REGISTERED NUMBER: 05000780 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
TECHEMET LIMITED |
REGISTERED NUMBER: 05000780 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
TECHEMET LIMITED |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 January 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 9 |
Consolidated Statement of Comprehensive Income | 13 |
Consolidated Balance Sheet | 14 |
Company Balance Sheet | 15 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Financial Statements | 20 |
TECHEMET LIMITED |
COMPANY INFORMATION |
for the year ended 31 January 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2024 |
The directors present their strategic report of the company and the group for the year ended 31 January 2024. |
The Group's core activity is the recycling of precious and scrap metals, specifically focusing on Platinum Group Metals (PGMs) in a global market that is highly sensitive to economic trends and commodity price fluctuations. Our operations are aligned with global sustainability initiatives, aiming to reduce waste by efficiently recovering and refining valuable metals. |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2024 |
REVIEW OF BUSINESS |
The Group has demonstrated resilience amidst a year marked by significant market challenges. For the fiscal year ending 31 January 2024, performance was satisfactory despite pronounced declines in PGM prices and constrained supply chains. External macroeconomic conditions, including persistent global economic uncertainty, elevated inflation, and historically high interest rates, created a difficult backdrop for the catalyst recycling industry. However, the Group maintained a strong operational footing, leveraging its global footprint and industry partnerships. |
As a key branch office within one of the world's largest and most dynamic industrial and autocatalyst smelter/refiners based in the United States, the Group benefits from access to significant expertise, advanced technology, and robust supply chain infrastructure. Nevertheless, reduced material availability throughout the year-largely due to post-pandemic supply chain normalization and strategic stockpiling by market participants-affected the overall volume of global recyclable metals entering the market. This was further exacerbated by the dramatic fall in PGM prices (Platinum: -1.2%, Palladium: -38.7%, Rhodium: -61.7% year-on-year). As a result, the global recycling industry faced tighter margins and increased competition for available materials. |
Despite these challenges, the Group successfully increased the volume of materials processed by 15.6% year-on-year, a testament to its operational efficiency and ability to source new streams of recyclable material. This growth was achieved through strategic supplier relationships, improvements in logistical processes, and an enhanced focus on automation and technology. |
However, the Groups strategic shift towards a closed-loop recycling model-returning significantly more refined metal back to suppliers rather than selling PGMs on the open market-resulted in a planned turnover decline year-on-year. This pivot reflects our long-term commitment to sustainable practices and reducing market volatility risk by minimizing exposure to fluctuating PGM prices. Despite the reduction in turnover, our gross profit margin significantly improved to 7.79% from 3.84% in 2023 as a result of the success of our cost management initiatives and value-added services in the refining process. |
Human Capital and Operational Excellence |
The Group's greatest asset is its workforce. We recognize that the knowledge, skills, and dedication of our staff are crucial to our success, particularly in navigating complex market environments. Accordingly, we continue to make significant investments in training and professional development, focusing on areas such as quality control, process innovation, and Health & Safety standards. |
During the year, we achieved multiple ISO certifications, reflecting our commitment to operational excellence, sustainability, and continual improvement. Further accreditations are in the final stages of assessment, positioning the Group as a leader in quality and environmental management. Our proactive approach to industry best practices is further enhanced by active participation in various national and international federations, associations, and standards bodies. These affiliations not only help us stay abreast of regulatory changes but also ensure we are contributing to the shaping of industry standards. |
Community Engagement and Sustainability |
