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REGISTERED NUMBER: 01026114 (England and Wales)










CENTRAL WIRE INDUSTRIES UK LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JULY 2024






CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JULY 2024










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16 to 24


CENTRAL WIRE INDUSTRIES UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST JULY 2024







DIRECTORS: C D Charron
D Crane
P C From
T Hanewald
A I Prichard
J H Wright





REGISTERED OFFICE: 1 Primrose Park
Greasbrough Road
Rotherham
S60 1RH





REGISTERED NUMBER: 01026114 (England and Wales)





AUDITORS: Thomas Coombs Limited
Statutory Auditor
Chartered Accountants
3365 The Pentagon
Century Way
Thorpe Park
Leeds
West Yorkshire
LS15 8ZB

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JULY 2024


The directors present their strategic report for the year ended 31st July 2024.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS
Central Wire Industries UK Ltd (CWI UK) produces high quality stainless steel and nickel alloy round and profile wires to individual customer specifications / requirements. During the financial year of August 2023 to July 2024, CWI UK experienced the full impact of the challenges caused by the ongoing geopolitical situation, significant downturn in market activity, and the increased costs of energy, raw materials, consumables and freight. An additional challenge was the increased volume of imported low cost rod and wire products from India. This has had a significant impact on achievable revenue. Due to these challenges, our reported turnover has fallen to £17,606,156 from £22,524,277 (2023). Gross profit is £6,566,762 - after last year's £8,173,565 figure. As expected production output fell by 12.94% from 2023.

The order book remains healthy and with a strong order intake throughout the year, we have orders booked for 4 to 5 months ahead.

Energy cost increases continued to impact throughout the year, with our fixed electricity tariff ending in December 2023 - the new tariff starting in January 2024. Alloy surcharges continued at a low level, which has impacted sales revenue but also reduced some material costs. The raw material situation due to the Ukraine/Russia conflict is still having an impact and has created new challenges due to widening price disparities in the global price market. The conflict in the Red Sea area caused severe supply chain issues throughout the year, with the Suez Canal not available for shipping. The situation has a strong possibility of worsening - we shall be monitoring closely.

All areas and departments of the business continue to work in unison, but the challenges have been severe, and we posted an operating profit of just £192,182. Although this represents a fall from our record operating profits of the last two years we view any profit at all as a strong result when considering the full impact of the above challenges.

CWI UK remains in a strong financial position, with net assets of £13,081,425 (2023: £12,897,516). The increase is despite a strategic reduction in stock levels to pre-pandemic levels - £4,773,375 (2024) from £6,118,645 (2023)

Certain markets remain strong, including our oil and gas well intervention business. We feel that this sector will remain strong well into 2025.

The CWI UK Directors and Management Team will continue their efforts to return to a healthy and rewarding level of profitability and ensure that the company is in a robust and strong position to take advantage of new opportunities that arise. We expect the current level of business activity to be maintained but will increasingly focus on higher value materials. We will continue to closely monitor the developing situations in the Global supply chains and energy sectors.

A reflection of our belief that we will recover profitability is the substantial reinvestment in the business. £953,000 of capital projects have been completed over the last two financial years, with a further £393,000 to be completed 2024-25 plus other investments proposed. This investment is in plant and equipment throughout the business, and is aimed at increasing our efficiencies, reducing our costs, and reducing our carbon footprint.

MATTERS OF STRATEGIC IMPORTANCE
CWI UK has been able to survive the severe global challenges and produce a profit, again emphasising our strong customer base and proven range of products that are in regular and repeatable demand. Future uncertainties in the marketplace remain such that we must continue to develop our product range, explore new markets, and improve on our quality and customer experience. These will all be key elements in achieving our targets and maintaining our financial performance.

Although our stock levels have been reduced as planned, we remain in a position to take advantages of opportunities and to provide an uninterrupted supply to our customers.


CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JULY 2024

PRINCIPAL RISKS
The principal risks that the company is currently facing are:

India/China taking advantage of cheap material/energy from Russia. - giving what we consider an unfair advantage in the market.

Oil and gas sector - the market has given great reward over the past few years, but a sharp decline would have a serious negative impact on business levels.

A slump in metal prices could seriously over value our current stock and impact our margins significantly.
Volatility in exchange rate markets.

Global supply shortages and rising costs of raw materials, consumable items and freight could have a serious negative impact on our bottom line and potentially price us out of certain markets.

Sustained high energy costs leading to reduction of steel production - either altogether or on certain grades. This would result in higher prices and supply shortages.

KEY PERFORMANCE INDICATORS
The Directors of CWI UK continually measure the performance of the company using various KPIs including: on time delivery performance, yield, internal reject rate, customer complaint rates, productivity, gross profit per unit, costs per unit, capital employed, forward contracts and recordable injuries.

We are pleased to report that yield, customer complaints and productivity continued to be within target.

