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REGISTERED NUMBER: 03221771 (England and Wales)












SWAN ALLOY UK LTD.

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2023






SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Statement of Directors' Responsibilities 6

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


SWAN ALLOY UK LTD.

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: S W Bareel
S F J Renard





REGISTERED OFFICE: Swan Alloy Uk Ltd
Westfield Industrial Park
Waunarlwydd
Swansea
SA5 4SF





REGISTERED NUMBER: 03221771 (England and Wales)





AUDITORS: Bevan Buckland LLP
Chartered Accountants
And Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
The company's principal activity is the recycling of valuable aluminium waste materials for sale to the aluminium (wrought and casting alloy) industries within the UK and mainland Europe. There have been no significant changes in the company's principal activities in the year under review.
The company is a wholly owned subsidiary of Aurea SA, France.

The company's key financial performance indicators during the year were as follows:

2023 2022 Change (% )

Turnover £53.4m £63.3m (15.6% )
Operating profit £3.2m £6.6m (51.5% )
Profit / (loss) after tax £(1.65m ) £5.3m (131.1% )

Average number of employees 55 52

The decrease in turnover, operating profit and resulting loss after tax was due to the lower LME and P1020 premiums during the year and the write off of amounts owed by group entities as a result of the sale of the company to Aurea SA, France. During the period under review the business was at full capacity. The number of employees increased within the year.

PRINCIPAL RISKS AND UNCERTAINTIES
Company management are responsible for managing any risks and uncertainties and for working with the Aurea group to understand and mitigate the risks that the company faces.

The company has rigorous budgeting and forecasting processes against which performance is monitored and any exposure to business risk can be identified and appropriate plans and actions put in place. A major focus in 2024 will be productivity improvement activities to offset the current increasing costs. The company does not consider there to be any major risks to the business in the near future.

Credit risk
The company's customers are third parties in the United Kingdom and Europe. The company has no history of credit risk from its customers, but the company has a comprehensive credit policy in place that includes credit risk validations, credit limits and regular follow up of amounts due to the company.

Currency risk
The company has transactional currency exposures which arise from sales in Euro and purchases in currencies other than its functional currency (GBP). Potential exposures to foreign currency exchange rate movements are monitored through monthly cash forecasting process.

Commodity price risk
The company's sale of aluminium is affected by the fluctuation of the prices in London Metal Exchange. The potential exposure to the price fluctuations are monitored at a local level at Swan Alloy .

Liquidity and cash flow risks
The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets throughout the company. The company manages cash flow risk by careful negotiation of terms with customers and suppliers and maintains available funds to enable them to meet their liabilities as they fall due.

Competitive risk
The company has various competitors Swan Alloy UK Ltd. business leaders' focus is on retaining our current business and gaining new business.

Legislative risk
The company operates in a regulated industry and products are subject to rigorous manufacturing standards.


SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

SECTION 172(1) STATEMENT
In accordance with section 172(1) of The Companies Act 2006 the directors of the company are required to act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.

Taking this into account, the directors of Swan Alloy UK Ltd. must have regard (among other matters) to:

- The likely long term consequences of any decision
- The interest of the company's employees
- The need to foster the company's business relationship with suppliers, customers and others
- The impact of the company's operations on our community and environment
- Maintenance of the company's reputation for the highest standards of the business conduct
- The need to act fairly as between members of the company

The Board welcomes the reporting requirement introduced by Section 172, and sees it as an opportunity to explain how these considerations have informed and helped shape strategy and decision making.

Stakeholder engagement is embedded within the detailed corporate governance framework operated by the Board, and the long-term consequences of its strategic decision making are reviewed and assessed at local leadership meetings, through its Committees and through its oversight of decision making delegated to executive management. The Board takes its Section 172 obligations very seriously, and applies Section 172 in the context of its strategic direction of the Company and its meetings, including the following specific ways:

