Company registration number 11776916 (England and Wales)
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
COMPANY INFORMATION
Directors
Mr M E Sherling
Mr D A J Rintoul
Mr B H Smith
Mr I Crabbe
Company number
11776916
Registered office
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 42
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The directors are pleased with the performance of the group during the year, reporting operating profit of £2.6m (2022: £3.8m) and net profit of £0.6m (2022: £2.0m). Revenues saw a 13% increase from the prior year, benefitting from a higher value sales mix, with volumes and market lead prices in line with the prior year.

Principal risks and uncertainties

The principal risks and uncertainties faced by the group in the view of the directors are as follows:

 

Price risk

The industry in which the group operates is greatly affected by the price of lead and other metals which is outside the control of the group as it is dictated by market forces. The directors therefore undertake daily reviews of the price of lead and other metals. The directors believe that the group has the appropriate controls in place to ensure that the group can react in a timely fashion to any significant changes in these prices.

 

Energy cost risk

Wholesale energy costs have seen increased volatility over recent years. The directors are taking a number of actions to manage the impact of price increases, including engaging market experts to offer advice, regular monitoring of the market and fixing some forward energy costs to reduce uncertainty.

 

Supply chain network uncertainty

Any delays in securing materials due to issues with global supply chains can cause problems. In particular, the group supplies the construction sector which is susceptible to delays and dependent on materials from different geographical locations. The directors seek to ensure that adequate levels on stock are held to meet the requirements of its customers.

Liquidity risk

There is a significant level of investment in fixed assets held by the group which is required to provide the plant and machinery that the group needs to be able to deliver its products. The level of funds held in stock is kept to an acceptable minimum whilst the remaining funds are held either within short term debtors or the bank, offset by short term creditors. The board manages liquidity risk by a combination of controls such as the monitoring of gearing levels and ensuring that the group has sufficient available funds for its operations.

 

Interest rate risk

The group finances its operations in the main through bank loans and asset based financing and the resulting interest costs are reviewed by the directors. The board accepts that a certain amount of third party funding is required and therefore accepts the risk attached to interest rate fluctuations.

 

Credit risk

The group undertakes credit checks for new accounts and sets credit limits for its customers. The level of debtor days is reviewed for significant accounts and procedures are in place if an account falls outside the set parameters. Due to the market conditions prevailing within the industry sector the group makes an adequate and realistic provision against trade debts.

 

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Cash flow risk

The board continually monitors the cash requirements of the group to ensure that there is the appropriate level of cover. There are adequate facilities readily available to support the group's cash flow requirements at the balance sheet date.

 

Foreign currency risk

Whilst the greater part of the group’s revenues and expenses are denominated in sterling, the group is exposed to some foreign exchange risk. The group constantly reviews its exposure to limit the adverse effects of such risks on its financial performance.The use of forward foreign exchange contracts and other derivatives assist the directors in managing the risk.

 

Development and Performance

The directors consider the level of business and the year end position to be satisfactory. EBITDA for the year was £6.24m before exceptional costs.

Key performance indicators

The directors review various key performance indicators during the year to measure the performance of the group both compared to budget and against the industry as a whole. A summary of these indicators are as follows:-

 

Turnover

The directors review the pricing of products in line with metal input prices. This means that the prices offered by the group to its customers are continually updated and remain competitive. Turnover for the period was £128.6m (2022: £113.4m).

 

Gross profit

As a result of the continued review of the sales prices the directors continually take steps to ensure that the group maintains its gross margin. This is reviewed throughout the year. Gross margin achieved was 23.4% (2022: 25.8%).

 

Debtor days

The directors review the average debtor days throughout the year to ensure that any collection problems are swiftly identified and resolved. Debtor days in 2023 was 73 days (2022: 73 days).

 

Stock turnover

The directors strive to hold stock levels to ensure that any short term fluctuation in lead and metal prices can be covered whilst not tying up excessive funds in stock holdings. Stock turnover days for 2023 was 63 days (2022: 74 days).

Section 172 Statement

In accordance with section 172 of the Companies Act, each of our directors acts in the way he considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. Our directors have regard, amongst other matters, to the:

 

 

As is normal for large companies, we delegate authority for day to day management of the company to senior managers and then engage management in setting, approving and overseeing the execution of strategy and related policies. During the year, we reviewed the company's financial and operational performance; key transactions; regulation; funding and pension matters, mechanisms of stakeholder engagement and diversity and inclusion. The Board review , discuss and approve, as necessary, all of these matters.

