Company registration number 05509414 (England and Wales)
MOLYMET SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
MOLYMET SERVICES LIMITED
COMPANY INFORMATION
Directors
J Guevara Blanco
S Baeza
S Friedl
R Ceballos Argo
(Appointed 1 August 2024)
A Verderau
Company number
05509414
Registered office
First Floor
5 Fleet Place
London
EC4M 7RD
Auditors
BKL Audit LLP
5 Fleet Place
London
EC4M 7RD
MOLYMET SERVICES LIMITED
CONTENTS
Page
Directors' report
1 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
MOLYMET SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present their annual report and the audited financial statements for the year ended 31 December 2024.
Principal activities
The company's principal activity is dealing internationally in metals and commodities.
Results and dividends
The results for the year are set out on page 7.
Dividends of $Nil (2023: $350,000) were declared and paid during the year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G Bascunan
(Resigned 1 August 2024)
J Guevara Blanco
S Baeza
S Friedl
R Ceballos Argo
(Appointed 1 August 2024)
A Verderau
Financial instruments
Financial risk management
The company's principal financial instruments comprise cash and cash equivalents, and various items such as trade receivables, trade payables, accruals and prepayments that arise directly from its operations.
The main purpose of these financial instruments is to finance the company's trading operations. Management regularly review and agree policies for managing risks and uncertainties arising from the company's financial instruments which are summarised as follows:
Liquidity risk
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company's policy throughout the year has been to ensure that it has adequate liquidity to meet its liabilities when due by careful management of its working capital, and where necessary, financial support is sought from Molibdenos y Metales SA, the company's ultimate parent company.
At 31 December 2024 the company had net current assets of $107,896 (2023 - $409,269).
Foreign currency risk
Virtually all revenue and cost of sales transactions are conducted in the company's functional currency of US dollars. However the company, being based in the UK, incurs its operational costs in pounds sterling. It is therefore exposed to foreign exchange risk arising from exchange rate movements, primarily between the US dollar and the UK pound. Management monitors exchange rate movements on a regular basis and where appropriate, a conversion is made to the required currency when the rate is favourable. At 31 December 2024 63% of cash and cash equivalents were in foreign currencies (2023 - 25%).
Credit risk
The company is unlikely to be exposed to major credit risk from its revenue. The company acts as a sales agent for its group companies where credit risk is assessed as low. Credit risk arising from trading is also assessed as low as payments are normally secured before inventories are released. No provision for expected credit loss is made as bad debt expenses have never been incurred by the company.
MOLYMET SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Market price risk
Being a trader in metals, the principal market risk facing the company is an adverse movement in the commodity price. The risk is managed on a daily basis with frequent meetings to monitor market price and to review buying and selling strategies.
Post reporting date events
There have not been any important events after the reporting period.
Future developments
The company is supported by their parent company, Molibdenos Y Metales S.A, and will continue to sell products to group entities and third party customers.
Auditor
Wilson Wright LLP acted as auditor of the company up until 2 April 2024. On 2 April 2024, Wilson Wright LLP transferred its audit business to BKL Audit LLP. The members subsequently consented to the appointment of BKL Audit LLP as auditor to the company. The auditor BKL Audit LLP will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small companies exemption
In accordance with the provisions of s414B and s415A of the Companies Act 2006, the company is entitled to the small companies’ exemption in relation to the strategic report and directors’ report for the financial year.
MOLYMET SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
S Baeza
Director
15 January 2025
MOLYMET SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOLYMET SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Molymet Services Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 101 Reduced Disclosure Framework (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 December 2024 and of its 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
MOLYMET SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOLYMET SERVICES LIMITED (CONTINUED)
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Capability of the audit in detecting irregularities, including fraud:
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, health and safety regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. 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. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with 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 due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
MOLYMET SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOLYMET SERVICES LIMITED (CONTINUED)
- 6 -
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 an auditor's report 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.
Nikki Crane FCA (Senior Statutory Auditor)
For and on behalf of BKL Audit LLP
17 January 2025
Chartered Accountants and Statutory Auditor
5 Fleet Place
London
EC4M 7RD
MOLYMET SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
$
$
Revenue
2
2,898,923
3,518,943
Cost of sales
(2,169,499)
(1,953,574)
Gross profit
729,424
1,565,369
Administrative expenses
(1,178,170)
(1,164,122)
Other operating income
4,047
Operating (loss)/profit
3
(444,699)
401,247
Investment income
9,113
588
Finance costs
(654)
(135)
(Loss)/profit before taxation
(436,240)
401,700
Tax on (loss)/profit
6
93,605
(103,000)
(Loss)/profit and total comprehensive income for the financial year
(342,635)
298,700
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 10 to 19 form part of these financial statements.