The Group is deeply committed to corporate social responsibility, extending beyond operational performance. We engage with local communities through sponsorship programs that promote responsible recycling practices, environmental sustainability, and educational initiatives. These sponsorships are complemented by broader industry-wide support initiatives aimed at promoting a more circular economy and enhancing the long-term sustainability of the precious metals sector. |
International Operations and Expansion |
Internationally, the Republic of Ireland remains a critical market, serviced by our wholly-owned subsidiary. This subsidiary plays a pivotal role in driving local market engagement and supporting our recycling and refining activities. Additionally, the Group maintains a significant stake in its sister office in Italy, fostering collaboration and synergy across European markets. This close partnership has allowed for increased efficiency, shared technological advancements, and joint market expansion initiatives. |
Looking forward, the Group is actively planning the establishment of new branch offices in strategically |
important markets. These expansions are designed to enhance our geographic footprint and provide the Group with access to key raw material supplies, particularly in regions where PGM recycling is underdeveloped. This growth strategy will be critical in ensuring the Group's medium to long-term success, providing new opportunities for revenue generation and operational scalability. |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The most significant risks to the Group continue to be the volatility of PGM prices and foreign exchange fluctuations. Market unpredictability in precious metals, influenced by geopolitical factors, economic policy changes, and evolving demand dynamics, presents a persistent challenge. |
To mitigate these risks, the Group maintains a conservative and disciplined approach to pricing and inventory management. The Directors have implemented a comprehensive hedging strategy to protect against significant price volatility. Purchased materials are consistently hedged, allowing the Group to secure pricing stability. Additionally, currency risk is mitigated through the use of short-term forward foreign exchange contracts, which reduce exposure to fluctuations between the US dollar, euro, and other relevant currencies. |
Operational efficiency remains a key focus. The Directors and Management team conduct regular reviews of overheads and other cost areas to identify potential savings without compromising the quality or safety of our operations. This approach has allowed the Group to remain competitive while protecting its margins during periods of market instability. |
. |
SECTION 172(1) STATEMENT |
The directors recognise the importance of key stakeholder relationships for the business, and as required by section 172 (1) of the Companies Act, they consider these relationships wherever necessary. They ensure that the relevant information is identified and gathered through the use of an Interested Parties register which is constantly reviewed, and there is a formal process within its management systems for understanding both internal and external stakeholder interests, and how they could impact on the delivery of group objectives. Regular meetings with shareholders consider the implications of key business decisions on customers, suppliers and employees, and these meetings inform and influence processes across the Group. |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2024 |
ENERGY AND CARBON REPORT |
The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (the 2018 Regulations) implement the government's policy on Streamlined Energy and Carbon Reporting (SECR). This section provides Techemet's disclosures of energy and carbon emissions in accordance with these requirements. |
Scope |
This energy and carbon report applies to the UK operations of Techemet Ltd. |
For the purpose of this report, Techemet's material energy consumption and carbon emission sources are as set out below. |
1. Natural gas for forklift trucks and domestic/process heating. |
2. Electricity to power lighting and machinery. |
3. Diesel for freighting in own vehicles. |
Consumption & Emissions |
Litres | kWh | Tonnes CO2e |
Scope 1 | Natural Gas | N/A | 137,378 | 25 |
Scope 1 |
Vehicle Fuel (Diesel) |
50,811 |
502,338 |
128 |
Scope 2 | Electricity | N/A | 484,701 | 100 |
TOTAL = | 253 |
Emissions have been calculated using UK Government GHG Conversion Factors for Company Reporting (Version 1.1, 2023) |
Diesel |
- Litres:kWh (9.8864) |
- kWh TCO2e (0.00251206) |
Natural Gas |
- kWh TCO2e (0.00018) |
Electricity |
- kWh TCO2e (0.000207) |
Intensity Ratio |
The intensity ration for Techemet's greenhouse gas emissions is calculated by dividing its total scope 1 and 2 greenhouse gas emissions by its turnover: |