 

As set out above, decisions taken by the Board consider the interests of our key stakeholders and the impacts of these decisions.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Mr M E Sherling
Director
25 September 2024
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of a holding company for the trade of its subsidiaries which include metal recycling, processing and distribution.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M E Sherling
Mr D A J Rintoul
Mr B H Smith
Mr I Crabbe
Financial instruments

The group uses financial instruments comprising of bank loans and asset based financing facilities, together with various items such as trade debtors and trade creditors that arise directly from its operations. It is the objective of the board to ensure that the group has ready access to the level of funds that the board deems necessary at any time during the year. The board reviews future projections to highlight any times when requirements may exceed current levels of funding to ensure that facilities are in place and available.

 

The main risks arising from the financial instruments used by the group are credit risk, interest rate risk, liquidity risk and cash flow risk. The group reviews and agrees policies for managing these risks, as detailed in the strategic report to minimise exposure

Research and development

The group invests in the development of new technology. During the period the group incurred approximately £1m (2022: £0.2m) of development expenditure which includes a significant labour cost. The directors believe this will lead to future profits of the group.

Employee involvement

The group's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Future developments

General economic conditions remain difficult, with factors including Russia's ongoing invasion of Ukraine and the global recovery from the Covid-19 pandemic contributing to increased energy cost volatility, general high cost inflation and historically high interest rates. The directors have taken action to mitigate these impacts where possible and expect financial performance to remain satisfactory.

Auditor

Rayner Essex LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Energy and carbon report

The directors recognises the importance of their environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the Group's activities.

 

The Group operates in accordance with group policies. The Group's strategy is shaped to to respond to the risks and opportunities faced and climate change related risks and opportunities are built into this strategy.

 

The information below is in relation to the entities who use over 40,000 kwh only.

Energy consumption
kWh
Aggregate of energy consumption in the year
84,949,950
Emissions of CO2 equivalent
Metric tonnes
Metric tonnes
Scope 1 - direct emissions
- Gas combustion
8,160
- Furnace fuel
8,539
- Fuel consumed for owned transport
878
17,577
Scope 2 - indirect emissions
- Electricity purchased
2,444
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
1,318
Total gross emissions
21,339
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the 2023 UK Government’s Conversion Factors for Company Reporting.

Measures taken to improve energy efficiency

The Group continually looks to improve energy efficiency and reduce emissions. This is done through a mix of operational improvements and improvements to equipment and machinery.

 

During 2023 a number of older employee vehicles were replaced with new hybrid low-emission vehicles. In addition, new processes were put in place to review energy usage over time, with a view to identifying further opportunities to improve operating processes and reduce emissions.

 

Other projects of note in the period include: the renewal of group commercial vehicles, providing a lower emission fleet; revisions to the furnace smelt processes to optimise energy usage; improvements to refinery processes to reduce gas consumption; and optimisation of the battery breaker processes to reduce operational hours on power. Further work is expected in the next period as part of the group’s commitment to continuous improvement.

 

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr M E Sherling
Director
25 September 2024
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
- 7 -
Opinion

We have audited the financial statements of International Metal Industries Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company and 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
- 9 -