- Strategic priorities - Directors review progress against our strategic priorities with the local leadership team.
- Health and safety of staff - Management and its Committees conduct regular reviews of safety matters and environmental
performance, with the aim of continually improving site safety and minimising environmental impact.
- Financial discipline - Leadership meetings review executive management's focus around fiscal discipline, and delivery of
solid and stable earnings.
- People - Leadership approaches all its decisions which may effect employees by reference to our Swan Alloy Corporate
values.
- Governance - Our governance requires consistently high standard of business conduct and the Board review all decisions
in the light of this strategic priority. Strong cultural leadership and governance are seen by the Board as critical elements
underpinning the continuing success of the Company.
- Operational availability and reliability - Executive management is charged by the Board with maintaining the strong
operational presence expected by our customers, complete regulatory compliance expected by our suppliers and others,
with reports on these areas provided to each Board meeting. Board decisions are taken in a way which furthers both the
long-term financial success of the Company and the interests of our stakeholders.

FUTURE DEVELOPMENTS
Demand for many of our products is impacted by regional economic factors in Europe, including GDP and industrial production. We believe that production and sales will remain the same in 2024 as the economic outlook and demand for our products remains strong.

ON BEHALF OF THE BOARD:





S F J Renard - Director


9 September 2024

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of

DIVIDENDS
No interim dividend was paid during the year. The directors recommend a final dividend of £0.285 per share.

The total distribution of dividends for the year ended 31 December 2023 will be £ 8,385,754 .

DIRECTORS
The directors who have held office during the period from 1 January 2023 to the date of this report are as follows:

J B Baillon - appointed 14 April 2023
S W Bareel - appointed 14 April 2023

S F J Renard was appointed as a director after 31 December 2023 but prior to the date of this report.

J B Baillon ceased to be a director after 31 December 2023 but prior to the date of this report.

ENVIRONMENTAL
Swan Alloy UK Limited recognises the importance of the environment in which it operates and takes this extremely seriously. The company operates within group policies and monitors its impact on the environment and local community continuously, striving for improvements in health, safety, and environmental impact via initiatives and training of employees.

Good environmental plant performance in 2023 has led to a successful audit and the retention of the ISO14001and ISO 9001 accreditations.

GOING CONCERN
The directors are required to consider the application of the going concern concept when signing the financial statements. The principal element required to meet the test is sufficient liquidity for a period of twelve months subsequent to the date of signing the accounts.

The company's financial forecasts, taking into consideration the current environment, show that the company is expected to remain profitable and generate positive cash flows giving the company the ability to continue to operate for the 12 months from when the financial statements are authorised for issue and meet any liabilities as they fall due.

Whilst there always remains an element of uncertainty within any business, the directors have considered that any risk to the cashflows of the company remain relatively very low. Therefore, any uncertainties will not change the cashflows within the company and based on these facts and the financial position and the forecasted cashflows of the company have concluded it is appropriate to prepare the financial statements on the going concern basis.

ENGAGEMENT WITH EMPLOYEES
The company encourages participation of employees in all matters relevant to them through meetings and bulletin updates. Union Representatives regularly attend local union meetings and are regularly consulted on matters affecting them and their member's interests.

STREAMLINED ENERGY AND CARBON REPORTING
Swan Alloy UK Limited is committed to producing meaningful climate disclosures in line with those required by The Companies (Directors' Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018. The table below provides details of the information required by the 2018 Regulations.

The footprint has been calculated in accordance with the Greenhouse Gas (GHG) Protocol and Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance. Activity data has been converted into carbon emissions using Department of Environment, Food and Rural Affairs (DEFRA) published emission factors and the data provided by the Company. The data is presented in tonnes of carbon dioxide equivalent (t CO2e).








SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023








2023 2022
Notes Kwh ('000) t CO2e Kwh ('000) t CO2e
Scope 1 - Gas 53,242 9,752 49,466 9,060
Fuel transport 2,054 521 1,503 532
(a) 55,297 10,272 48,009 9,592

Scope 2 - Electricity (b) 12,284 2,608 12,154 2,581

67,581 12,881 61,816 12,173

Emission intensity (Scopes 1 and 241.13 tCO2e per 192.43 tCO2e per
2) £1m of £1m of
revenue revenue

Notes
(a) Scope 1 - Direct emissions from owned or controlled sources
(b) Scope 2 - Indirect emissions from generation of purchased energy

Energy efficiency
Swan Alloy UK Limited recognises that the promotion and good management of energy usage is essential to sustaining and keeping in balance with the environment and environment resources and the company is committed to working towards energy efficiency.

