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REGISTERED NUMBER: 04135396 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

FOR

AVON METALS LIMITED

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


AVON METALS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2024







DIRECTORS: P J Brewer
R Lewis
R J Mcalister-Martin
S P Munnoch
W Reid



SECRETARY: R J Jones



REGISTERED OFFICE: Ashville Road
Gloucester
Gloucestershire
GL2 5DA



REGISTERED NUMBER: 04135396 (England and Wales)



SENIOR STATUTORY AUDITOR: Simon Sefton FCA



AUDITORS: MGR SD Limited
Chartered Accountants
Statutory Auditors
55 Loudoun Road
London
NW8 0DL

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024


The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The Income Statement is set out on Page 8 and shows the profit for the period.

The directors consider the state of the company's affairs to be satisfactory. The directors believe the company is still performing well in the current financial year and the directors are hopeful that the company will continue to improve in the future.

Key performance indicators used by the company are:

2024 2022
Turnover £30.60m £26.97m
Gross Profit £4.43m £3.72m
Operating Profit £2.22m £2.04m
Net Profit £1.78m £1.65m

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the business relate to the general state of the industrial economy in the UK and in those countries to which the company exports and the growth of the company's key markets, the continuity of supply of the key metals used in the business, the financial health of the company's main customers and the development of metal prices.

Financial instruments of significance to the company comprise primary financial instruments (mainly cash, borrowings, debtors and creditors).

The main financial risks arising from the company's activities are credit risk, market risk (metal prices and foreign exchange) and liquidity risk. These are monitored by the Board and were not considered to be significant at the balance sheet date.

The company's policy in respect of credit risk is to mitigate the risk of loss by adhering to credit control procedures including the use of credit limits and credit insurance.

Exposure to metal price movements are restricted by the imposition of trading position limits agreed by the Board. The company mitigates its foreign exchange risk by entering into forward currency contracts.

Liquidity risk is managed by planning for future funding requirements to ensure adequate facilities are available.

ON BEHALF OF THE BOARD:





R Lewis - Director


10 February 2025

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024


The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacturing aluminium ingots and merchandising of non-ferrous metals.

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2024.

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

P J Brewer
R Lewis
R J Mcalister-Martin
S P Munnoch
W Reid

EMPLOYEES
The Board recognises that a fundamental key to their success is the ability to develop a strong and highly motivated workforce if it is to achieve its goals. To this extent it is investing in several areas to improve the working environment and enable staff to be more productive and efficient.

ENVIRONMENTAL CONSIDERATIONS
The company recognises its responsibility in terms of protecting the environment for the future. It is committed to the principles of sustainability within its own operations and it seeks to improve the performance, safety and the environmental profile of both its range of products and its manufacturing facilities.

The company continuously reviews its health and safety performance to ensure that it complies with the latest regulations and provides a safe working environment for all employees.

STREAMLINED ENERGY AND CARBON REPORTING
The company does not prepare its own Streamlined Energy and Carbon Report but consolidates its energy and carbon data into a report published in the consolidated financial statements of The Remet Company Limited (its immediate holding company) and in the consolidated financial statements of The Remet Group, its ultimate holding company.

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;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2024

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

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

AUDITORS
The auditors, MGR SD Limited, have been appointed as auditors during the year, under Section 485 of the Companies Act 2006, and will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R Lewis - Director


10 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AVON METALS LIMITED


Opinion
We have audited the financial statements of Avon Metals Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, 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 30 June 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
AVON METALS 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 pages three and 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AVON METALS LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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. Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to Employment Law and we considered the extent to which non-compliance with laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

We evaluated the directors' incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance and manipulating accounting estimates which could be subject to management bias.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
-discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
-communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit;
-considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud; and
-verifying employees' right to work in the UK as part of adherence to Employment Law.

Our audit procedures in relation to fraud included but were not limited to:
-making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
-gaining an understanding of the internal controls established to mitigate risks related to fraud;
-discussing amongst the engagement team the risks of fraud;
-addressing the risks of fraud though management override of controls by performing journal entry testing; and
-testing of accounting estimates which could be subject to management bias.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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
AVON 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.




