities
for the Year Ended 31 December 2023

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.

Report of the Independent Auditors to the Members of
Makin Metal Powders (UK) Limited

Opinion
We have audited the financial statements of Makin Metal Powders (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 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, the Report of the Directors and the Statement of Directors' Responsibilities, 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
Makin Metal Powders (UK) 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 seven, 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.

Report of the Independent Auditors to the Members of
Makin Metal Powders (UK) Limited


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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and distributable profits legislation.
- There are other laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, employment law, General Data Protection Regulation (GDPR), ISO9001, ISO14001, CoMAH, and EPA.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Julie Zhuge Wilson (Senior Statutory Auditor)
for and on behalf of Shinewing Wilson Accountancy Limited
Chartered Certified Accountants
and Statutory Auditors
9 St Clare Street
London
EC3N 1LQ

7 March 2024

Makin Metal Powders (UK) Limited (Registered number: 07000324)

Statement of Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   

TURNOVER 4 36,976,512 47,992,889

Cost of sales 34,219,007 45,675,643
GROSS PROFIT 2,757,505 2,317,246

Distribution costs 325,811 321,764
Administrative expenses 2,407,034 1,498,754
2,732,845 1,820,518
24,660 496,728

Other operating income 5 334,229 140,550
OPERATING PROFIT 7 358,889 637,278

Interest receivable and similar income - 1,434
358,889 638,712

Interest payable and similar expenses 8 208,965 129,901
PROFIT BEFORE TAXATION 149,924 508,811

Tax on profit 9 85,350 168,783
PROFIT FOR THE FINANCIAL YEAR 64,574 340,028

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

64,574

340,028

Makin Metal Powders (UK) Limited (Registered number: 07000324)

Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,851,085 2,621,543
Investments 12 1,742,045 695,710
4,593,130 3,317,253

CURRENT ASSETS
Stocks 13 5,539,495 6,479,817
Debtors 14 6,228,773 7,097,907
Cash at bank 44,071 35,040
11,812,339 13,612,764
CREDITORS
Amounts falling due within one year 15 7,635,333 8,024,455
NET CURRENT ASSETS 4,177,006 5,588,309
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,770,136

8,905,562

PROVISIONS FOR LIABILITIES 19 166,202 166,202
NET ASSETS 8,603,934 8,739,360

CAPITAL AND RESERVES
Called up share capital 20 450,000 450,000
Revaluation reserve 881,120 884,955
Retained earnings 7,272,814 7,404,405
SHAREHOLDERS' FUNDS 8,603,934 8,739,360

The financial statements were approved by the Board of Directors and authorised for issue on 6 March 2024 and were signed on its behalf by:





S J Ellis - Director


Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 450,000 7,360,542 888,790 8,699,332

Changes in equity
Dividends - (300,000 ) - (300,000 )
Total comprehensive income - 343,863 (3,835 ) 340,028
Balance at 31 December 2022 450,000 7,404,405 884,955 8,739,360

Changes in equity
Dividends - (200,000 ) - (200,000 )
Total comprehensive income - 68,409 (3,835 ) 64,574
Balance at 31 December 2023 450,000 7,272,814 881,120 8,603,934

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

1. STATUTORY INFORMATION

Makin Metal Powders (UK) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 07000324 and registered office address is Buckley Road, Rochdale, Greater Manchester, OL12 9DT.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

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

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Exemption from preparing cash flow statements
The company is qualified for exemption from preparing cash flow statements as a member of a group, where the ultimate parent GRIPM Advanced Materials Co., Ltd prepares consolidated financial statements, which are intended to give a true and fair view and the company is included in the consolidation. The consolidated statements are publicly available from website http://www.gripm.com/.

Going concern
Challenges remained throughout 2023, moving away from previous focus on the Coronavirus pandemic to other world events and geo-political factors. The company has navigated these without significant issue.

We continue to see volatility and caution in customer activity, leading to a somewhat unstable, but gradually improving order book and the company was able to deliver improved operating margin. The directors reasonably expect stable growth in 2024 as a result on ongoing market recovery, gains in market share and focus on delivery from the new Thai facility.

Careful consideration has been taken by the directors in order to be confident in concluding that it is appropriate for these financial statements to be prepared on a going concern basis. Having reviewed all available information and assumptions at the time of signing these accounts, the Board has a reasonable expectation that the company has adequate resources to meet customer demand and fulfil its social, legal, regulatory, financial and other commercial obligations for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing these financial statements.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes 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 passed to the buyer, 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.

Other income
Other income is recognised when it is probable that the economic benefit will flow to the company, and the amount of revenue can be measured reliably.

