REGISTERED NUMBER: 02474338 (England and Wales) |
EURO ALLOYS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30 SEPTEMBER 2023 |
REGISTERED NUMBER: 02474338 (England and Wales) |
EURO ALLOYS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
30 SEPTEMBER 2023 |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Income and Retained Earnings |
10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
EURO ALLOYS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 30 September 2023. |
REVIEW OF BUSINESS |
The Group's turnover decreased from $83m to $79m during the financial year. |
The metals markets were volatile during 2022/23. The Group made a profit after taxation of $70,000 for the year (2022: $298,000). The Group continues to diversify the product range traded by the Group. |
Financial key performance indicators |
The financial key performance indicators used by management and the performance during the year are: |
- Equity: $13,318,000 (2022: $13,228,000) |
- Profit before taxation $164,000 (2022: $207,000) |
- Return on equity*: 1.3% (2022: 1.6%) |
*Return on equity is calculated as profit after taxation divided by the average total equity for the financial year. |
Charitable contributions |
During the year the Group made charitable contributions of $230 (2022: $124). |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group regards the monitoring and controlling of risks as a fundamental part of the management process and therefore monitors the risk daily, within strictly defined guidelines. The evaluation of these risks is carried out by the Board of Directors. |
Market Risk |
Association performance and price risk continue to be managed through sophisticated hedging programs which include the use of forward contracts both on the London Metal Exchange, the London Bullion Market Association and in foreign exchange markets. |
The Group does not engage in speculative foreign exchange trading. The following table summaries the third party debtors and creditors which are denominated in non US dollar currency. All of these balances have been hedged using forward contracts. |
Trade debtors in Local Currency: | 2023 | 2022 |
$ | $ |
EUR | 2,386 | 1,491 |
GBP | - | 30 |
CHF | - | 3 |
Trade creditors in Local Currency: | 2023 | 2022 |
$ | $ |
EUR | 475 | 173 |
GBP | 16 | 31 |
CHF | 72 | 98 |
Credit Risk |
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As with market risk, the Group has adopted policies governing the management of credit risk. The Group assesses the credit worthiness of each counterparty prior to entering into the business, and maintains comprehensive credit assurance cover on its buyers, as a means of mitigating the risk of financial loss from any defaults. |
Trade debtors consists of a large number of customers, however credit exposure is controlled by counterparty limits that are regularly reviewed. |
As at year end, the following trade debtor amounts were outside of allocated credit terms: |
Credit Term: | 2023 |
$ |
Between 1 and 30 days | 1 |
Between 31 and 60 days | - |
Between 61 and 90 days | - |
Between 91 and 120 days | 6 |
More than 120 days | 111 |
Liquidity Risk |
Liquidity risk refers to the risk that the Group is unable to meet its obligations as they fall due owing to insufficient financial resources. The Group manages liquidity risk by maintaining adequate reserves and banking facilities and continuously monitoring forecast and actual cash flows. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
SECTION 172(1) STATEMENT |
The Board of Directors of Euro Alloys Limited consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Companies Act 2006) in the decisions taken during the year ended 30 September 2023. |
Our People |
People are a key factor for our business to succeed. We are proud of the average length of service of our employees. We intend to retain people for the long term and our recruitment strategy is based on offering long careers in fairly paid and stable jobs. |
We encourage our employees to have both fulfilling careers and balance lives. We look to our employees to contribute ideas for our growth, and share the rewards of the business where we are profitable, primarily through our discretionary annual bonus scheme. |
Business Relationships |
We value long term relationships with our suppliers and customers and many of our relationships span decades. We employe robust "know your counterparty" processes across our operations, and we are diligent when entering into new relationships. |
Community, Environment and Reputation |