Simon Sefton FCA (Senior Statutory Auditor)
for and on behalf of MGR SD Limited
Chartered Accountants
Statutory Auditors
55 Loudoun Road
London
NW8 0DL

10 February 2025

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

Period
1.10.22
Year Ended to
30.6.24 30.6.23
Notes £    £   

TURNOVER 3 30,601,944 26,965,656

Cost of sales (26,168,322 ) (23,246,805 )
GROSS PROFIT 4,433,622 3,718,851

Administrative expenses (2,243,168 ) (1,684,213 )
2,190,454 2,034,638

Other operating income 30,450 4,766
OPERATING PROFIT 5 2,220,904 2,039,404

Interest receivable and similar income 160,404 111,213
PROFIT BEFORE TAXATION 2,381,308 2,150,617

Tax on profit 6 (603,227 ) (502,261 )
PROFIT FOR THE FINANCIAL YEAR 1,778,081 1,648,356

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

Period
1.10.22
Year Ended to
30.6.24 30.6.23
Notes £    £   

PROFIT FOR THE YEAR 1,778,081 1,648,356


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,778,081

1,648,356

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

STATEMENT OF FINANCIAL POSITION
30 JUNE 2024

30.6.24 30.6.23
Notes £    £   
FIXED ASSETS
Intangible assets 7 - -
Tangible assets 8 3,313,492 2,198,629
Investments 9 150,788 38
3,464,280 2,198,667

CURRENT ASSETS
Stocks 10 2,699,909 2,743,264
Debtors 11 5,529,003 7,862,614
Cash at bank and in hand 16,376,107 13,371,338
24,605,019 23,977,216
CREDITORS
Amounts falling due within one year 12 (4,837,884 ) (4,808,493 )
NET CURRENT ASSETS 19,767,135 19,168,723
TOTAL ASSETS LESS CURRENT LIABILITIES 23,231,415 21,367,390

PROVISIONS FOR LIABILITIES 15 (342,343 ) (256,399 )
NET ASSETS 22,889,072 21,110,991

CAPITAL AND RESERVES
Called up share capital 16 526,317 526,317
Share premium 17 299,997 299,997
Retained earnings 17 22,062,758 20,284,677
SHAREHOLDERS' FUNDS 22,889,072 21,110,991

The financial statements were approved by the Board of Directors and authorised for issue on 10 February 2025 and were signed on its behalf by:





R Lewis - Director


AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 October 2022 526,317 18,636,321 299,997 19,462,635

Changes in equity
Total comprehensive income - 1,648,356 - 1,648,356
Balance at 30 June 2023 526,317 20,284,677 299,997 21,110,991

Changes in equity
Total comprehensive income - 1,778,081 - 1,778,081
Balance at 30 June 2024 526,317 22,062,758 299,997 22,889,072

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


1. STATUTORY INFORMATION

Avon 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.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions 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;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Significant judgements and estimates
In preparing these financial statements, the directors have made the following judgements:

Determine whether there are indicators of impairment of the group's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Other key sources of estimation uncertainty

Tangible fixed assets (see note 8)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Investments (see note 9)

The most critical estimates, assumptions and judgements relate to the determination of carrying value of unlisted investments at fair value through profit and loss. In determining this amount, the Group applies the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The nature, facts and circumstance of the investment drives the valuation methodology.

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents net invoiced sales of goods supplied, excluding value added tax. Sales are recognised when the risks and rewards of ownership are passed to the customer.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 1% on cost
Plant and machinery - 25% on reducing balance and 15% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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

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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


2. ACCOUNTING POLICIES - continued

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

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


2. ACCOUNTING POLICIES - continued

Investments
Investments are included at cost less amounts written off. Profits or losses arising from disposals of fixed asset investments are treated as part of the results from ordinary activities.

Interest Payable
Interest payable is charged to the profit and loss account on an accruals basis.

Financial Instruments
The company has elected to apply the provisions of Section 11 ' Basic Financial Instruments' and ' Section 12 ' Other Financial Instruments Issues' of FRS 102 to all its financial instruments.

Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with 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.

Basic financial assets
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction and where material are subsequently measured at amortised cost using the effective interest method, less any impairment.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and where material the changes in fair value are recognised in the Statement of Total Comprehensive Income, except that investments in equity instruments that are not publicly traded and whose fair value cannot be measured reliably are measured at cost less impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets
Financial assets, other than those held at fair value are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the Statement of Total Comprehensive Income.

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.

Basic financial liabilities
Basic financial liabilities, including trade and other payables and loans from company undertakings that are classified as debt are initially measured at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at the market rate of interest .

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


2. ACCOUNTING POLICIES - continued

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

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.

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.

3. TURNOVER

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

No geographical analysis is provided on the grounds that this would be prejudicial to the company.

