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REGISTERED NUMBER: 02319502 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 July 2024

for

Steelco (UK) Limited

Steelco (UK) Limited (Registered number: 02319502)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Financial Statements 12


Steelco (UK) Limited

Company Information
for the Year Ended 31 July 2024







DIRECTORS: A Fowle
N Fowle
M E Fowle
E N Fowle
S E I Fowle





SECRETARY: A Fowle





REGISTERED OFFICE: Tremlon House
Menzies Road
Hastings
East Sussex
TN38 9BQ





REGISTERED NUMBER: 02319502 (England and Wales)





AUDITORS: Deeks Evans Audit Services Limited
Registered Auditors
Chartered Accountants
First Floor, West Barn
North Frith Farm, Ashes Lane
Hadlow
Tonbridge
Kent
TN11 9QU

Steelco (UK) Limited (Registered number: 02319502)

Strategic Report
for the Year Ended 31 July 2024

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

REVIEW OF BUSINESS
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and it's position at the year end. Our review is consistent with the size and non-complex nature of our business and is in the context of the risks and uncertainties we face.

The company principle trade is as steel processors, stockists and traders based in Dudley and founded in 1988.

This year has seen a steady fall in steel prices which by our year end had fallen by c£200 per tonne, however in spite of the unhelpful backdrop of weak steel prices and demand we made £988,401 pre tax, which is good given the poor market.
The new year has started well, despite the continuing weakness in steel prices, and we expect the year to 31 July 2025 will show continued positive results.
The principal risks and uncertainties relate to the volatile steel market and of course fluctuating demand, however we do of course follow the trends in the market using several market guides to assist us in gauging where the market prices and demand are heading.

Key performance indicators
2024 2023
£ £
Turnover 25,229,463 29,179,170
Net profit before interest and taxation 1,019,166 1,491,517

Steelco have excellent staff and are well led. Our company ends the year with £12.6 million net worth, no borrowings and we are confident having in the last few years put the company in a much stronger financial position that we will continue to grow in the future providing a committed service to our many customers.

ON BEHALF OF THE BOARD:





A Fowle - Director


16 January 2025

Steelco (UK) Limited (Registered number: 02319502)

Report of the Directors
for the Year Ended 31 July 2024

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a steel service and processing centre and trader in steel.

DIVIDENDS
The total distribution of dividends for the year ended 31 July 2024 was £480,000 (2023 - £530,000) in respect of A ordinary shares and nil (2023 - nil) in respect of B ordinary shares.

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

A Fowle
N Fowle
M E Fowle
E N Fowle
S E I Fowle

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;
-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 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, Deeks Evans Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A Fowle - Director


16 January 2025

Report of the Independent Auditors to the Members of
Steelco (UK) Limited

Opinion
We have audited the financial statements of Steelco (UK) Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 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.

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.

Report of the Independent Auditors to the Members of
Steelco (UK) Limited


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 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.

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:

We identified areas of laws and regulations that could reasonably be expected to have a material affect on the financial statements from our understanding of the company and its industry, through verbal and written communications with the directors and other management and through inspection of the company's regulatory and legal correspondence.

We discussed with directors and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to the audit team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential affect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including the company's constitution, relevant reporting standards, company law, tax legislation and distributable profits legislation. We have assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material affect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arsing from litigations. We have identified the following areas as those most likely to have such an affect: employment legislation, health and safety legislation, trade legislation, data protection legislation and anti-bribery and corruption legislation.

International Standards on UK Auditing UK limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud we have performed the following specific procedures in addition to those already noted:

- Discussions with management including consideration of known or suspected instances of non-compliance with
laws and regulations and fraud;
- identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account
combinations, journal entries crediting cash or any revenue account and journal entries posted by senior
management;
- performing analytical procedures to identify unexpected movements in account balances which may be indicative
of fraud; and
- ensuring that testing undertaken on transactions and the balance sheet includes a number of items selected on a
random basis.

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
Steelco (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.