Swan Alloy UK Limited is constantly reviewing and monitoring its energy efficiency and is actively looking to drive energy efficiency within all areas of the business. The company has upgraded metering on key equipment and has upgraded the lighting on site.

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

AUDITORS
The auditors, Bevan Buckland LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S F J Renard - Director


9 September 2024

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

STATEMENT OF DIRECTORS' RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2023

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

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SWAN ALLOY UK LTD.

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

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 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, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

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

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

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

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SWAN ALLOY UK LTD.


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities, including fraud
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:

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, our procedures included the following:

- 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.

Audit response to risks identified
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
SWAN ALLOY UK LTD.


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.




Henry Lloyd Davies (Senior Statutory Auditor)
for and on behalf of Bevan Buckland LLP
Chartered Accountants
And Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

9 September 2024

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £'000 £'000 £'000 £'000

TURNOVER 4 53,417 63,257

Cost of sales 48,031 55,018
GROSS PROFIT 5,386 8,239

Distribution costs 1,300 1,165
Administrative expenses 1,306 445
2,606 1,610
2,780 6,629

Other operating income 393 -
OPERATING PROFIT 6 3,173 6,629

Write off of former group
balances 7 3,981 -
(808 ) 6,629

Interest receivable and similar income 68 48
(740 ) 6,677

Interest payable and similar expenses 8 38 25
(LOSS)/PROFIT BEFORE TAXATION (778 ) 6,652

Tax on (loss)/profit 9 864 1,309
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (1,642 ) 5,343

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £'000 £'000

(LOSS)/PROFIT FOR THE YEAR (1,642 ) 5,343


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

(1,642

)

5,343

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Tangible assets 11 5,264 4,996

CURRENT ASSETS
Stocks 12 4,077 2,480
Debtors 13 8,818 10,870
Cash at bank 1,207 10,063
14,102 23,413
CREDITORS
Amounts falling due within one year 14 10,983 10,116
NET CURRENT ASSETS 3,119 13,297
TOTAL ASSETS LESS CURRENT LIABILITIES 8,383 18,293

CREDITORS
Amounts falling due after more than one year 15 (208 ) (217 )

PROVISIONS FOR LIABILITIES 17 (749 ) (622 )
NET ASSETS 7,426 17,454

CAPITAL AND RESERVES
Called up share capital 18 3,696 3,696
Retained earnings 19 3,730 13,758
SHAREHOLDERS' FUNDS 7,426 17,454

The financial statements were approved by the Board of Directors and authorised for issue on 9 September 2024 and were signed on its behalf by:





S F J Renard - Director


SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£'000 £'000 £'000
Balance at 1 January 2022 3,696 14,451 18,147

Changes in equity
Dividends - (6,036 ) (6,036 )
Total comprehensive income - 5,343 5,343
Balance at 31 December 2022 3,696 13,758 17,454

Changes in equity
Dividends - (8,386 ) (8,386 )
Total comprehensive income - (1,642 ) (1,642 )
Balance at 31 December 2023 3,696 3,730 7,426

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £'000 £'000
Cash flows from operating activities
Cash generated from operations 1 2,178 11,646
Interest element of hire purchase payments paid (38 ) (25 )
Tax paid (1,404 ) (1,022 )
Net cash from operating activities 736 10,599

Cash flows from investing activities
Purchase of tangible fixed assets (1,223 ) (823 )
Sale of tangible fixed assets - 5
Interest received 68 48
Net cash from investing activities (1,155 ) (770 )

Cash flows from financing activities
Capital repayments in year (51 ) (270 )
Equity dividends paid (8,386 ) (6,036 )
Net cash from financing activities (8,437 ) (6,306 )

(Decrease)/increase in cash and cash equivalents (8,856 ) 3,523
Cash and cash equivalents at beginning of
year