We believe that a positive and strong culture is the best way to ensure a high level of professional conduct when it comes to health and safety, environment, regulations or business dealings. |
Capital Allocation and Long Term Decisions |
At least on an annual basis the Board reviews the financial budgets and capital allocation plans. In making decisions concerning the business plan and future strategy, the Board has regard to a variety of matters including the interests of stakeholders, long term consequences of our capital allocation (such expenditure needed to ensure our long term viability whilst maintaining adequate liquidity), and reputation. |
Decisions on the level of dividend take into account the general profitability, liquidity and funding needs to the Group. |
ON BEHALF OF THE BOARD: |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023. |
The principal activity of the Group during the year was trading of aluminium and metal concentrates. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FUTURE DEVELOPMENTS |
The Group continues to respond to the changes in bank financing availability, specifically the withdrawal of global bank commodity finance lines. It continue to work with a number of financing partners and to structure its trades appropriately. |
The Group remains active in ferrous metals, non-ferrous metals and metal concentrates. The Group also holds a strategic investment in a copper development project. |
Going Concern |
There is currently a high level of macro-economic uncertainty. The preparation of the financial statements requires the directors to make a number of estimates, including an assessment of the appropriateness of the going concern basis of preparation of the financial statements. The assessment includes a review of the future economic environment and the Company's future prospects and performance. |
Qualifying third party indemnity provisions |
The Company's management liability program includes director and officer liability coverage which remains in force at the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
The Group does not consume more than 40,000 kWh of energy in a reporting period and as such qualifies as a low energy user and claims exemption from reporting under The Companies (Director's Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Bevan Buckland LLP, will be proposed for re-appointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EURO ALLOYS LIMITED |
Opinion |
We have audited the financial statements of Euro Alloys Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 September 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EURO ALLOYS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent 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 group or the parent 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. We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to: |
- | identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. |
- | obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation. |
In addition to the above, our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- | enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; |
- | assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and |
- | evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 |
EURO ALLOYS 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 |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
CONSOLIDATED |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | $'000 | $'000 |
TURNOVER | 4 | 79,407 | 82,968 |
Cost of sales | 72,578 | 76,949 |
GROSS PROFIT | 6,829 | 6,019 |
Administrative expenses | 4,972 | 5,309 |
1,857 | 710 |
Other operating income | 114 | (112 | ) |
OPERATING PROFIT | 6 | 1,971 | 598 |
Interest receivable and similar income | 211 | 140 |
2,182 | 738 |
Interest payable and similar expenses | 7 | 2,018 | 531 |
PROFIT BEFORE TAXATION | 164 | 207 |
Tax on profit | 8 | (6 | ) | (9 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 6,698 | 6,482 |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
6,868 |
6,698 |
Profit attributable to: |
Owners of the parent | 170 | 216 |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
CONSOLIDATED BALANCE SHEET |
30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | $'000 | $'000 | $'000 | $'000 |
FIXED ASSETS |
Intangible assets | 10 | 436 | 500 |
Tangible assets | 11 | 55 | 72 |
Investments | 12 | 317 | 202 |
808 | 774 |
CURRENT ASSETS |
Stocks | 13 | 11,685 | 16,288 |
Debtors | 14 | 12,643 | 9,403 |
Cash at bank and in hand | 2,215 | 3,130 |
26,543 | 28,821 |
