Company registration number 02474585 (England and Wales)
Moores Metals Limited
Annual report and financial statements
For the year ended 31 March 2024
Moores Metals Limited
Company information
Directors
Mr P A L Moore
Mr A I Burkinshaw
Secretary
Mr A I Burkinshaw
Company number
02474585
Registered office
Longport Works
Chemical Lane
Stoke on Trent
United Kingdom
ST6 4PB
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Moores Metals Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Income statement
10
Statement of comprehensive income
11
Statement of financial position
12 - 13
Statement of changes in equity
14
Notes to the financial statements
15 - 29
Moores Metals Limited
Strategic report
For the year ended 31 March 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced.

 

Moores Metals Limited generates its turnover through the sale of scrap metal. The company is well established in the local area, being the largest scrap metal processor in the North Midlands. The company has four main sources of scrap metal - works business, demolition, tradesmen and street collectors. The company has good relationships with its suppliers that generate repeat business. Scrap metal is a cyclical business and a reliable barometer of world activity. It is said that Alan Greenspan (former Chair of the Federal Reserve of the United States) looked at the New York scrap steel index on a regular basis because it is a pure world market based on supply and demand, unaffected by speculation or manipulation. There is no futures market in scrap steel.

 

The company's turnover for the year was £19,666,023 (2023 - £20,997,546). Turnover in the current period has decreased by £1,331,523 compared to turnover for the prior period, a decrease of 6.3% (2023 - £358,677 decrease, 1.7%). The main reasons for the revenue reduction are changes in metal prices and a slight reduction in volumes sold. In 2024 the company sold 54,300 tonnes, down from 55,600 tonnes in the 2023 financial year, a decrease of 2.3%.

 

The gross profit margin has increased in the period from 11% in 2023 to 12%, mainly due to taking conscious efforts to reduce direct costs.

 

Distribution costs have increased from £250,966 in the prior period to £308,322 in 2024. This is due to increased diesel costs and a reduction in the tonnage going into shipping containers.

 

Administrative expenses have increased from £835,699 in the prior period to £918,959 in 2024. The reason for this is due to general increases in most costs and charges.

 

Operating profit has decreased from £1,231,743 in the prior period to £1,193,649 in 2024. Profit after taxation has increased to £954,977 in the current year from £950,158 in the prior period, mainly due decreased direct costs and increased interest receivable in the current year.

 

At the balance sheet date net assets have increased by £392,977 from £6,100,085 to £6,493,062. The main reason for the increase in net assets is due to the retention of profits in the company.

 

Both tangible fixed assets and obligations under finance leases increased significantly as a result of the purchase of a second shear during the year.

Moores Metals Limited
Strategic report (continued)
For the year ended 31 March 2024
- 2 -
Principal risks and uncertainties

There is a range of risks facing the company and the company seeks to manage its exposure to all forms of risk.

 

Scrap metal price fluctuations - Scrap metal prices can regularly fluctuate. The directors continually monitor scrap metal price fluctuations in order to consider the prices to buy and sell scrap metal at. The continual monitoring of prices also allows the directors to consider whether to hold onto scrap metal stock until prices rise.

 

Competition and availability of scrap metal - the directors are aware of competitors operating in the same business in the area. Competition for scrap metal increases when there is reduced availability. Despite this being a risk, the directors continue to see the benefits of reduced competition as the company consolidates its position as the largest processor of scrap metal in the region. However, the company is not complacent about its dominant position and is always looking for new opportunities, both with work jobs and buying material from smaller yards within a 20 to 30 mile radius. The company continues to sell steel to Asia in containers. This allows the company to compete more effectively with the docks.

 

The company has invested in a second shear for steel processing in an attempt to reduce stock levels and to provide more processing capacity.

 

FINANCIAL INSTRUMENT RISK

 

The business is exposed to the risk that financial instruments held by the company impact on its ability to operate effectively and profitably. The risks which are relevant to the company's operations are:

 

Credit risks

The company makes regular sales to existing customers which is considered to reduce credit risk. Policies are in place to ensure that provisions for bad debts are made when considered necessary.

 

Cashflow risks

The company carefully manages its stockholding and debtor book to ensure that sufficient cash is available to meet operational need. The company holds adequate cash balances and so it is not considered that cashflow issues are a significant risk to the company.

 

Liquidity risks

The company funds its working capital need through the generation and retention of profits. Management is confident that additional bank funding facilities would be available, should it be required, to fund working capital, further investment or any future expansion plans. The directors do not consider there to be any significant liquidity risks for the company.

