IRIS Accounts Production v24.3.0.553 04500564 Board of Directors Board of Directors 1.9.23 31.8.24 31.8.24 Medium entities steel stockholders and traders. true false true true false false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 1.00000 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REGISTERED NUMBER: 04500564 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

FOR

MASTEEL (UK) LIMITED

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


MASTEEL (UK) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2024







DIRECTORS: D C Bradley
A P Adams
G R Molyneux





REGISTERED OFFICE: 6 Three Spires House
Station Road
Lichfield
WS13 6HX





REGISTERED NUMBER: 04500564 (England and Wales)





AUDITORS: Hollis and Co Limited
Chartered Accountants
Statutory Auditor
35 Wilkinson Street
Sheffield
South Yorkshire
S10 2GB

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

REVIEW OF BUSINESS
Trading conditions have been very positive for the company during the year, in a challenging market with turnover and profitability being similar to the previous financial year.

The trading results for the year show turnover of £19,959,233 (2023: £18,638,580) and profit before tax of £1,977,988 (2023: £2,063,344).

Despite the challenging market conditions in terms of suppressed material prices, rising costs and lower demands in some sectors, the business has performed well creating a solid trading result.

The company has successfully been able to minimize supply chain issues due to its strong strategic partnerships with suppliers and has continued to build key customer accounts organically, as well as developing new customer partnerships.

Strategically planned improvements in gross margin have been achieved with an increase in value added work being processed through the factory, both at our Coleshill and D S Willetts manufacturing sites and it is pleasing that our capex spending on new plant and equipment is starting to add value, with the introduction of laser cutting and stainless-steel services.

The integration of D S Willetts Stainless Ltd into the Masteel Group is now starting to show positive signs of growth following the acquisition during the last financial year.

PRINCIPAL RISKS AND UNCERTAINTIES
The uncertainty with the Ukrainian war continues to create problems in terms of material pricing and supply issues. Demand for steel and steel products within the worldwide market is also at a low point with large projects being held and stalling in certain cases.

Nevertheless, the company is optimistic with its diverse customer and market sector spread in having a positive trading position in the next financial year, going into the new year with a strong order book.

FUTURE DEVELOPMENTS
Masteel (UK) Limited will continue to react to client demands and has the ability and agility through its highly experienced team and strong routes to supply chains, to deal with the complex requirements of its customers.

There will be continued investment in new plant and machinery, with the future addition of the latest generation waterjet and high-definition plasma cutting machine. This will add a new service to our offering and open up strategic new markets for the supply of components from our D S Willetts division.


MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

FINANCIAL RISK MANAGEMENT
The company's operations expose it to a variety of financial risks, which it seeks to mitigate and control as follows:
Fraud Risk - By developing strong internal and external controls, which are constantly being reviewed. To reduce exposure to the risk of fraud, an extensive review of all new clients is carried out with periodic checks being put in place.

Foreign Currency Risk - As far as possible the entity seeks to match the currency of supplies with that of the currency of sale. Where appropriate the company will undertake currency forwards to minimize exposure to foreign exchange rate fluctuations.

Credit Risk - the company is exposed to credit related losses, however in event of non-performance by our customers we mitigate such risk by ensuring customers have significant credit ratings and obtaining credit insurance. Debts are constantly monitored and controlled.

Liquidity Risk - this is mitigated through conscious financial planning and analysis, regular cash flow forecasting and managing credit facilities.

Pricing Risk - the company operates in an environment whereby any price increase in steel can be passed to the customer. Price movements are regularly monitored and at times of concerning increases, the company avoids large investment in stocks. Supply of steels in which the company trades is limited by the current trading policies of the manufacturers. As a result, the entity believes it is unlikely to suffer from fluctuations in prices arising out of surplus stocks in the marketplace due to the stock levels we generally hold.

ON BEHALF OF THE BOARD:





D C Bradley - Director


6 February 2025

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 AUGUST 2024

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

DIVIDENDS
During the financial year interim dividends totalling £700,000 were paid to the holders of ordinary shares. The directors recommend that no final dividend be paid on these shares.

