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REGISTERED NUMBER: 03031502 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024

FOR

BENFLEET SCRAP CO LIMITED

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 7

Consolidated Statement of Financial Position 8

Company Statement of Financial Position 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Consolidated Statement of Cash Flows 12

Notes to the Consolidated Statement of Cash Flows 13

Notes to the Consolidated Financial Statements 14


BENFLEET SCRAP CO LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 29 FEBRUARY 2024







DIRECTORS: R B Leeman
L B Leeman



SECRETARY: L B Leeman



REGISTERED OFFICE: Second Floor South
The Fitted Rigging House
Anchor Wharf, The Historic Dockyard
Chatham
Kent
ME4 4TZ



REGISTERED NUMBER: 03031502 (England and Wales)



AUDITORS: Carleys
Statutory Auditor
Second Floor South
The Fitted Rigging House
The Historic Dockyard
Chatham
Kent
ME4 4TZ



BANKERS: Lloyds TSB Bank plc
34 High Street
Grays
Essex
RM17 6LZ



SOLICITORS: Cripps LLP
Wallside House
12 Mount Ephraim Road
Tunbridge Wells
Kent
TN1 1EG

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024


The directors present their strategic report of the company and the group for the year ended 29 February 2024.

REVIEW OF BUSINESS
The group operates mainly from Caxton House , Basildon, Essex.

The market has been difficult but the directors have continued to explore opportunities to invest and expand the operations of the group throughout the year. The group has maintained a strong financial position, with large reserves held of liquid funds as at the balance sheet date.

The group is aware of its social and environmental responsibilities and continually seek ways to improve their environment policies and investing in new technologies to reduce it's carbon footprint.

Fair review of business and key performance indicators

The directors consider that the key financial performance indicators (KPIs) are those factors by reference to which the performance, development and strength of the group's business can be measured by its members. These KPIs comprise turnover, gross profit percentage, operating profit and net assets.

- Turnover for the year decreased by 20.12% to £31.21 million (2023: increased by 12.04% to £39.07 million).
- Gross profit percentage decreased to 10.15% (2023: decreased to 13.84%).
- Operating loss for the year was £0.59 million (2023: operating profit £2.20 million).
- Net current assets decreased to £7.34 million (2023: decreased to £7.40 million).

Principal risks and uncertainties

The operations and management of the business are subject to a number of risks. These risks are reviewed by the directors on an ongoing basis. The main risks identified by the director are as follows:-

- Scrap prices are fixed by the end users and reflect supply and demand worldwide: as a result prices can be
volatile and may fluctuate on a daily basis.
- Scrap demand depends on both domestic and overseas levels of steel production and currency
which in turn is closely linked to economic conditions.
- Possible scrap shortage.
- Continuing regulation of the industry will significantly increase the cost of compliance.
- High transport costs.
- Fluctuation in exchange rates, which affect exports and scrap prices.

The group maintains a high level of liquid funds to mitigate some of the uncertainties in the business environment in which it operates.

Financial risk, management objective and policies

The group's principal financial instruments comprise cash balances. The group has no bank loans.
The group has taken action to mitigate its liquidity risk by making sure all liabilities are paid on time and the group's cash has been spread over different financial institutions.

ON BEHALF OF THE BOARD:





R B Leeman - Director


28 November 2024

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 29 FEBRUARY 2024


The directors present their report with the financial statements of the company and the group for the year ended 29 February 2024.

DIVIDENDS
No dividends will be distributed for the year ended 29 February 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report.

R B Leeman
L B Leeman

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.

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

ON BEHALF OF THE BOARD:





R B Leeman - Director


28 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BENFLEET SCRAP CO LIMITED


Opinion
We have audited the financial statements of Benfleet Scrap Co Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 29 February 2024 and of the group's loss 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
BENFLEET SCRAP CO 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 three, 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.

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 risks of material misstatement in respect of irregularities, including fraud, our approach was as follows:
- we obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that are applicable to the company and of how the company is complying with those frameworks;
- we enquired of management about their own identification and assessment of the risks of irregularities, including any known instances of fraud;
- we discussed matters concerning non-compliance with laws and regulations and how fraud might occur including assessment of how the financial statements might be susceptible to fraud.

