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REGISTERED NUMBER: 02690088 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

LESS COMMON METALS LIMITED

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


LESS COMMON METALS LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2023







DIRECTORS: Mr M Jegadeesan
Mr G Smith
Mr S Vaikundarajan
Mr M Thompson
Mr A Riley





SECRETARY: Ms D Hannay





REGISTERED OFFICE: Unit 2 Hooton Park
North Road
Ellesmere Port
Cheshire
CH65 1BL





REGISTERED NUMBER: 02690088 (England and Wales)





AUDITORS: Xeinadin Audit Limited
Statutory Auditors
100 Barbirolli Square
Manchester
M2 3BD

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

STRATEGIC REPORT
for the Year Ended 31 December 2023


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

PRINCIPAL ACTIVITY
Principal activities of the Company during the year were manufacture and sale of rare earth-based alloys, either by Vacuum Induction Melting or Co-reduction and the production of light rare earth metals by molten salt electrolysis. The company's main products are samarium cobalt and neodymium iron boron alloys, both for permanent magnet applications. Such magnets are used, for example in automotive, power generation and electronic industries.

BUSINESS MODEL
The Company adds value through processing of rare earth oxides, rare earth metals and transition metals into specialised and often complex alloys of close compositional control, low and consistent levels of impurities and controlled microstructures.

Rare earth-based raw materials used by the Company are sourced both from China, the main global supplier of such materials, and from non-Chinese suppliers in order to lessen overdependence on a single geographic region. Other key raw materials, such as cobalt-based materials are sourced from the main ethical global suppliers. The company maintains close links with key raw material suppliers and a strong understanding of market conditions, enables secure and competitive feed to support manufacturing activities.

The company's customers are located primarily in Europe and the far-East. Emphasis is placed on maintaining close links with all customers on commercial, technical and logistical matters to retain and grow share in key markets.

REVIEW OF BUSINESS
The company had a difficult trading year in 2023 following raw material prices falling back to the levels seen in 2021.

Chinese dominance in the market still prevails across all areas of the market that LCM supplies.

With the dependence on China for RE being on the political agenda for the UK, USA and Europe LCM has focused its technical efforts on
- Developing a process for producing HRE (Dy/Tb)
- Developing a process for Samarium production

LCM has been successful in applying for grant funding through both the EU Horizon program and the UKRI Climates programme. All projects will focus on NdFeB alloy production.

LCM remains committed to ethical sourcing. This includes working to fully understand supply chains, use only of legitimate sources for rare earth purchases, procurement of cobalt-based materials only from sources free of illegally-mined artisanal material and adherence to conflict minerals legislation.

LCM's neodymium iron boron alloy sold in 2023 continues to use non-Chinese neodymium/neodymium praseodymium metal.

Sales by volume in 2023 decreased slightly on the 2022 figures and Revenue also decreased back to the levels seen in 2021. Gross Profit also decreased.

Year-end stock value decreased by 11% compared with the end of 2022. Stock values were affected by the movements in raw materials purchases.

LCM continues its commitment to operate all activities under the highest possible standards of Environmental, Health and Safety stewardship. Focus is placed on; maintaining an appropriate company-wide culture, senior management participation on all Health and Safety matters, employee awareness and training of staff. The company has comprehensive ISO9001 Quality and ISO14001 Environmental Management Systems, with specific objectives relating to; customer satisfaction, continuous improvement, segregation of waste streams and reduction of landfill waste. Senior management commitment, effective communication and highly visible reporting of performance are maintained to support all these commitments.

KEY PERFORMANCE INDICATORS
LCM measures a number of Key Performance Indicators linked to Environmental, Health and Safety, Financial, Quality and Operational aspects of the business.


LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

STRATEGIC REPORT
for the Year Ended 31 December 2023

Environmental, Health and Safety KPIs focus on minimising incidents and by monitoring the effectiveness of EHS systems and measures taken to prevent any incident.

The main Financial KPIs are linked to achievement of the Annual Operating Plan and specifically on increasing volume of sales whilst at the same time maintaining suitable margins for all business.