- Tonnes CO2e / £Million Turnover |
- =253 / 61 |
- = 4 Tonnes CO2e per £Million Turnover |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
GROUP STRATEGIC REPORT |
for the year ended 31 January 2024 |
RESEARCH AND DEVELOPMENT |
The Parent company aims to make continuous improvement and innovation by developing safer and more |
efficient working practices and equipment. Significant investment is made in research across a multitude of |
technological, information, machinery other factors within the business. The Parent company makes use of |
the Government approved patent box scheme. |
ON BEHALF OF THE BOARD: |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
REPORT OF THE DIRECTORS |
for the year ended 31 January 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2024. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary A £1 | - | £2697.6483 |
Ordinary B £1 | - | £8551.7313 |
Ordinary D £1 | - | £2697.6483 |
The total distribution of dividends for the year ended 31 January 2024 will be £ 1,969,834 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Items required to be included in the Report of the Directors under Schedule 7 to the Large and Medium-Sized Company and Groups (Accounts & Reports Regulations) 2008 are set out in the strategic report in accordance with S414c (11) CA 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director 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 group's auditors are aware of that information. |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
REPORT OF THE DIRECTORS |
for the year ended 31 January 2024 |
AUDITORS |
The auditors, Luckmans Duckett Parker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TECHEMET LIMITED |
Opinion |
We have audited the financial statements of Techemet Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 January 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TECHEMET LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TECHEMET 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 our procedures are capable of detecting irregularities, including fraud is detailed below: |
In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | reference to past history and experience of the Group, |
- | enquiry of management, including obtaining and reviewing supporting documentation concerning |
the Groups procedures relating to: |
-identifying and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
-detection and response to risk of fraud and whether they were aware of any actual or suspected instances of fraud. |
- | assessment of the controls and processes that the Group has in place to mitigate risk. |
Our assessments included the identification of the following potential areas for fraud: |
- | Management override of control; and |
- | Revenue recognition - specifically the recognition according to date of shipment, or sale of metals, |
as applicable, and manipulation of revenue through management override of journals. |
We design audit procedures by tailored and directed testing to aid and support the level of determined level of risk. In response to the assessed risk we plan audit tests and procedures that target specific areas where misstatement may occur. These procedures and the extent to which they are capable of detecting irregularities, including fraud, are detailed below: |
- | We critically assessed the appropriateness and tested the application of the revenue and cost |
recognition policies. |
- | We tested the appropriateness of accounting journals and other adjustments made in the |
preparation of the financial statements. |
- | We reviewed the Group's accounting policies for non-compliance with relevant standards. |
- | We made enquiries of management and reviewed correspondence with the relevant authorities to |
identify any irregularities or instances of non-compliance with laws and regulations. |
In performing an audit in accordance with UK GAAP, we exercise professional judgement and maintain professional scepticism throughout the audit process. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
We undertook detailed discussions with component auditors, focussing on any potential instances of non-compliance with laws and regulations, sharing our knowledge and experience of the company and group with the component auditors. As part of this process the Responsible Individual has determined that the engagement team collectively has the appropriate competence and capabilities to identify and recognise should we have become aware of non-compliance with laws and regulations. |