CREDITORS |
Amounts falling due within one year | 15 | 14,033 | 16,367 |
NET CURRENT ASSETS | 12,510 | 12,454 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,318 |
13,228 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 6,561 | 6,561 |
Other reserves | 20 | (111 | ) | (31 | ) |
Retained earnings | 20 | 6,868 | 6,698 |
SHAREHOLDERS' FUNDS | 13,318 | 13,228 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 February 2024 and were signed on its behalf by: |
C Russell-Jones - Director |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
COMPANY BALANCE SHEET |
30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | $'000 | $'000 | $'000 | $'000 |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 70 | 298 |
The financial statements were approved by the Board of Directors and authorised for issue on |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | $'000 | $'000 |
Cash flows from operating activities |
Cash generated from operations | 1 | (24 | ) | (4,755 | ) |
Interest paid | (2,018 | ) | (531 | ) |
Tax paid | - | 315 |
Net cash from operating activities | (2,042 | ) | (4,971 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (32 | ) |
Purchase of tangible fixed assets | (6 | ) | (3 | ) |
Sale of intangible fixed assets | 1 | - |
Sale of tangible fixed assets | - | (1 | ) |
Interest received | 211 | 140 |
Net cash from investing activities | 206 | 104 |
Cash flows from financing activities |
Increase in repurchase agreement | 921 | 5,351 |
Net cash from financing activities | 921 | 5,351 |
(Decrease)/increase in cash and cash equivalents | (915 | ) | 484 |
Cash and cash equivalents at beginning of year |
2 |
3,130 |
2,646 |
Cash and cash equivalents at end of year | 2 | 2,215 | 3,130 |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
$'000 | $'000 |
Profit before taxation | 164 | 207 |
Depreciation charges | 88 | 89 |
(Gain)/loss on revaluation of fixed assets | (114 | ) | 112 |
Fair value stock movement | 167 | - |
Finance costs | 2,018 | 531 |
Finance income | (211 | ) | (140 | ) |
2,112 | 799 |
Decrease/(increase) in stocks | 4,436 | (3,150 | ) |
Increase in trade and other debtors | (3,236 | ) | (320 | ) |
Decrease in trade and other creditors | (3,336 | ) | (2,084 | ) |
Cash generated from operations | (24 | ) | (4,755 | ) |
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 30 September 2023 |
30.9.23 | 1.10.22 |
$'000 | $'000 |
Cash and cash equivalents | 2,215 | 3,130 |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
$'000 | $'000 |
Cash and cash equivalents | 3,130 | 2,646 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.22 | Cash flow | At 30.9.23 |
$'000 | $'000 | $'000 |
Net cash |
Cash at bank and in hand | 3,130 | (915 | ) | 2,215 |
3,130 | (915 | ) | 2,215 |
Total | 3,130 | (915 | ) | 2,215 |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
Euro Alloys Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The directors have presented the financial statements in Unites States Dollars (USD$). The Group trades in ferrous and non-ferrous metals and metal concentrates, which are primarily USD$ denominated and hedges non USD$ transactions by reference to the USD$. |
The USD$ is therefore the functional currency of the primary economic environment in which the Group trades. The directors consider that presentation of the results in the prime underlying currency of trading provides a more appropriate picture of the group's results and state of affairs. |
Balance sheet items have been translated at $1.09 to £1 (2022: $1.11 to £1) |
Monetary amounts in these financial statements are rounded to the nearest USD$ . |
The Company is a parent company that is also a subsidiary of a larger group by a parent which is not required under the law of a state of than the United Kingdom who does not prepare consolidated financial statements. |
Basis of consolidation |
The consolidated financial statements include the company and its subsidiary undertakings and have been prepared using the acquisition method of accounting. These are the first financial statements consolidated at Euro Alloys Limited. |
All material companies, which are more than 50% controlled, either directly or indirectly, are fully consolidated. Control is presumed to exist where more than half of a subsidiary's voting rights are controlled by the parent company, or where the parent company has the right to remove or appoint a majority of a subsidiary's board of directors or has entered into an agreement with the other shareholders or partners of a subsidiary. Minority interest is shown under the appropriate heading in the consolidated balance sheet and profit and loss account. |