Quality and Operational KPIs focus on ensuring customer satisfaction, maintaining close contact with customers, minimising non-conformances, optimising furnace utilisation, maximising yields and ensuring that all production activities are carried out efficiently.

PRINCIPAL RISKS AND UNCERTAINTIES
LCM sources critical raw materials in the open market and, as such, must consider the risk of supply disruption due to geopolitical or other factors. At the time of writing this Strategic Report, there is increased concern that China may restrict the export of certain rare earths, in particular to the USA as part of ongoing trade disputes.

For several years, the low price of added value rare earth products from China has served as a barrier to entry into the market from other potential suppliers. Low export prices from China continue, and these are supported by Chinese Government policies to maintain the strong position of the domestic industry. However, current concerns about possible supply disruption should stimulate efforts to establish viable alternatives to China. LCM is actively involved in much of this work.

FUTURE DEVELOPMENTS
The company continues to explore options for improving the supply of rare earth raw materials at stable and realistic prices to support its manufacturing activities. Such options include both strategic partnerships with other companies and possible moves towards developing supply based on other business interests of the parent company shareholders.

The company continues to explore options for diversification into non-rare earth products. New markets and products continued to be developed throughout the year.

ON BEHALF OF THE BOARD:





Mr G Smith - Director


23 August 2024

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

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.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

Mr M Jegadeesan
Mr G Smith
Mr S Vaikundarajan
Mr M Thompson

Other changes in directors holding office are as follows:

Mr A Slot - resigned 8 November 2023
Mr A Riley - appointed 24 November 2023

DIRECTOR'S INDEMNITIES
The Company has indemnified its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in S232 of the Companies Act 2006. Such qualifying third-party indemnity provision was in place during the period and is in force at the date of approving the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT
The Company has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors' Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this Directors' Report, specifically in respect of the review of the business, key performance indicators, principal business risks and uncertainties and future developments for the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

REPORT OF THE DIRECTORS
for the Year Ended 31 December 2023


AUDITORS
The auditor, Xeinadin Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Mr G Smith - Director


23 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LESS COMMON METALS LIMITED


Opinion
We have audited the financial statements of Less Common Metals Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Balance Sheet, 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 loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LESS COMMON METALS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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
LESS COMMON METALS 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:
- The nature of the industry and sector, control environment and business performance including the company's
remuneration policies, key drivers for directors remuneration and performance targets;
- Results of the enquiries of management about their own identification and assessment of the risks of irregularities;
- Any matters we have identified having obtained and reviewed the company's documentation of their policies and
procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of
noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, recoverability of trade and other debtors, valuation of stock and timing of recognition of grant funded projects. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- 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; and
- 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 including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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).

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LESS COMMON METALS LIMITED


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.




Julian Beressi (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Statutory Auditors
100 Barbirolli Square
Manchester
M2 3BD

23 August 2024

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

PROFIT AND LOSS ACCOUNT
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 4 12,972,279 20,752,256

Cost of sales 9,768,928 16,541,437
GROSS PROFIT 3,203,351 4,210,819

Distribution costs 763,553 914,743
Administrative expenses 2,900,769 3,479,079
3,664,322 4,393,822
OPERATING LOSS 7 (460,971 ) (183,003 )


Interest payable and similar expenses 8 115,371 46,254
LOSS BEFORE TAXATION (576,342 ) (229,257 )

Tax on loss 9 (39,792 ) -
LOSS FOR THE FINANCIAL YEAR (536,550 ) (229,257 )

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 3,300,546 3,357,643

CURRENT ASSETS
Stocks 11 2,673,764 2,981,524
Debtors 12 4,618,423 5,673,974
Cash at bank and in hand 477,555 899,873
7,769,742 9,555,371
CREDITORS
Amounts falling due within one year 13 2,711,917 3,938,242
NET CURRENT ASSETS 5,057,825 5,617,129
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,358,371

8,974,772

CREDITORS
Amounts falling due after more than one year 14 (827,513 ) (907,364 )

PROVISIONS FOR LIABILITIES 18 (460,273 ) (460,273 )
NET ASSETS 7,070,585 7,607,135

CAPITAL AND RESERVES
Called up share capital 19 80,790 80,790
Retained earnings 6,989,795 7,526,345
SHAREHOLDERS' FUNDS 7,070,585 7,607,135