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Antony Federer FCA FCCA CF (Senior Statutory Auditor)
For and on behalf of Rayner Essex LLP
25 September 2024
Chartered Accountants
Statutory Auditor
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
128,627,744
113,391,467
Cost of sales
(98,504,966)
(84,179,427)
Gross profit
30,122,778
29,212,040
Distribution costs
(1,566,690)
(1,333,370)
Administrative expenses
(25,636,895)
(23,269,741)
Other operating income
3
169,856
416,995
Exceptional item
4
(459,000)
(1,212,655)
Operating profit
5
2,630,049
3,813,269
Interest receivable and similar income
9
63,835
40,230
Interest payable and similar expenses
10
(2,976,730)
(1,769,089)
(Loss)/profit before taxation
(282,846)
2,084,410
Tax on (loss)/profit
11
850,044
(5,832)
Profit for the financial year
28
567,198
2,078,578
Profit for the financial year is all attributable to the owner of the parent company.
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Profit for the year
567,198
2,078,578
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(50,000)
160,000
Currency translation loss taken to retained earnings
(142,782)
(277,490)
Other comprehensive income for the year
(192,782)
(117,490)
Total comprehensive income for the year
374,416
1,961,088
Total comprehensive income for the year is all attributable to the owners of the parent company.
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
17,074,531
17,470,387
Investment properties
14
520,000
520,000
17,594,531
17,990,387
Current assets
Stocks
18
16,955,555
17,170,045
Debtors
19
38,837,999
35,918,555
Cash at bank and in hand
1,188,092
1,192,861
56,981,646
54,281,461
Creditors: amounts falling due within one year
20
(56,230,670)
(52,198,893)
Net current assets
750,976
2,082,568
Total assets less current liabilities
18,345,507
20,072,955
Creditors: amounts falling due after more than one year
21
(8,570,214)
(10,604,078)
Provisions for liabilities
Deferred tax liability
24
906,100
996,100
(906,100)
(996,100)
Net assets excluding pension liability
8,869,193
8,472,777
Defined benefit pension liability
25
(109,000)
(87,000)
Net assets
8,760,193
8,385,777
Capital and reserves
Called up share capital
26
1
1
Investment property revaluation reserve
184,568
184,568
Profit and loss reserves
28
8,575,624
8,201,208
Total equity
8,760,193
8,385,777
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr M E Sherling
Director
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
17,410,249
17,410,249
Current assets
Debtors
19
303,164
303,164
Creditors: amounts falling due within one year
20
(7,292,174)
(6,214,898)
Net current liabilities
(6,989,010)
(5,911,734)
Total assets less current liabilities
10,421,239
11,498,515
Creditors: amounts falling due after more than one year
21
(7,386,674)
(8,192,674)
Net assets
3,034,565
3,305,841
Capital and reserves
Called up share capital
26
1
1
Profit and loss reserves
28
3,034,564
3,305,840
Total equity
3,034,565
3,305,841

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £271,276 (2022 - £2,711,913 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr M E Sherling
Director
Company registration number 11776916 (England and Wales)
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Investment property revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
1
184,568
6,240,120
6,424,689
Year ended 31 December 2022:
Profit for the year
-
-
2,078,578
2,078,578
Other comprehensive income:
Actuarial gains/(losses) on defined benefit plans
-
-
160,000
160,000
Currency translation differences
-
-
(277,490)
(277,490)
Total comprehensive income for the year
-
-
1,961,088
1,961,088
Balance at 31 December 2022
1
184,568
8,201,208
8,385,777
Year ended 31 December 2023:
Profit for the year
-
-
567,198
567,198
Other comprehensive income:
Actuarial gains/(losses) on defined benefit plans
-
-
(50,000)
(50,000)
Currency translation differences
-
-
(142,782)
(142,782)
Total comprehensive income for the year
-
-
374,416
374,416
Balance at 31 December 2023
1
184,568
8,575,624
8,760,193
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
593,927
593,928
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,711,913
2,711,913
Balance at 31 December 2022
1
3,305,840
3,305,841
Year ended 31 December 2023:
Profit and total comprehensive income
-
(271,276)
(271,276)
Balance at 31 December 2023
1
3,034,564
3,034,565
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
7,575,476
7,315,550
Interest paid
(2,935,730)
(1,497,283)
Income taxes refunded
110,670
16,682
Net cash inflow from operating activities
4,750,416
5,834,949
Investing activities
Purchase of tangible fixed assets
(2,773,251)
(1,924,601)
Proceeds from disposal of tangible fixed assets
92,630
983,000
Interest received
26,835
40,230
Net cash used in investing activities
(2,653,786)
(901,371)
Financing activities
Proceeds from borrowings
1,429,979
3,303,427
Repayment of bank loans
(2,615,601)
(8,154,407)
Payment of finance leases obligations
(772,995)
-
Net cash used in financing activities
(1,958,617)
(4,850,980)
Net increase in cash and cash equivalents
138,013
82,598
Cash and cash equivalents at beginning of year
1,192,861
1,110,263
Effect of foreign exchange rates
(142,782)
-
0
Cash and cash equivalents at end of year
1,188,092
1,192,861
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

International Metal Industries Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Faulkner House, Victoria Street, St.Albans, Hertfordshire. AL1 3SE.

 

The group consists of International Metal Industries Limited and all of its subsidiaries as disclosed in note 16 to the financial statements.

