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REGISTERED NUMBER: 11461388 (England and Wales)















Audited Financial Statements

for the Period 1 April 2023 to 31 December 2023

for

Globus Metal Powders Ltd

Globus Metal Powders Ltd (Registered number: 11461388)






Contents of the Financial Statements
for the Period 1 April 2023 to 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Globus Metal Powders Ltd

Company Information
for the Period 1 April 2023 to 31 December 2023







DIRECTORS: Mr A Roberts
Mr M Ruenz





SECRETARY: Ms M Hale





REGISTERED OFFICE: Parkway House
Unit 6 Parkway Industrial Estate
Pacific Avenue
Wednesbury
West Midlands
WS10 7WP





REGISTERED NUMBER: 11461388 (England and Wales)





AUDITORS: JBC Accountants Limited
Statutory Auditor
3B Lockheed Court
Preston Farm
Stockton on Tees
TS18 3SH

Globus Metal Powders Ltd (Registered number: 11461388)

Balance Sheet
31 December 2023

31/12/23 31/3/23
Notes £ £ £ £
FIXED ASSETS
Tangible assets 4 4,399,340 4,657,766

CURRENT ASSETS
Stocks 515,936 279,741
Debtors 5 390,323 180,117
Cash at bank 505,566 582,861
1,411,825 1,042,719
CREDITORS
Amounts falling due within one year 6 3,067,615 6,911,448
NET CURRENT LIABILITIES (1,655,790 ) (5,868,729 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,743,550

(1,210,963

)

CREDITORS
Amounts falling due after more than one
year

7

(2,384,010

)

(3,637,333

)

PROVISIONS FOR LIABILITIES 10 - (64,900 )
NET ASSETS/(LIABILITIES) 359,540 (4,913,196 )

CAPITAL AND RESERVES
Called up share capital 11 6,500,001 1
Retained earnings (6,140,461 ) (4,913,197 )
SHAREHOLDERS' FUNDS 359,540 (4,913,196 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2024 and were signed on its behalf by:





Mr A Roberts - Director


Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements
for the Period 1 April 2023 to 31 December 2023

1. STATUTORY INFORMATION

Globus Metal Powders Limited is a private company limited by shares incorporated in England and Wales. The registered office at the date of signing is Parkway House Unit 6 Parkway Industrial Estate, Pacific Avenue, Wednesbury, West Midlands, United Kingdom, WS10 7WP. The principal place of business is Materials Processing Institute, Eston Road, Middlesbrough, TS6 6US.

2. ACCOUNTING POLICIES

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

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 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 estimation) have had the most significant effect on amounts recognised in the financial statements:

Impairment of tangible fixed assets and stock
The company considers whether tangible fixed assets and stock are impaired annually at the balance sheet date. The powder metals market in which the company operates is newly established and subject to some uncertainties relating to their future operation as the market develops. These uncertainties could impact the long run returns anticipated from the business. At the period end and at the time of approving these accounts, management are satisfied that there are no indicators that a material impairment of the company's assets has occurred.

Provisions
Provisions are made for dilapidations and contingencies. These provisions require management's best estimates of the costs that will be incurred based on contractual requirements discounted at a risk free rate and costs base inflated at an appropriate rate. Ultimate costs are uncertain and can vary in many factors including change in legal requirements and new technology. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations requires managements' judgement. The carrying value of provisions is disclosed in note 14.

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

Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements - continued
for the Period 1 April 2023 to 31 December 2023

2. ACCOUNTING POLICIES - continued

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:

Plant and equipment: between 1 - 20 years

Assets held under finance lease or hire purchase contracts are depreciated in the same manner as owned assets.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to profit or loss.

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

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks
Stocks are stated at either 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.

Net realisable value is based on estimated selling price less further costs to completion and sale.

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.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

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

Deferred tax is recognised in respect of all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is not probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantially enacted by the end of the reporting period.

Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements - continued
for the Period 1 April 2023 to 31 December 2023

2. ACCOUNTING POLICIES - continued

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


Leasing and hire purchase contracts
Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets.

Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight-line basis.

Pensions
Payments to defined contribution pension schemes are charged as an expense as they fall due.

Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The dilapidation provision represents the obligations under tenancy leases are expected to be utilised over the remaining lease terms.

