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REGISTERED NUMBER: 07781044 (England and Wales)














Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 March 2024

for

J. Davidson Scrap Metal Processors
Limited

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


J. Davidson Scrap Metal Processors
Limited

Company Information
for the Year Ended 31 March 2024







DIRECTOR: J A Davidson





REGISTERED OFFICE: 35 Craven Road
Broadheath
Altrincham
Cheshire
WA14 5HD





REGISTERED NUMBER: 07781044 (England and Wales)





AUDITORS: Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Strategic Report
for the Year Ended 31 March 2024

The director presents his strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
The director considers the overall financial performance of the group to be in line with expectations given the tough trading environment, and is confident that the group will grow over the coming years.

The director considers the group's key performance indicators ("KPIs") to be like for like sales, gross margins, earnings before interest, tax, depreciation and amortisation (EBITDA) and net worth. The director is satisfied with the EBITDA of £1,280,982 (2023: £1,345,730) for the year.

Given the results for the year, the director recommends that equity dividends be paid as detailed in the Report of the Director.

PRINCIPAL RISKS AND UNCERTAINTIES
The director has identified the key risks faced by the company to be market risk, financial risk, and credit risk.

MARKET RISK
The director is constantly monitoring market prices and competitors to minimise the market risk.

LIQUIDITY RISK
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by overdraft facilities but currently the group is not using any such facilities.

FINANCIAL RISK
The company finances its operations through a mixture of retained profits, cash at bank and hire purchase. The company's financial asset is cash. Since the nature of the company's operations are such that trade debtors are minimal, the director considers that the company has limited exposure to credit risk.

CREDIT RISK
The company's principal financial assets are mainly cash and trade debtors. The credit risk associated with cash is limited, the principal credit risk arises therefore from its trade debtors. However, very few customers are given credit accounts as these are reviewed regularly and collections kept up to date.

FUTURE DEVELOPMENTS
Looking to the future, the directors want to maintain appropriate investment levels in the company to maintain and secure the company's position in the market. The directors closely monitor the market place to ensure that the company can deliver the best products at the best prices

ON BEHALF OF THE BOARD:





J A Davidson - Director


23 October 2024

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Report of the Director
for the Year Ended 31 March 2024

The director presents his report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The company's principal activity during the period was the purchase and sale of scrap metal.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2024 will be £114,165.

DIRECTOR
J A Davidson held office during the whole of the period from 1 April 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J A Davidson - Director


23 October 2024

Report of the Independent Auditors to the Members of
J. Davidson Scrap Metal Processors
Limited

Opinion
We have audited the financial statements of J. Davidson Scrap Metal Processors Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
- give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 Section 1a 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
- have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
J. Davidson Scrap Metal Processors
Limited


Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
J. Davidson Scrap Metal Processors
Limited


Auditors' 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 a Report of the Auditors 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 the audit was considered capable of detecting irregularities including fraud

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

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, vehicle operators licence, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013), other industry specific accreditations and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

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

-agreeing financial statement disclosures to underlying supporting documentation;

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.


Report of the Independent Auditors to the Members of
J. Davidson Scrap Metal Processors
Limited

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Jeremy Bostock BA FCA (Senior Statutory Auditor)
for and on behalf of Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

23 October 2024

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Income Statement
for the Year Ended 31 March 2024

31.3.24 31.3.23
Notes £    £   

TURNOVER 3 22,273,829 22,953,026

Cost of sales 17,339,673 18,016,416
GROSS PROFIT 4,934,156 4,936,610

Administrative expenses 4,181,540 4,240,172
OPERATING PROFIT 5 752,616 696,438

Interest receivable and similar income 4,104 1,024
756,720 697,462

Interest payable and similar expenses 6 13,444 10,458
PROFIT BEFORE TAXATION 743,276 687,004

Tax on profit 7 932,349 (706,475 )
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (189,073 ) 1,393,479

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Other Comprehensive Income
for the Year Ended 31 March 2024

31.3.24 31.3.23
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (189,073 ) 1,393,479


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (189,073 ) 1,393,479

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Balance Sheet
31 March 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 9,724 10,939
Tangible assets 10 3,508,726 4,248,723
3,518,450 4,259,662

CURRENT ASSETS
Stocks 11 261,649 322,052
Debtors 12 2,661,323 2,481,044
Cash at bank and in hand 1,160,570 1,968,972
4,083,542 4,772,068
CREDITORS
Amounts falling due within one year 13 1,598,838 3,088,371
NET CURRENT ASSETS 2,484,704 1,683,697
TOTAL ASSETS LESS CURRENT LIABILITIES 6,003,154 5,943,359

CREDITORS
Amounts falling due after more than one year 14 (161,928 ) (522,477 )

PROVISIONS FOR LIABILITIES 17 (723,582 ) -
NET ASSETS 5,117,644 5,420,882

CAPITAL AND RESERVES
Called up share capital 18 1 1
Retained earnings 19 5,117,643 5,420,881
SHAREHOLDERS' FUNDS 5,117,644 5,420,882