Richard Young (Senior Statutory Auditor)
for and on behalf of Deeks Evans Audit Services Limited
Registered Auditors
Chartered Accountants
First Floor, West Barn
North Frith Farm, Ashes Lane
Hadlow
Tonbridge
Kent
TN11 9QU

16 January 2025

Steelco (UK) Limited (Registered number: 02319502)

Income Statement
for the Year Ended 31 July 2024

2024 2023
Notes £    £   

TURNOVER 25,229,463 29,179,170

Cost of sales (22,064,223 ) (25,337,687 )
GROSS PROFIT 3,165,240 3,841,483

Distribution costs (788,237 ) (764,863 )
Administrative expenses (1,357,837 ) (1,585,103 )
OPERATING PROFIT 4 1,019,166 1,491,517


Interest payable and similar expenses 5 (30,765 ) (3,717 )
PROFIT BEFORE TAXATION 988,401 1,487,800

Tax on profit 6 (247,415 ) (379,141 )
PROFIT FOR THE FINANCIAL YEAR 740,986 1,108,659

Steelco (UK) Limited (Registered number: 02319502)

Other Comprehensive Income
for the Year Ended 31 July 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 740,986 1,108,659


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

740,986

1,108,659

Steelco (UK) Limited (Registered number: 02319502)

Balance Sheet
31 July 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 3,879,079 3,660,502

CURRENT ASSETS
Stocks 9 1,726,935 1,956,090
Debtors 10 8,603,784 8,194,322
Cash in hand 1 664
10,330,720 10,151,076
CREDITORS
Amounts falling due within one year 11 1,104,471 1,043,536
NET CURRENT ASSETS 9,226,249 9,107,540
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,105,328

12,768,042

PROVISIONS FOR LIABILITIES 14 481,500 405,200
NET ASSETS 12,623,828 12,362,842

CAPITAL & RESERVES
Called up share capital 15 201,000 201,000
Revaluation reserve 16 1,199,274 1,222,766
Retained earnings 16 11,223,554 10,939,076
SHAREHOLDERS' FUNDS 19 12,623,828 12,362,842

The financial statements were approved by the Board of Directors and authorised for issue on 16 January 2025 and were signed on its behalf by:





N Fowle - Director


Steelco (UK) Limited (Registered number: 02319502)

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

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 August 2022 201,000 10,336,925 1,246,258 11,784,183

Changes in equity
Profit for the year - 1,108,659 - 1,108,659
Total comprehensive income - 1,108,659 - 1,108,659
Dividends - (530,000 ) - (530,000 )
Transfer between reserves - 23,492 (23,492 ) -
Balance at 31 July 2023 201,000 10,939,076 1,222,766 12,362,842

Changes in equity
Profit for the year - 740,986 - 740,986
Total comprehensive income - 740,986 - 740,986
Dividends - (480,000 ) - (480,000 )
Transfer between reserves - 23,492 (23,492 ) -
Balance at 31 July 2024 201,000 11,223,554 1,199,274 12,623,828

Steelco (UK) Limited (Registered number: 02319502)

Cash Flow Statement
for the Year Ended 31 July 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 20 3,002,961 1,996,040
Interest paid (30,696 ) (3,639 )
Finance costs paid (67 ) (78 )
Tax paid (340,925 ) (1,108,750 )
Net cash from operating activities 2,631,273 883,573

Cash flows from investing activities
Purchase of tangible fixed assets (453,421 ) (399,526 )
Sale of tangible fixed assets 29,000 45,500
Net cash from investing activities (424,421 ) (354,026 )

Cash flows from financing activities
Amount introduced by directors 620,000 -
Related party loan (2,347,515 ) -
Equity dividends paid (480,000 ) (530,000 )
Net cash from financing activities (2,207,515 ) (530,000 )

Decrease in cash and cash equivalents (663 ) (453 )
Cash and cash equivalents at beginning
of year

21

664

1,117

Cash and cash equivalents at end of
year

21

1

664

Steelco (UK) Limited (Registered number: 02319502)

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

1. STATUTORY INFORMATION

Steelco (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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year. Turnover is recognised when the significant risks and rewards have been transferred to the buyer, which is when they have accepted physical delivery and control of the goods. No revenue is recognised if there are significant uncertainties regarding the recovery of the amount due.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on valuation
Plant & machinery - 5% and 20% reducing balance
Fixtures & fittings - 15% on reducing balance
Motor vehicles - 12.5% on cost and Straight line over 6 years
Computer equipment - 25% on cost