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion or override of internal controls. There are inherent limitations in the audit procedures performed. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TECHEMET LIMITED |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Group and share of associates | 71,187,347 | 330,831,294 |
Less: |
Share of associates' turnover | (10,096,268 | ) | (20,871,845 | ) |
GROUP TURNOVER | 61,091,079 | 309,959,449 |
Cost of sales | 56,330,691 | 298,051,815 |
GROSS PROFIT | 4,760,388 | 11,907,634 |
Administrative expenses | 4,182,899 | 4,337,575 |
577,489 | 7,570,059 |
Other operating income | 36,138 | 958,710 |
GROUP OPERATING PROFIT | 4 | 613,627 | 8,528,769 |
Share of operating profit in |
Associates | 70,260 | 1,220,442 |
Interest receivable and similar income | 42,413 | 50,827 |
726,300 | 9,800,038 |
Interest payable and similar expenses | 5 | 26 | 379 |
PROFIT BEFORE TAXATION | 726,274 | 9,799,659 |
Tax on profit | 6 | 213,453 | 1,813,373 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
512,821 |
7,986,286 |
Profit attributable to: |
Owners of the parent | 512,821 | 7,986,286 |
Total comprehensive income attributable to: |
Owners of the parent | 512,821 | 7,986,286 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
CONSOLIDATED BALANCE SHEET |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 1,085 | 1,085 |
Tangible assets | 10 | 1,510,944 | 1,396,329 |
Investments | 11 |
Interest in associate | 1,380,715 | 1,359,450 |
Other investments | 315,969 | 315,969 |
Investment property | 12 | 1,160,030 | 1,160,030 |
4,368,743 | 4,232,863 |
CURRENT ASSETS |
Stocks | 13 | 13,216,790 | 7,649,621 |
Debtors | 14 | 19,713,575 | 26,025,504 |
Cash at bank and in hand | 2,621,227 | 7,035,606 |
35,551,592 | 40,710,731 |
CREDITORS |
Amounts falling due within one year | 15 | 20,889,040 | 24,473,944 |
NET CURRENT ASSETS | 14,662,552 | 16,236,787 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
19,031,295 |
20,469,650 |
PROVISIONS FOR LIABILITIES | 17 | 75,735 | 57,077 |
NET ASSETS | 18,955,560 | 20,412,573 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 600 | 600 |
Capital redemption reserve | 19 | 440 | 440 |
Retained earnings | 19 | 18,954,520 | 20,411,533 |
SHAREHOLDERS' FUNDS | 18,955,560 | 20,412,573 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2024 and were signed on its behalf by: |
B J Mills - Director |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
COMPANY BALANCE SHEET |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 750,917 | 8,009,764 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 January 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 600 | 14,436,444 | 440 | 14,437,484 |
Changes in equity |
Dividends | - | (2,011,197 | ) | - | (2,011,197 | ) |
Total comprehensive income | - | 7,986,286 | - | 7,986,286 |
Balance at 31 January 2023 | 600 | 20,411,533 | 440 | 20,412,573 |
Changes in equity |
Dividends | - | (1,969,834 | ) | - | (1,969,834 | ) |
Total comprehensive income | - | 512,821 | - | 512,821 |
Balance at 31 January 2024 | 600 | 18,954,520 | 440 | 18,955,560 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 January 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Profit for the year | - | 8,009,764 | - | 8,009,764 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 January 2023 |
Changes in equity |
Profit for the year | - | 750,917 | - | 750,917 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 January 2024 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 January 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,193,294 | ) | 11,384,723 |
Interest paid | (26 | ) | (379 | ) |
Tax paid | (963,504 | ) | (2,303,874 | ) |
Net cash from operating activities | (2,156,824 | ) | 9,080,470 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (330,529 | ) | (1,270,450 | ) |
Purchase of investment property | - | (1,160,030 | ) |
Sale of tangible fixed assets | 395 | 30,000 |
Interest received | 42,413 | 50,827 |
Net cash from investing activities | (287,721 | ) | (2,349,653 | ) |
Cash flows from financing activities |
Equity dividends paid | (1,969,834 | ) | (2,011,197 | ) |
Net cash from financing activities | (1,969,834 | ) | (2,011,197 | ) |
(Decrease)/increase in cash and cash equivalents | (4,414,379 | ) | 4,719,620 |
Cash and cash equivalents at beginning of year |
2 |
7,035,606 |
2,315,986 |
Cash and cash equivalents at end of year |
2 |
2,621,227 |
7,035,606 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 January 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 726,274 | 9,799,659 |
Depreciation charges | 215,914 | 373,784 |
Profit on disposal of fixed assets | (395 | ) | (22,617 | ) |
Share of associate profits | (70,260 | ) | (1,220,442 | ) |
Finance costs | 26 | 379 |
Finance income | (42,413 | ) | (50,827 | ) |