As a result of these procedures we consider that the most significant laws and regulations relating to the financial statements are FRS102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to enable us to detect non-compliance with significant laws and regulations which may have a material impact on the financial statements which included reviewing disclosures within the financial statements and inspecting correspondence with tax authorities.

We considered the risk of fraud through management override and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. In response, we incorporated testing of the appropriateness of journal entries, assessing judgements made by management in making accounting estimates and evaluating the business rationale for any significant unusual transactions or those outside the normal course of business.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BENFLEET SCRAP CO LIMITED


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.




Claire Ralph (Senior Statutory Auditor)
for and on behalf of Carleys
Statutory Auditor
Second Floor South
The Fitted Rigging House
The Historic Dockyard
Chatham
Kent
ME4 4TZ

28 November 2024

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 31,207,447 39,070,130

Cost of sales 28,041,158 33,663,274
GROSS PROFIT 3,166,289 5,406,856

Administrative expenses 3,758,100 3,203,965
OPERATING (LOSS)/PROFIT 5 (591,811 ) 2,202,891

Income from interest in associated
undertakings

(344

)

(294

)
Interest receivable and similar income 6 129,154 45,198
128,810 44,904
(463,001 ) 2,247,795

Interest payable and similar expenses 7 19,017 29,849
(LOSS)/PROFIT BEFORE TAXATION (482,018 ) 2,217,946

Tax on (loss)/profit 8 (115,129 ) 901,532
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(366,889

)

1,316,414

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(366,889

)

1,316,414

(Loss)/profit attributable to:
Owners of the parent (411,478 ) 1,508,031
Non-controlling interests 44,589 (191,617 )
(366,889 ) 1,316,414

Total comprehensive income attributable to:
Owners of the parent (411,478 ) 1,508,031
Non-controlling interests 44,589 (191,617 )
(366,889 ) 1,316,414

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
29 FEBRUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 5,432,840 5,607,049
Investments 12
Interest in associate 371,213 371,556
Investment property 13 3,670,000 3,670,000
9,474,053 9,648,605

CURRENT ASSETS
Stocks 14 1,342,882 1,290,917
Debtors 15 4,156,390 5,503,065
Cash at bank and in hand 8,232,189 7,819,912
13,731,461 14,613,894
CREDITORS
Amounts falling due within one year 16 6,395,098 7,211,722
NET CURRENT ASSETS 7,336,363 7,402,172
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,810,416

17,050,777

CREDITORS
Amounts falling due after more than one
year

17

(249,767

)

(8,111

)

PROVISIONS FOR LIABILITIES 19 (1,577,202 ) (1,692,330 )
NET ASSETS 14,983,447 15,350,336

CAPITAL AND RESERVES
Called up share capital 20 500 500
Retained earnings 21 13,450,439 13,861,917
SHAREHOLDERS' FUNDS 13,450,939 13,862,417

NON-CONTROLLING INTERESTS 1,532,508 1,487,919
TOTAL EQUITY 14,983,447 15,350,336

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2024 and were signed on its behalf by:





R B Leeman - Director


BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

COMPANY STATEMENT OF FINANCIAL POSITION
29 FEBRUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 5,432,840 5,607,049
Investments 12 2,683,355 2,683,355
Investment property 13 - -
8,116,195 8,290,404

CURRENT ASSETS
Stocks 14 1,342,882 1,290,917
Debtors 15 4,147,581 5,494,952
Cash at bank and in hand 7,472,806 7,156,411
12,963,269 13,942,280
CREDITORS
Amounts falling due within one year 16 6,361,658 7,164,004
NET CURRENT ASSETS 6,601,611 6,778,276
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,717,806

15,068,680

CREDITORS
Amounts falling due after more than one
year

17

(249,767

)

(8,111

)

PROVISIONS FOR LIABILITIES 19 (978,978 ) (1,094,210 )
NET ASSETS 13,489,061 13,966,359

CAPITAL AND RESERVES
Called up share capital 20 500 500
Retained earnings 21 13,488,561 13,965,859
SHAREHOLDERS' FUNDS 13,489,061 13,966,359

