Company registration number 10753710 (England and Wales)
MTALX GLOBAL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
MTALX GLOBAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr D Goldberg
Mr D Wulwick
(Appointed 28 June 2024)
Company number
10753710
Registered office
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
MTALX House
166 Hampstead Way
London
NW11 7YE
MTALX GLOBAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
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
Company statement of cash flows
17
Notes to the financial statements
18 - 35
MTALX GLOBAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Fair review of the business

The results for the year and financial position are as shown in the annexed financial statements.

 

The Key Performance Indicators of Mtalx Global Holdings Limited over the last two accounting periods are detailed below.

 

November 2023 November 2022

(restated)

Turnover                 £569,503,228    £410,927,010

Gross profit margin             3.73%        6.50%

Return on capital             13.93%        46.84%

Net assets                 £33,296,571    £28,959,247

(attributable to the owners of the parent company)

 

During the year two new subsidiaries contributed to the financial performance. Mtalx Polymers Ltd and Mtalx Agri Ltd both which commenced trading at the beginning of the financial year. The group's turnover has increased by 38.59% from the previous period as it continues to build its reputation in the marketplace and include modest activity from the new subsidiaries in their first year of operations.

 

The gross profit margins have decreased in comparison to the previous period, but this was expected as the previous period was at a time when the market was buoyant with higher commodity prices. Major world events including the war in Ukraine, challenges in international shipping routes, higher fuel costs, inflation and a 200-basis point rise in interest rates, contributed to a reduced gross profit margin for this year.

 

The group is profitable and is expected to remain so for the foreseeable future.

Principal risks and uncertainties

The principal risks and uncertainties surround continual changes of commodity prices, fuelled by rapidly changing demand and supply in global commodity markets.

 

Operating results of the group, as well as the group's liquidity, are significantly influenced by several risk factors, many of which are not within the group's control, such as those highlighted above. These are included within the Directors' Report.

Development and performance

The directors consider the results for the year and the financial position at the year-end to be encouraging as the group strengthens its asset base. The directors are particularly thankful to the efforts of the loyal staff who, despite a challenging market, have worked hard to achieve these positive results.

 

The group has invested in expanding the numbers and training of its staff, both sales and support, to enable it to perform efficiently and rapidly in changing market conditions, at the highest standards. The group continues to develop the software platform used and improve risk management control within the business.

MTALX GLOBAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Section 172(1) Statement

Interests of members of the group

The group has three UK directors (two prior to 28 June 2024), all of whom have representation on the Board of the subsidiary trading company, Mtalx Limited. The day-to-day operations of the group are managed by the directors who are closely involved in the activities of the group and provide day-to-day support as and when required.

 

Board decisions during the period

Dividends of £300,000 were voted in the year.

The board reviews the financial position in relation to available reserves before the voting of any dividend.

No other major board decisions were made during the period.

 

The interests of employees

We continue to focus on training and supporting our employees in the understanding that a well informed and trained workforce is essential for the group's ongoing success. We are a small team and we hold regular staff meetings, attended by members of the Board. We encourage feedback from our staff and where possible and practical implement suggestions made to improve our procedures and to improve our working environment.

 

The average number of staff for the year was 34 (2022: 21).

 

We consider that we offer our employees competitive remuneration packages.

 

The interests of our customers

Over the years we have acquired, developed and maintained unique relationships with our customers, and we do this by ensuring our prices remain competitive and deliveries maintained to a high standard, working in partnership with our customers. The success of this is highlighted by the loyalty shown by our customers over the years.

 

The interests of our suppliers

Due to the nature of our activities many of the group's suppliers are based overseas. We maintain regular contact with our suppliers daily, plan delivery schedules and receive feedback. However, due to the geographical spread of our supplier base, much of the communication is carried by email or telephone calls.

 

We continue to endeavour to pay all our suppliers promptly and within the terms agreed. Some of our suppliers are also our customers therefore we have tailored agreements on some of the transactions.

