Company registration number 01847475 (England and Wales)
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
5
441,874
222,074
Cash at bank and in hand
15,860
196,977
457,734
419,051
Creditors: amounts falling due within one year
6
(115,289)
(99,475)
Net current assets
342,445
319,576
Provisions for liabilities
(250,500)
(232,300)
Net assets excluding pension surplus
91,945
87,276
Defined benefit pension surplus
7
1,002,000
929,000
Net assets
1,093,945
1,016,276
Capital and reserves
Called up share capital
200,000
200,000
Profit and loss reserves
893,945
816,276
Total equity
1,093,945
1,016,276
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
J Godley
Director
Company registration number 01847475 (England and Wales)
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Erasteel Alloys UK Limited (Formerly Eramet Alloys UK Limited) is a private company, limited by shares and incorporated in England and Wales. The registered office is 10 President Buildings, Savile Street East, Sheffield, S4 7UQ.
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 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.
These financial statements for the year ended 31 December 2023 are the first financial statements of Erasteel Alloys UK Limited (Formerly Eramet Alloys UK Limited) prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2022. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume 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.
1.3
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:
Fixtures, fittings & equipment
12.5% per annum
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.
1.4
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.
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.
1.6
Equity instruments
Equity instruments issued by the company 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 company.
1.7
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exceptions:
provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold;
deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The company operates a defined benefit pension scheme. Contributions are made to a separately administered fund. Pension scheme assets are measured at fair value and scheme liabilities are measured on an actuarial basis using the projected unit method and discounted at an interest rate equivalent to the current rate of return on a high quality corporate bond. The resulting asset or liability, net of the related deferred tax, is presented separately above the total net assets on the face of the balance sheet.
The company adopted Section 28 of FRS 102 'Employee Benefits' during the year.
The service cost of providing pension and other post-retirement benefits to employees for the year are charged to operating profit.
The expected return on defined benefit pension scheme assets and interest on defined benefit scheme liabilities are shown as 'retirement benefits net finance costs' in the profit and loss account below operating profit.
Actuarial gains and losses may result from: differences between the expected return and the actual return on scheme assets; differences between the actuarial assumptions underlying the scheme liabilities and actuarial experience during the year; or changes in the actuarial assumptions used in the valuation of the schemes liabilities. Actuarial gains and losses, and taxation thereon, are recognised in the statement of total recognised gains and losses.
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
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.
1.10
Leases
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 leases asset are consumed.
1.11
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Post employment benefits
The company operates a defined benefit pension scheme. The valuation of the scheme has been performed using specialist advice from a qualified actuary. The significant assumptions used by the actuary to determine defined benefit pension obligation were discount rate, inflation, and mortality.
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
6
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 and 31 December 2023
14,480
Depreciation and impairment
At 1 January 2023 and 31 December 2023
14,480
Carrying amount
At 31 December 2023
At 31 December 2022
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
318,314
86,106
Other debtors
18,160
22,268
336,474
108,374
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
105,400
113,700
Total debtors
441,874
222,074
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
44,457
Trade creditors
887
5,330
Amounts owed to group undertakings
16,571
16,837
Taxation and social security
11,569
16,596
Other creditors
41,805
60,712
115,289
99,475
7
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
19,464
25,621
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Defined benefit schemes
2023
2022
Key assumptions
%
%
Discount rate
4.50
4.95
Expected rate of increase of pensions in payment
2.65
2.65
Rate of future inflation - RPI
2.95
2.95
Mortality assumptions
2023
2022
Years
Years
Assumed life expectations from age 65:
- Males
20.6
20.6
- Females
23
23
Retiring in 20 years
- Males
22
22
- Females
24.4
24.4
2023
2022
Amounts recognised in the profit and loss account
£
£
Net interest on defined benefit liability/(asset)
(46,000)
(36,000)
Administration costs
38,000
33,000
Total costs/(income)
(8,000)
(3,000)
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Retirement benefit schemes
(Continued)
- 8 -
2023
2022
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
(508,000)
2,681,000
Less: calculated interest element
232,000
141,000
Return on scheme assets excluding interest income
(276,000)
2,822,000
Actuarial changes related to obligations
211,000
(1,820,000)
Total costs/(income)
(65,000)
1,002,000
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2023
2022
£
£
Present value of defined benefit obligations
4,060,000
3,879,000
Fair value of plan assets
(5,062,000)
(4,808,000)
Surplus in scheme
(1,002,000)
(929,000)
2023
Movements in the present value of defined benefit obligations
£
Liabilities at 1 January 2023
3,879,000
Benefits paid
(216,000)
Actuarial gains and losses
211,000
Interest cost
186,000
At 31 December 2023
4,060,000
The defined benefit obligations arise from plans which are wholly or partly funded.
2023
Movements in the fair value of plan assets
£
Fair value of assets at 1 January 2023
4,808,000
Interest income
232,000
Return on plan assets (excluding amounts included in net interest)
276,000
Benefits paid
(216,000)
Expenses paid
(38,000)
At 31 December 2023
5,062,000
The actual return on plan assets was £508,000 (2022 - £2,681,000).
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Retirement benefit schemes
(Continued)
- 9 -
2023
2022
Fair value of plan assets at the reporting period end
£
£
Gilts and bonds
5,011,000
4,758,000
Cash
51,000
50,000
5,062,000
4,808,000
The split of assets has not been provided by the actuary, therefore the assets have been split on a proportionate basis in line with 2022.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Martin McDonagh
Statutory Auditor:
Hart Shaw LLP
Date of audit report:
30 September 2024
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
1,388
13,355
10
Parent company
The parent company of Erasteel Alloys UK Ltd is Erasteel SAS, a company incorporated in France.
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
ERASTEEL ALLOYS UK LIMITED (FORMERLY ERAMET ALLOYS UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Related party transactions
(Continued)
- 10 -
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Aubert & Duval
68,291
191,960
-
-
Erasteel SAS
346,766
222,119
10,558
18,823
The following amounts were outstanding at the reporting end date:
Included in creditors is an amount of £nil (2022: £9,417) due to Erasteel SAS and £nil (2022: £1,773) due to Aubert & Duval TAF.
Included in debtors is an amount of £nil (2022: £76,765) due from Aubert & Duval, £306,944 (2022: £34,200) due from Erasteel SAS and £11,370 (2022: £10,432) due from Erasteel Inc.
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