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

2. ACCOUNTING POLICIES - continued

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

Land and buildings are stated at cost less accumulated depreciation and accumulated impairment losses. Before transitioning to FRS102, the company adopted a policy of revaluing freehold land and buildings in 2009, and they were stated at their revalued amount less any subsequent depreciation and accumulated impairment losses. The difference between depreciation based on the deemed cost charged in the profit and loss account and the assets' original cost is transferred from revaluation reserve to retained earnings.

Land is not depreciated. Depreciation on other assets is calculated, using the straight-line method, to allocate the cost or deemed cost to their residual values over their useful lives, as follows:

Freehold property 29 years straight line from the date of revaluation in 2009
Leasehold property 40 years straight line from the date of purchase in 2023
Plant and equipment 3-10 years straight line

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.

Assets in development are stated at cost. These assets are not depreciated until it is available for use and are reviewed for impairment at each reporting date.

Impairment of fixed assets
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on an average cost basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.


Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

2. ACCOUNTING POLICIES - continued
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 or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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


Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Non-monetary items would never be retranslated. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The cost 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt the Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 in respect of financial instruments.

Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances, are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Other financial assets, including investments in equity instrument which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investment in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

2. ACCOUNTING POLICIES - continued

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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.

Interest expense
Interest expense is recognized using the effective interest rate method. In calculating interest expense, the effective interest rate is applied to the gross carrying amount of the asset, when the asset is not impaired or to the amortised cost of the liability for interest expense. For financial assets that have been impaired after initial recognition.

Government Grants
As a receipt of a government grant, the payments are recognised as other operating income in the Income Statements and the relating costs are recognized at the full cost of payments made to or in respect of the employees. The payments are recognized on an accruals basis.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future years affected.

Stock Provision
Management assesses whether there are any losses in the carrying value of the stock. As a first step the Company compares the carrying value to the recoverable value of the stock as at 31 December 2023. If the recoverable value is below the carrying value, this indicates a need for a stock provision, the Company reduces the carrying value of the stock accordingly. The determination whether the stock need to be impaired including estimation of selling price used, stock condition and saleability, the management also negotiates with the customers and try to pass on potential provision to customers, which involves management's estimates and judgements.

The net carry value of the stock at year end is £5,539K (2022: £6,479K) and its associated provision is £nil (2022: £nil).

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

4. 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:

31.12.23 31.12.22
£    £   
Sales of metal powders 36,976,512 47,992,889
36,976,512 47,992,889

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 5,702,538 5,783,325
Europe 21,280,039 26,371,306
Asia 532,902 1,001,572
USA/Canada 4,364,054 6,838,494
Pacific Rim 4,124,574 5,336,176
Rest of the world 972,405 2,662,016
36,976,512 47,992,889

5. OTHER OPERATING INCOME
31.12.23 31.12.22
£    £   
Misc income 334,229 140,550

Included in other income, there were amounts of £157,435 (2022: £43,551) related to UK emissions compensation and £156,796 (2022: £96,999) related to RDEC relief.

6. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 1,623,848 1,583,408
Social security costs 177,070 192,239
Other pension costs 94,105 70,928
1,895,023 1,846,575

The average number of employees during the year was as follows:
31.12.23 31.12.22

Production/technical 26 29
Sales and distribution 6 4
Administration 8 8
40 41

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

6. EMPLOYEES AND DIRECTORS - continued

31.12.23 31.12.22
£    £   
Directors' remuneration 258,646 301,695
Directors' pension contributions to money purchase schemes 18,386 16,634

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

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 124,878 145,853
Pension contributions to money purchase schemes 9,279 8,742

7. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Depreciation - owned assets 176,402 199,211
Auditors' remuneration 22,000 22,000
Taxation compliance services 1,800 1,800
Foreign exchange differences (22,922 ) (806,664 )

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank interest 208,965 129,901

The interest on the loan see Note 14.

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 85,350 129,750

Deferred tax - 39,033
Tax on profit 85,350 168,783

UK corporation tax has been charged at 23.52% (2022 - 19%).

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

9. TAXATION - continued

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

31.12.23 31.12.22
£    £   
Profit before tax 149,924 508,811
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

35,262

96,674

Effects of:
Expenses not deductible for tax purposes 12 428
Depreciation in excess of capital allowances 14,166 18,110
Adjustments to tax charge in respect of previous periods (968 ) (856 )
Effect of change in deferred tax rate - 39,889
Tax charge on RDEC 36,878 19,465
Overprovision - (4,927 )
Total tax charge 85,350 168,783

The increase in the corporation tax rate to 25% from 19% with effect from 1 April 2023 was substantively enacted. The 23.52% rate used above reflects 9 months of this new rate and 3 months of the previous rate of 19%. The 25% rate is used to measure UK deferred taxes in 2023 and in 2022 to the extent the related timing differences were expected to reverse after 1 April 2023.

10. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Final 200,000 300,000

11. TANGIBLE FIXED ASSETS
Freehold Long Plant and
property leasehold machinery Totals
£    £    £    £   
COST
At 1 January 2023 2,740,583 - 1,992,902 4,733,485
Additions - 255,232 150,712 405,944
At 31 December 2023 2,740,583 255,232 2,143,614 5,139,429
DEPRECIATION
At 1 January 2023 682,092 - 1,429,850 2,111,942
Charge for year 55,305 2,111 118,986 176,402
At 31 December 2023 737,397 2,111 1,548,836 2,288,344
NET BOOK VALUE
At 31 December 2023 2,003,186 253,121 594,778 2,851,085
At 31 December 2022 2,058,491 - 563,052 2,621,543

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

11. TANGIBLE FIXED ASSETS - continued

All company's fixed assets were used to secured the loan see Note 16.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchases contracts.
20232022
£   £   
Plant and equipment 1,2365,425

Land and buildings previously held at valuation were classified as held at deemed cost at the date of transition to FRS102 on 1 September 2014.

Included in the land and buildings is freehold land at cost and deemed cost of £1,140,583 (2022: £1,140,583) which is not depreciated. The historical cost of the freehold land is £363,962 (2022: £363,962).

The total cost and deemed cost of land and buildings is £2,867,322 (2022: £2,740,583).

If the land and buildings held at deemed cost were stated on an historical cost basis, the total amounts included at 31 December 2023 would have been: cost £1,983,322 (2022: £1,856,583); accumulated depreciation £736,630 (2022: £683,048); and net book value £1,246,693 (2022: £1,173,535).

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2023 695,710
Additions 1,046,335
At 31 December 2023 1,742,045
NET BOOK VALUE
At 31 December 2023 1,742,045
At 31 December 2022 695,710

As 31 December 2023 (and 2022), the company holds 15% interests in GRIPM Advanced Materials (Thailand) Co., Ltd.

13. STOCKS
31.12.23 31.12.22
£    £   
Raw materials 2,723,811 1,783,051
Work-in-progress 1,933,098 3,791,566
Finished goods 882,586 905,200
5,539,495 6,479,817

There is no significant difference between the replacement cost of the stock and its carrying amount.
Stocks are pledged as security for factoring facilities (note 16).

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 5,472,803 6,543,980
Other debtor 66,946 104,916
Tax 168,337 102,446
VAT 235,019 159,124
Prepayments and accrued income 285,668 187,441
6,228,773 7,097,907

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 16) 3,280,617 3,389,525
Trade creditors 3,950,252 4,197,147
Tax 86,320 138,136
Social security and other taxes 49,890 41,148
Other creditors 8,926 66,047
Accruals and deferred income 74,544 -
Accrued expenses 184,784 192,452
7,635,333 8,024,455

Included in the trade creditors, the balance of £846,496 (2022: £2,100,930) are owed to the group undertakings.

16. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 3,280,617 3,389,525

Amounts advanced under invoice discounting agreement are secured by a fixed and floating charge over the company's assets including book debts and related rights. The outstanding balance incurs interest at discounting margin of 1.65%.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 39,650 34,768
Between one and five years 32,727 97,436
72,377 132,204

Makin Metal Powders (UK) Limited (Registered number: 07000324)

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

18. FINANCIAL INSTRUMENTS

Derivative financial instruments -Forward contracts
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency receivables. At 31 December 2023, the outstanding contracts all mature within 2 months (2022: 3 months) of the year end. The company is committed to sell US$1,403,180, €1,842,141 and £431,814 and receive a fixed sterling amount and US dollars.(2022: US$1,677,817, €2,163,041, and YEN 57,234,000).

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates for GBP:USD and GBP:EUR. The fair value of the forward-foreign currency contracts is £25,354 (2022: £nil).

19. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 166,202 166,202

Deferred
tax
£   
Balance at 1 January 2023 166,202
Balance at 31 December 2023 166,202

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
450,000 Ordinary £1 450,000 450,000

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

21. ULTIMATE PARENT COMPANY

The immediate parent undertaking is Hong Kong GRIPM Investment Limited (GRIPM), a company registered in Hong Kong.

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is GRIPM Advanced Materials Co., Ltd which is incorporated in China.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.