The financial statements of the subsidiaries of all Group entities that have a currency different from USD are translated into USD as follows. |
Assets and liabilities, except for capital and reserves, for each balance sheet items presented are translated at the rate prevailing at the balance sheet date. Capital and reserves are converted at the historical rate of exchange. Income and expenses for each consolidated profit and loss account are translated at average exchange rates. |
The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting period as the parent company and are based on consistent accounting policies or where appropriate accounting policies for subsidiaries have been changed to ensure consistency with the policies adopted by the Group. The results of subsidiaries acquired or disposed of during the period are included in the consolidated financial statements from the effective date of acquisition up to the effective date of disposal, as appropriate. |
Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. |
Going Concern |
The Group's business activities, together with its principal risks and uncertainties are set out in the Director's report. |
The directors have considered the Group's forecast cash-flows headroom until February 2025, which covers a period exceeding 12 months from approval of the financial statements. Following this review, consideration of assumptions, stress scenarios and wider economic factors, there is still sufficient cash-headroom through the forecast period, and the Group is well placed to carefully manage its business risks for the foreseeable future. |
As such, directors have a reasonable expectation that the Group have adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from approval of these financial statements. Thus, they continue to adopt the going concern basis in preparing the financial statements of the Group. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue in respect of sale of product is recognised when the Group has performed its obligations in exchange for the right to consideration. This is ordinarily deemed to be at the point of despatch to the customer from warehouse inventory although the Group does enter into some sales arrangements where product is sold directly to the customer from the company's point of purchase. |
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. |
Depreciation if provided on the following basis: |
Short term Leasehold property - over the period of the lease |
Fixtures & fittings - 25% straight line |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
Stocks |
Stock is valued at market prices prevailing at the period end, after making due allowances for obsolete and slow moving items less and specific provisions against damaged material. This policy reflects hedging via allocation of stock against forward physical and LME or LBMA contracts which are in turn valued at prevailing market prices. |
Profits and losses arising from this valuation are taken to the statement of comprehensive income. |
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured at fair value, net of transaction costs are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
In the statement of cash flows, cash and cash equivalents are shown in net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an outright short term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of cash flows discounted at the market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or public benefit entity concessionary loan. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value estimated of cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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. |
Derivatives, including interest rate swaps and 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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
Forward physical, London Metal Exchange (LME) and London Bullion Market Association (LBMA) future contracts for the purchase and sale of metal are valued at market prices prevailing at the year end. Forward foreign exchange contracts are valued against the relevant foreign currency market rates ruling at close of business at the year end. |
Profits and losses on valuation of forward contracts are recognised in the profit and loss account. In common with other traders in LME metals and established market practice, the company marks to market all physical positions and forward contracts. Accordingly the accounting treatment described above is deemed not to represent the departure from the historical cost convention for the purposes of FRS102. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method. |