Key performance indicators

The directors consider that the key financial performance indicators are those that communicate the financial performance of the company, these being turnover, gross profit margin and operating profit margin.

 

                            2024            2023    

 

Turnover                        £19,666,023        £20,997,546    

Gross profit margin                    12%            11%    

Operating profit margin                6%            6%    

 

An explanation of the key performance indicators detailed above can be found in the review of business section of this report.

Moores Metals Limited
Strategic report (continued)
For the year ended 31 March 2024
- 3 -
Future plans

The outlook for the company remains positive, which is supported by the fact that the company has remained profitable and has a strong balance sheet. Through stock reduction and tighter credit control the company has significantly increased its cash balances enabling investment into fixed term deposit accounts.

 

The main aim of the business in future periods is to make further reductions in stock levels to maintain an efficient and safe working environment.

 

Fires caused by lithium batteries are a growing concern and we have written to all the Civic Amenity Sites in Staffordshire reminding them of their duty of care.

 

The company recently purchased a second shear that is further improving the work environment and working better for the company and its customers.

 

Longer term, the aim of the company is to get a skip into every producer of scrap metal in the area. The company has good relationships with other scrap yards in the area who already bring most of their material to the company, and so Moores Metals will look to build on these relationships as and when opportunities may arise.

 

The directors also predict that Asia, particularly India, will see huge growth in the coming years. It is predicted that they will need an ever increasing tonnage of steel to achieve this. In addition to this, climate change spells the end of coal powered steel mills which mainly use iron ore as a feedstock, to electric arc furnaces which rely on scrap metal as the basic feed. We accept that the speed of this transition will be affected by the current shortage of alternative energy sources to coal throughout the world.

On behalf of the board

Mr P A L Moore
Director
9 October 2024
Moores Metals Limited
Directors' report
For the year ended 31 March 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of providing scrap metal facilities.

Results and dividends

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

Ordinary dividends were paid amounting to £562,000 (2023 - £562,000). The directors do not recommend payment of a final 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 P A L Moore
Mr A I Burkinshaw
Auditor

DJH Audit Limited has indicated its willingness to continue in office and will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the 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.

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 company’s auditor 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 company’s auditor is aware of that information.

Moores Metals Limited
Directors' report (continued)
For the year ended 31 March 2024
- 5 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P A L Moore
Director
9 October 2024
Moores Metals Limited
Independent auditor's report
To the members of Moores Metals Limited
- 6 -
Opinion

We have audited the financial statements of Moores Metals Limited (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

Moores Metals Limited
Independent auditor's report (continued)
To the members of Moores Metals Limited
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

Moores Metals Limited
Independent auditor's report (continued)
To the members of Moores Metals Limited
- 8 -

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

 

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

 

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

 

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

 

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

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

Moores Metals Limited
Independent auditor's report (continued)
To the members of Moores Metals Limited
- 9 -

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.

Gary Neil Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
11 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Moores Metals Limited
Income statement
For the year ended 31 March 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
19,666,023
20,997,546
Cost of sales
(17,272,593)
(18,715,138)
Gross profit
2,393,430
2,282,408
Distribution costs
(308,322)
(250,966)
Administrative expenses
(918,959)
(835,699)
Other operating income
27,500
36,000
Operating profit
4
1,193,649
1,231,743
Interest receivable and similar income
7
110,938
30,445
Interest payable and similar expenses
8
(28,245)
(8,300)
Profit before taxation
1,276,342
1,253,888
Tax on profit
9
(321,365)
(303,730)
Profit for the financial year
954,977
950,158
Moores Metals Limited
Statement of comprehensive income
For the year ended 31 March 2024
- 11 -
2024
2023
£
£
Profit for the year
954,977
950,158
Other comprehensive income
-
-
Total comprehensive income for the year
954,977
950,158
Moores Metals Limited
Statement of financial position
As at 31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,043,526
1,358,671
Investments
12
1,000,000
-
0
3,043,526
1,358,671
Current assets
Stocks
14
586,306
1,038,760
Debtors
15
2,571,748
2,720,019
Investments
16
500,000
-
0
Cash at bank and in hand
2,951,843
2,982,533
6,609,897
6,741,312
Creditors: amounts falling due within one year
17
(2,122,791)
(1,642,133)
Net current assets
4,487,106
5,099,179
Total assets less current liabilities
7,530,632
6,457,850
Creditors: amounts falling due after more than one year
18
(538,570)
(32,765)
Provisions for liabilities
Deferred tax liability
20
499,000
325,000
(499,000)
(325,000)
Net assets
6,493,062
6,100,085
Capital and reserves
Called up share capital
22
80
80
Share premium account
23
219,980
219,980
Capital redemption reserve
24
2
2
Profit and loss reserves
25
6,273,000
5,880,023
Total equity
6,493,062
6,100,085