We are especially pleased that both internal and external rejects were within the target this year, exemplifying our continuous improvement in quality control.

On time delivery performance has improved steadily over the last two years, but still falls short of our target. Late delivery of raw materials to us, lead times and global freight shortages continued to have an adverse effect, but the overall situation showed a trend of improvement throughout the year.

CWI Directors would like to place on record our thanks and appreciation to all employees for their effort and contribution to what has been a challenging year.

ON BEHALF OF THE BOARD:





C D Charron - Director


24th September 2024

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JULY 2024


The directors present their report with the financial statements of the company for the year ended 31st July 2024.

PRINCIPAL ACTIVITY
The company is a stockist and processor of specialist metals to a wide range of trade users.

DIVIDENDS
No dividends will be distributed for the year ended 31st July 2024.

FUTURE DEVELOPMENTS
The directors' objectives will include further diversification and enlargement of product range and the improvement of specific areas of performance whilst maintaining a sound, stable business.

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

C D Charron
D Crane
P C From
T Hanewald
A I Prichard
J H Wright

FINANCIAL INSTRUMENTS
Liquidity risk
The company is funded through a mixture of retained earnings, share capital, and if required, intercompany and external borrowings via bank overdraft and import loan facilities. The company faces the risk, that in the event of either inter company or bank borrowings being unavailable, the company may not have sufficient funds to meet its obligations. To this extent management closely monitors available bank and other credit facilities in comparison to the company's outstanding commitments on a regular basis to ensure that the company does have sufficient funds to meet its obligations as they fall due.

Foreign currency risk
The company purchases and sells materials in foreign currencies, mainly US Dollar and Euro, as well as Sterling. The company then buys and sells currency appropriately to reduce the Sterling effect of future exchange rate changes on the purchase of raw materials and sale of goods. No transactions are entered into for speculative purposes. There is a danger that adverse movements in exchange rates could impact on profitability of the company. Management regularly monitor exchange rates and buy or sell currency along with appropriate stock purchases to mitigate any such impact.

Credit risk
Credit risk predominantly arises from trade debtors and cash and cash equivalents. The company has a customer credit policy in place and the exposure to credit risk is monitored on an ongoing basis. External credit ratings are generally obtained for customers. Company policy is to assess the credit quality of each customer before accepting any terms of trade. Internal procedures take into account the customers' financial position as well as their reputation within the industry and past payment experience. Cash and cash equivalents are held with AAA or AA rated banks.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.


CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JULY 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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;
- 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

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

ON BEHALF OF THE BOARD:





C D Charron - Director


24th September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CENTRAL WIRE INDUSTRIES UK LIMITED


Opinion
We have audited the financial statements of Central Wire Industries UK Limited (the 'company') for the year ended 31st July 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st July 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 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
CENTRAL WIRE INDUSTRIES UK LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 five, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CENTRAL WIRE INDUSTRIES UK 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.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to employment legislation and health and safety. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, cut off and management bias in accounting estimates.

To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships.
- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.
- Investigated the rationale behind significant or unusual transactions.
- Challenged assumptions and judgements made by management in determining significant accounting estimates.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:
- Agreeing financial statements disclosures to underlying supporting documentation.
- Discussions with management of known or suspected instances of non-compliance with laws and regulations.
- Reviewing relevant correspondence.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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
CENTRAL WIRE INDUSTRIES UK 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.




Thomas Bond ACA (Senior Statutory Auditor)
for and on behalf of Thomas Coombs Limited
Statutory Auditor
Chartered Accountants
3365 The Pentagon
Century Way
Thorpe Park
Leeds
West Yorkshire
LS15 8ZB

24th September 2024

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST JULY 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 17,606,156 22,524,277

Cost of sales 11,039,394 14,350,712
GROSS PROFIT 6,566,762 8,173,565

Distribution costs 642,044 666,811
Administrative expenses 5,732,536 5,502,822
6,374,580 6,169,633
OPERATING PROFIT 5 192,182 2,003,932

Interest receivable and similar income 6 77,390 1,003
269,572 2,004,935

Interest payable and similar expenses 7 5,941 671
PROFIT BEFORE TAXATION 263,631 2,004,264

Tax on profit 8 79,722 415,643
PROFIT FOR THE FINANCIAL YEAR 183,909 1,588,621

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST JULY 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 183,909 1,588,621


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 183,909 1,588,621

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

BALANCE SHEET
31ST JULY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 4,742 9,746
Tangible assets 10 3,214,720 2,321,657
3,219,462 2,331,403

CURRENT ASSETS
Stocks 11 4,773,375 6,118,645
Debtors 12 3,921,910 4,471,948
Cash at bank 3,166,103 2,475,404
11,861,388 13,065,997
CREDITORS
Amounts falling due within one year 13 1,759,703 2,339,884
NET CURRENT ASSETS 10,101,685 10,726,113
TOTAL ASSETS LESS CURRENT LIABILITIES 13,321,147 13,057,516