The company enters into repurchase agreements with financing entities, in which the Group concurrently agrees to sell stock to the financing entity, and to repurchase it within a set timescale. The repurchase price is fixed at the sale price plus interest calculated daily. On the sale of the metal, the Group recognises a repurchase liability for the amount of financing provided, and accrues for the interest. The liability is cleared when the Group repurchases the goods. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Statement of Comprehensive Income in the year the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
When payments are eventually made, they are charged to the provision carried in the Statement of financial position. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Foreign currencies |
Functional and presentation currency |
The company's functional and presentational currency is USD ($). |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when the fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: |
Basis of preparation of the financial statements |
As per the accounting policy management is of the opinion that based on current forecasts and available facilities the preparation of the financial statements on a going concern basis is reasonable. |
Provisions |
Provisions have been made for trade debtors. The provision is an estimate of the actual costs and the timing of future cash flows is dependent on future events. The difference between the expectations and the actual future liability will be accounted for in the period when such determination is made. |
Carrying value of investments |
Based on an assessment of future preforming management believes that the carrying value of investments is reasonable and therefore that no impairment charge is required in the current year. |
Stock valuation |
Stock is valued at market prices and premiums prevailing at the period end, after making due allowances for obsolete and slow moving items. This policy reflects hedging via allocation of stock against forward physical and LME/LBMA contracts which are in turn valued at prevailing market prices. Profit and losses arising from this valuation are taken to the Statement of Comprehensive Income. |
Recoverability of balance due from Techno Metals Limited. |
Other debtors includes $1.49m due from Techno Metals Limited. Management is of the opinion that this amount is recoverable in full and therefore that no provision is required at year end. |
4. | TURNOVER |
The analysis of turnover by geographical market has not been given as in the opinion of the directors the disclosure of this information would be seriously prejudicial to the interests of the Group. |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
$'000 | $'000 |
Wages and salaries | 2,505 | 2,060 |
Social security costs | 135 | 116 |
Other pension costs | 24 | 49 |
2,664 | 2,225 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration staff |
The average number of employees by undertakings that were proportionately consolidated during the year was 7 (2022 - 7 ) . |
2023 | 2022 |
$'000 | $'000 |
Directors remuneration | 537 | 616 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
During the year the company also paid $338,000 (2022: $540,000) to third party companies in relation to director services. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
$'000 | $'000 |
Other operating leases | 110 | 133 |
Depreciation - owned assets | 23 | 29 |
Goodwill amortisation | 40 | 41 |
Computer software amortisation | 23 | 18 |
Auditors' remuneration | 38 | 40 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
$'000 | $'000 |
On Bank Loans and Overdrafts | 74 | 235 |
On all other loans | 1,944 | 296 |
2,018 | 531 |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2023 | 2022 |
$'000 | $'000 |
Current tax: |
UK corporation tax | (2 | ) | 4 |
Adjustments in respect of previous periods | - | 371 |
Total current tax | (2 | ) | 375 |
Deferred tax | (4 | ) | (384 | ) |
Tax on profit | (6 | ) | (9 | ) |
Reconciliation of total tax credit 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 |
$'000 | $'000 |
Profit before tax | 164 | 207 |
Profit multiplied by the standard rate of corporation tax in the UK of 22 % (2022 - 19 %) |
36 |
39 |
Effects of: |
Expenses not deductible for tax purposes | 27 | 31 |