 

On the rare occasion where disputes arise, we strive to reach outcomes that are satisfactory and fair to both the group and its suppliers.

 

The impact of the group's operations on the community and the environment

We assist producers with the development of their markets in Europe, the Americas, Asia and the Middle East.

For a number of important producers, we act as exclusive agents in some of these markets. The group has proved itself as a reliable partner for middle and long-term supply contracts for the metallurgical industry, handling their logistics with alacrity and versatility.

 

Many of our suppliers have carbon offset programmes. We encourage all our suppliers to take steps to be as energy efficient as possible.

 

We are long standing charitable supporters and made donations to UK registered charities in the year totalling £4,783.

 

Maintaining a reputation for high standards of business conduct

We are committed to maintaining a reputation of high standards of business conduct. We have an ethics policy for all employees to follow and review this annually. Each year we consider and approve our modern slavery statement which explains the actions we have taken to demonstrate our commitment to seeking to ensure that there is no slavery, forced labour or human trafficking within any part of our business or supply chains.

 

MTALX GLOBAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

On behalf of the board

Mr D Goldberg
Director
10 October 2024
MTALX GLOBAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the group continued to be that of commodities trading.

Results and dividends

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

Ordinary dividends were paid amounting to £300,000. 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 D Goldberg
Mr D Wulwick
(Appointed 28 June 2024)
Financial instruments

The group's principal financial instruments comprise bank loans, overdraft and trade payables. The main purpose of these financial instruments is to raise finance for the group's operations. The group has various other financial assets such as trade receivables, cash and short-term deposits which arise directly from its operations.

 

The main risks arising from the group's financial instruments are credit risk, liquidity risk and foreign currency exposure. The board reviews and agrees policies for managing each of these risks and they are summarised below.

Liquidity risk

Liquidity risk arises in relation to the group's management of working capital and the risk that the group will encounter difficulties in meeting financial obligations as and when they fall due. To minimise this risk, the liquidity position and ongoing working capital requirements are regularly reviewed by the directors.

Interest rate risk

The group finances its operations through equity, bank financing and working capital. The group is subject to interest rate risks. This is mitigated by continually monitoring the rates available to the group.

Foreign currency exposure

The group is subject to foreign exchange risks as it sells and purchases in various countries and currencies.

Group management regularly monitors its foreign exchange risk and attempts to limit such risks by managing its cash and credit positions.

Credit risk

The group's credit risk is primarily attributable to its customers. The group performs ongoing credit evaluations of its customers and to date has not experienced any material losses.

Auditor

The auditor, Lopian Gross Barnett & Co, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

MTALX GLOBAL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -
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.

Strategic Report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the Section 172(1) Statement).

On behalf of the board
Mr D Goldberg
Director
10 October 2024
MTALX GLOBAL HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 6 -

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.

MTALX GLOBAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MTALX GLOBAL HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of MTALX Global Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 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, the company 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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:

MTALX GLOBAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MTALX GLOBAL HOLDINGS LIMITED
- 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, 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:

MTALX GLOBAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MTALX GLOBAL HOLDINGS LIMITED
- 9 -

 

 

 

 

 

 