PROVISIONS FOR LIABILITIES 15 239,722 160,000
NET ASSETS 13,081,425 12,897,516

CAPITAL AND RESERVES
Called up share capital 16 550,000 550,000
Retained earnings 17 12,531,425 12,347,516
SHAREHOLDERS' FUNDS 13,081,425 12,897,516

The financial statements were approved by the Board of Directors and authorised for issue on 24th September 2024 and were signed on its behalf by:





C D Charron - Director


CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST JULY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st August 2022 550,000 10,758,895 11,308,895

Changes in equity
Total comprehensive income - 1,588,621 1,588,621
Balance at 31st July 2023 550,000 12,347,516 12,897,516

Changes in equity
Total comprehensive income - 183,909 183,909
Balance at 31st July 2024 550,000 12,531,425 13,081,425

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST JULY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,853,707 1,671,713
Interest paid (5,941 ) (671 )
Tax paid (108,495 ) (656,150 )
Net cash from operating activities 1,739,271 1,014,892

Cash flows from investing activities
Purchase of tangible fixed assets (1,125,962 ) (220,126 )
Interest received 77,390 1,003
Net cash from investing activities (1,048,572 ) (219,123 )

Increase in cash and cash equivalents 690,699 795,769
Cash and cash equivalents at beginning of year 2 2,475,404 1,679,635

Cash and cash equivalents at end of year 2 3,166,103 2,475,404

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST JULY 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 263,631 2,004,264
Depreciation charges 237,903 199,344
Loss on disposal of fixed assets - 7,273
Finance costs 5,941 671
Finance income (77,390 ) (1,003 )
430,085 2,210,549
Decrease in stocks 1,345,270 1,099,627
Decrease/(increase) in trade and other debtors 658,533 (67,707 )
Decrease in trade and other creditors (580,181 ) (1,570,756 )
Cash generated from operations 1,853,707 1,671,713

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 31st July 2024
31/7/24 1/8/23
£    £   
Cash and cash equivalents 3,166,103 2,475,404
Year ended 31st July 2023
31/7/23 1/8/22
£    £   
Cash and cash equivalents 2,475,404 1,679,635


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/8/23 Cash flow At 31/7/24
£    £    £   
Net cash
Cash at bank and in hand 2,475,404 690,699 3,166,103
2,475,404 690,699 3,166,103
Total 2,475,404 690,699 3,166,103

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JULY 2024


1. STATUTORY INFORMATION

Central Wire Industries UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements have been prepared on a going concern basis. The directors have considered how the company will meet the challenges presented by the economic climate. They have carried out a detailed review of the company's resources including the adequacy of working capital for the next twelve months from the date of approval of the financial statements. The directors are satisfied that the company has sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of these financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with the parent undertaking which holds 100% of the shares in Central Wire Industries UK Limited and any other wholly owned subsidiaries of its parent.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets
Intangible assets purchased other than in a business combination are recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are amortised to profit or loss on a straight-line basis over their useful lives, as follows:

Trademarks 10% straight line
Software 10% straight line

Amortisation is revised prospectively for any significant change in useful life or residual value.

On disposal, the difference between the net disposal proceeds and the carrying amount of the intangible asset is recognised in profit or loss.

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life as follows:

Freehold land and buildings2.5% straight line
Plant and machinery10% straight line
Fixtures, fittings and equipment at rates ranging between 10% and 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks
Stock in trade is valued at the lower of cost and estimated selling price less costs to complete and sell. The basis for establishing cost is on a first in and first out basis.

At each reporting date, the company assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

Reversals of impairment losses are also recognised in profit or loss.

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument, and are offset only when the Company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other debtors, amounts owed by group undertakings and accrued income and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade creditors, amounts due to group undertakings and accruals, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

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

Current or deferred taxation assets and liabilities are not discounted.

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


CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


2. ACCOUNTING POLICIES - continued
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
Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

Hire purchase and leasing commitments
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Pension costs and other post-retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 8,373,647 10,219,567
Europe 6,782,657 9,147,723
Rest of the world 2,449,852 3,156,987
17,606,156 22,524,277

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,509,782 2,560,919
Social security costs 226,539 249,307
Other pension costs 212,225 196,809
2,948,546 3,007,035

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

Processing 44 44
Trading and administration 17 18
61 62

2024 2023
£    £   
Directors' remuneration 265,480 264,558
Directors' pension contributions to money purchase schemes 28,975 32,009

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 133,813 134,974
Pension contributions to money purchase schemes 14,511 15,250

