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REGISTERED NUMBER: 00382978 (England and Wales)
























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

FOR

KNIGHT STRIP METALS LIMITED

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


KNIGHT STRIP METALS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: A J Ferguson
C Y Ferguson





SECRETARY: C Y Ferguson





REGISTERED OFFICE: Linkside Business Centre
Summit Road
Cranborne Road
Potters Bar
Hertfordshire
EN6 3JL





REGISTERED NUMBER: 00382978 (England and Wales)





AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024


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

REVIEW OF BUSINESS
Knight Strip Metals Limited's principal activity continued to be that of processors, stockholders and distributors of precision metal strip.

The Company supplies metals to a number of manufacturing sectors including aerospace, precision stampings, photo/laser etch, telecoms, automotive and renewable energies. It is recognised for the quality of product, customer service, extensive stocks of a wide range of materials, processing expertise and recognised industry approvals and it has therefore been able to establish and maintain long-term relationships with many of its customers.

The trading year to end March 2024 was a rebalancing of the business from an environment of high inflation and low material availability to more traditionally established levels. Due to the reduced lead times of supply we were able to reduce the stock level substantially. Although sales held up well, these were achieved at lower margin. Recruitment opportunities were tight resulting in salaries increased at above national levels. These issues resulted in final profit levels reducing slightly. The forthcoming year is anticipated to further stabilise the business environment, and prospects for FY25 remain positive.

PRINCIPAL RISKS AND UNCERTAINTIES
The Company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs. The Company does not use derivative financial instruments to manage interest rate costs and, as such, no hedge accounting is applied.

Given the size of the Company, the Directors themselves are responsible for monitoring financial risks that the Company faces.

Price risk
The Company is exposed to price risk due to normal inflationary increases in the purchase price of goods and services. The Company has no exposure to equity securities price risk as it holds no listed or other equity instruments.

Credit risk
The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed continuously based on the manner of recoveries from particular customers.

Liquidity risk
The Company actively maintains short-term debt finance that is designed to ensure that the Company has sufficient funds for operations and planned expansions.

Interest rate risk
The Company does hold substantial cash balances at the present time and assets which only earn a very low rate of interest due to the present economic situation. However, the Directors will review this policy as the Company's operations may well change in the future.

ANALYSIS BASED ON KEY PERFORMANCE INDICATORS
2024 2023

Gross Profit % 27.23% 29.36%
Operating Profit % 9.16% 11.37%
Debtor Days (trade debtors / sales) 70 79
Stock Turnover Ratio (purchases / stock) 1.77 1.96
Turnover by employee £392,441 £403,736


KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

FUTURE DEVELOPMENTS
The Company intends to continue its present management policies for the foreseeable future and will continue to seek to grow the business through organic growth and, where appropriate, acquisition.

ON BEHALF OF THE BOARD:





A J Ferguson - Director


31 January 2025

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of processors, stockholders and distributors of precision metal strip.

DIVIDENDS
DIvidends paid during the year amounted to £254,275 (2023: £120,000).

RESEARCH AND DEVELOPMENT
The company spends time, effort and its monies in supporting our client's product development requirements with substantial research and development activities in the early stages of material and product life cycles. The company's intention being to ensure we remain part of the supply chain as both materials and manufacturing processes develop.

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

A J Ferguson
C Y Ferguson

FINANCIAL INSTRUMENTS
The Company utilises various financial instruments including loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the Company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the Strategic Report.

DISCLOSURE IN THE STRATEGIC REPORT
As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report instead. These matters relate to Business review, Future developments, Principal risks and uncertainties and Key performance indicators.

DIRECTORS' RESPONSIBILITIES STATEMENT
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


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

ON BEHALF OF THE BOARD:





A J Ferguson - Director


31 January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
KNIGHT STRIP METALS LIMITED


Opinion
We have audited the financial statements of Knight Strip Metals Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 March 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
KNIGHT STRIP METALS LIMITED


Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page four, 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.