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

Jonathan Brodie FCA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co
10 October 2024
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
MTALX GLOBAL HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
Turnover
3
569,503,228
410,927,010
Cost of sales
(548,253,730)
(384,190,786)
Gross profit
21,249,498
26,736,224
Distribution costs
(2,211,848)
(1,592,862)
Administrative expenses
(7,170,992)
(6,809,337)
Operating profit
4
11,866,658
18,334,025
Interest receivable and similar income
7
648
-
0
Interest payable and similar expenses
8
(5,839,269)
(1,079,923)
Profit before taxation
6,028,037
17,254,102
Tax on profit
9
(1,191,106)
(2,594,531)
Profit for the financial period
4,836,931
14,659,571
Profit for the financial year is attributable to:
- Owners of the parent company
4,637,324
13,565,701
- Non-controlling interests
199,607
1,093,870
4,836,931
14,659,571
MTALX GLOBAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
as restated
£
£
Profit for the period
4,836,931
14,659,571
Other comprehensive income
-
-
Total comprehensive income for the period
4,836,931
14,659,571
Total comprehensive income for the year is attributable to:
- Owners of the parent company
4,637,324
13,565,701
- Non-controlling interests
199,607
1,093,870
4,836,931
14,659,571
MTALX GLOBAL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
7,182
9,197
Tangible assets
12
936,063
668,967
Investments
13
88,286
88,386
1,031,531
766,550
Current assets
Stocks
15
49,117,767
46,366,359
Debtors
16
81,685,806
38,131,337
Cash at bank and in hand
1,954,739
89,065
132,758,312
84,586,761
Creditors: amounts falling due within one year
17
(98,451,425)
(54,596,418)
Net current assets
34,306,887
29,990,343
Total assets less current liabilities
35,338,418
30,756,893
Creditors: amounts falling due after more than one year
18
(590,493)
(545,899)
Provisions for liabilities
Deferred tax liability
21
157,877
157,877
(157,877)
(157,877)
Net assets
34,590,048
30,053,117
Capital and reserves
Called up share capital
23
100
100
Share premium account
807,858
807,858
Profit and loss reserves
32,488,613
28,151,289
Equity attributable to owners of the parent company
33,296,571
28,959,247
Non-controlling interests
1,293,477
1,093,870
34,590,048
30,053,117
The financial statements were approved by the board of directors and authorised for issue on 10 October 2024 and are signed on its behalf by:
10 October 2024
Mr D Goldberg
Director
Company registration number 10753710 (England and Wales)
MTALX GLOBAL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
1,855,607
1,855,507
Current assets
Debtors
16
40,000
40,000
Creditors: amounts falling due within one year
17
(1,081,665)
(1,081,565)
Net current liabilities
(1,041,665)
(1,041,565)
Net assets
813,942
813,942
Capital and reserves
Called up share capital
23
100
100
Share premium account
807,858
807,858
Profit and loss reserves
5,984
5,984
Total equity
813,942
813,942

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £300,000 (2022 - £440,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 10 October 2024 and are signed on its behalf by:
10 October 2024
Mr D Goldberg
Director
Company registration number 10753710 (England and Wales)
MTALX GLOBAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 December 2021
100
807,858
14,985,588
15,793,546
-
15,793,546
Year ended 30 November 2022:
Profit and total comprehensive income
-
-
13,565,701
13,565,701
1,093,870
14,659,571
Dividends
10
-
-
(400,000)
(400,000)
-
(400,000)
Balance at 30 November 2022
100
807,858
28,151,289
28,959,247
1,093,870
30,053,117
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
4,637,324
4,637,324
199,607
4,836,931
Dividends
10
-
-
(300,000)
(300,000)
-
(300,000)
Balance at 30 November 2023
100
807,858
32,488,613
33,296,571
1,293,477
34,590,048
MTALX GLOBAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2021
100
807,858
(34,016)
773,942
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
440,000
440,000
Dividends
10
-
-
(400,000)
(400,000)
Balance at 30 November 2022
100
807,858
5,984
813,942
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
300,000
300,000
Dividends
10
-
-
(300,000)
(300,000)
Balance at 30 November 2023
100
807,858
5,984
813,942
MTALX GLOBAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(19,430,139)
3,490,134
Interest paid
(5,839,269)
(1,079,923)
Income taxes paid
(1,793,032)
(2,968,088)
Net cash outflow from operating activities
(27,062,440)
(557,877)
Investing activities
Purchase of intangible assets
(452)
-
Purchase of tangible fixed assets
(426,347)
(666,612)
Proceeds from disposal of subsidiaries, net of cash disposed
100
(88,235)
Repayment/(advance) of loans
(277,242)
554,899
Interest received
648
-
0
Net cash used in investing activities
(703,293)
(199,948)
Financing activities
Movement on finance leases
55,705
-
Dividends paid to equity shareholders
(300,000)
(400,000)
Net cash used in financing activities
(244,295)
(400,000)
Net decrease in cash and cash equivalents
(28,010,028)
(1,157,825)
Cash and cash equivalents at beginning of the period
(19,852,545)
(18,694,720)
Cash and cash equivalents at end of the period
(47,862,573)
(19,852,545)
Relating to:
Cash at bank and in hand
1,954,739
89,065
Bank overdrafts included in creditors payable within one year
(49,817,312)
(19,941,610)
MTALX GLOBAL HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
100
48,397
Investing activities
Investment in new subsidiaries
(100)
(88,397)
Dividends received
300,000
440,000
Net cash generated from investing activities
299,900
351,603
Financing activities
Dividends paid to equity shareholders
(300,000)
(400,000)
Net cash used in financing activities
(300,000)
(400,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of the period
-
0
-
0
Cash and cash equivalents at end of the period
-
0
-
0
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
1
Accounting policies
Company information