 

The administrative office of the parent company is Rassau Industrial Estate, Ebbw Vale, Gwent, NP23 5SD

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The directors have taken advantage of the exemptions available to not disclose details of its carbon and energy usage within the the directors report.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company International Metal Industries Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

In adopting the going concern basis for preparing the financial statements, the directors have considered the business activities and the group's principal risks and uncertainties. The group meets its day-to-day working capital requirements through use of its cash and banking facilities.

In assessing the appropriateness of the going concern assumption, the directors have prepared detailed cash flow forecasts using the latest information available which show that the group can continue to meet its obligations as they fall due. The directors are therefore satisfied that the group will continue to operate within facilities agreed with the group’s bankers.

1.5
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts, including sales rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

The 'percentage of completion method' is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill and negative goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3-5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2-3% straight line
Leasehold land and buildings
Over the term of the lease
Plant and equipment
10-33% straight line
Fixtures and fittings
20-33% straight line
Motor vehicles
20-33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Derivatives

The group enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.

 

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.17
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

 

One of the subsidiary companies included in the consolidation operates a defined benefit scheme. As a result of implementing FRS 102.28 'Retirement Benefits' in full, the group is required to recognise a pension obligation as disclosed in the notes to the financial statements.

 

The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

All other pension schemes operated by the group are defined contribution schemes. Contributions payable are charged to the profit and loss account in the year they are payable.

1.20
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.21
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.22
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.23

Product waranties

Provision is made for customers' claims arising in the product warranty periods based on management's assessment of costs to be incurred. In case of certain large contracts, provision is made as a percentage of sales value. Costs of warranty work are written off against the provision as incurred.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Asset impairment

The directors have undertaken an impairment review on the groups’ related party receivables. The impairment review comprised a high-level assessment of the likelihood of the counterparties meeting the repayment of monies owed to the group in the foreseeable future. The high-level review relied on discussion with management of the related party entities and the directors own knowledge of the businesses involved. The high-level review showed that the book value of the related party balances, net of impairments brought forward from previous years, was recoverable. The directors concluded that a provision of £1.2m brought forward from previous years remained appropriate. The directors consider this a realistic provision, based on the work undertaken, and shall review the remainder balance on an ongoing basis as the situation going forwards still retains a high degree of uncertainty.

Provisions and contingencies

As part of a group reorganisation process in 2020 the company assumed responsibility for certain cross guaranteed borrowings that were extant in subsidiary undertakings (sub group), that do not form part of the current group structure. An estimate of the liability in relation to this guarantee is recorded in the balance sheet of the group. The estimate of this liability reflects the latest view at the time of the liquidator's success or otherwise in recovering outstanding monies owed to the sub group. The initial estimate of the potential total liability when first recorded in 2020 was £3.5m. This was subsequently reduced to £2.75m in 2022 based on the latest available information, and was retained at this level (before taking repayments into account) in 2023. Subsequent to the 2023 year end the liquidation of the sub group has completed and the liability has been reduced by a further £0.4m.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Metal recycling, processing and distribution
128,627,744
113,391,467
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
94,107,655
84,080,467
Other
34,520,089
29,311,000
128,627,744
113,391,467
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 26 -
2023
2022
£
£
Other revenue
Grants received
80,106
101,634
Rental income arising from investment properties
89,750
70,035
Other income
-
245,326
4
Exceptional item
2023
2022
£
£
Expenditure
Restructuring, re-organisation and settlement
459,000
-
Impairment of debtors
-
1,212,655
459,000
1,212,655

The group incurred restructuring, re-organisation and settlement costs which meet the criteria to classify as one-off and exceptional in their nature.

 