2

10,063

6,540

Cash and cash equivalents at end of year 2 1,207 10,063

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£'000 £'000
(Loss)/profit before taxation (778 ) 6,652
Depreciation charges 956 845
Profit on disposal of fixed assets - (5 )
Finance costs 38 25
Finance income (68 ) (48 )
148 7,469
Increase in stocks (1,597 ) (24 )
Decrease in trade and other debtors 2,799 630
Increase in trade and other creditors 828 3,571
Cash generated from operations 2,178 11,646

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£'000 £'000
Cash and cash equivalents 1,207 10,063
Bank overdrafts - -
1,207 10,063
Year ended 31 December 2022
31.12.22 1.1.22
£'000 £'000
Cash and cash equivalents 10,063 6,540
Bank overdrafts - -
10,063 6,540


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£'000 £'000 £'000
Net cash
Cash at bank 10,063 (8,856 ) 1,207
10,063 (8,856 ) 1,207
Debt
Finance leases (465 ) 51 (414 )
(465 ) 51 (414 )
Total 9,598 (8,805 ) 793

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Swan Alloy Uk Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. 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.

Going Concern
On the basis of their assessment of the company's financial position, the company's directors have a reasonable expectation that the company will be able to continue in operational existence for 12 months from when the financial statements are authorised for issue. The directors are required to consider the application of the going concern concept when signing the financial statements. The principal element required to meet the test is sufficient liquidity for a period of twelve months subsequent to the date of signing the accounts.

The company's financial forecasts, taking into consideration the current environment, show that company is expected to remain profitable and generate positive cash flows giving the company the ability to continue to operate for the foreseeable and meet any liabilities as they fall due.

In view of the assessment referred to above, the directors believe that the company is well positioned to withstand any current economic uncertainty. The directors have considered the impact on the cashflows of the company and consider that any uncertainties will not change the cashflows within the company and based on these facts and the financial position and the forecasted cashflows of the company have concluded it is appropriate to prepare the financial statements on the going concern basis.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - Over the term of the lease
Plant and Machinery - 33% on cost and 2.5% on cost

If there is an indication that there has been a significant change in the depreciation rate or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the income statement.

Impairment of fixed assets
The company performs impairment testing where there are any indicators or impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement.

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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

Cost includes all direct costs incurred in bringing each product to its present location and condition, as follows:

Finished Goodscost of direct materials and labour plus attributable overheads based on a normal
level of activity.
Raw Materialscost of direct materials

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.

Financial instruments
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other receivables and payables, amounts due to and from related parties.

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Debt instruments like loans and other receivables and payables are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of 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 financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

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 profit or loss. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying value and the present value of estimated cash flows discounted at the assets 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 the best estimate, which is an approximation, of the amount that the company 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 recognised in the balance sheet 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. At each reporting date non-financial assets not carried at fair value, such as property, plant and equipment are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less costs to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There were no judgements or material estimation uncertainties affecting the reported financial performance in the current or prior year.

4. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

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

2023 2022
£'000 £'000
Recycling of aluminium 53,417 63,257
53,417 63,257

An analysis of turnover by geographical market is given below:

2023 2022
£'000 £'000
United Kingdom 25,428 30,034
Europe 27,989 33,223
53,417 63,257

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. EMPLOYEES AND DIRECTORS
2023 2022
£'000 £'000
Wages and salaries 2,641 2,817
Social security costs 315 315
Other pension costs 251 208
3,207 3,340

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

Production 37 34
Administrative 8 8
Maintenance 10 10
55 52

The directors who served the company during the year were also directors of other companies in the Aurea SA group. The directors' services to the Company do not occupy a significant amount of time. As such, the directors do not consider that they have received any remuneration for their incidental services to the Company for the years ended 31 December 2023 and 31 December 2022. The costs of the director' remuneration is reflected in the financial statement of the group companies.

6. OPERATING PROFIT

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

2023 2022
£'000 £'000
Other operating leases 846 881
Depreciation - owned assets 620 582
Depreciation - assets on hire purchase contracts 335 262
Profit on disposal of fixed assets - (5 )
Foreign exchange differences 112 (519 )
Auditors remuneration 34 31

7. EXCEPTIONAL ITEMS
2023 2022
£'000 £'000
Write off of former group
balances (3,981 ) -

On 31 March 2023, Real Alloy announced the completion of the sale of European aluminium and magnesium recycling operations to Speira. Included in the transaction were the seven Real Alloy European facilities that employ approximately 600 people in Germany, Norway, France and the United Kingdom.