Stocks
Raw materials and consumables are valued at the lower of cost and estimated selling price less costs to complete and sell. Finished goods which have been delivered to customers but not invoiced, are valued at the lower of cost, processing and delivery, and estimated selling price.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

Steelco (UK) Limited (Registered number: 02319502)

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

2. ACCOUNTING POLICIES - continued

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

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,481,710 1,653,733
Social security costs 170,101 198,772
Other pension costs 83,043 42,939
1,734,854 1,895,444

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

Office and management 7 8
Production 11 10
Sales and distribution 11 11
29 29

2024 2023
£    £   
Directors' remuneration 42,343 20,020
Directors' pension contributions to money purchase schemes 1,083 20,108

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

Money purchase schemes 5 5

4. OPERATING PROFIT

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

2024 2023
£    £   
Hire of plant & machinery 2,746 -
Other operating leases 312 558
Depreciation - owned assets 232,869 213,279
(Profit)/loss on disposal of fixed assets (27,025 ) 38,071
Auditors' remuneration 8,100 11,585
Foreign exchange differences 14 (22 )

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other interest 30,697 3,639
Factoring interest 68 78
30,765 3,717

Steelco (UK) Limited (Registered number: 02319502)

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

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 171,115 258,841

Deferred tax 76,300 120,300
Tax on profit 247,415 379,141

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 988,401 1,487,800
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.005%)

247,100

312,512

Effects of:
Expenses not deductible for tax purposes 264 47
Super deduction allowances - (14,962 )
Deferred tax (overprovision)/underprovision in previous year - (12,100 )
Deferred tax changes in tax rate - 93,634
Rounding 51 10
Total tax charge 247,415 379,141

7. DIVIDENDS

Dividends of £480,000 (2023 - £530,000) were paid on the A ordinary shares. and nil (2023 - nil) on the B ordinary shares.


The dividend in respect of the 8.75% preference shares has been waived, as in the previous year.

Steelco (UK) Limited (Registered number: 02319502)

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

8. TANGIBLE FIXED ASSETS
Freehold Plant & Fixtures
property machinery & fittings
£    £    £   
COST OR VALUATION
At 1 August 2023 2,275,000 1,793,539 149,684
Additions - - 4,068
Disposals - - -
At 31 July 2024 2,275,000 1,793,539 153,752
DEPRECIATION
At 1 August 2023 105,898 803,746 117,221
Charge for year 42,362 64,186 5,226
Eliminated on disposal - - -
At 31 July 2024 148,260 867,932 122,447
NET BOOK VALUE
At 31 July 2024 2,126,740 925,607 31,305
At 31 July 2023 2,169,102 989,793 32,463

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 August 2023 869,226 51,230 5,138,679
Additions 446,853 2,500 453,421
Disposals (324,971 ) - (324,971 )
At 31 July 2024 991,108 53,730 5,267,129
DEPRECIATION
At 1 August 2023 411,594 39,718 1,478,177
Charge for year 116,532 4,563 232,869
Eliminated on disposal (322,996 ) - (322,996 )
At 31 July 2024 205,130 44,281 1,388,050
NET BOOK VALUE
At 31 July 2024 785,978 9,449 3,879,079
At 31 July 2023 457,632 11,512 3,660,502

Included in cost or valuation of land and buildings is freehold land of £ 156,900 (2023 - £ 156,900 ) which is not depreciated.

Cost or valuation at 31 July 2024 is represented by:

Freehold Plant & Fixtures
property machinery & fittings
£    £    £   
Valuation in 2006 (34,142 ) - -
Valuation in 2015 156,670 - -
Valuation in 2018 228,105 - -
Valuation in 2021 930,857 - -
Cost 993,510 1,793,539 153,752
2,275,000 1,793,539 153,752

Steelco (UK) Limited (Registered number: 02319502)

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

8. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2006 - - (34,142 )
Valuation in 2015 - - 156,670
Valuation in 2018 - - 228,105
Valuation in 2021 - - 930,857
Cost 991,108 53,730 3,985,639
991,108 53,730 5,267,129

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2024 2023
£    £   
Cost 993,510 993,510
Aggregate depreciation 325,248 306,378

Value of land in freehold land and buildings 50,000 50,000

Freehold land and buildings were valued on an open market basis on 31 January 2021 by qualified independent chartered surveyors .