4. EMPLOYEES AND DIRECTORS
Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Wages and salaries 2,306,385 1,728,792
Social security costs 243,474 184,462
Other pension costs 114,785 66,526
2,664,644 1,979,780

The average number of employees during the year was as follows:
Period
1.10.22
Year Ended to
30.6.24 30.6.23

Management 14 14
Production 40 42
54 56

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


4. EMPLOYEES AND DIRECTORS - continued

Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Directors' remuneration 487,813 370,727
Directors' pension contributions to money purchase schemes 20,362 14,684

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:
Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Emoluments etc 352,792 276,955
Pension contributions to money purchase schemes 13,236 9,545

5. OPERATING PROFIT

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

Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Other operating leases 173,475 129,275
Depreciation - owned assets 403,170 274,734
Profit on disposal of fixed assets - (38,676 )
Auditors' remuneration 18,000 16,750
Foreign exchange differences 16,105 8,945

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Current tax:
UK corporation tax 517,282 436,643

Deferred tax 85,945 65,618
Tax on profit 603,227 502,261

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:

Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Profit before tax 2,381,308 2,150,617
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21%)

595,327

451,630

Effects of:
Expenses not deductible for tax purposes 4,998 2,276
Income not taxable for tax purposes - (8,122 )
Capital allowances in excess of depreciation (83,043 ) (9,141 )
Deferred tax 85,945 65,618
Total tax charge 603,227 502,261

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 July 2023
and 30 June 2024 50,001
AMORTISATION
At 1 July 2023
and 30 June 2024 50,001
NET BOOK VALUE
At 30 June 2024 -
At 30 June 2023 -

8. TANGIBLE FIXED ASSETS
Freehold Plant and
property machinery Totals
£    £    £   
COST
At 1 July 2023 1,160,614 4,013,408 5,174,022
Additions - 1,518,033 1,518,033
At 30 June 2024 1,160,614 5,531,441 6,692,055
DEPRECIATION
At 1 July 2023 46,420 2,928,973 2,975,393
Charge for year 11,604 391,566 403,170
At 30 June 2024 58,024 3,320,539 3,378,563
NET BOOK VALUE
At 30 June 2024 1,102,590 2,210,902 3,313,492
At 30 June 2023 1,114,194 1,084,435 2,198,629

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


9. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 July 2023 38
Additions 150,750
At 30 June 2024 150,788
NET BOOK VALUE
At 30 June 2024 150,788
At 30 June 2023 38

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Avon Specialty Metals Limited
Registered office: United Kingdom
Nature of business: Merchandising of non-ferrous metals
%
Class of shares: holding
Ordinary 64.00

10. STOCKS
30.6.24 30.6.23
£    £   
Raw materials 1,459,827 1,599,195
Finished goods 1,240,082 1,144,069
2,699,909 2,743,264

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 5,390,815 4,966,538
Amounts owed by group undertakings 18,471 2,391,204
Tax - 268,640
VAT 14,580 -
Prepayments 105,137 236,232
5,529,003 7,862,614

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Bank loans and overdrafts (see note 13) - 178,065
Trade creditors 3,596,599 3,186,840
Taxation 200,646 71,878
Social security and other taxes 55,656 51,114
VAT - 191,671
Accrued expenses 984,983 1,128,925
4,837,884 4,808,493

13. LOANS

An analysis of the maturity of loans is given below:

30.6.24 30.6.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 178,065

14. SECURED DEBTS

The bank overdraft facility is secured by a debenture over the assets of the company and the group.

15. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax 342,343 256,399

Deferred
tax
£   
Balance at 1 July 2023 256,399
Provided during year 85,944
Balance at 30 June 2024 342,343

The deferred taxation provision relates to accelerated capital allowances.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
1,052,633 Ordinary 50p 526,317 526,317

AVON METALS LIMITED (REGISTERED NUMBER: 04135396)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2024


17. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 July 2023 20,284,677 299,997 20,584,674
Profit for the year 1,778,081 1,778,081
At 30 June 2024 22,062,758 299,997 22,362,755

18. ULTIMATE PARENT COMPANY

The Remet Group Limited is regarded by the directors as being the company's ultimate parent company.

The Remet Group Limited will be preparing group financial statements incorporating the financial statements of the company.

A copy of these can be obtained from that company's registered office at 9a Cody Business Centre, Cody Road, London E16 4TL.

19. RELATED PARTY DISCLOSURES

There is an unlimited composite guarantee given by The Remet Company Limited, Alcumet Limited, Avon Metals Limited, Avon Specialty Metals Limited, Remet Processing Limited to secure all bank liabilities of each other.

Entities with control, joint control or significant influence over the entity

The following related parties transactions took place during the year;
Sales - £127,390
Purchases/expenses - £756,666
Loan interest income - £154,361
Other income - £284,503
Amount due from related party at year end - £18,471

Other related parties

The company occupies premises partly owned by the director, W Reid. The rent payable is £173,475 pa.

20. ULTIMATE CONTROLLING PARTY

The Directors consider the ultimate controlling party to be the Board of The Remet Group Limited

21. CONSOLIDATED ACCOUNTS

Avon Specialty Metals Limited is a subsidiary of Avon Metals Limited. The accounts for Avon Metals Limited have been consolidated into their parent company accounts and as such Avon Metals Limited is exempt from preparing its own consolidated accounts as an intermediate parent company.