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 misstatements in respect of irregularities, including fraud.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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
KNIGHT STRIP METALS 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.




Benjamin Young FCA (Senior Statutory Auditor)
for and on behalf of TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

31 January 2025

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 14,912,747 14,130,768

Cost of sales 10,852,720 9,982,307
GROSS PROFIT 4,060,027 4,148,461

Distribution costs 360,168 422,327
Administrative expenses 2,284,054 2,071,014
2,644,222 2,493,341
1,415,805 1,655,120

Other operating income (49,465 ) (48,927 )
OPERATING PROFIT 5 1,366,340 1,606,193

Income from fixed asset investments 1,372 -
Interest receivable and similar income 277 25
1,649 25
1,367,989 1,606,218

Interest payable and similar expenses 6 73,275 74,480
PROFIT BEFORE TAXATION 1,294,714 1,531,738

Tax on profit 7 275,335 317,075
PROFIT FOR THE FINANCIAL YEAR 1,019,379 1,214,663

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,019,379

1,214,663

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 358,480 370,579
Investments 10 7 7
358,487 370,586

CURRENT ASSETS
Stocks 11 4,920,242 6,145,907
Debtors 12 9,281,582 9,313,833
Cash at bank 883,616 346,226
15,085,440 15,805,966
CREDITORS
Amounts falling due within one year 13 2,646,250 4,053,080
NET CURRENT ASSETS 12,439,190 11,752,886
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,797,677

12,123,472

CREDITORS
Amounts falling due after more than one
year

14

(129,272

)

(212,963

)

PROVISIONS FOR LIABILITIES 18 (72,093 ) (79,301 )
NET ASSETS 12,596,312 11,831,208

CAPITAL AND RESERVES
Called up share capital 19 99,040 99,040
Share premium 4,275 4,275
Capital redemption reserve 13,470 13,470
Retained earnings 12,479,527 11,714,423
SHAREHOLDERS' FUNDS 12,596,312 11,831,208

The financial statements were approved by the Board of Directors and authorised for issue on 31 January 2025 and were signed on its behalf by:





A J Ferguson - Director


KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 April 2022 99,040 10,619,760 4,275 13,470 10,736,545

Changes in equity
Dividends - (120,000 ) - - (120,000 )
Total comprehensive income - 1,214,663 - - 1,214,663
Balance at 31 March 2023 99,040 11,714,423 4,275 13,470 11,831,208

Changes in equity
Dividends - (254,275 ) - - (254,275 )
Total comprehensive income - 1,019,379 - - 1,019,379
Balance at 31 March 2024 99,040 12,479,527 4,275 13,470 12,596,312

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


1. STATUTORY INFORMATION

Knight Strip Metals 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.

As well as the registered office the company trades out of:

Unit 3-4
Saltley Business Park
Cumbria Way
Saltley
Birmingham
B8 1BH

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.

There were no material departures from that standard.

Presentational and functional currency
The presentational and functional currency is Great British Pounds.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Knight Strip Metals Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Knight Group Limited, .

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover
Turnover represents the value, net of value added tax, of goods and services supplied to customers during the year. Turnover is recognised when the goods are physically delivered to the customer and when the services are provided.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its
estimated useful life.
Improvements to property - Straight line over 15 years
Plant and machinery - 10% on cost and 20% on cost straight line
Fixtures and fittings - 15% on costs and 20% on cost straight line

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

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a specific identification method, after making due allowance for obsolete and slow moving items. Cost is calculated on average cost.

Stocks are assessed for impairment on a perpetual basis. Impaired stock identified is reduced to its selling price less costs to complete and the impairment loss is recognised immediately within the cost of sales.