MOLYMET SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
$
$
$
$
Non-current assets
Property, plant and equipment
7
1,370
1,380
Current assets
Trade and other receivables
8
62,175
111,723
Current tax assets
95,878
2,717
Cash and cash equivalents
134,755
569,178
292,808
683,618
Current liabilities
Trade and other payables
9
132,463
125,295
Current tax liabilities
98,903
Other taxation and social security
52,449
50,151
184,912
274,349
Net current assets
107,896
409,269
Total assets less current liabilities
109,266
410,649
Non-current liabilities
Trade and other payables
9
89,101
52,850
Other taxation and social security
12,296
7,295
(101,397)
(60,145)
Net assets
7,869
350,504
Equity
Called up share capital
12
85,690
85,690
Retained earnings
(77,821)
264,814
Total equity
7,869
350,504
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 15 January 2025 and are signed on its behalf by:
S Baeza
Director
Company registration number 05509414 (England and Wales)
MOLYMET SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Retained earnings
Total
Notes
$
$
$
Balance at 1 January 2023
85,690
316,114
401,804
Year ended 31 December 2023:
Profit and total comprehensive income
-
298,700
298,700
Transactions with owners:
Dividends
-
(350,000)
(350,000)
Balance at 31 December 2023
85,690
264,814
350,504
Year ended 31 December 2024:
Loss and total comprehensive income
-
(342,635)
(342,635)
Balance at 31 December 2024
85,690
(77,821)
7,869
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information
Molymet Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 5 Fleet Place, London, EC4M 7RD. The company's principal activities and nature of its operations are disclosed in the directors' report.
These financial statements cover the single entity accounts for Molymet Services Limited.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements are prepared in US dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. These financial statements for the year ended 31 December 2024 are the first financial statements of Molymet Services Limited prepared in accordance with FRS 101. The company transitioned from IFRS to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 January 2024.
The transition to FRS 101 has not affected the reported financial position and financial performance for the financial year ended 31 December 2024, The reported financial position and financial performance for the previous period are not affected by the transition to FRS 101.
The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
Where required, equivalent disclosures are given in the group accounts of Molibdenos Y Metales S.A. The group accounts of Molibdenos Y Metales S.A are available to the public and can be obtained from Camino Nos a Los Morros No. 66, Nos, Municipality of San Bernardo, Metropolitan Region, Chile.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future, based on long term contracts being signed in 2025 and the support from the ultimate parent, Molibdenos y Metales. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.3
Revenue
Overseas sale of goods
Revenue is earned from the sale of metals and is recognised at a point in time when the relevant performance obligation has been satisfied, which is when the metals have been delivered and legal title has passed. There are no contracts whose performance obligations are satisfied over time.
Revenue is measured at the transaction price, being the fair value of the consideration received or receivable. Contracts with customers do not contain a financing component or any element of variable consideration. The company does not offer an option to purchase a warranty.
Commissions receivable
Commission is earned from acting as agent in respect of metal sales made by group companies and is recognised at a point in time when the relevent performance obligation has been satisifed, which is when the group company has delivered the metals to its customers and legal title has passed. There are no contracts whose performance obligations are satisifed over time.
Revenue is measured at the transaction price, being the fair value of the consideration received or receivable. Contracts with customers do not contain a financing component or any element of variable consideration. The company does not offer an option to purchase a warranty.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Furniture and equipment
25% - 33% 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 recognised in the income statement.
1.5
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets
Financial assets, other than those measured at fair value through profit or 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 of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.7
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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 inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Foreign exchange
Transactions in currencies other than American dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.13
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2
Revenue
2024
2023
$
$
Revenue analysed by class of business
Sales
2,249,161
2,665,014
Commission
649,762
853,929
2,898,923
3,518,943
2024
2023
$
$
Revenue analysed by geographical market
United Kingdom
673,683
1,642,600
Rest of Europe
999,244
1,329,184
Rest of world
1,225,996
547,159
2,898,923
3,518,943
3
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
$
$
Exchange losses
22,342
17,845
Fees payable to the company's auditor for the audit of the company's financial statements
19,890
17,948
Depreciation of property, plant and equipment
949
531
Cost of inventories recognised as an expense
2,168,651
1,953,117
Short term lease costs
73,105
69,726
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
2
2
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Employees
(Continued)
- 15 -
The comparative number has been adjusted to exclude those directors who are not employed under contracts of service.