Depreciation in excess of capital allowances | 6 | - |
Utilisation of tax losses | (11 | ) | - |
Adjustments to tax charge in respect of previous periods | (25 | ) | 286 |
Deferred tax | (16 | ) | (7 | ) |
Movement in deferred tax not recognised | - | (377 | ) |
Overseas/translation differences | (23 | ) | 19 |
Total tax credit | (6 | ) | (9 | ) |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
$'000 | $'000 | $'000 |
COST |
At 1 October 2022 | 428 | 203 | 631 |
Disposals | - | (1 | ) | (1 | ) |
At 30 September 2023 | 428 | 202 | 630 |
AMORTISATION |
At 1 October 2022 | 98 | 33 | 131 |
Amortisation for year | 40 | 23 | 63 |
At 30 September 2023 | 138 | 56 | 194 |
NET BOOK VALUE |
At 30 September 2023 | 290 | 146 | 436 |
At 30 September 2022 | 330 | 170 | 500 |
Company |
Computer |
software |
$'000 |
COST |
At 1 October 2022 |
Disposals | ( |
) |
At 30 September 2023 |
AMORTISATION |
At 1 October 2022 |
Amortisation for year |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Leasehold | Plant and | and |
Improvement | Machinery | fittings | Totals |
$'000 | $'000 | $'000 | $'000 |
COST |
At 1 October 2022 | 402 | 220 | 56 | 678 |
Additions | - | 6 | - | 6 |
At 30 September 2023 | 402 | 226 | 56 | 684 |
DEPRECIATION |
At 1 October 2022 | 357 | 208 | 41 | 606 |
Charge for year | 6 | 11 | 6 | 23 |
At 30 September 2023 | 363 | 219 | 47 | 629 |
NET BOOK VALUE |
At 30 September 2023 | 39 | 7 | 9 | 55 |
At 30 September 2022 | 45 | 12 | 15 | 72 |
Company |
Leasehold | Plant and |
Improvement | Machinery | Totals |
$'000 | $'000 | $'000 |
COST |
At 1 October 2022 |
Additions |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
12. | FIXED ASSET INVESTMENTS |
Group |
Listed |
investments |
$'000 |
COST OR VALUATION |
At 1 October 2022 | 202 |
Revaluations | 115 |
At 30 September 2023 | 317 |
NET BOOK VALUE |
At 30 September 2023 | 317 |
At 30 September 2022 | 202 |
Listed investments are measured using a quoted price in an active market. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Group |
Company |
Shares in |
group | Listed |
undertakings | investments | Totals |
$'000 | $'000 | $'000 |
COST OR VALUATION |
At 1 October 2022 | 3,068 |
Revaluations | 115 |
At 30 September 2023 | 3,183 |
NET BOOK VALUE |
At 30 September 2023 | 3,183 |
At 30 September 2022 | 3,068 |
Listed investments are measured using a quoted price in an active market. |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
$'000 | $'000 | $'000 | $'000 |
Stocks | 11,685 | 16,288 |
Included within the stock value is the market value adjustment of $1,304,000 gain (2022: $1,471,000 loss) to revalue the closing stock at the prevailing spot valuation by reference to closing LME or LBMA prices. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
$'000 | $'000 | $'000 | $'000 |
Trade debtors | 4,482 | 3,131 |
Amounts owed by group undertakings | - | - |
Other debtors | 5,989 | 2,844 |
Forward valuations | 1,525 | 2,578 | 1,525 | 2,578 |
VAT | 21 | - |
Deferred tax asset | 388 | 384 | 388 | 384 |
Prepayments and accrued income | 238 | 466 |
12,643 | 9,403 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
$'000 | $'000 | $'000 | $'000 |
Deferred tax | 388 | 384 | 388 | 384 |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
$'000 | $'000 | $'000 | $'000 |
Trade creditors | 2,799 | 4,471 |
Tax | - | 2 |
Social security and other taxes | 23 | 42 |
Other creditors | 1,887 | 3,404 |
Repo liability | 9,324 | 8,403 | 9,324 | 8,403 |
Accrued expenses | - | 45 |
14,033 | 16,367 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
$'000 | $'000 |
Within one year | 96 | - |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
$'000 | $'000 |
Within one year |
Between one and five years |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
17. | FINANCIAL INSTRUMENTS |
Group |
2023 | 2022 |
$'000 | $'000 |
Financial assets |
Financial assets measured at fair value through profit or loss | 2,215 | 3,130 |
Financial assets measured at amortised cost | 12,018 | 8,553 |
14,233 | 11,683 |
Financial liabilities |
Financial liabilities measured at amortised cost | 14,008 | 16,324 |
Financial assets measured at amortised cost comprise trade and other debtors and forward profits recognised. |
Financial assets measured at fair value through profit or loss comprise cash. |
Financial liabilities measured at amortised cost comprise repurchase agreements, forward losses recognised, trade creditors and accruals. |
Company |
2023 | 2022 |
$'000 | $'000 |
Financial assets |
Financial assets measured at fair value through profit or loss | 1,371 | 3,007 |