Financial instruments
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, and loans from fellow Group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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

Going concern
As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the currently changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

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 10,219,233 9,717,804
Europe 4,367,132 3,924,539
Rest of the world 326,382 488,425
14,912,747 14,130,768

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,368,272 1,322,281
Social security costs 144,590 142,015
Other pension costs 117,355 104,866
1,630,217 1,569,162

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


4. EMPLOYEES AND DIRECTORS - continued

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

Directors 2 2
Production 22 20
Administration 14 13
38 35

2024 2023
£    £   
Directors' remuneration - -

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 334,645 337,075
Depreciation - owned assets 92,191 101,588
Depreciation - assets on hire purchase contracts 4,235 -
Loss on disposal of fixed assets - 1,447
Auditors remuneration 14,080 17,645
Auditors' remuneration for non audit work 4,560 4,345
Foreign exchange difference 27,505 (128 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 31,861 26,335
Other loan interest paid 41,414 48,145
73,275 74,480

7. 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 195,355 211,547
Prior year adjustment (52,578 ) -
Foreign tax 139,766 113,297
Total current tax 282,543 324,844

Deferred tax (7,208 ) (7,769 )
Tax on profit 275,335 317,075

UK corporation tax has been charged at 25% .

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


7. TAXATION - continued

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

2024 2023
£    £   
Profit before tax 1,294,714 1,531,738
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

323,679

291,030

Effects of:
Expenses not deductible for tax purposes 4,242 64
Depreciation in excess of capital allowances 2,903 3,818
Adjustments to tax charge in respect of previous periods (52,578 ) -
Double taxation relief (120,190 ) (83,639 )
timing differences

Foreign tax 139,766 113,296
Group relief (15,279 ) -
Deferred tax (7,208 ) (7,769 )
Profit on disposals adjustment - 275
Total tax charge 275,335 317,075

From 1st April 2023 the corporation tax main rate increased from 19% to 25% for companies with profits over £250,000. The small company rate remains at 19% for taxable profits under £50,000. For profits falling between £50,000 and £250,000 marginal relief is applied. Deferred tax has therefore been calculated at 25%.

The company has capital losses carried forward at 31 March 2024 of £84,131 (2023: £84,131).

8. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 254,275 120,000

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 1 April 2023 293,289 1,929,516 1,523,971 3,746,776
Additions - 47,534 37,324 84,858
Exchange differences - (9,922 ) (6,003 ) (15,925 )
At 31 March 2024 293,289 1,967,128 1,555,292 3,815,709
DEPRECIATION
At 1 April 2023 150,594 1,847,982 1,377,621 3,376,197
Charge for year 14,496 36,171 45,759 96,426
Exchange differences - (9,767 ) (5,627 ) (15,394 )
At 31 March 2024 165,090 1,874,386 1,417,753 3,457,229
NET BOOK VALUE
At 31 March 2024 128,199 92,742 137,539 358,480
At 31 March 2023 142,695 81,534 146,350 370,579

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
Additions 46,200
At 31 March 2024 46,200
DEPRECIATION
Charge for year 4,235
At 31 March 2024 4,235
NET BOOK VALUE
At 31 March 2024 41,965

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 April 2023 520,007
Disposals (520,000 )
At 31 March 2024 7
PROVISIONS
At 1 April 2023 520,000

Eliminated on disposal (520,000 )
At 31 March 2024 -
NET BOOK VALUE
At 31 March 2024 7
At 31 March 2023 7

The company's investments at the Balance Sheet date in the share capital of companies include the following:


Knight Metal Services Limited
Registered office: Linkside, Summit Road, Potters Bar, Hertfordshire, EN6 3JL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1 1

Knight Group of Companies Limited
Registered office: Linkside, Summit Road, Potters Bar, Hertfordshire, EN6 3JL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1 1

Knight Group (Europe) Limited
Registered office: Linkside, Summit Road, Potters Bar, Hertfordshire, EN6 3JL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1 1

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


10. FIXED ASSET INVESTMENTS - continued

Knight Group (UK) Limited
Registered office: Linkside, Summit Road, Potters Bar, Hertfordshire, EN6 3JL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1 1

Knight Group (International) Limited
Registered office: Linkside, Summit Road, Potters Bar, Hertfordshire, EN6 3JL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1 1

KPW Group Limited
Registered office: Linkside, Summit Road, Potters Bar, Hertfordshire, EN6 3JL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 1 1

On the 12 December 2023, Arenastock Limited was dissolved.