The financial statements were approved by the Board of Directors and authorised for issue on 23 August 2024 and were signed on its behalf by:





Mr G Smith - Director


LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 80,790 7,755,602 7,836,392
Deficit for the year - (229,257 ) (229,257 )
Total comprehensive loss - (229,257 ) (229,257 )
Balance at 31 December 2022 80,790 7,526,345 7,607,135
Deficit for the year - (536,550 ) (536,550 )
Total comprehensive loss - (536,550 ) (536,550 )
Balance at 31 December 2023 80,790 6,989,795 7,070,585

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023


1. STATUTORY INFORMATION

Less Common Metals Limited is a private company limited by share capital, incorporated in England and Wales, registration number 02690088. The address of the registered office and principal place of business is Unit 2 Hooton Park, North Road, Ellesmere Port, Cheshire, CH65 1BL.

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.

The functional currency of the company is considered to be Pound Sterling due to the company's principal place of business and permanent establishment being carried out in the UK.

The profit and loss account has been converted throughout the year using the rates applicable to each transaction as and when they occur on a month by month basis with exchange differences being recognised through the profit and loss account when they arise.

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 requirements of Section 33 Related Party Disclosures paragraph 33.7.

Related party exemption
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.

Turnover
Turnover represents the value of goods provided during the year,excluding value added tax. Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Turnover from the sale of goods is recognised when all the following conditions are satisfied:
- the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
- the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
- the amount of turnover can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the company; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its estimated useful life, as follows:

Long leasehold-over the term of the lease
Freehold property-25 years straight line
Plant and machinery -5, 10 and 15 years straight line
Fixtures and fittings -3 and 10 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Provisions required to meet dilapidation clauses under the company property leases were capitalised at the outset and are being written off over the term of the lease.

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and selling price less cost of selling. Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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.

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


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. 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.

Hire purchase and leasing commitments
Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs . Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents are represented by cash at bank and in hand. Bank borrowings are included in other creditors.

3. SIGNIFICANT JUDGEMENTS AND ESTIMATES

In the application of the Company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period.

The following provisions have been made in the financial statements:

Dilapidation Provision - A provision has been made in respect of the estimated costs of vacating the properties which are currently leased by the company. The provision at the reporting date was £460,273 (2022 - £460,273).

4. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Goods 11,868,065 20,340,476
Commission received 204,532 245,665
Grants for projects 899,682 166,115
12,972,279 20,752,256

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 344,411 895,933
Europe 10,065,895 12,536,383
United States of America 582,062 1,510,096
Rest of World 1,979,911 5,809,844
12,972,279 20,752,256

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,745,533 1,966,312
Social security costs 182,678 223,834
Other pension costs 80,875 108,485
2,009,086 2,298,631

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


5. EMPLOYEES AND DIRECTORS - continued

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

Production 29 31
Administration 16 18
45 49

6. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 284,199 203,518
Directors' pension contributions to money purchase schemes 12,084 53,318

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 145,757 130,617
Pension contributions to money purchase schemes - 53,318

7. OPERATING LOSS

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

2023 2022
£    £   
Other operating leases 325,482 364,619
Depreciation - owned assets 537,685 487,987
Loss on disposal of fixed assets 29,945 142,046
Auditors' remuneration 29,922 28,509
Foreign exchange differences (49,395 ) 238,187

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 115,371 46,254

9. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax (39,792 ) -
Tax on loss (39,792 ) -

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


9. TAXATION - continued

Reconciliation of total tax credit 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:

2023 2022
£    £   
Loss before tax (576,342 ) (229,257 )
Loss multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

(109,505

)

(43,559

)

Effects of:
Expenses not deductible for tax purposes 9,281 29,366
Capital allowances in excess of depreciation (30,897 ) (34,570 )
Unused tax losses 131,121 48,763
R & D tax credit (39,792 ) -
Total tax credit (39,792 ) -