MTALX Global Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1st Floor, Cloister House, Riverside, New Bailey Street, Manchester, M3 5FS.

 

The group consists of MTALX Global Holdings Limited and all of its subsidiaries.

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 £.

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 MTALX Global Holdings 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 30 November 2023 with the exception of Silmet (Georgia) which has an accounting period end of 31 December 2023. This does not have a material effect on the consolidated financial statements and is acceptable under FRS102 (within three months of the period end).

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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.5
Intangible fixed assets - goodwill

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 30 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.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
25% reducing balance
Other
Over estimated useful life - no greater than 10 years
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.7
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:

Leasehold improvements
over the term of the lease of 20 years
Plant and equipment
33% reducing balance
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance

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.

1.8
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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.9
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.

1.10
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.11
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.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.12
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.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 23 -
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.

1.13
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.

1.14
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.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 24 -
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.

1.15
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.

1.16
Retirement benefits

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

1.17
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 assets 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.

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.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Derived from commodities trading
569,503,228
410,927,010
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
23,593,157
14,963,831
Europe
309,664,544
188,291,467
Rest of the World
236,245,527
207,671,712
569,503,228
410,927,010
2023
2022
£
£
Other revenue
Interest income
648
-
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
448,998
(1,704,475)
Depreciation of owned tangible fixed assets
159,251
160,643
Amortisation of intangible assets
2,467
3,066
Release of negative goodwill
-
(329,000)
Operating lease charges
192,857
127,388
5
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
25,000
20,000
Audit of the financial statements of the company's subsidiaries
97,000
65,000
122,000
85,000
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
6
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
Directors
6
4
-
-
Staff
28
17
-
-
Total
34
21
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,952,151
2,160,050
-
0
-
0
Social security costs
244,234
281,269
-
-
Pension costs
146,254
12,648
-
0
-
0
3,342,639
2,453,967
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
648
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
648
-
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
5,825,210
1,075,486
Other finance costs:
Other interest
14,059
4,437
Total finance costs
5,839,269
1,079,923
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,191,106
2,465,964
Deferred tax
Origination and reversal of timing differences
-
0
128,567
Total tax charge
1,191,106
2,594,531