During the prior year certain non trading debtors of the company underwent an impairment review and consequently management concluded a significant revaluation of the debtors was required.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(111,239)
(46,119)
Research and development costs
20,775
(157,727)
Government grants
(80,106)
(101,634)
Depreciation of owned tangible fixed assets
2,563,094
2,683,121
Depreciation of tangible fixed assets held under finance leases
586,569
639,115
Profit on disposal of tangible fixed assets
(77,426)
(475,632)
Amortisation of intangible assets
-
(2,304,700)
Cost of stocks recognised as an expense
89,278,510
75,871,162
Operating lease charges
1,216,090
1,083,746
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,000
1,000
Audit of the financial statements of the company's subsidiaries
88,355
95,129
89,355
96,129
For other services
Taxation compliance services
33,090
25,525
All other non-audit services
125,000
113,110
158,090
138,635
For services in respect of associated pension schemes
Audit-related assurance services
5,445
4,500
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Total
296
279
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
12,541,383
11,555,310
-
0
-
0
Social security costs
1,214,902
1,154,242
-
-
Pension costs
432,710
426,591
-
0
-
0
14,188,995
13,136,143
-
0
-
0
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
314,000
458,408
Company pension contributions to defined contribution schemes
11,000
16,800
325,000
475,208
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
286,000
436,800
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
26,636
22,225
Interest on the net defined benefit asset
37,000
18,000
Other interest income
199
5
Total income
63,835
40,230

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
26,636
22,225
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
839,599
681,928
Interest on invoice finance arrangements
1,646,697
772,556
Other interest on financial liabilities
300,299
162,398
2,786,595
1,616,882
Other finance costs:
Interest on finance leases and hire purchase contracts
144,177
115,100
Net interest on the net defined benefit liability
41,000
23,000
Other interest
4,958
14,107
Total finance costs
2,976,730
1,769,089
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
68,500
12,608
Adjustments in respect of prior periods
(28,544)
4,486
Total current tax
39,956
17,094
Deferred tax
Origination and reversal of timing differences
(90,000)
(12,012)
Changes in tax rates
(800,000)
750
Total deferred tax
(890,000)
(11,262)
Total tax (credit)/charge
(850,044)
5,832

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(282,846)
2,084,410
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(70,712)
396,038
Tax effect of expenses that are not deductible in determining taxable profit
(73,896)
312,460
Tax effect of income not taxable in determining taxable profit
-
0
(90,682)
Tax effect of utilisation of tax losses not previously recognised
(26,083)
(354,426)
Unutilised tax losses carried forward
298,814
-
0
Adjustments in respect of prior years
39,956
155,748
Effect of change in corporation tax rate
62,241
-
Group relief
(105,275)
(152,803)
Permanent capital allowances in excess of depreciation
(65,062)
187,415
Amortisation on assets not qualifying for tax allowances
-
0
(437,893)
Research and development tax credit
(20,027)
-
0
Effect of overseas tax rates
-
0
1,237
Deferred tax adjustments in respect of prior years
-
0
(11,262)
Deferred tax movements
(890,000)
-
0
Taxation (credit)/charge
(850,044)
5,832

The group has estimated tax losses of £16.5m available after utilising any current period group relief to carry forward against future trading profits of the group.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
12
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
2,058,000
(8,972,098)
(6,914,098)
Amortisation and impairment
At 1 January 2023 and 31 December 2023
2,058,000
(8,972,098)
(6,914,098)
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
10,236,017
25,704
14,919,703
16,471
1,606,859
26,804,754
Additions
7,870
-
0
1,515,081
34,208
1,216,092
2,773,251
Disposals
-
0
-
0
(14,000)
-
0
(204,813)
(218,813)
Exchange adjustments
-
0
-
0
(45,531)
(2,835)
(6,590)
(54,956)
At 31 December 2023
10,243,887
25,704
16,375,253
47,844
2,611,548
29,304,236
Depreciation and impairment
At 1 January 2023
1,406,760
15,757
7,166,888
12,748
732,214
9,334,367
Depreciation charged in the year
603,142
5,934
2,108,808
8,514
423,265
3,149,663
Eliminated in respect of disposals
-
0
-
0
(14,000)
-
0
(189,609)
(203,609)
Exchange adjustments
-
0
-
0
(44,616)
(2,835)
(3,265)
(50,716)
At 31 December 2023
2,009,902
21,691
9,217,080
18,427
962,605
12,229,705
Carrying amount
At 31 December 2023
8,233,985
4,013
7,158,173
29,417
1,648,943
17,074,531
At 31 December 2022
8,829,257
9,947
7,752,815
3,723
874,645
17,470,387
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 31 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
819,204
1,123,547
-
0
-
0
Motor vehicles
1,192,107
156,335
-
0
-
0
2,011,311
1,279,882
-
-

The depreciation charge in respect of such assets amounted to £586,569 (2022: £639,115).

 

When the group was formed tangible fixed assets were consolidated at depreciated replacement cost, which was considered to be fair value.