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

D C Bradley
A P Adams
G R Molyneux

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





D C Bradley - Director


6 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASTEEL (UK) LIMITED

Opinion
We have audited the financial statements of Masteel (UK) Limited (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASTEEL (UK) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

- Enquiry of management, those charged with governance and the entity's in-house legal team around actual and potential litigation and claims;
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Reviewing minutes of meetings of those charged with governance;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the further that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
MASTEEL (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.




Peter Hollis (Senior Statutory Auditor)
for and on behalf of Hollis and Co Limited
Chartered Accountants
Statutory Auditor
35 Wilkinson Street
Sheffield
South Yorkshire
S10 2GB

6 February 2025

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   

TURNOVER 3 19,959,233 18,638,580

Cost of sales 15,267,859 14,448,242
GROSS PROFIT 4,691,374 4,190,338

Administrative expenses 2,991,350 2,174,312
1,700,024 2,016,026

Other operating income 29,703 (62,547 )
OPERATING PROFIT 5 1,729,727 1,953,479

Interest receivable and similar income 333,690 241,181
2,063,417 2,194,660

Interest payable and similar expenses 6 85,429 131,316
PROFIT BEFORE TAXATION 1,977,988 2,063,344

Tax on profit 7 497,999 451,033
PROFIT FOR THE FINANCIAL YEAR 1,479,989 1,612,311

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,479,989 1,612,311


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,479,989

1,612,311

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

BALANCE SHEET
31 AUGUST 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 31,173 14,275
Tangible assets 10 613,669 632,229
644,842 646,504

CURRENT ASSETS
Stocks 11 3,445,531 2,170,698
Debtors 12 7,806,181 7,251,448
Cash at bank and in hand 269,313 1,094,552
11,521,025 10,516,698
CREDITORS
Amounts falling due within one year 13 5,153,776 4,821,919
NET CURRENT ASSETS 6,367,249 5,694,779
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,012,091

6,341,283

CREDITORS
Amounts falling due after more than one
year

14

(81,159

)

(170,996

)

PROVISIONS FOR LIABILITIES 18 (96,752 ) (116,096 )
NET ASSETS 6,834,180 6,054,191

CAPITAL AND RESERVES
Called up share capital 19 5,000 5,000
Capital redemption reserve 20 10,000 10,000
Retained earnings 20 6,819,180 6,039,191
SHAREHOLDERS' FUNDS 6,834,180 6,054,191

The financial statements were approved by the Board of Directors and authorised for issue on 6 February 2025 and were signed on its behalf by:




D C Bradley - Director



A P Adams - Director


MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 September 2022 5,000 5,226,880 10,000 5,241,880

Changes in equity
Dividends - (800,000 ) - (800,000 )
Total comprehensive income - 1,612,311 - 1,612,311
Balance at 31 August 2023 5,000 6,039,191 10,000 6,054,191

Changes in equity
Dividends - (700,000 ) - (700,000 )
Total comprehensive income - 1,479,989 - 1,479,989
Balance at 31 August 2024 5,000 6,819,180 10,000 6,834,180

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 150,436 2,505,517
Interest paid (68,000 ) (129,084 )
Interest element of hire purchase payments
paid

(17,429

)

(2,232

)
Tax paid (326,120 ) (331,878 )
Taxation refund 4,792 -
Net cash from operating activities (256,321 ) 2,042,323

Cash flows from investing activities
Purchase of intangible fixed assets (29,325 ) (16,945 )
Purchase of tangible fixed assets (160,047 ) (385,810 )
Sale of tangible fixed assets 14,670 7,100
Interest received 333,690 241,181
Net cash from investing activities 158,988 (154,474 )

Cash flows from financing activities
Invoice discounting facility 54,734 (446,003 )
New hire purchase contracts in the year - 220,500
Capital repayments in year (82,640 ) (13,286 )
Equity dividends paid (700,000 ) (800,000 )
Net cash from financing activities (727,906 ) (1,038,789 )

(Decrease)/increase in cash and cash equivalents (825,239 ) 849,060
Cash and cash equivalents at beginning of
year