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Moores Metals Limited
Statement of financial position (continued)
As at 31 March 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
Mr P A L Moore
Mr A I Burkinshaw
Director
Director
Company registration number 02474585 (England and Wales)
Moores Metals Limited
Statement of changes in equity
For the year ended 31 March 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
80
219,980
2
5,491,865
5,711,927
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
950,158
950,158
Dividends
10
-
-
-
(562,000)
(562,000)
Balance at 31 March 2023
80
219,980
2
5,880,023
6,100,085
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
954,977
954,977
Dividends
10
-
-
-
(562,000)
(562,000)
Balance at 31 March 2024
80
219,980
2
6,273,000
6,493,062
Moores Metals Limited
Notes to the financial statements
For the year ended 31 March 2024
- 15 -
1
Accounting policies
Company information

Moores Metals Limited is a private company limited by shares incorporated in England and Wales. The registered office is Longport Works, Chemical Lane, Stoke on Trent, ST6 4PB.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Moores Metals Group Limited. These consolidated financial statements are available from its registered office Longport Works, Chemical Lane, Stoke on Trent, ST6 4PB.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

1.2
Going concern

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

1.3
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 despatch 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.

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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
10% on cost
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Computer equipment
25% on cost
Motor vehicles
25% on reducing balance
Bloodstock
10% on cost

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.

1.5
Fixed asset investments

Fixed asset investments in the company relate to cash transferred into fixed term deposit accounts that cannot be accessed for over 12 months from the initial deposit. The investments include any interest accrued on the balances to the year-end date and are held at fair value.

1.6
Impairment of fixed assets

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).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

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. An impairment loss is recognised immediately in profit or loss.

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 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and cash at bank.

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position 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.

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 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 company 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 company after deducting all of its liabilities.

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

Basic financial liabilities, including creditors, 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 company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
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 income statement 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.

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 19 -
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 income statement, 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 when the company has 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

1.13
Retirement benefits

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

1.14
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 statement of financial position 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 leases asset are consumed.

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

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 20 -
2
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.

 

Key sources of estimation uncertainty

 

The directors consider that there are no key estimates or assumptions used in preparing the financial statements.

 

Key sources of critical judgements

 

The directors consider that there are no critical judgements used in preparing the financial statements.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,463,310
17,904,805
Europe
1,131,889
189,547
Rest of the World
3,070,824
2,903,194
19,666,023
20,997,546
2024
2023
£
£
Other revenue
Interest income
110,938
30,445
Rents received
27,500
36,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
21,250
19,500
Depreciation of owned tangible fixed assets
304,804
235,415
Depreciation of tangible fixed assets held under finance leases
170,671
122,382
Loss on disposal of tangible fixed assets
1,049
-
Operating lease charges
312,044
143,200
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 21 -
5
Employees

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

2024
2023
Number
Number
Directors
2
2
Admin
5
5
Production
26
27
Total
33
34

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
865,557
878,400
Social security costs
66,958
66,326
Pension costs
131,403
90,633
1,063,918
1,035,359
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,092
17,957
Company pension contributions to defined contribution schemes
120,000
80,000
138,092
97,957

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
104,243
30,445
Other interest income
6,695
-
0
Total income
110,938
30,445
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 22 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
28,245
8,300
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
149,584
183,455
Adjustments in respect of prior periods
(2,219)
3,275
Total current tax
147,365
186,730
Deferred tax
Origination and reversal of timing differences
174,000
117,000
Total tax charge
321,365
303,730

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:

