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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

FOR

AVON SPECIALTY METALS LIMITED

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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 SPECIALTY METALS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2024







DIRECTORS: P J Brewer
R Lewis
S P Munnoch
W Reid



REGISTERED OFFICE: Unit 2, Centurion Industrial Estate
Empire Way
Gloucester
Gloucestershire
GL2 5HY



REGISTERED NUMBER: 08165136 (England and Wales)



SENIOR STATUTORY AUDITOR: Simon Sefton FCA



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

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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 2023
Turnover £32.11m £27.01m
Gross Profit £7.67m £4.57m
Operating Profit £3.15m £2.23m
Net Profit £1.75m £1.37m

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.

Exposures 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:





S P Munnoch - Director


23 January 2025

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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 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
S P Munnoch
W Reid

Other changes in directors holding office are as follows:

D K Bowman - resigned 22 December 2023

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;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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:





S P Munnoch - Director


23 January 2025

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


Opinion
We have audited the financial statements of Avon Specialty 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 SPECIALTY 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 SPECIALTY 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.

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 SPECIALTY 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

23 January 2025

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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 32,109,137 27,005,612

Cost of sales (24,435,347 ) (22,432,487 )
GROSS PROFIT 7,673,790 4,573,125

Administrative expenses (4,519,119 ) (2,343,622 )
OPERATING PROFIT 5 3,154,671 2,229,503


Interest payable and similar expenses 6 (811,350 ) (437,755 )
PROFIT BEFORE TAXATION 2,343,321 1,791,748

Tax on profit 7 (592,931 ) (422,875 )
PROFIT FOR THE FINANCIAL YEAR 1,750,390 1,368,873

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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 1,750,390 1,368,873


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,750,390

1,368,873

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

STATEMENT OF FINANCIAL POSITION
30 JUNE 2024

30.6.24 30.6.23
Notes £    £   
FIXED ASSETS
Tangible assets 8 1,177,635 1,056,311

CURRENT ASSETS
Stocks 9 13,697,726 12,053,404
Debtors 10 4,595,541 5,750,373
Cash at bank and in hand 430,246 2,006
18,723,513 17,805,783
CREDITORS
Amounts falling due within one year 11 (13,891,072 ) (14,619,994 )
NET CURRENT ASSETS 4,832,441 3,185,789
TOTAL ASSETS LESS CURRENT LIABILITIES 6,010,076 4,242,100

CREDITORS
Amounts falling due after more than one
year

12

(80,083

)

(100,730

)

PROVISIONS FOR LIABILITIES 16 (256,583 ) (218,350 )
NET ASSETS 5,673,410 3,923,020

CAPITAL AND RESERVES
Called up share capital 17 133 133
Retained earnings 18 5,673,277 3,922,887
SHAREHOLDERS' FUNDS 5,673,410 3,923,020

The financial statements were approved by the Board of Directors and authorised for issue on 23 January 2025 and were signed on its behalf by:





S P Munnoch - Director


AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 October 2022 133 2,554,014 2,554,147

Changes in equity
Total comprehensive income - 1,368,873 1,368,873
Balance at 30 June 2023 133 3,922,887 3,923,020

Changes in equity
Total comprehensive income - 1,750,390 1,750,390
Balance at 30 June 2024 133 5,673,277 5,673,410

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


1. STATUTORY INFORMATION

Avon Specialty 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 judgement:

Determine whether there are indicators of impairment of the company's tangible assets. 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.

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

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - evenly over the period of the lease
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value.

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.

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.

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


2. ACCOUNTING POLICIES - continued

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.

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 SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


2. ACCOUNTING POLICIES - continued

Monetary amounts
The financial statement are prepared in sterling, which is the functional currency of the company. Monetary amounts in the financial statements are rounded to the nearest pound.

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

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 .

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.


AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


2. ACCOUNTING POLICIES - continued
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 1,566,893 1,101,239
Social security costs 170,550 125,739
Other pension costs 76,697 67,946
1,814,140 1,294,924

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 4 4
Admin 10 10
Production 16 14
30 28

Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Directors' remuneration 687,334 465,237
Directors' pension contributions to money purchase schemes 8,192 8,077

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Emoluments etc 421,506 263,987
Pension contributions to money purchase schemes 6,115 4,615

5. OPERATING PROFIT

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

Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Hire of plant and machinery 2,826 7,813
Depreciation - owned assets 318,031 185,562
Loss on disposal of fixed assets 1,298 11,323
Auditors' remuneration 20,500 16,305
Foreign exchange differences (8,049 ) (490,195 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.10.22
Year Ended to
30.6.24 30.6.23
£    £   
Bank interest 656,232 340,950
Other interest 154,361 93,547
Interest on late tax - 2,795
Leasing 757 463
811,350 437,755

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


7. 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 554,698 334,057

Deferred tax 38,233 88,818
Tax on profit 592,931 422,875

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 2,343,321 1,791,748
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21%)

585,830

376,267

Effects of:
Expenses not deductible for tax purposes 3,717 4,488
Capital allowances in excess of depreciation (34,849 ) (46,698 )
Deferred tax 38,233 88,818

Total tax charge 592,931 422,875

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


8. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 July 2023 40,350 1,882,329 196,345
Additions - 374,420 49,147
Disposals - (14,263 ) -
At 30 June 2024 40,350 2,242,486 245,492
DEPRECIATION
At 1 July 2023 27,743 1,184,695 85,175
Charge for year 952 224,362 32,583
Eliminated on disposal - (12,845 ) -
At 30 June 2024 28,695 1,396,212 117,758
NET BOOK VALUE
At 30 June 2024 11,655 846,274 127,734
At 30 June 2023 12,607 697,634 111,170

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 July 2023 205,500 191,988 2,516,512
Additions 8,000 9,206 440,773
Disposals - - (14,263 )
At 30 June 2024 213,500 201,194 2,943,022
DEPRECIATION
At 1 July 2023 59,257 103,331 1,460,201
Charge for year 36,894 23,240 318,031
Eliminated on disposal - - (12,845 )
At 30 June 2024 96,151 126,571 1,765,387
NET BOOK VALUE
At 30 June 2024 117,349 74,623 1,177,635
At 30 June 2023 146,243 88,657 1,056,311

9. STOCKS
30.6.24 30.6.23
£    £   
Stocks 13,697,726 12,053,404

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 4,202,091 5,339,388
Amounts owed by group undertakings 1,350 -
Tax - 26,019
Prepayments and accrued income 392,100 384,966
4,595,541 5,750,373

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Bank loans and overdrafts (see note 13) 10,440,833 9,712,732
Hire purchase contracts (see note 14) 30,390 28,053
Trade creditors 1,419,647 1,050,392
Amounts owed to group undertakings 54,456 2,419,622
Taxation 429,698 477,121
Social security and other taxes 20,405 22,458
Pension 3,643 3,504
VAT 331,002 304,027
Other creditors 1,338 42
Accrued expenses 1,159,660 602,043
13,891,072 14,619,994

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 14) 80,083 100,730

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 10,440,833 9,712,732

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.6.24 30.6.23
£    £   
Net obligations repayable:
Within one year 30,390 28,053
Between one and five years 80,083 100,730
110,473 128,783

15. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£    £   
Bank overdrafts 10,440,833 9,712,732

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

16. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax 256,583 218,350

Deferred
tax
£   
Balance at 1 July 2023 218,350
Provided during year 38,233
Balance at 30 June 2024 256,583

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
13,333 Ordinary shares £0.01 p 133 133

AVON SPECIALTY METALS LIMITED (REGISTERED NUMBER: 08165136)

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


18. RESERVES
Retained
earnings
£   

At 1 July 2023 3,922,887
Profit for the year 1,750,390
At 30 June 2024 5,673,277

19. ULTIMATE PARENT COMPANY

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

The Remet Group 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.

20. RELATED PARTY DISCLOSURES

There is an unlimited composite guarantee given by The Remet Company Limited, Alcumet Limited, Avon Metals Limited, Avon Specialty Metals Limited and 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 party transactions took place during the year;
Sales - £155,273
Purchases/expenses - £428,485
Loan interest paid - £804,199
Other income - £135,836
Amounts due at year end - £53,196

21. ULTIMATE CONTROLLING PARTY

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

22. GUARANTEES

The company has given a guarantee to HMRC in respect of duty deferment in the sum of £800,000.