2

1,094,552

245,492

Cash and cash equivalents at end of year 2 269,313 1,094,552

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

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

2024 2023
£    £   
Profit before taxation 1,977,988 2,063,344
Depreciation charges 194,744 81,097
Loss/(profit) on disposal of fixed assets 6,988 (2,100 )
Finance costs 85,429 131,316
Finance income (333,690 ) (241,181 )
1,931,459 2,032,476
(Increase)/decrease in stocks (1,274,833 ) 362,379
(Increase)/decrease in trade and other debtors (559,508 ) 757,952
Increase/(decrease) in trade and other creditors 53,318 (647,290 )
Cash generated from operations 150,436 2,505,517

2. CASH AND CASH EQUIVALENTS

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

Year ended 31 August 2024
31/8/24 1/9/23
£    £   
Cash and cash equivalents 269,313 1,094,552
Year ended 31 August 2023
31/8/23 1/9/22
£    £   
Cash and cash equivalents 1,094,552 245,492


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/9/23 Cash flow At 31/8/24
£    £    £   
Net cash
Cash at bank and in hand 1,094,552 (825,239 ) 269,313
1,094,552 (825,239 ) 269,313
Debt
Finance leases (253,637 ) 82,640 (170,997 )
Debts falling due within 1 year (10,156 ) (54,733 ) (64,889 )
(263,793 ) 27,907 (235,886 )
Total 830,759 (797,332 ) 33,427

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

1. STATUTORY INFORMATION

Masteel (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.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In preparing these financial statements the company's management make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported in the Income statement for the year,

The nature of estimates means the actual outcome could differ and the company's management consider there are no estimates or assumptions that have a significant risk of causing a material adjustment to the amounts reported for assets and liabilities within the next financial year.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 25% on cost and 10% on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

2. ACCOUNTING POLICIES - continued

Financial instruments
- Financial Assets

The company's loans receivable meet the definition of a basic financial instrument, so they are originally recognised at the transaction price.

- Financial Liabilities

The company's bank and other loans payable meet the definition of a basic financial instrument, so they are originally recognised at the transaction 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
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.

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

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 14,434,275 13,228,327
Europe 2,525,201 2,178,121
South America 31,570 11,663
Asia 1,531,075 505,755
Africa 708,351 2,588,699
North America 565,832 85,810
Australia 162,929 40,205
19,959,233 18,638,580

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,729,345 1,237,785
Social security costs 196,053 141,159
Other pension costs 159,806 114,593
2,085,204 1,493,537

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

Directors 3 3
Sales, administration and production 40 22
43 25

2024 2023
£    £   
Directors' remuneration 200,526 218,555
Directors' pension contributions to money purchase schemes 58,797 30,626

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 116,185 121,590
Pension contributions to money purchase schemes 41,466 27,490

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 173,929 91,407
Depreciation - owned assets 113,228 70,588
Depreciation - assets on hire purchase contracts 69,090 7,840
Loss/(profit) on disposal of fixed assets 6,988 (2,100 )
Computer software amortisation 12,427 2,670
Auditors' remuneration 20,797 16,170
Foreign exchange differences (29,703 ) 62,547

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 539 1
Invoice discounting facility interest 36,640 101,269
Interest on intercompany loan 30,821 27,814
Hire purchase 17,429 2,232
85,429 131,316

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 376,061 289,485
Prior year adjustment - (885 )
Overseas tax 12,463 15,042
Group relief charge 131,739 88,299
Total current tax 520,263 391,941

Deferred tax (22,264 ) 59,092
Tax on profit 497,999 451,033

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

7. TAXATION - continued

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 1,977,988 2,063,344
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.515%)

494,497

443,928

Effects of:
Expenses not deductible for tax purposes 2,141 1,369
adjustment
Double tax relief (11,102 ) (15,042 )
Overseas tax 12,463 15,042
Difference in deferred tax rate - 5,736
Total tax charge 497,999 451,033

8. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 700,000 800,000

9. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 September 2023 16,945
Additions 29,325
At 31 August 2024 46,270
AMORTISATION
At 1 September 2023 2,670
Amortisation for year 12,427
At 31 August 2024 15,097
NET BOOK VALUE
At 31 August 2024 31,173
At 31 August 2023 14,275