Company's (loss)/profit for the financial year (477,298 ) 1,611,973

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2024 and were signed on its behalf by:





R B Leeman - Director


BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 March 2022 500 12,357,386 12,357,886 - 12,357,886

Changes in equity
Dividends - (3,500 ) (3,500 ) - (3,500 )
Total comprehensive income - 1,508,031 1,508,031 (191,617 ) 1,316,414
500 13,861,917 13,862,417 (191,617 ) 13,670,800
Acquisition of non-controlling
interest

-

-

-

1,679,536

1,679,536
Balance at 28 February 2023 500 13,861,917 13,862,417 1,487,919 15,350,336

Changes in equity
Total comprehensive income - (411,478 ) (411,478 ) 44,589 (366,889 )
Balance at 29 February 2024 500 13,450,439 13,450,939 1,532,508 14,983,447

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2022 500 12,357,386 12,357,886

Changes in equity
Dividends - (3,500 ) (3,500 )
Total comprehensive income - 1,611,973 1,611,973
Balance at 28 February 2023 500 13,965,859 13,966,359

Changes in equity
Total comprehensive income - (477,298 ) (477,298 )
Balance at 29 February 2024 500 13,488,561 13,489,061

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,331,350 3,979,372
Interest element of hire purchase payments
paid

(19,017

)

(29,849

)
Tax paid 238,747 (331,501 )
Net cash from operating activities 1,551,080 3,618,022

Cash flows from investing activities
Purchase of tangible fixed assets (1,309,454 ) (3,175,776 )
Sale of tangible fixed assets 140,387 764,301
Subsidiary's cash and equivalents b'fwd - 569,450
Interest received 129,154 45,198
Dividends received (344 ) -
Net cash from investing activities (1,040,257 ) (1,796,827 )

Cash flows from financing activities
Capital repayments in year 283,855 (351,633 )
Amount withdrawn by directors (382,401 ) (169,889 )
Equity dividends paid - (3,500 )
Net cash from financing activities (98,546 ) (525,022 )

Increase in cash and cash equivalents 412,277 1,296,173
Cash and cash equivalents at beginning
of year

2

7,819,912

6,523,739

Cash and cash equivalents at end of
year

2

8,232,189

7,819,912

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024


1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
(Loss)/profit before taxation (482,018 ) 2,217,946
Depreciation charges 1,317,269 951,089
Loss/(profit) on disposal of fixed assets 26,007 (346,122 )
Goodwill impairment - (180,683 )
Interest in associate undertakings 344 294
Finance costs 19,017 29,849
Finance income (128,810 ) (44,904 )
751,809 2,627,469
(Increase)/decrease in stocks (51,965 ) 418,874
Decrease in trade and other debtors 1,087,314 1,006,891
Decrease in trade and other creditors (455,808 ) (73,862 )
Cash generated from operations 1,331,350 3,979,372

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 29 February 2024
29.2.24 1.3.23
£    £   
Cash and cash equivalents 8,232,189 7,819,912
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 7,819,912 6,523,739


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.23 Cash flow At 29.2.24
£    £    £   
Net cash
Cash at bank and in hand 7,819,912 412,277 8,232,189
7,819,912 412,277 8,232,189
Debt
Finance leases (153,739 ) (283,855 ) (437,594 )
(153,739 ) (283,855 ) (437,594 )
Total 7,666,173 128,422 7,794,595

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024


1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

Statement of compliance
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'.

Basis of preparing financial statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the statement of comprehensive income.

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

Basis of consolidation
The consolidated financial statements comprise the accounts of Benfleet Scrap Co Limited and its subsidiary undertaking, P W Leeman Limited, to 28th February 2024 prepared using the purchase method in accordance with FRS102. Intra group transactions and balances have been eliminated on consolidation.

Significant judgements and estimates
The useful economic life of the group's fixed assets have been estimated in line with the depreciation policies explained below.