Finance costs
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount of charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Going concern
The company has made a loss of £1,227,264 during the year. At the time of approving the financial statements, the directors assess that the company has adequate resources to continue in operational existence for the foreseeable future on the understanding that the company has the ongoing support of its holding company and its loan provider who is providing facilities to the company. Thus the directors have adopted the going concern basis of accounting in preparing the financial statements.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 17 (2023 - 16 ) .

Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements - continued
for the Period 1 April 2023 to 31 December 2023

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£
COST
At 1 April 2023 5,420,572
Additions 117,627
Disposals (11,565 )
Reclassification/transfer (126,771 )
At 31 December 2023 5,399,863
DEPRECIATION
At 1 April 2023 762,806
Charge for period 272,261
Eliminated on disposal (5,512 )
Reclassification/transfer (29,032 )
At 31 December 2023 1,000,523
NET BOOK VALUE
At 31 December 2023 4,399,340
At 31 March 2023 4,657,766

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

Plant and
machinery
etc
£
COST
At 1 April 2023 31,800
Additions 89,277
At 31 December 2023 121,077
DEPRECIATION
At 1 April 2023 17,490
Charge for period 5,198
At 31 December 2023 22,688
NET BOOK VALUE
At 31 December 2023 98,389
At 31 March 2023 14,310

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/3/23
£ £
Trade debtors 190,038 500
Other debtors 200,285 179,617
390,323 180,117

Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements - continued
for the Period 1 April 2023 to 31 December 2023

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/3/23
£ £
Hire purchase contracts (see note 8) 77,774 6,586
Trade creditors 238,137 208,707
Amounts owed to group undertakings 1,788,308 -
Taxation and social security 16,850 14,931
Other creditors 946,546 6,681,224
3,067,615 6,911,448

Amounts owed to related parties at 31 March 2023 included in Other creditors of £5,730,308, together with loans advanced in the year of £1,058,000, were repaid in November 2023 following the change in company ownership.

Loans of £8,288,308 have been advanced by the company's new parent; of this amount, £6,500,000 has been converted to equity leaving a loan amount due of £1,788,308. Interest is being accrued at a rate of 7.75% and is repayable on demand. Accrued interest of £69,648 is included in Other creditors.

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/12/23 31/3/23
£ £
Hire purchase contracts (see note 8) 21,889 8,709
Other creditors 2,362,121 3,628,624
2,384,010 3,637,333

Amounts falling due in more than five years:

Repayable by instalments
Other loans more 5yrs - 183,156

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31/12/23 31/3/23
£ £
Net obligations repayable:
Within one year 77,774 6,586
Between one and five years 21,889 8,709
99,663 15,295

Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements - continued
for the Period 1 April 2023 to 31 December 2023

8. LEASING AGREEMENTS - continued

Non-cancellable
operating leases
31/12/23 31/3/23
£ £
Within one year 62,905 62,905
Between one and five years 251,620 251,620
In more than five years 676,229 723,407
990,754 1,037,932

9. SECURED DEBTS

The following secured debts are included within creditors:

31/12/23 31/3/23
£ £
Other loans 2,792,575 4,341,500

The loan is secured by way of a cross-guarantee from a related party company.

10. PROVISIONS FOR LIABILITIES
31/12/23 31/3/23
£ £
Other provisions - 64,900

Other
provisions
£
Balance at 1 April 2023 64,900
Credit in year (64,900 )
Balance at 31 December 2023 -

As part of the company's land leasing arrangement, there is an obligation to return the land back to its original state. The present value of the estimated final costs is £64,900. These costs had been capitalised in previous years, however, management have reversed this provision in the current period.

Provision for deferred tax

The company has carried forward tax losses of £4,841,426 and other tax deductions of £899,593. The company has not recognised a deferred tax asset in respect of these due to uncertainties surrounding their future recovery.

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/23 31/3/23
value: £ £
6,500,001 Ordinary £1 6,500,001 1

6,500,000 Ordinary shares of £1 each were allotted and fully paid for cash at par during the period.

Globus Metal Powders Ltd (Registered number: 11461388)

Notes to the Financial Statements - continued
for the Period 1 April 2023 to 31 December 2023

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mrs L Dickson (Senior Statutory Auditor)
for and on behalf of JBC Accountants Limited

13. RELATED PARTY DISCLOSURES

All transactions with related parties are made under normal market conditions as defined in the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. As such, no disclosure is required.

14. PARENT COMPANY

The immediate and ultimate parent company is Britannia Metals Parent Company, a company registered in the USA.