5. OPERATING PROFIT

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

2024 2023
£    £   
Hire of plant and machinery 22,624 17,602
Depreciation - owned assets 232,899 194,344
Loss on disposal of fixed assets - 7,273
Trademarks amortisation 4,704 4,700
Computer software amortisation 300 300
Auditors' remuneration 21,175 19,250
Exchange (gains)/losses 93,195 166,051
Impairment of stocks recognised or reversed (77,780 ) 45,867

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Interest received 77,390 1,003

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 5,941 671

8. 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 - 403,169

Deferred tax 79,722 12,474
Tax on profit 79,722 415,643

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 263,631 2,004,264
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
21%)

65,908

420,895

Effects of:
Effect of change in corporation tax rate - (13,268 )
Fixed asset differences 13,814 15,767
Effect of super deduction on fixed assets - (7,751 )
Total tax charge 79,722 415,643

9. INTANGIBLE FIXED ASSETS
Computer
Trademarks software Totals
£    £    £   
COST
At 1st August 2023
and 31st July 2024 47,035 3,000 50,035
AMORTISATION
At 1st August 2023 39,588 701 40,289
Amortisation for year 4,704 300 5,004
At 31st July 2024 44,292 1,001 45,293
NET BOOK VALUE
At 31st July 2024 2,743 1,999 4,742
At 31st July 2023 7,447 2,299 9,746

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


10. TANGIBLE FIXED ASSETS
Fixtures,
fittings
Freehold Plant and and
property machinery equipment Totals
£    £    £    £   
COST
At 1st August 2023 2,182,359 3,717,544 321,405 6,221,308
Additions 6,900 1,105,220 13,842 1,125,962
Disposals - (75,000 ) - (75,000 )
At 31st July 2024 2,189,259 4,747,764 335,247 7,272,270
DEPRECIATION
At 1st August 2023 738,697 2,851,873 309,081 3,899,651
Charge for year 54,956 165,384 12,559 232,899
Eliminated on disposal - (75,000 ) - (75,000 )
At 31st July 2024 793,653 2,942,257 321,640 4,057,550
NET BOOK VALUE
At 31st July 2024 1,395,606 1,805,507 13,607 3,214,720
At 31st July 2023 1,443,662 865,671 12,324 2,321,657

11. STOCKS
2024 2023
£    £   
Raw materials 3,411,634 4,211,818
Work-in-progress 533,601 876,005
Finished goods 828,140 1,030,822
4,773,375 6,118,645

During the year, net impairment losses of £nil (2023: £nil) were recognised in cost of sales against stock due to slow moving and obsolete stock. Stock write downs reversed amounted to £77,780 in the year (2023: stock write downs of £45,867 were recognised). The stock provision was decreased to better reflect the remaining stock, the amount recognised at the year end being £85,023 (2023: £162,803).

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,207,062 3,836,222
Amounts owed by group undertakings - 65,137
Other debtors 24,645 32,039
Tax 236,909 128,414
VAT - 16,403
Prepayments and accrued income 453,294 393,733
3,921,910 4,471,948

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,460,733 1,793,444
Amounts owed to group undertakings 61,547 49,663
Social security and other taxes 44,772 60,851
VAT 32,458 -
Accrued expenses 160,193 435,926
1,759,703 2,339,884

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 21,407 22,630
Between one and five years 18,825 40,232
40,232 62,862

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 239,722 160,000

Deferred
tax
£   
Balance at 1st August 2023 160,000
Provided during year 79,722
Balance at 31st July 2024 239,722

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
550,000 Ordinary £1 550,000 550,000

17. RESERVES
Retained
earnings
£   

At 1st August 2023 12,347,516
Profit for the year 183,909
At 31st July 2024 12,531,425

CENTRAL WIRE INDUSTRIES UK LIMITED (REGISTERED NUMBER: 01026114)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JULY 2024


18. ULTIMATE PARENT COMPANY

The directors regard Central Wire Industries Limited, a company incorporated in Canada, as the ultimate parent company.

Central Wire Industries Limited is the immediate parent, and is the largest and smallest group for which consolidated accounts including Central Wire Industries UK Limited are prepared. These consolidated financial statements are available to the public and may be obtained from its registered office, 1 North Street, Perth, ON K7H 2S2, Canada.

19. FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES

HSBC Bank Plc holds a legal mortgage over the company's freehold land and buildings as security against any current or future liabilities owed to it. At the year end, there was no amount owed to HSBC Bank Plc (2023: £Nil).

HSBC Bank Canada holds a fixed and floating charge over the company's assets as security against any current or future liabilities owed to it. At the year end, there was no amount owed to HSBC Bank Canada (2023: £Nil).

20. RETIREMENT BENEFIT SCHEMES

The company contributes to defined contribution pension schemes. The pension cost charged for the year represents contributions payable by the group to the schemes and amounted to £212,225 (2023: £196,809).

There were outstanding contributions payable to the schemes as at 31st July 2024 of £Nil (2023: £Nil).