The fair value of the group's investment property has been estimated based on a previous valuation completed by a Chartered Surveyor and the director's belief that there have been no impairments since then.

When valuing the year end stock the directors have estimated that there is no provision for stock obsolescence required as the nature of the stock is scrap metal and stock is only held on a short term basis.

Revenue recognition
Revenue refers to the amounts earned from the group's principal activity that was mainly the sale of scrap metal, plus amounts receivable for rent.

The revenue shown in the income statement represents amounts invoiced during the year, exclusive of Value Added Tax.

Tangible fixed assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

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 & machinery - 20% on reducing balance & 10% on cost
Motor vehicles - 25% on reducing balance

Short Leasehold - Amortised over period of lease or amortised at 20% on a straight line basis

Investments in associates
Associate undertakings are accounted for using the equity method in accordance with FRS102.

Investment property
Investment properties are included in the financial statements at fair value. Gains and losses are recognised in the income statement. Deferred taxation is provided on these gains and losses at the rate expected to apply when the properties are sold.

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. The nature of the company's stock are scrap metal.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

The group has a long-term financial asset that is recognised at amortised cost. More details can be found in the related party disclosure note.

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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


2. ACCOUNTING POLICIES - continued

Provisions for liabilities
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The amount of discount is recognised as finance cost in profit or loss in the period it arises.

The company recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months. The provision is measured at the salary cost payable for the period of absence.

3. TURNOVER

The group does not disclose its turnover by geographic location as it considers that it would be detrimental to its business.

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,300,746 3,388,219
Social security costs 333,823 356,476
Other pension costs 52,439 60,773
3,687,008 3,805,468

The average number of employees during the year was as follows:
2024 2023

Administrative staff 70 29
Operatives 24 69
94 98

2024 2023
£    £   
Directors' remuneration 159,000 182,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


5. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 521,590 748,959
Other operating leases 553,899 484,317
Depreciation - owned assets 1,317,269 951,089
Loss/(profit) on disposal of fixed assets 26,007 (346,122 )
Auditors' remuneration 22,935 22,195
Foreign exchange differences (37,158 ) (38 )

Operating profit or loss is the profit or loss from business operations before deduction of interest and taxes.

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Deposit account interest 46,346 4,358
Other interest received 82,808 40,840
129,154 45,198

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Hire purchase 19,017 29,849

8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - (238,734 )

Deferred tax (115,129 ) 1,140,266
Tax on (loss)/profit (115,129 ) 901,532

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


8. TAXATION - continued

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

2024 2023
£    £   
(Loss)/profit before tax (482,018 ) 2,217,946
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19 % (2023 - 19 %)

(91,583

)

421,410

Effects of:
Expenses not deductible for tax purposes 1,795 927
Capital allowances in excess of depreciation (6,895 ) (586,192 )
Profit/(loss) on disposal of fixed assets 4,941 (65,763 )
Fixed assets proceeds in excess of cost - 10,480
Goodwill recognised in profit or loss - (34,329 )
Subsidiary's pre-acquisition loss - 14,677
Share of associate's (profit)/loss 65 56
Loss carried forward 91,677 -
Deferred tax movement (115,129 ) 1,140,266
Total tax (credit)/charge (115,129 ) 901,532

9. 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.


10. DIVIDENDS
2024 2023
£    £   
Ordinary B shares of £1 each
Interim - 3,500

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


11. TANGIBLE FIXED ASSETS

Group
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 March 2023 711,425 8,729,448 2,908,250 12,349,123
Additions - 1,227,598 81,856 1,309,454
Disposals - (300,839 ) (104,290 ) (405,129 )
At 29 February 2024 711,425 9,656,207 2,885,816 13,253,448
DEPRECIATION
At 1 March 2023 555,687 4,509,372 1,677,015 6,742,074
Charge for year 14,066 993,439 309,764 1,317,269
Eliminated on disposal - (215,568 ) (23,167 ) (238,735 )
At 29 February 2024 569,753 5,287,243 1,963,612 7,820,608
NET BOOK VALUE
At 29 February 2024 141,672 4,368,964 922,204 5,432,840
At 28 February 2023 155,738 4,220,076 1,231,235 5,607,049