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 September 2023 572,126 203,815 208,944 984,885
Additions 65,381 39,676 54,990 160,047
Disposals - - (24,990 ) (24,990 )
Transfer on Hive-across 20,155 5,214 - 25,369
At 31 August 2024 657,662 248,705 238,944 1,145,311
DEPRECIATION
At 1 September 2023 164,526 135,878 52,252 352,656
Charge for year 108,910 37,286 36,122 182,318
Eliminated on disposal - - (3,332 ) (3,332 )
At 31 August 2024 273,436 173,164 85,042 531,642
NET BOOK VALUE
At 31 August 2024 384,226 75,541 153,902 613,669
At 31 August 2023 407,600 67,937 156,692 632,229

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 September 2023
and 31 August 2024 245,000 51,360 296,360
DEPRECIATION
At 1 September 2023 - 7,840 7,840
Charge for year 61,250 7,840 69,090
At 31 August 2024 61,250 15,680 76,930
NET BOOK VALUE
At 31 August 2024 183,750 35,680 219,430
At 31 August 2023 245,000 43,520 288,520

11. STOCKS
2024 2023
£    £   
Stocks 3,445,531 2,170,698

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,286,306 3,266,049
Amounts owed by group undertakings 4,306,405 3,832,425
Other debtors 47,077 14,406
Tax 1,626 6,401
Prepayments and accrued income 164,767 132,167
7,806,181 7,251,448

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 64,889 10,156
Hire purchase contracts (see note 16) 89,838 82,641
Trade creditors 2,920,921 3,321,421
Amounts owed to group undertakings 1,002,922 535,196
Tax 226,881 164,460
Social security and other taxes 49,955 36,757
VAT 325,833 322,085
Other creditors 17,554 1,328
Accruals and deferred income 454,983 347,875
5,153,776 4,821,919

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 16) 81,159 170,996

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Invoice discounting facility 64,889 10,156

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Gross obligations repayable:
Within one year 100,070 100,070
Between one and five years 84,554 184,623
184,624 284,693

Finance charges repayable:
Within one year 10,232 17,429
Between one and five years 3,395 13,627
13,627 31,056

Net obligations repayable:
Within one year 89,838 82,641
Between one and five years 81,159 170,996
170,997 253,637

Non-cancellable operating leases
2024 2023
£    £   
Within one year 163,500 163,500
Between one and five years 354,015 437,515
In more than five years 287,233 367,233
804,748 968,248

17. SECURED DEBTS

Hire purchase liabilities are secured by a charge on the asset concerned. Borrowings under a bank loan agreement are secured by a debenture over the company's assets, and the assets of it's parent company.

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 114,293 128,096
Other timing differences (17,541 ) (12,000 )
96,752 116,096

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 September 2023 116,096
Credit to Income Statement during year (22,264 )
Transfer on Hive across 2,920
Balance at 31 August 2024 96,752

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
5,000 Ordinary £1 5,000 5,000

20. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 September 2023 6,039,191 10,000 6,049,191
Profit for the year 1,479,989 1,479,989
Dividends (700,000 ) (700,000 )
At 31 August 2024 6,819,180 10,000 6,829,180

21. PARENT COMPANY AND ULTIMATE PARENT COMPANY

Bradley Mclaren Holdings Limited (incorporated in England and Wales ) is regarded by the directors as being the company's ultimate parent company.

The parent company's registered office is at:-
35 Wilkinson Street, Sheffield S10 2GB.
A copy of the group accounts can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

22. OTHER FINANCIAL COMMITMENTS

The company have issued payment guarantees to suppliers of Masteel BV, a fellow subsidiary company. The payment guarantees are limited to a maximum liability of £168,492 (2023 £671,423) and the amount outstanding ot these suppliers at the year end was £104,157 (2023 £139,396).

The company has issued a payment guarantee to the holders of the parent company's loan notes. The amount outstanding at the year end of this guarantee was £940,000(2023 £1,240,000).

The company has issued a payment guarantee to the parent company's bankers. The amount outstanding at the year end of this guarantee was £1,826,517 (2023 £2,375,424).

23. RELATED PARTY DISCLOSURES

The key management personnel of the company are considered to be the directors of the company. Their total remuneration is disclosed in note 4.

MASTEEL (UK) LIMITED (REGISTERED NUMBER: 04500564)

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

24. ULTIMATE CONTROLLING PARTY

The controlling party is Bradley Mclaren Holdings Limited.

The ultimate controlling party is D C Bradley.