829,146 | 8,879,936 |
Increase in stocks | (5,567,169 | ) | (4,124,365 | ) |
Decrease in trade and other debtors | 6,494,172 | 49,164,680 |
Decrease in trade and other creditors | (2,949,443 | ) | (42,535,528 | ) |
Cash generated from operations | (1,193,294 | ) | 11,384,723 |
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 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 2,621,227 | 7,035,606 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 7,035,606 | 2,315,986 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 7,035,606 | (4,414,379 | ) | 2,621,227 |
7,035,606 | (4,414,379 | ) | 2,621,227 |
Total | 7,035,606 | (4,414,379 | ) | 2,621,227 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 January 2024 |
1. | STATUTORY INFORMATION |
Techemet Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements have been prepared in accordance with the acquisition method set out in Section 9 of FRS 102. |
The financial statements consolidate the results of the company and it's subsidiary for the year ended 31st January 2024 and show the results of the group for the year to 31st January 2024. |
Associates are accounted for using the equity method as per paragraph 14.8 and Section 15 of FRS 102. |
Turnover |
Turnover represents the sale of goods and services, excluding value added tax. Income is recognised according to the contractual terms at either the point of despatch or at the date of ultimate metal sale. |
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. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in associates |
Investments in associate undertakings are recognised at cost less any provision for impairment. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Operating lease commitments |
Rentals paid under operating leases are charged as incurred. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,123,786 | 2,375,354 |
Social security costs | 228,574 | 267,662 |
Other pension costs | 182,050 | 176,306 |
2,534,410 | 2,819,322 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 20 | 23 |
Administration | 33 | 30 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees by undertakings that were proportionately consolidated during the year was 53 (2023 - 53 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 143,500 | 163,500 |
Directors' pension contributions to money purchase schemes | 19,680 | 39,680 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 215,914 | 373,784 |
Profit on disposal of fixed assets | (395 | ) | (22,617 | ) |
Auditors' remuneration | 33,000 | 44,425 |
Foreign exchange differences | 358,238 | (951,171 | ) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 26 | 379 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 145,801 | 1,504,323 |
Associates corporation tax | 48,994 | 343,470 |
Total current tax | 194,795 | 1,847,793 |
Deferred tax | 18,658 | (34,420 | ) |
Tax on profit | 213,453 | 1,813,373 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge 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: |
2024 | 2023 |
£ | £ |
Profit before tax | 726,274 | 9,799,659 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
181,569 |
1,861,935 |
Effects of: |
Expenses not deductible for tax purposes | 23,852 | 13,649 |
Capital allowances in excess of depreciation | - | (17,109 | ) |
Depreciation in excess of capital allowances | 3,352 | - |
Deferred tax | - | 28,894 |
R&D deductions | (76,296 | ) | (91,067 | ) |
Patent box deduction | (9,408 | ) | (66,433 | ) |
Lower tax rate in subsidiary | - | (28,082 | ) |
Share of associate tax | 31,429 | 111,586 |
Marginal rate of tax application | (5,885 | ) | - |
Loss in subsidiary | 64,840 | - |
Total tax charge | 213,453 | 1,813,373 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim | 971,153 | 950,047 |
Ordinary B shares of £1 each |
Interim | 513,105 | 586,127 |
Ordinary D shares of £1 each |
Interim | 485,576 | 475,023 |
1,969,834 | 2,011,197 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
licences |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 | 2,170 |
AMORTISATION |
At 1 February 2023 |
and 31 January 2024 | 1,085 |
NET BOOK VALUE |
At 31 January 2024 | 1,085 |
At 31 January 2023 | 1,085 |
Company |
Patents |
and |
licences |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
AMORTISATION |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 February 2023 | 1,084,283 | 911,902 | 1,513,474 |
Additions | - | 54,764 | 221,534 |
At 31 January 2024 | 1,084,283 | 966,666 | 1,735,008 |
DEPRECIATION |
At 1 February 2023 | - | 828,159 | 1,339,468 |
Charge for year | - | 14,781 | 136,088 |
At 31 January 2024 | - | 842,940 | 1,475,556 |
NET BOOK VALUE |
At 31 January 2024 | 1,084,283 | 123,726 | 259,452 |