The financial statements were approved by the director and authorised for issue on 23 October 2024 and were signed by:





J A Davidson - Director


J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Statement of Changes in Equity
for the Year Ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2022 1 4,230,212 4,230,213

Changes in equity
Dividends - (202,810 ) (202,810 )
Total comprehensive income - 1,393,479 1,393,479
Balance at 31 March 2023 1 5,420,881 5,420,882

Changes in equity
Dividends - (114,165 ) (114,165 )
Total comprehensive income - (189,073 ) (189,073 )
Balance at 31 March 2024 1 5,117,643 5,117,644

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Cash Flow Statement
for the Year Ended 31 March 2024

31.3.24 31.3.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (862,289 ) 1,411,362
Interest element of hire purchase payments paid (13,444 ) (10,458 )
Tax paid 174,277 (168,591 )
Prior year tax adjustment (168,586 ) 168,586
Net cash from operating activities (870,042 ) 1,400,899

Cash flows from investing activities
Purchase of intangible fixed assets - (12,155 )
Purchase of tangible fixed assets (548,535 ) (2,060,868 )
Sale of tangible fixed assets 941,486 347,200
Interest received 4,104 1,024
Net cash from investing activities 397,055 (1,724,799 )

Cash flows from financing activities
Capital repayments in year (221,250 ) (114,230 )
Equity dividends paid (114,165 ) (202,810 )
Net cash from financing activities (335,415 ) (317,040 )

Decrease in cash and cash equivalents (808,402 ) (640,940 )
Cash and cash equivalents at beginning of year 2 1,968,972 2,609,912

Cash and cash equivalents at end of year 2 1,160,570 1,968,972

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.3.24 31.3.23
£    £   
Profit before taxation 743,276 687,004
Depreciation charges 962,252 739,078
Profit on disposal of fixed assets (437,990 ) (90,810 )
Finance costs 13,444 10,458
Finance income (4,104 ) (1,024 )
1,276,878 1,344,706
Decrease/(increase) in stocks 60,403 (34,801 )
Increase in trade and other debtors (278,218 ) (2,817 )
(Decrease)/increase in trade and other creditors (1,921,352 ) 104,274
Cash generated from operations (862,289 ) 1,411,362

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 1,160,570 1,968,972
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,968,972 2,609,912


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.4.23 Cash flow changes At 31.3.24
£    £    £    £   
Net cash
Cash at bank
and in hand 1,968,972 (808,402 ) 1,160,570
1,968,972 (808,402 ) 1,160,570
Debt
Finance leases (353,178 ) 221,250 (176,000 ) (307,928 )
(353,178 ) 221,250 (176,000 ) (307,928 )
Total 1,615,794 (587,152 ) (176,000 ) 852,642

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

J. Davidson Scrap Metal Processors Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The financial statements are presented in Sterling, which is the functional currency of the company.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and have been consistently applied within these accounts.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved, given the impact of the Coronavirus upon the economy and therefore the financial statements have been prepared on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
In accordance with FRS 102, the company has taken advantage of the exemptions from the following disclosure requirements;

Section 4 'Balance Sheet' - Reconciliation of the opening and closing number of shares
Section 33 'Related Part Disclosures' - Compensation for key management personnel

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements have been made by the directors in applying the company's accounting policies:

Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue for the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue is recognised only to the extent that is probable the expenses recognised will be recovered. All turnover for the company took place within UK.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value.

Financial instruments
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

(ii) Financial liabilities

Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest. 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. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as creditors due after more than one year. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.24 31.3.23
£    £   
Scrap metal sold 22,222,281 22,917,118
Car sale 23,336 30,580
Waste disposal 28,212 5,328
22,273,829 22,953,026

4. EMPLOYEES AND DIRECTORS
31.3.24 31.3.23
£    £   
Wages and salaries 942,274 909,878
Social security costs 90,467 88,810
Other pension costs 94,089 108,632
1,126,830 1,107,320

The average number of employees during the year was as follows:
31.3.24 31.3.23

Administration and management 11 10
Drivers and workshop 25 27
36 37

31.03.24 31.03.23
£    £   

Director's remuneration including benefit in kind 56,303 59,692
Director's pension contribution 23,333 16,667
79,636 76,359

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.24 31.3.23
£    £   
Hire of plant and machinery 651,016 827,946
Other operating leases 519,623 523,300
Depreciation - owned assets 752,113 546,048
Depreciation - assets on hire purchase contracts 208,923 191,814
Profit on disposal of fixed assets (437,990 ) (90,810 )
Computer software amortisation 1,215 1,216
Auditors' remuneration 13,650 13,450
Foreign exchange differences (34,918 ) -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.24 31.3.23
£    £   
Hire purchase 13,444 10,458

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
31.3.24 31.3.23
£    £   
Current tax:
UK corporation tax 116,519 -
Under/(over) provision of corporation tax (5,691 ) (168,586 )
Total current tax 110,828 (168,586 )

Deferred tax 821,521 (537,889 )
Tax on profit 932,349 (706,475 )

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

7. TAXATION - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.24 31.3.23
£    £   
Profit before tax 743,276 687,004
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