14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
520,000
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out by Knight Frank Chartered Surveyors, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
17,410,249
17,410,249
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
17,410,249
Carrying amount
At 31 December 2023
17,410,249
At 31 December 2022
17,410,249
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Country of
Nature of business
Class of
% Held
incorporation
shares held
Direct
Indirect
Alexia Ltd (1)
Isle of Man
Property holding
Ordinary
-
100.00
Associated Lead Mills Ltd (2)
United Kingdom
Metal distributors
Ordinary
-
100.00
Envirolead Dachmetall GmbH (3)
Germany
Metal distributors
Ordinary
-
100.00
Envirolead Midco Ltd (4)
United Kingdom
Intermediate parent
Ordinary
100.00
-
Envirolead Distribution Ltd (4)
United Kingdom
Intermediate parent
Ordinary
-
100.00
Envirolead Recycling Ltd (4)
United Kingdom
Intermediate parent
Ordinary
-
100.00
Envirowales Ltd (4)
United Kingdom
Processing and recycling of metals and other materials
Ordinary
-
100.00
Jamestown Industries Ltd (4)
United Kingdom
Manufacture of milled lead sheeting
Ordinary
-
100.00
Jamestown Metal Resources Ltd (5)
Ireland
Sale and distribution of lead products
Ordinary
-
100.00
L&P Ecolead Ltd (4)
United Kingdom
Intermediate parent
Ordinary
-
100.00
L&P Trading Ltd (4)
United Kingdom
International metal traders
Ordinary
-
100.00
Met-Seam Ltd (4)
United Kingdom
Distribution and manufacture of roofing products
Ordinary
-
100.00
Premium Roofing Products Ltd (2)
United Kingdom
Distribution of specialised lead products
Ordinary
-
100.00
Royston Sheet Lead Ltd (7)
United Kingdom
Metal distributors
Ordinary
-
100.00
Royston Lead Ltd (6)
United Kingdom
Manufacture of specialist roofing products
Ordinary
-
100.00
Envirolead SPRL (8)
Belgium
International trader
Ordinary
-
100.00
Lead Technologies Ltd (6)
United Kingdom
Dormant
Ordinary
-
100.00
Rubber Enterprises Ltd (1)
Isle of Man
Property holding
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Murdoch Chambers, South Quay, Douglas, IM1 5AS, Isle of Man
2
Unit B, Bingley Road, Hoddesdon, Herts, EN11 ONX.
3
Kappeler str. 126, 40599, Dussledorf, Germany.
4
Faulkner House, Victoria Street, St.Albans, Herts. AL1 3SE.
5
Jamestown Road, Inchicore, Dublin 8, Ireland.
6
Pogmoor Works, Stocks Lane, Barnsley, South Yorkshire, S75 2DS
7
Tavistock House South, Tavistock Square, London. WC1H 9LG
8
Rue Descartes 2 a 7000 Mons, Belgium
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
17
Financial instruments
Group
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
31,052,480
27,493,239
Carrying amount of financial liabilities
Measured at amortised cost
62,570,393
61,134,374

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments.

Forward exchange contracts

Forward exchange contracts were in place at the year end to sell $1,361,000 and €1,250,000, and purchase ZAR 13,000,000 (2022: Sell €2,700,000 and purchase ZAR 5,000,000).

 

The nature of the risks being hedged is that of exchange rate risk, in particular adverse movements on the exchange rate to purchase USD, Euros or Rand for highly probable future sales and purchases.

18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
4,956,857
5,331,819
-
-
Work in progress
3,177,656
2,559,543
-
-
Finished goods and goods for resale
8,821,042
9,278,683
-
0
-
0
16,955,555
17,170,045
-
-
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
25,851,889
22,676,962
-
0
-
0
Corporation tax recoverable
47,046
47,046
-
0
-
0
Other debtors
6,416,818
5,935,462
303,164
303,164
Prepayments and accrued income
2,853,436
4,451,758
-
0
-
0
35,169,189
33,111,228
303,164
303,164
Amounts falling due after more than one year:
Deferred tax asset (note 24)
3,668,810
2,807,327
-
0
-
0
Total debtors
38,837,999
35,918,555
303,164
303,164
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
1,952,555
1,947,864
-
0
-
0
Obligations under finance leases
23
789,648
719,093
-
0
-
0
Trade creditors
16,733,764
11,597,012
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
6,459,010
4,979,659
Corporation tax payable
241,753
29,644
-
0
-
0
Other taxation and social security
1,988,738
1,638,953
-
-
Other creditors
30,503,661
31,017,874
200,000
873,430
Accruals and deferred income
4,020,551
5,248,453
633,164
361,809
56,230,670
52,198,893
7,292,174
6,214,898

Included in other creditors is £25,128,128 (2022: £25,400,767) in respect of HSBC asset based financing facilities. These are secured against the assets of the group.