Company
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 March 2023 711,425 8,729,448 2,908,250 12,349,123
Additions - 1,227,598 81,856 1,309,454
Disposals - (300,839 ) (104,290 ) (405,129 )
At 29 February 2024 711,425 9,656,207 2,885,816 13,253,448
DEPRECIATION
At 1 March 2023 555,687 4,509,372 1,677,015 6,742,074
Charge for year 14,066 993,439 309,764 1,317,269
Eliminated on disposal - (215,568 ) (23,167 ) (238,735 )
At 29 February 2024 569,753 5,287,243 1,963,612 7,820,608
NET BOOK VALUE
At 29 February 2024 141,672 4,368,964 922,204 5,432,840
At 28 February 2023 155,738 4,220,076 1,231,235 5,607,049

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


11. TANGIBLE FIXED ASSETS - continued

Company

Included above are assets held under finance leases or hire purchase contracts as follows:


Plant &
Machinery
£   
Net book values
At 29 February 2024575,525
At 28 February 2023644,074

Depreciation charge for the year
At 29 February 202481,249
At 28 February 2023161,019

12. FIXED ASSET INVESTMENTS

Group
Interest
in
associate
£   
COST
At 1 March 2023 371,556
Share of profit/(loss) (343 )
At 29 February 2024 371,213
NET BOOK VALUE
At 29 February 2024 371,213
At 28 February 2023 371,556
Company
Shares in Interest
group in
undertakings associate Totals
£    £    £   
COST
At 1 March 2023
and 29 February 2024 2,311,505 371,850 2,683,355
NET BOOK VALUE
At 29 February 2024 2,311,505 371,850 2,683,355
At 28 February 2023 2,311,505 371,850 2,683,355


BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


12. FIXED ASSET INVESTMENTS - continued


The company's investments at the balance sheet date in the share capital of companies includes the following subsidiary and associate:

Subsidiary - P W Leeman Limited
Registered office: Second Floor South, The Fitted Rigging House, Anchor Wharf, The Historic Dockyard, Chatham, Kent, ME4 4TZ
Nature of business: Property rental


Class of shares
No. of
shares
No. of
shares held

% holding
Ordinary A 16,666 - -
Ordinary B 50,000 33,333 66.67%
Ordinary C 11,000 9,215 83.77%
Ordinary D 971 - -
Ordinary E 11,000 11,000 100%
89,637 53,548 59.74%


Associate - The Thurrock Scrap Company Limited
Registered office: Second Floor South, The Fitted Rigging House, Anchor Wharf, The Historic Dockyard, Chatham, Kent, ME4 4TZ
Nature of business: Investment company


Class of shares
No. of
shares
No. of
shares held

% holding
Ordinary 1,000 500 50%


13. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 March 2023
and 29 February 2024 3,670,000
NET BOOK VALUE
At 29 February 2024 3,670,000
At 28 February 2023 3,670,000

The group's investment properties have been measured at fair value which is the open market value of the properties. The fair value adjustments have been taken through to the profit or loss acount.

14. STOCKS

Group Company
2024 2023 2024 2023
£    £    £    £   
Stock 1,342,882 1,290,917 1,342,882 1,290,917

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


15. DEBTORS

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year:
Trade debtors 2,417,718 3,290,955 2,417,718 3,290,955
Bad debt provision (2,426 ) (2,644 ) (2,426 ) (2,644 )
Other debtors 466,937 301,908 458,324 293,910
Tax - 259,361 - 259,361
Prepayments and accrued income 193,492 472,816 193,296 472,701
3,075,721 4,322,396 3,066,912 4,314,283

Amounts falling due after more than one year:
Other debtors 1,080,669 1,180,669 1,080,669 1,180,669

Aggregate amounts 4,156,390 5,503,065 4,147,581 5,494,952

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Hire purchase contracts (see note 18) 187,827 145,628 187,827 145,628
Trade creditors 1,786,544 2,619,652 1,786,528 2,619,567
Tax - 20,614 - -
Social security and other taxes 745,001 385,120 745,001 385,120
VAT 8,083 4,923 - -
Other creditors 79,982 51,081 79,982 49,681
Directors' current accounts 2,096,556 2,478,957 2,096,556 2,478,957
Accrued expenses 1,491,105 1,505,747 1,465,764 1,485,051
6,395,098 7,211,722 6,361,658 7,164,004

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Hire purchase contracts (see note 18) 249,767 8,111 249,767 8,111

Obligations under hire purchase agreements are secured on the associated assets.