10. TANGIBLE FIXED ASSETS
Fixtures
Freehold Long Plant and and
property leasehold machinery fittings Totals
£    £    £    £    £   
COST
At 1 January 2023 340,040 2,448,981 7,717,353 1,092,830 11,599,204
Additions 49,128 6,390 618,712 16,739 690,969
Disposals - - (2,520,973 ) - (2,520,973 )
Reclassification/transfer - - (34,568 ) 34,568 -
At 31 December 2023 389,168 2,455,371 5,780,524 1,144,137 9,769,200
DEPRECIATION
At 1 January 2023 2,267 1,640,213 5,550,827 1,048,254 8,241,561
Charge for year 19,123 147,423 327,172 43,967 537,685
Eliminated on disposal - - (2,310,592 ) - (2,310,592 )
Reclassification/transfer - - (308 ) 308 -
At 31 December 2023 21,390 1,787,636 3,567,099 1,092,529 6,468,654
NET BOOK VALUE
At 31 December 2023 367,778 667,735 2,213,425 51,608 3,300,546
At 31 December 2022 337,773 808,768 2,166,526 44,576 3,357,643

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

20232022
££

Plant and machinery229,490246,979
229,490246,979

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


11. STOCKS
2023 2022
£    £   
Raw materials 1,648,556 1,157,394
Work-in-progress 240,150 78,275
Finished goods 785,058 1,745,855
2,673,764 2,981,524

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,283,036 1,890,782
Amounts owed by group undertakings 2,835,194 2,835,194
Other debtors 100,014 133,609
VAT 15,580 18,740
Tax 39,792 -
Prepayments and accrued income 344,807 795,649
4,618,423 5,673,974

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 1,476,627 1,424,617
Other loans (see note 15) 281,125 326,932
Hire purchase contracts (see note 16) 84,995 69,778
Trade creditors 567,593 1,225,680
Social security and other taxes 40,593 113,253
Accruals and deferred income 260,984 777,982
2,711,917 3,938,242

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 16) 13,849 116,474
Other creditors 813,664 790,890
827,513 907,364

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 1,476,627 1,424,617
Other loans 281,125 326,932
1,757,752 1,751,549

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 84,995 69,778
Between one and five years 13,849 116,474
98,844 186,252

Non-cancellable operating leases
2023 2022
£    £   
Within one year 250,000 250,000
Between one and five years 468,750 718,750
718,750 968,750

17. SECURED DEBTS

On the 11 October 2018, Barclays created a fixed and floating charge over all of the property and undertakings of the company; this charge also contains a negative pledge.

On the 9th November 2022, a Director created a fixed charge over the company's freehold property.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions
Dilapidations 460,273 460,273

The dilapidation provision amounts above relate to the properties leased by the company. The directors have made their best estimate of future obligations for the dilapidation costs to restore the leasehold property to its original state, however there are uncertainties over the exact costs to the company.

Deferred Tax
No deferred tax asset has been recognised due to the current uncertainty of future taxable profits. The asset will be recognised when sufficient taxable profits are generated to relieve the losses, depreciation and capital allowances equalise and other temporary differences reverse. The amounts not provided were as follows:

20232022
££
Short term temporary differences (2,183,752)(1,899,199)
Unused tax losses 6,624,6455,944,880
4,440,8934,045,681

LESS COMMON METALS LIMITED (REGISTERED NUMBER: 02690088)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
75,790 Ordinary £1.00 75,790 75,790
5,000 Ordinary B £1.00 5,000 5,000
80,790 80,790

20. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 12,845

21. RELATED PARTY DISCLOSURES

At the balance sheet date the company owed a director £281,125 (2022: £326,932) for a loan on which interest is charged.

22. ULTIMATE CONTROLLING PARTY

The immediate parent undertaking at the balance sheet date was LCMG Limited and the ultimate parent undertaking was Indian Ocean Rare Metals Pte Ltd, a company registered in Singapore.

The parent company of the smallest group that includes the company and for which consolidated financial statements are prepared is LCMG Limited. Copies of these financial statements can be obtained from the registered office at Unit 2 Hooton Park, North Road, Ellesmere Port, Cheshire, CH65 1BL.