9. STOCKS
2024 2023
£    £   
Raw materials 1,355,906 1,570,052
Finished goods 371,029 386,038
1,726,935 1,956,090

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 6,102,071 8,106,492
Amounts owed by group undertakings 2,347,516 -
Other debtors 67,236 40
Prepayments 86,961 87,790
8,603,784 8,194,322

Included in trade debtors are factored debts amounting to £6,099,442 (2023 - £8,104,758) made up as below. These debts are factored without recourse to the company for losses.

20242023
£   £   
Debtors factored without recourse
Gross debt6,098,4478,119,048
Non returnable proceeds995(14,290)
6,099,4428,104,758


Steelco (UK) Limited (Registered number: 02319502)

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

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 108,299 579,398
Corporation tax - 169,810
Social security & other taxes 46,034 243,391
Other creditors 12,001 9,715
Directors' current accounts 620,000 -
Accruals & deferred income 318,137 41,222
1,104,471 1,043,536

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 966 -
Between one and five years 654 -
1,620 -

13. SECURED DEBTS

There is a legal charge over the freehold property in support of loans made to Fowle & Co Limited by the Fowle Executive Pension Scheme. Fowle & Co Limited has a participating interest in Steelco (UK) Limited and is controlled by the same directors.

14. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 481,500 405,200

Deferred
tax
£   
Balance at 1 August 2023 405,200
Accelerated capital allowances 76,300
Balance at 31 July 2024 481,500

No deferred tax provision has been made in respect of the revaluation of freehold property as no unrecognised gain for tax purposes arose on the valuation after indexation has been applied.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
600 Ordinary A Shares £1 600 600
400 Ordinary B Shares £1 400 400
200,000 8.75% Preference shares £1 200,000 200,000
201,000 201,000

Voting rights and rights on winding up are the same for both A ordinary and B ordinary shares.

Steelco (UK) Limited (Registered number: 02319502)

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

16. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 August 2023 10,939,076 1,222,766 12,161,842
Profit for the year 740,986 740,986
Dividends (480,000 ) (480,000 )
Transfer between reserves 23,492 (23,492 ) -
At 31 July 2024 11,223,554 1,199,274 12,422,828

17. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2024 2023
£    £   
Sales 112,068 204,211
Purchases 20,877,916 23,630,979
Management charge expense 78,000 48,000
Diesel and lorry rental expense 183,763 194,232
Lorries sold to related party - 31,000
Amount due from related party 2,347,516 -
Amount due to related party - 477,142

Purchases of materials have been charged to Steelco (UK) Limited at the cost at which the related party bought the materials originally.

The related parties are controlled by the same directors.

18. ULTIMATE CONTROLLING PARTY

The company is controlled by the directors A Fowle and N Fowle.

19. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2024 2023
£    £   
Profit for the financial year 740,986 1,108,659
Dividends (480,000 ) (530,000 )
Net addition to shareholders' funds 260,986 578,659
Opening shareholders' funds 12,362,842 11,784,183
Closing shareholders' funds 12,623,828 12,362,842

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

2024 2023
£    £   
Profit before taxation 988,401 1,487,800
Depreciation charges 232,867 213,278
(Profit)/loss on disposal of fixed assets (27,025 ) 38,071
Finance costs 30,765 3,717
1,225,008 1,742,866
Decrease in stocks 229,155 788,154
Decrease in trade and other debtors 1,938,054 1,475,816
Decrease in trade and other creditors (389,256 ) (2,010,796 )
Cash generated from operations 3,002,961 1,996,040

Steelco (UK) Limited (Registered number: 02319502)

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

21. CASH AND CASH EQUIVALENTS

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

Year ended 31 July 2024
31.7.24 1.8.23
£    £   
Cash and cash equivalents 1 664
Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 664 1,177
Bank overdrafts - (60 )
664 1,117


22. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.23 Cash flow At 31.7.24
£    £    £   
Net cash
Cash at bank and in hand 664 (663 ) 1
664 (663 ) 1
Total 664 (663 ) 1