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

2023
2022
£
£
Profit before taxation
6,028,037
17,254,102
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,507,009
3,278,279
Tax effect of expenses that are not deductible in determining taxable profit
5,824
5,295
Gains not taxable
(44,281)
(603,604)
Unutilised tax losses carried forward
201,308
22,206
Effect of change in corporation tax rate
(116,236)
-
Permanent capital allowances in excess of depreciation
(40,333)
(66,686)
Loss on disposal of fixed assets
(175,715)
-
0
Deferred taxation
-
0
128,567
Tax effect on negative goodwill amortisation charge - consolidation
-
0
(62,510)
Non UK taxation not provided for
(146,470)
(107,016)
Taxation charge
1,191,106
2,594,531
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
300,000
400,000
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Other
Total
£
£
£
£
£
Cost
At 1 December 2022
2,261,897
(3,979,842)
24,677
-
0
(1,693,268)
Additions
-
0
-
0
-
0
452
452
At 30 November 2023
2,261,897
(3,979,842)
24,677
452
(1,692,816)
Amortisation and impairment
At 1 December 2022
2,261,897
(3,979,842)
15,480
-
0
(1,702,465)
Amortisation charged for the year
-
0
-
0
2,452
15
2,467
At 30 November 2023
2,261,897
(3,979,842)
17,932
15
(1,699,998)
Carrying amount
At 30 November 2023
-
0
-
0
6,745
437
7,182
At 30 November 2022
-
0
-
0
9,197
-
0
9,197
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
296,914
313,547
249,084
19,043
878,588
Additions
55,719
96,022
198,716
75,890
426,347
At 30 November 2023
352,633
409,569
447,800
94,933
1,304,935
Depreciation and impairment
At 1 December 2022
36,726
112,084
60,811
-
0
209,621
Depreciation charged in the year
22,538
95,175
28,298
13,240
159,251
At 30 November 2023
59,264
207,259
89,109
13,240
368,872
Carrying amount
At 30 November 2023
293,369
202,310
358,691
81,693
936,063
At 30 November 2022
260,188
201,463
188,273
19,043
668,967
The company had no tangible fixed assets at 30 November 2023 or 30 November 2022.
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
88,286
88,386
1,855,607
1,855,507
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022
88,386
Now included in consolidation
(100)
At 30 November 2023
88,286
Carrying amount
At 30 November 2023
88,286
At 30 November 2022
88,386
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022
1,855,507
Additions
100
At 30 November 2023
1,855,607
Carrying amount
At 30 November 2023
1,855,607
At 30 November 2022
1,855,507
14
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
14
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Mtalx Limited
United Kingdom
Ordinary
100.00
-
D&D Far East Holdings Limited
British Virgin Islands
Ordinary
-
100.00
Mtalx Chemicals Ltd
United Kingdom
Ordinary
100.00
-
Mtalx Agri Ltd
United Kingdom
Ordinary
100.00
-
Mtalx Polymers Ltd
United Kingdom
Ordinary
100.00
-
Mtalx Bullion Inc. (Canada)
Canada
Class A Common
-
80.00
Mtalx Mexico S.A. de C.V.
Mexico
Common
100.00
-
Mtalx USA LLC - via Mtalx International Inc.
USA
Units held in LLC
-
75.00
Mtalx Energy FZCO (UAE)
UAE
Ordinary
70.00
-
Silmet (Georgia)
Georgia
Without Class
100.00
-
Mtalx Zambia Limited
Zambia
Ordinary
99.99
-
Mtalx Alloys AG, Zurich
Switzerland
Registered
100.00
-

The group has not included the following subsidiaries in the consolidated accounts as it has exercised the right under section 405(2) of the Companies Act 2006 to exclude the subsidiary as its inclusion would not materially affect the financial statements:

 

D&D Far East Holdings Limited

Mtalx Bullion Inc. (Canada)

Mtalx Mexico S.A. de C.V.

Mtalx Zambia Limited

Mtalx Alloys AG, Zurich

 

As the above entities have not been included within this consolidation, the cost of the shares relating to investments in these companies has not been eliminated.

 

The subsidiary undertakings above are not required by any provision of the 2006 Act to deliver a copy of its balance sheet for its relevant financial year and does not otherwise publish that balance sheet in the United Kingdom or elsewhere, and therefore the results and reserves are not disclosed.