Further fixed charges have been registered in favour of the Welsh Ministers securing the assets of all group companies providing cross guarantees in respect of the group's debt facilities.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
1,809,674
4,379,966
1,809,674
2,565,674
Obligations under finance leases
23
1,183,540
597,112
-
0
-
0
Other creditors
5,577,000
5,627,000
5,577,000
5,627,000
8,570,214
10,604,078
7,386,674
8,192,674

Included in other creditors of £5,577,000 is £150,000 (2022: £5,627,000 is £200,000) owing to to the Welsh Ministers which is secured against the assets of the group. Also included is an amount of £5,427,000 (2022: £5,427,000) from the shareholder and director which is subordinate to the bank debt.

 

22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,762,229
6,327,830
1,809,674
2,565,674
Payable within one year
1,952,555
1,947,864
-
0
-
0
Payable after one year
1,809,674
4,379,966
1,809,674
2,565,674

The banking facilities provided to the group by HSBC PLC and HSBC Invoice Financing (UK) Limited are secured by way of fixed and floating charge over the assets of the group. Legal mortgages are held over property and cross guarantees exist for all group companies which include certain former group companies.

 

The loan facilities provided are wholly repayable within 60 months. The loans bear interest at various rates between 2.25-3.5% above the Bank Base Rate.

23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
789,649
719,093
-
0
-
0
In two to five years
1,183,539
597,112
-
0
-
0
1,973,188
1,316,205
-
-
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
859,678
949,678
-
-
Tax losses
-
-
3,668,810
2,807,327
Investment property
46,422
46,422
-
-
906,100
996,100
3,668,810
2,807,327
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(1,811,227)
-
Credit to profit or loss
(151,483)
-
Effect of change in tax rate - profit or loss
(800,000)
-
Asset at 31 December 2023
(2,762,710)
-

The deferred tax asset set out above is expected to reverse within the foreseeable future and relates to the utilisation of tax losses against future expected profits of the same period.

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
432,710
426,591

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Retirement benefit schemes
(Continued)
- 37 -
Defined benefit schemes

A subsidiary company operates a defined benefit pension scheme for qualifying employees. The most recent full actuarial valuation was as at 1 January 2023 carried out by a qualified independent actuary and issued on 25 March 2024. This showed a deficit of £148,000.

 

FRS102 valuations were undertaken by a qualified independent actuary and these show a deficit of £109,000 at 31 December 2023 and a deficit of £87,000 at 31 December 2022. The movement in the deficit is shown below.

 

The scheme is closed to new members and as a result the current service costs (as a percentage of pensionable earnings) is expected to increase in future years as the members of the scheme approach retirement.

 

The Sponsoring Employer has increased the annual contributions to the Scheme to £32,000 pa from 1 July 2018 through to 31 October 2027.

2023
2022
Key assumptions
%
%
Discount rate
4.60
5.00
Expected rate of increase of pensions in payment
2.90
3.10
Expected rate of salary increases
3.15
3.20
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
23.4
24.4
- Females
25.8
26.6
Retiring in 20 years
- Males
24.3
25.6
- Females
26.9
28.0

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
865,000
840,000
Fair value of plan assets
(756,000)
(753,000)
Deficit in scheme
109,000
87,000
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Retirement benefit schemes
(Continued)
- 38 -
Group
2023
2022

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
4,000
5,000

Of the total expenses for the year, £37,000 is included in investment income (2022: £18,000) and £41,000 (2022: £23,000) in finance costs.