11. STOCKS
2024 2023
£    £   
Stocks 4,920,242 6,145,907

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,852,378 3,052,748
Amounts owed by group undertakings 6,107,499 6,108,641
Other debtors 43,733 42,577
Prepayments and accrued income 277,972 109,867
9,281,582 9,313,833

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 140,117 1,563,758
Hire purchase contracts (see note 16) 9,140 -
Trade creditors 1,612,576 1,795,458
Amounts owed to group undertakings 103,707 68,110
Corporation tax 177,169 326,025
Social security and other taxes 419,232 18,515
Other creditors 84,398 125,463
Accruals and deferred income 99,911 155,751
2,646,250 4,053,080

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 15) 101,852 212,963
Hire purchase contracts (see note 16) 27,420 -
129,272 212,963

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 111,111 111,111
Close Invoice Finance 29,006 1,452,647
140,117 1,563,758

Amounts falling due between one and two years:
Bank loans - 1-2 years 101,852 111,111

Amounts falling due between two and five years:
Bank loans - 2-5 years - 101,852

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 9,140 -
Between one and five years 27,420 -
36,560 -

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


16. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 223,599 222,994
Between one and five years 850,265 815,860
In more than five years 271,953 475,918
1,345,817 1,514,772

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 241,969 1,776,721
Hire purchase contracts 36,560 -
278,529 1,776,721

(1) The company has a debt purchase agreement with Close Invoice Finance Limited.

The balance with Close Invoice Finance Limited at 31 March 2024 was:

£386,427 debit (2023: £1,452,647 credit)

The security specified in the agreement is as follows:

- Guarantee and indemnity from Knight Group Limited and Sterling Springs Limited plus supporting debenture from Knight Group Limited.

- Cross guarantee and indemnity plus a letter of offset from Knight Precision Wire Limited and Knight Strip Metals Limited.

(2) The company also has a loan agreement with Close Invoice Finance Limited.

The balance with Close Invoice Finance Limited at 31 March 2024 was as follows:

£212,963 credit (2023: £324,074 credit)

The security specified in the agreement is as follows:

- An all assets debenture in such form as we may require including a floating charge over the whole of your undertaking and assets.

(3) Hire purchase creditors are secured on the assets to which they relate.

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 72,093 79,301

KNIGHT STRIP METALS LIMITED (REGISTERED NUMBER: 00382978)

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


18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 April 2023 79,301
Credit to Statement of Comprehensive Income during year (7,208 )
Balance at 31 March 2024 72,093

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
99,040 Ordinary £1 99,040 99,040

20. PENSION COMMITMENTS

The company operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension cost charge represents contributions payable by the company to the fund. The contributions payable by the company for the period ended 31 March 2024 were £117,355 (2023: £104,866).

Pension contributions outstanding included in other creditors at 31 March 2024 amounted to £9,493 (2023: £nil).

21. CONTINGENT LIABILITIES

The company has given an unlimited multilateral guarantee in respect of bank borrowings by its UK subsidiary undertakings. At 31 March 2024 the potential liability was £nil (2023: £nil).

A further contingent liability exists at 31 March 2024 as the company is registered as a member of the Knight Strip Metals Limited Group for VAT purposes. At this date the Group had a VAT balance of £382,857 credit (2023: £22,077 debit).

The company was committed to continued support for its subsidiary company, Arenastock Limited. However Arenastock Limited was dissolved on 12 December 2023.

22. RELATED PARTY DISCLOSURES

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 wholly owned subsidiaries within the group.

During the year, a total of key management personnel compensation of £ 232,723 (2023 - £ 234,276 ) was paid.

23. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Knight Group Limited. There is no ultimate controlling party.