Financial assets measured at amortised cost | 10,098 | 5,996 |
11,468 | 9,003 |
Financial liabilities |
Financial liabilities measured at amortised cost | 12,789 | 14,916 |
Financial assets measured at amortised cost comprise trade and other debtors, forward profits recognised, and amounts due from group undertakings. |
Financial assets measured at fair value through profit or loss comprise cash. |
Financial liabilities measured at amortised cost comprise repurchase agreements, forward losses recognised, trade creditors and accruals. |
18. | DEFERRED TAX |
Group |
$'000 |
Balance at 1 October 2022 | (384 | ) |
Credit to Income Statement during year | (4 | ) |
Balance at 30 September 2023 | (388 | ) |
Company |
$'000 |
Balance at 1 October 2022 | ( |
) |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 30 September 2023 | ( |
) |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
18. | DEFERRED TAX - continued |
Group and Company |
Deferred tax assets and liabilities are offset where the group and company has a legally enforceable right to do so. The following analysis is the analysis of the deferred tax balances (after offset) for financial reporting purposes: |
2023 | 2022 |
Net Asset | Net Asset |
Balances: | £'000 | £'000 |
ACAs | (39 | ) | (47 | ) |
Tax losses | 371 | 374 |
Other timing differences | 56 | 56 |
388 | 384 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
2023 | 2022 |
$'000 | $'000 |
Number | Class | Nominal value |
3,767,615 | Ordinary | £1 | 6,561 | 6,561 |
Each share is entitled to: |
- One vote in any circumstances; |
- Pari passu to dividend or any other distribution; and |
- full participation in capital distributions. |
The company total authorised share capital is 5,000,000 Ordinary shares of £1 each. |
20. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
$'000 | $'000 | $'000 |
At 1 October 2022 | 6,698 | (31 | ) | 6,667 |
Profit for the year | 170 | 170 |
Other movements | - | (80 | ) | (80 | ) |
At 30 September 2023 | 6,868 | (111 | ) | 6,757 |
Company |
Retained |
earnings |
$'000 |
At 1 October 2022 |
Profit for the year |
At 30 September 2023 |
Retained earnings - included all current and prior period retained profits and losses. |
EURO ALLOYS LIMITED (REGISTERED NUMBER: 02474338) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
21. | RELATED PARTY DISCLOSURES |
Transactions and balances with related party companies: |
2023 | 2022 |
$ | $ |
Balance due from Vayana SA | 106 | 98 |
Balance due from Techno Metals Limited | 1,488 | 1,488 |
Consultancy Fees due to Straoit Consult AG | - | 77 |
Sales to Intral Inc | 182 | 1,767 |
Management charges paid to Euro Alloys SA | - | 46 |
Balance due from Euro Alloys SA | 105 | 100 |
Recharge of costs from Straoit Consult AG | 338 | 539 |
Balance due from T Tumoscheit | - | 114 |
Management charges paid to Ferrotrade Consulting AG | 592 | 561 |
Management charges received from Ferrotrade Consulting AG | 43 | 22 |
Balance due to Ferrotrade Consulting AG | 791 | - |
Balance due from Mayen Capital Management AG | - | 102 |
Recharge of costs from Mayen Capital Management AG | 123 | 41 |
22. | ULTIMATE CONTROLLING PARTY |
The directors consider that the ultimate controlling party is Alfredo Riviere Villamizar. |
The company is an undertaking of a large Group and its parent undertaking is an Euro Alloys SA, a company incorporated in Luxembourg. The registered address of this company is Boulevard Royal 26, L-2449 Luxembourg. |
Euro Alloys SA is not required under the law of a state of than the United Kingdom to prepare consolidated financial statements. |
23. | SUBSIDIARY UNDERTAKINGS |
The company owns 100% of the issued share capital of Altro Metals Ltd, a company incorporated in the United Kingdom. Altro Metals Ltd is dormant. |
The company owns 100% of the issued share capital of Ferrotrade Consulting AG, a company incorporated in Switzerland. The principal activity of Ferrotrade Consulting AG is the trading of Metals. |
The company owns 100% of the issued share capital of Ferrotrade (Middle East) Ltd, a company incorporated in the Bahamas. Ferrotrade (Middle East) Ltd is dormant. |
The company owns 100% of the issued share capital of Ferrotrade Maroc SARLAU, a company incorporated in the Morocco. The principal activity of Ferrotrade Maroc SARLAU is the trading of Metals. |
The company owns 96% of the issued share capital of Ferrotrade Turkey - Alasimlar Ticaret Ltd Sirketl, a company incorporated in the Morocco. The principal activity of Ferrotrade Turkey - Alasimlar Ticaret Ltd Sirketl is the trading of Metals. |