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
49,117,767
46,366,359
-
0
-
0
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
60,662,073
28,462,027
-
0
-
0
Corporation tax recoverable
96,905
252,568
-
0
-
0
Amounts owed by group undertakings
-
-
40,000
40,000
Other debtors
12,487,071
3,174,196
-
0
-
0
Prepayments and accrued income
8,439,757
6,242,546
-
0
-
0
81,685,806
38,131,337
40,000
40,000
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
49,817,312
19,941,610
-
0
-
0
Obligations under finance leases
20
11,111
-
0
-
0
-
0
Trade creditors
37,747,473
12,040,713
780
780
Amounts owed to group undertakings
-
0
-
0
1,080,183
1,080,083
Corporation tax payable
1,289,671
2,047,260
-
0
-
0
Other taxation and social security
3,786,685
8,413,052
-
-
Other creditors
493,996
3,009,730
702
702
Accruals and deferred income
5,305,177
9,144,053
-
0
-
0
98,451,425
54,596,418
1,081,665
1,081,565

The bank overdrafts are secured by fixed and floating charges over the assets of the company together with assignment of all receivables.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
44,594
-
0
-
0
-
0
Other borrowings
19
545,899
545,899
-
0
-
0
590,493
545,899
-
-
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
49,817,312
19,941,610
-
0
-
0
Other loans
545,899
545,899
-
0
-
0
50,363,211
20,487,509
-
-
Payable within one year
49,817,312
19,941,610
-
0
-
0
Payable after one year
545,899
545,899
-
0
-
0

The bank overdrafts are secured by fixed and floating charges over the assets of the company together with assignment of all receivables.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
11,111
-
0
-
0
-
0
In two to five years
44,594
-
0
-
0
-
0
55,705
-
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
157,877
157,877
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
146,254
12,648

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.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
74
74
74
74
Ordinary A shares of £1 each
1
1
1
1
Ordinary B shares of £1 each
25
25
25
25
100
100
100
100
24
Operating lease commitments
Lessee

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
£
£
£
£
Between two and five years
6,838
11,665
-
-
In over five years
1,799,760
1,910,259
-
-
1,806,598
1,921,924
-
-
25
Directors' transactions

Dividends totalling £300,000 (2022 - £300,000) were paid in the year in respect of shares held by the company's directors.

MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
26
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
4,836,931
14,659,571
Adjustments for:
Taxation charged
1,191,106
2,594,531
Finance costs
5,839,269
1,079,923
Investment income
(648)
-
0
Amortisation and impairment of intangible assets
2,467
(325,934)
Depreciation and impairment of tangible fixed assets
159,251
160,643
Movements in working capital:
Increase in stocks
(2,751,408)
(10,952,427)
Increase in debtors
(43,432,890)
(21,360,970)
Increase in creditors
14,725,783
17,634,797
Cash (absorbed by)/generated from operations
(19,430,139)
3,490,134
27
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
300,000
440,000
Adjustments for:
Investment income
(300,000)
(440,000)
Movements in working capital:
Increase in debtors
-
(40,000)
Increase in creditors
100
88,397
Cash generated from operations
100
48,397
28
Analysis of changes in net debt - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
89,065
1,865,674
1,954,739
Bank overdrafts
(19,941,610)
(29,875,702)
(49,817,312)
(19,852,545)
(28,010,028)
(47,862,573)
Borrowings excluding overdrafts
(545,899)
-
(545,899)
Obligations under finance leases
-
(55,705)
(55,705)
(20,398,444)
(28,065,733)
(48,464,177)
MTALX GLOBAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 35 -
29
Profit and loss reserves/2022 Restatement

Profit and loss reserves include a loss of £6,476,153 relating to a recent anti dumping duty/levy assessment raised in Mtalx Limited, in respect of 2022 imported goods which has increased purchases for that year in the same sum. This resulted in a reduction in profits for that year, which in turn reduced the tax payable by £1,230,401, leaving a net restatement to the prior year figures of £5,245,752 (reduction in net balance sheet total).

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