Group
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
44,000
37,000
Less: calculated interest element
37,000
18,000
Return on scheme assets excluding interest income
81,000
55,000
Actuarial changes related to obligations
(31,000)
(215,000)
Total costs/(income)
50,000
(160,000)
Group
2023

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2022
840,000
Actuarial gains and losses
(31,000)
Interest cost
41,000
Secured pensioners value due to scheme experience
15,000
At 31 December 2023
865,000
Group
2023

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
-
Wholly or partly funded obligations
865,000
865,000
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Retirement benefit schemes
(Continued)
- 39 -
Group
2023

Movements in the fair value of plan assets

£
Fair value of assets at 1 January 2022
753,000
Secured pensioners value due to scheme experience
15,000
Interest income
37,000
Actuarial gain/(losses)
(81,000)
Contributions by the employer
32,000
At 31 December 2023
756,000

The actual return on plan assets was a deficit of £44,000 (2022: £37,000).

Fair value of plan assets at the reporting period end

Group
2023
2022
£
£
Equity instruments
111,352
128,863
Debt instruments
107,781
124,730
Property
22,246
25,744
Annuities
508,000
466,000
Other
6,621
7,663
756,000
753,000
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
27
Investment property revaluation reserve
2023
2022
Group
£
£
At the beginning and end of the year
184,568
184,568
2023
2022
Company
£
£
At the beginning and end of the year
-
-
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 40 -
28
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
8,201,208
6,240,120
3,305,840
593,927
Profit/(loss) for the year
567,198
2,078,578
(271,276)
2,711,913
Actuarial differences recognised in other comprehensive income
(50,000)
160,000
-
0
-
0
Currency translation differences
(142,782)
(277,490)
-
0
-
0
At the end of the year
8,575,624
8,201,208
3,034,564
3,305,840
29
Financial commitments, guarantees and contingent liabilities

The banking facilities provided to the group are secured by way of a fixed and floating charge over the assets of the company and its subsidiary companies which include certain former group companies.

 

Further fixed charges have been registered in favour of the Welsh Ministers securing the assets of all group companies providing cross guarantees in respect of the groups debt facilities.

 

A subsidiary company provides a bankers guarantee for £106,835 in favour of Nature Resource Wales.

30
Operating lease commitments
Lessee

Operating lease commitments for the group include motor vehicles and plant and equipment on leases of an average of 36 months and two properties based in Hoddesdon, Hertfordshire. The remaining lease period for both properties range from 3 to 7 years.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
556,155
561,740
-
-
Between two and five years
1,665,000
1,666,155
-
-
In over five years
752,086
1,307,086
-
-
2,973,241
3,534,981
-
-
INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 41 -
31
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
585,000
559,900
Other information

Group

During the year the following expenditure was incurred from the following related entities which share a common director and/or shareholder. All transactions were entered into at arm's length:

 

 

During the year the following sales were made to the following related entities which share a common director and/or shareholder. All transactions were entered into at arm's length:

 

 

At the balance sheet date the following balances were owed from/(to) the following entities which share a common director and/or shareholder:

 

 

Company

There were no transactions with related entities entered into during the current or prior year.

 

The following balances were owed from related entities which share a common director and/or shareholder:

 

32
Controlling party

The ultimate controlling company is Industrial Metals Holdings Limited, a company registered in the Isle of Man.

 

The ultimate controlling party continues to be Mr M E Sherling by virtue of his voting rights on his shareholding in the ultimate parent company.

INTERNATIONAL METAL INDUSTRIES LIMITED CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 42 -
33
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
567,198
2,078,578
Adjustments for:
Taxation (credited)/charged
(850,044)
5,832
Finance costs
2,976,730
1,769,089
Investment income
(63,835)
(40,230)
Gain on disposal of tangible fixed assets
(77,426)
(475,632)
Amortisation and impairment of intangible assets
-
(2,304,700)
Depreciation and impairment of tangible fixed assets
3,149,663
3,322,236
Foreign exchange gains on cash equivalents
4,239
280,734
Other gains and losses
50,000
-
Pension scheme non-cash movement
(32,000)
(347,000)
Decrease in provisions
-
(11,262)
Movements in working capital:
Decrease in stocks
214,490
2,228,334
Increase in debtors
(2,057,961)
(3,234,153)
Increase in creditors
3,694,422
4,043,724
Cash generated from operations
7,575,476
7,315,550
34
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,192,861
(4,769)
1,188,092
Borrowings excluding overdrafts
(6,327,830)
2,565,601
(3,762,229)
Obligations under finance leases
(1,316,205)
(656,983)
(1,973,188)
(6,451,174)
1,903,849
(4,547,325)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr M E SherlingMr D A J RintoulMr B H SmithMr I 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