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 187,827 145,628
Between one and five years 249,767 8,111
437,594 153,739

Company
Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 187,827 145,628
Between one and five years 249,767 8,111
437,594 153,739

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 161,576 313,220
Between one and five years 532,783 540,713
In more than five years 878,358 997,041
1,572,717 1,850,974

Company
Non-cancellable operating leases
2024 2023
£    £   
Within one year 161,576 313,220
Between one and five years 532,783 540,713
In more than five years 878,358 997,041
1,572,717 1,850,974

19. PROVISIONS FOR LIABILITIES

Group Company
2024 2023 2024 2023
£    £    £    £   
Deferred tax 1,577,202 1,692,330 978,978 1,094,210

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


19. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 March 2023 1,692,330
Credit to Statement of Comprehensive Income during year (115,128 )
Balance at 29 February 2024 1,577,202

Company
Deferred
tax
£   
Balance at 1 March 2023 1,094,210
movement (115,232 )
Balance at 29 February 2024 978,978

2023 2022
£ £
Accelerated capital allowances 1,094,107 440,319
Fair value adjustments 598,223
Tax losses - -
1,692,330 440,319

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
125 Ordinary A £1 125 125
375 Ordinary B £1 375 375
500 500

Both classes of share rank equally in all respects with the exception of voting of dividends that may be declared on a class of share to the exclusion of the other or may be declared at varying rates.

21. RESERVES

Group
Retained
earnings
£   

At 1 March 2023 13,861,917
Deficit for the year (411,478 )
At 29 February 2024 13,450,439

BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024


21. RESERVES - continued

Company
Retained
earnings
£   

At 1 March 2023 13,965,859
Deficit for the year (477,298 )
At 29 February 2024 13,488,561


22. RELATED PARTY DISCLOSURES

The directors/shareholders have significant control of another company. Benfleet Scrap Co Limited has an agreement in place whereby it would make available a maximum of £3,000,000 for the other company to draw down from 23rd August 2011. The loan is repayable in full by 23rd August 2046. The loan is secured by a legal mortgage over the other company's freehold property. Capital repayments of £25,000 per quarter commenced as at 21st September 2016 as per the agreement.

The loan balance owed to Benfleet Scrap Co Limited as at 28th February 2024 was £1,180,669 (2023: £1,280,669), with £100,000 included in short-term debtors and £1,080,669 included in long-term debtors. Interest is charged on this loan at 1% above the Bank of England Base Rate. Interest owed to Benfleet Scrap Co Limited as at the balance sheet date was £18,774 (2023: £14,671) which is included in debtors due within one year.

A separate short term cash flow loan was given to the other company during the year and the balance owed to Benfleet Scrap Co Limited as at 28th February 2024 was £271,936 (2023: £150,000).

Benfleet Scrap Co Limited also made sales of £2,708,479 (2023: £4,371,214) and purchases of £3,187,725 (2023: £4,867,807) to the other company during the year, with there being a trade debtor balance of £260,069 (2023: £802,825) and a trade creditor balance of £282,420 (2023: £697,560) as at 28th February 2024.

During the year Benfleet Scrap Co Limited paid rent of £46,000 (2023: £46,000) to a pension scheme for which it is the sponsoring employer and as at 28th February 2024 the company was owed £nil (2023: £4,376).

The subsidiary undertaking, P W Leeman Limited, paid expenses on behalf of the associate undertaking, The Thurrock Scrap Company Limited, totalling £615 (2023: £1,217) during the year and a payable balance of £8,613 (2023: £7,998) is within other creditors falling due within one year at 28th February 2024.

All transactions were conducted under normal market conditions.