2024
2023
£
£
Profit before taxation
1,276,342
1,253,888
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
319,086
238,239
Tax effect of expenses that are not deductible in determining taxable profit
6,165
-
0
Depreciation on assets not qualifying for tax allowances
208
-
0
Under/(over) provided in prior years
(2,219)
3,275
Deferred tax adjustments in respect of prior years
(236)
-
0
Enhanced capital allowances
-
0
(17,845)
Deferred tax not provided in current year
410
237
Underprovision of corporation tax
(2,049)
-
0
Change in tax rates
-
0
79,824
Taxation charge for the year
321,365
303,730
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 23 -
10
Dividends
2024
2023
£
£
Interim paid
562,000
562,000
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 24 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Bloodstock
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
4,600
2,916,740
37,233
13,450
603,537
-
0
3,575,560
Additions
-
0
1,057,100
4,500
-
0
137,279
50,000
1,248,879
Disposals
-
0
(235,560)
-
0
-
0
(48,000)
-
0
(283,560)
At 31 March 2024
4,600
3,738,280
41,733
13,450
692,816
50,000
4,540,879
Depreciation and impairment
At 1 April 2023
1,533
1,774,396
35,570
8,516
396,874
-
0
2,216,889
Depreciation charged in the year
460
404,550
1,353
1,316
66,963
833
475,475
Eliminated in respect of disposals
-
0
(176,002)
-
0
-
0
(19,009)
-
0
(195,011)
At 31 March 2024
1,993
2,002,944
36,923
9,832
444,828
833
2,497,353
Carrying amount
At 31 March 2024
2,607
1,735,336
4,810
3,618
247,988
49,167
2,043,526
At 31 March 2023
3,067
1,142,344
1,663
4,934
206,663
-
0
1,358,671
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
11
Tangible fixed assets
(Continued)
- 25 -

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

2024
2023
£
£
Plant and equipment
866,953
367,147
Motor vehicles
117,259
-
0
984,212
367,147
12
Fixed asset investments
2024
2023
£
£
Fixed term deposits
1,000,000
-
0
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2023
-
Additions
1,000,000
At 31 March 2024
1,000,000
Carrying amount
At 31 March 2024
1,000,000
At 31 March 2023
-
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,500,000
-
14
Stocks
2024
2023
£
£
Raw materials and consumables
586,306
1,038,760
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 26 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,104,281
2,441,740
Corporation tax recoverable
100,428
54,545
Other debtors
214,713
112,942
Prepayments and accrued income
152,326
110,792
2,571,748
2,720,019
16
Current asset investments
2024
2023
£
£
Fixed term deposits
500,000
-
0
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
172,554
89,341
Trade creditors
675,729
1,165,363
Amounts owed to group undertakings
500,000
-
0
Taxation and social security
445,265
214,623
Other creditors
242,245
67,887
Accruals and deferred income
86,998
104,919
2,122,791
1,642,133
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
538,570
32,765
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
172,554
89,341
In two to five years
538,570
32,765
711,124
122,106
Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
19
Finance lease obligations
(Continued)
- 27 -

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases are secured against the assets to which they relate. 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
499,000
325,000
2024
Movements in the year:
£
Liability at 1 April 2023
325,000
Charge to profit or loss
174,000
Liability at 31 March 2024
499,000
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,403
90,633

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. The pension creditor at the year end was £696 (2023 - £Nil).

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
80
80
80
80

Each ordinary share has full voting rights, full dividend rights and the right to participate in distributions on winding up.

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 28 -
23
Share premium account

Share premium is made up of receipts in excess of the par value of new share capital issued.

24
Capital redemption reserve

Capital redemption reserve is made up of the share capital that has been repurchased by the company.

25
Profit and loss reserves

Profit and loss reserves represents the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

26
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
267,298
304,612
Between two and five years
1,022,033
1,027,467
In over five years
750,000
1,000,000
2,039,331
2,332,079
27
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Rental costs

During the year, rent of £248,736 (2023 - £125,000) was charged to the company by a pension scheme in which the directors are beneficiaries of.

 

The company also paid for services on behalf of this pension scheme during the year. At the year end, balances of £145,433 (2023 - £84,741) were due to the company from the pension scheme. These amounts are included within Other Debtors in the financial statements.

 

Directors current accounts

At the balance sheet date the company owed £241,100 (2023 - £67,256) to the directors.

No interest was payable on the loan amounts due to the directors.

 

Other transactions with related parties

At the year end, amounts owing to close family members of key management personnel totalled £448 (2023 - £631). During the year the company also paid a total of £18,092 (2023 - £17,956) to close family members of key management personnel.

Moores Metals Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 29 -
28
Ultimate parent company

The company is a 100% owned subsidiary of Moores Metals Group Limited, which is the ultimate parent company. The ultimate parent company prepares consolidated financial statements as at 31 March 2024 and these financial statements may be obtained from Longport Works, Chemical Lane, Stoke on Trent, ST6 4PB.

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