At 31 January 2023 | 1,084,283 | 83,743 | 174,006 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 49,250 | 398,279 | 3,957,188 |
Additions | 54,231 | - | 330,529 |
At 31 January 2024 | 103,481 | 398,279 | 4,287,717 |
DEPRECIATION |
At 1 February 2023 | 44,406 | 348,826 | 2,560,859 |
Charge for year | 15,592 | 49,453 | 215,914 |
At 31 January 2024 | 59,998 | 398,279 | 2,776,773 |
NET BOOK VALUE |
At 31 January 2024 | 43,483 | - | 1,510,944 |
At 31 January 2023 | 4,844 | 49,453 | 1,396,329 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 February 2023 |
Additions |
At 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 February 2023 |
Additions |
At 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
Interest | in other |
in | participating |
associate | interests | Totals |
£ | £ | £ |
COST |
At 1 February 2023 | 1,608,202 | 315,969 | 1,924,171 |
Share of profit/(loss) | 21,265 | - | 21,265 |
At 31 January 2024 | 1,629,467 | 315,969 | 1,945,436 |
PROVISIONS |
At 1 February 2023 |
and 31 January 2024 | 248,752 | - | 248,752 |
NET BOOK VALUE |
At 31 January 2024 | 1,380,715 | 315,969 | 1,696,684 |
At 31 January 2023 | 1,359,450 | 315,969 | 1,675,419 |
Interest in associate |
Share of |
net |
assets | Goodwill |
£ | £ |
COST |
At 1 February 2023 | 1,359,450 | 248,752 |
Share of profit/(loss) | 21,265 | - |
At 31 January 2024 | 1,380,715 | 248,752 |
PROVISIONS |
At 1 February 2023 |
and 31 January 2024 | - | 248,752 |
NET BOOK VALUE |
At 31 January 2024 | 1,380,715 | - |
At 31 January 2023 | 1,359,450 | - |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 February 2023 |
and 31 January 2024 | 1,734,527 |
NET BOOK VALUE |
At 31 January 2024 | 1,734,527 |
At 31 January 2023 | 1,734,527 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Republic of Ireland |
Nature of business: |
% |
Class of shares: | holding |
Associated company |
Registered office: Italy |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 February 2023 |
and 31 January 2024 | 1,160,030 |
NET BOOK VALUE |
At 31 January 2024 | 1,160,030 |
At 31 January 2023 | 1,160,030 |
Company |
Total |
£ |
FAIR VALUE |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
13. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 13,216,790 | 7,649,621 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 3,543,806 | 5,474,017 |
Amounts owed by group undertakings | - | - |
Amounts owed by associates | 444,500 | 1,273,376 |
Other debtors | 1,233,841 | 2,671,700 |
Tax | 182,243 | - |
Prepayments | 14,309,185 | 16,606,411 |
19,713,575 | 26,025,504 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Payments on account | 18,875,957 | 19,298,602 |
Trade creditors | 1,874,564 | 2,221,272 |
Tax | - | 635,460 |
Social security and other taxes | 47,019 | 44,836 |
Other creditors | - | 2,088,308 |
Accrued expenses | 91,500 | 185,466 |
20,889,040 | 24,473,944 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
OPERATING LEASES-LESSOR |
2024 | 2023 |
£ | £ |
Within one year | 50,000 | - |
Between one and five years | 200,000 | - |
In more than five years | 214,583 | - |
464,583 | - |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 75,735 | 57,077 | 75,735 | 57,077 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
17. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2023 | 57,077 |
Charge to Statement of Comprehensive Income during year | 18,658 |
Balance at 31 January 2024 | 75,735 |
Company |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 January 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 360 | 360 |
Ordinary B | £1 | 60 | 60 |
Ordinary D | £1 | 180 | 180 |
600 | 600 |
The Ordinary A and B shares rank pari passu in all regards. Ordinary D shares have no voting rights, no right to a return of capital or otherwise, and no right to receive a dividend. |
19. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 20,411,533 | 440 | 20,411,973 |
Profit for the year | 512,821 | 512,821 |
Dividends | (1,969,834 | ) | (1,969,834 | ) |
At 31 January 2024 | 18,954,520 | 440 | 18,954,960 |
TECHEMET LIMITED (REGISTERED NUMBER: 05000780) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 January 2024 |
19. | RESERVES - continued |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 19,924,656 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 January 2024 | 18,705,739 |
20. | OTHER FINANCIAL COMMITMENTS |
Bank guarantees have been given as follows: |
29/8/2023 £14,095 and 29/1/2024 £14,095 to cover cost of any potential shipment costs for return of material to suppliers. |
21. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2024 | 2023 |
£ | £ |
Sales | 57,298,218 | 304,356,597 |
Rent paid | 144,000 | 144,000 |
Amount due to related party | 11,604,458 | 10,689,174 |