185,819

130,531

Effects of:
Expenses not deductible for tax purposes 1,569 3,824
Capital allowances in excess of depreciation - (493,029 )
Depreciation in excess of capital allowances 178,944 -
Utilisation of tax losses (250,117 ) 358,674
Adjustments to tax charge in respect of previous periods (5,691 ) (168,586 )

of previous periods
Rate difference 304 -
Deferred tax movement 821,521 (537,889 )
Total tax charge/(credit) 932,349 (706,475 )

8. DIVIDENDS
31.3.24 31.3.23
£    £   
Ordinary share of £1
Interim 114,165 202,810

9. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 April 2023
and 31 March 2024 12,155
AMORTISATION
At 1 April 2023 1,216
Amortisation for year 1,215
At 31 March 2024 2,431
NET BOOK VALUE
At 31 March 2024 9,724
At 31 March 2023 10,939

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 April 2023 5,054,613 90,357 3,524,810 8,669,780
Additions 338,468 14,123 371,944 724,535
Disposals (1,359,022 ) - (232,495 ) (1,591,517 )
At 31 March 2024 4,034,059 104,480 3,664,259 7,802,798
DEPRECIATION
At 1 April 2023 2,202,290 66,562 2,152,205 4,421,057
Charge for year 517,965 5,687 437,384 961,036
Eliminated on disposal (934,787 ) - (153,234 ) (1,088,021 )
At 31 March 2024 1,785,468 72,249 2,436,355 4,294,072
NET BOOK VALUE
At 31 March 2024 2,248,591 32,231 1,227,904 3,508,726
At 31 March 2023 2,852,323 23,795 1,372,605 4,248,723

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 April 2023 585,000 337,000 922,000
Additions - 176,000 176,000
At 31 March 2024 585,000 513,000 1,098,000
DEPRECIATION
At 1 April 2023 262,310 84,250 346,560
Charge for year 80,673 128,250 208,923
At 31 March 2024 342,983 212,500 555,483
NET BOOK VALUE
At 31 March 2024 242,017 300,500 542,517
At 31 March 2023 322,690 252,750 575,440

11. STOCKS
31.3.24 31.3.23
£    £   
Stocks 261,649 322,052

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Trade debtors 1,024,775 950,682
Amounts owed by group undertakings 926,157 933,396
Other debtors 174,361 264,190
Directors' current accounts 229,664 -
Deferred tax asset - 97,939
Prepayments 306,366 234,837
2,661,323 2,481,044

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Hire purchase contracts (see note 15) 146,000 120,667
Trade creditors 676,568 1,965,715
Tax 116,519 -
PAYE 21,010 21,425
VAT 434,944 342,607
Other creditors 70,683 134,703
Accrued expenses 133,114 503,254
1,598,838 3,088,371

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.3.24 31.3.23
£    £   
Hire purchase contracts (see note 15) 161,928 232,511
Directors loan account - 289,966
161,928 522,477

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.3.24 31.3.23
£    £   
Net obligations repayable:
Within one year 146,000 120,667
Between one and five years 161,928 232,511
307,928 353,178

Non-cancellable operating leases
31.3.24 31.3.23
£    £   
Within one year 9,491 19,820
Between one and five years 3,948 13,439
13,439 33,259

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

16. SECURED DEBTS

The following secured debts are included within creditors:

31.3.24 31.3.23
£    £   
Hire purchase contracts 307,928 353,178

Hire purchase creditors are secured over the assets to which they relate.

17. PROVISIONS FOR LIABILITIES

31.03.2431.03.23
£ £
Deferred tax - accelerated capital allowances723,582(97,939)


Deferred Tax
£
Balance at 1 April 2023(97,939)
Provided during the year821,521
Balance at 31 March 2024723,582



18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.24 31.3.23
value: £    £   
1 Ordinary £1 1 1

19. RESERVES
Retained
earnings
£   

At 1 April 2023 5,420,881
Deficit for the year (189,073 )
Dividends (114,165 )
At 31 March 2024 5,117,643

20. ULTIMATE PARENT COMPANY

J Davidson (Holdings) Limited is regarded by the director as being the company's ultimate parent company.

21. CAPITAL COMMITMENTS
31.3.24 31.3.23
£    £   
Contracted but not provided for in the
financial statements 159,150 211,490

J. Davidson Scrap Metal Processors
Limited (Registered number: 07781044)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

22. OTHER FINANCIAL COMMITMENTS

The company is party to cross guarantee arrangements with its bankers in respect of the group's bank lending. At the year end the group's bank lending amounted to £496,588 (2023 - £536,837).

23. RELATED PARTY DISCLOSURES

During the year, total dividends of £114,165 (2023- £202,810) were paid to the shareholders.

J Davidson
The director of the company.

During the year, the company operated from premises which Mr J Davidson owns personally. The amount of rent paid was £36,000 (2023 - £36,000).

2024 2023
£ £
Amount due to related party at the balance sheet date: - £289,966

Amounts due from related party at the balance sheet date: 229,664 -