On 14 April 2023, Speira announced the sale of Real Alloy UK Ltd. and RVA, France to Aurea SA, France.

Following this sale, amounts owing from group entities were released to the Profit and Loss account as part of the sale agreement.

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£'000 £'000
Hire purchase 38 25

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£'000 £'000
Current tax:
UK corporation tax 737 1,166

Deferred tax 127 143
Tax on (loss)/profit 864 1,309

UK corporation tax has been charged at 25% (2022 - 19%).

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

2023 2022
£'000 £'000
(Loss)/profit before tax (778 ) 6,652
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

(195

)

1,264

Effects of:
Expenses not deductible for tax purposes 995 67
Depreciation in excess of capital allowances 110 -
Adjustments to tax charge in respect of previous periods - (56 )
Effect of change in tax rates (47 ) 34
Total tax charge 863 1,309

From 1st April 2023, the corporation tax rate in the UK increased to 25% from 19%.

10. DIVIDENDS
2023 2022
£'000 £'000
Ordinary shares of £1 each
Final 8,386 6,036

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. TANGIBLE FIXED ASSETS
Improvements
Short to Plant and
leasehold property Machinery Totals
£'000 £'000 £'000 £'000
COST
At 1 January 2023 4,347 436 9,225 14,008
Additions 45 588 590 1,223
Disposals - - (488 ) (488 )
Reclassification/transfer - (302 ) 302 -
At 31 December 2023 4,392 722 9,629 14,743
DEPRECIATION
At 1 January 2023 2,787 - 6,225 9,012
Charge for year 295 - 660 955
Eliminated on disposal - - (488 ) (488 )
At 31 December 2023 3,082 - 6,397 9,479
NET BOOK VALUE
At 31 December 2023 1,310 722 3,232 5,264
At 31 December 2022 1,560 436 3,000 4,996

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
Machinery
£'000
COST
At 1 January 2023 955
Additions 229
Disposals (284 )
At 31 December 2023 900
DEPRECIATION
At 1 January 2023 445
Charge for year 335
Eliminated on disposal (284 )
At 31 December 2023 496
NET BOOK VALUE
At 31 December 2023 404
At 31 December 2022 510

12. STOCKS
2023 2022
£'000 £'000
Raw materials 3,765 2,416
Finished goods 312 64
4,077 2,480

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£'000 £'000
Trade debtors 6,783 5,051
Amounts owed by group undertakings 867 5,175
Tax 521 -
VAT 413 448
Prepayments and accrued income 234 196
8,818 10,870

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£'000 £'000
Hire purchase contracts (see note 16) 206 248
Trade creditors 3,220 3,959
Amounts owed to group undertakings 226 -
Tax - 146
Social security and other taxes 123 148
Accruals and deferred income 7,208 5,615
10,983 10,116

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£'000 £'000
Hire purchase contracts (see note 16) 208 217

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£'000 £'000
Net obligations repayable:
Within one year 206 248
Between one and five years 208 217
414 465

Non-cancellable operating leases
2023 2022
£'000 £'000
Within one year 285 536
Between one and five years 1,152 1,169
In more than five years 570 854
2,007 2,559

17. PROVISIONS FOR LIABILITIES
2023 2022
£'000 £'000
Deferred tax
Accelerated capital allowances 749 622

SWAN ALLOY UK LTD. (REGISTERED NUMBER: 03221771)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£'000
Balance at 1 January 2023 622
Charge to Income Statement during year 127
Balance at 31 December 2023 749

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £'000 £'000
3,696,178 Ordinary £1 3,696 3,696

19. RESERVES
Retained
earnings
£'000

At 1 January 2023 13,758
Deficit for the year (1,642 )
Dividends (8,386 )
At 31 December 2023 3,730

20. ULTIMATE PARENT COMPANY

The ultimate parent undertaking and controlling party at the balance sheet date is Aurea SA, a public entity incorporated in France.