Their aggregate remuneration comprised:
2024
2023
$
$
Wages and salaries
791,835
803,036
Social security costs
114,720
116,401
Benefits
73,305
87,814
Pension costs
7,054
5,973
987,314
1,013,224
5
Directors' remuneration
2024
2023
$
$
Remuneration for qualifying services
745,128
778,614
Company pension contributions to defined contribution schemes
1,688
1,642
746,816
780,256
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
$
$
Remuneration for qualifying services
676,869
667,221
Benefits
73,305
87,813
Company pension contributions to defined contribution schemes
1,688
1,642
6
Taxation
2024
2023
$
$
Current tax
UK corporation tax on profits for the current period
(93,200)
103,000
Adjustments in respect of prior periods
(405)
-
Total UK current tax
(93,605)
103,000
Th applicable tax rate for the financial year under audit is 25%. On 31 March 2023, the tax rate applicable to Molymet Services Limited increased from 19% to 25%. This resulted in a effective tax rate for the financial year ended 31 December 2023 of 24%.
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Taxation
(Continued)
- 16 -
The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:
2024
2023
$
$
(Loss)/profit before taxation
(436,240)
401,700
Expected tax (credit)/charge based on a corporation tax rate of 25.00% (2023: 24.00%)
(109,060)
96,408
Effect of expenses not deductible in determining taxable profit
677
1,354
Gains not taxable
(1,012)
-
Adjustment in respect of prior years
(401)
Effect of change in UK corporation tax rate
5,863
(2,092)
Permanent capital allowances in excess of depreciation
(504)
Deferred tax not recognised
10,317
7,607
Other differences
11
227
Taxation (credit)/charge for the year
(93,605)
103,000
7
Property, plant and equipment
Furniture and equipment
$
Cost
At 1 January 2024
11,058
Additions
939
At 31 December 2024
11,997
Accumulated depreciation and impairment
At 1 January 2024
9,678
Charge for the year
949
At 31 December 2024
10,627
Carrying amount
At 31 December 2024
1,370
At 31 December 2023
1,380
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
8
Trade and other receivables
2024
2023
$
$
Trade receivables
49,529
98,368
Other receivables
8,052
6,784
Prepayments and accrued income
4,594
6,571
62,175
111,723
9
Trade and other payables
Current
Non-current
2024
2023
2024
2023
$
$
$
$
Trade payables
684
3,552
Accruals and deferred income
131,779
121,743
89,101
52,850
132,463
125,295
89,101
52,850
10
Other leasing information
2024
2023
$
$
Commitment relating to short-term leases
-
71,172
The company has no lease obligations other than short-term leases and leases of low value assets.
Total cash outflow for all leases was $73,105 (2023: $69,726), including $nil (2023: $nil) of principal payments of lease obligations.
The company has no future cash outflows to which the lessee is exposed that are not reflected in the measurement of lease obligations above.
11
Retirement benefit schemes
2024
2023
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
7,054
5,973
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
$
$
Issued and fully paid
50,000 ordinary shares of £1 (equivalent to $1.7138) each
50,000
50,000
85,690
85,690
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Share capital
(Continued)
- 18 -
Fully paid ordinary shares, which have a par value of £1 (equivalent to US$1.7138), carry one vote per share and carry a right to dividends.
13
Related party transactions
Transactions
During the year the following arms length transactions were undertaken in the normal course of business with group undertakings:
| | | |
| | | |
| | | |
Purchases from Molibdenos y Metales SA | | | |
| | | |
Purchases from Molymet Belgium NV | | | |
| | | |
Purchases from Molymex SA de CV | | | |
| | | |
Management fees payable to Molibdenos y Metales SA | | | |
| | | |
Subscription fees payable to Molibdenos y Metales SA | | | |
| | | |
Commission receivable from Molibdenos y Metales SA | | | |
| | | |
Commission receivable from Molymex SA de CV | | | |
| | | |
Commission receivable from Complejo Industrial Molynor SA | | | |
| | | |
Commission receivable from Molymet Belgium NV | | | |
Balances
At 31 December 2024 the following amounts were owed by/(owed to) group undertakings:
Amounts owed in respect of group undertakings are unsecured, interest free and repayable on demand.
MOLYMET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
14
Controlling party
Strategic Metals BV, incorporated in Belgium, was the company's parent company at 31 December 2024.
Molibdenos y Metales SA, incorporated in Chile, was regarded as the company's ultimate parent company at 31 December 2024.
Consolidated financial statements are prepared by Molibdenos y Metales SA and are available to the public from Camino Nos a los Morros 66, San Bernardo, Santiago, Chile.
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