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REGISTERED NUMBER: 03232713 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 August 2024

for

Avalon Metals Limited

Avalon Metals Limited (Registered number: 03232713)

Contents of the Financial Statements
for the year ended 31 August 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Profit and Loss Account 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 14


Avalon Metals Limited

Company Information
for the year ended 31 August 2024







Directors: S A Howell
A R Howell





Secretary: S A Howell





Registered office: Lloyd George House
Fordshill Road
Rotherwas Industrial Estate
Hereford
HR2 6NS





Registered number: 03232713 (England and Wales)





Auditors: Acre Accountancy Limited
Statutory Auditor
Certified Accountants
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

Avalon Metals Limited (Registered number: 03232713)

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
The directors are content with the company's results for the year and are looking forward to progress in the coming year.

The trading results for the year and the company's financial position at the end of the year are shown in the attached financial statements. The Board uses key performance indicators in the management of the key risks of the business and as a measure of the business efficiencies of the company. The key performance indicators used to monitor the company's performance are revenue and gross profit. Revenue has decreased by 21.06% on the prior year and gross profit margin has decreased to 42.48% for the year ended 31 August 2024 compared to 42.56% in the prior year.

Principal risks and uncertainties
The company's activities expose it to a number of financial risks including price risk, credit risk, cashflow risk and liquidity risk. The use of financial instruments is monitored by the Board of directors; the company does not use financial instruments for speculative purposes.

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds to finance the company's operations.

Cash flow risk
The company has few interest bearing assets and liabilities which minimises the uncertainty of cash flows.

Credit risk
The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade and other receivables.

The company manages credit risk in respect of trade debtors by regularly monitoring credit limits and balances outstanding. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term finance. The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments.

On behalf of the board:





S A Howell - Director


14 February 2025

Avalon Metals Limited (Registered number: 03232713)

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.

Principal activity
The principle activity of the company continued to be that of recycling scrap metal and waste.

Dividends
An interim dividend of £730 per share was paid on 5 April 2024. The directors recommend a final dividend of £250 per share, making a total of £980 per share for the year ended 31 August 2024.

The total distribution of dividends for the year ended 31 August 2024 will be £ 980,000 .

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

S A Howell
A R Howell

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

Avalon Metals Limited (Registered number: 03232713)

Report of the Directors
for the year ended 31 August 2024


Auditors
The auditors, Acre Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





S A Howell - Director


14 February 2025

Report of the Independent Auditors to the Members of
Avalon Metals Limited


Opinion
We have audited the financial statements of Avalon Metals Limited (the 'company') for the year ended 31 August 2024 which comprise the Profit and Loss Account, 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
Avalon 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 page three, 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:

We enquired with management about the legal framework that the company operates in. We also enquired about the risk of fraud and whether they were aware of any instances of fraud.

We communicated the outcome of this risk assessment with the audit team and planned our audit work accordingly. Our work in these areas is limited to analytical procedures and inspection of relevant documentation. Where a breach of operational regulations is not disclosed to us, or it is not evident from documentation that we receive during the audit, an audit will not detect that breach.

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
Avalon 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.




Robin Mason (Senior Statutory Auditor)
for and on behalf of Acre Accountancy Limited
Statutory Auditor
Certified Accountants
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

14 February 2025

Avalon Metals Limited (Registered number: 03232713)

Profit and Loss Account
for the year ended 31 August 2024

2024 2023
Notes £    £   

TURNOVER 5 18,630,771 23,602,754

Cost of sales (10,715,249 ) (13,558,003 )
GROSS PROFIT 7,915,522 10,044,751

Administrative expenses (6,799,483 ) (7,504,676 )
1,116,039 2,540,075

Other operating income 6 14,479 16,796
OPERATING PROFIT 8 1,130,518 2,556,871

Interest receivable and similar income 238,004 46,706
1,368,522 2,603,577

Interest payable and similar expenses 9 (21,770 ) (116,085 )
PROFIT BEFORE TAXATION 1,346,752 2,487,492

Tax on profit 10 (338,422 ) (523,281 )
PROFIT FOR THE FINANCIAL YEAR 1,008,330 1,964,211

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,008,330

1,964,211

Avalon Metals Limited (Registered number: 03232713)

Balance Sheet
31 August 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 12 4,487,381 4,935,198

CURRENT ASSETS
Stocks 13 2,976,317 2,353,927
Debtors 14 10,102,110 13,320,507
Investments 15 466,275 460,423
Cash at bank and in hand 3,237,357 889,512
16,782,059 17,024,369
CREDITORS
Amounts falling due within one year 16 (4,480,904 ) (4,938,185 )
NET CURRENT ASSETS 12,301,155 12,086,184
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,788,536

17,021,382

CREDITORS
Amounts falling due after more than one
year

17

(90,333

)

(283,633

)

PROVISIONS FOR LIABILITIES 20 (897,349 ) (952,091 )

ACCRUALS AND DEFERRED INCOME 21 (16,882 ) (30,016 )
NET ASSETS 15,783,972 15,755,642

CAPITAL AND RESERVES
Called up share capital 22 1,000 1,000
Retained earnings 23 15,782,972 15,754,642
SHAREHOLDERS' FUNDS 15,783,972 15,755,642

The financial statements were approved by the Board of Directors and authorised for issue on 14 February 2025 and were signed on its behalf by:





S A Howell - Director


Avalon Metals Limited (Registered number: 03232713)

Statement of Changes in Equity
for the year ended 31 August 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 September 2022 1,000 14,674,031 14,675,031

Changes in equity
Dividends - (883,600 ) (883,600 )
Total comprehensive income - 1,964,211 1,964,211
Balance at 31 August 2023 1,000 15,754,642 15,755,642

Changes in equity
Dividends - (980,000 ) (980,000 )
Total comprehensive income - 1,008,330 1,008,330
Balance at 31 August 2024 1,000 15,782,972 15,783,972

Avalon Metals Limited (Registered number: 03232713)

Cash Flow Statement
for the year ended 31 August 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,018,839 2,211,388
Interest paid (1 ) (76,110 )
Interest element of hire purchase payments
paid

(21,769

)

(39,975

)
Tax paid (491,449 ) (593,432 )
Net cash from operating activities 1,505,620 1,501,871

Cash flows from investing activities
Purchase of tangible fixed assets (638,378 ) (794,867 )
Purchase of investments (5,852 ) -
Sale of tangible fixed assets 133,542 230,658
Interest received 224,151 46,706
Net cash from investing activities (286,537 ) (517,503 )

Cash flows from financing activities
Loan repayments in year - (2,232,837 )
New HP agreements in year - 120,000
Capital repayments in year (291,629 ) (506,153 )
Amount introduced by directors 3,380,001 3,283,600
Amount withdrawn by directors (979,610 ) (5,683,597 )
Equity dividends paid (980,000 ) (883,600 )
Net cash from financing activities 1,128,762 (5,902,587 )

Increase/(decrease) in cash and cash equivalents 2,347,845 (4,918,219 )
Cash and cash equivalents at beginning of
year

2

889,512

5,807,731

Cash and cash equivalents at end of year 2 3,237,357 889,512

Avalon Metals Limited (Registered number: 03232713)

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 1,346,752 2,487,492
Depreciation charges 1,009,077 1,110,623
Profit on disposal of fixed assets (56,424 ) (101,977 )
Government grants (13,134 ) (13,134 )
Finance costs 21,770 116,085
Finance income (238,004 ) (46,706 )
2,070,037 3,552,383
Increase in stocks (622,390 ) (745,262 )
Decrease/(increase) in trade and other debtors 818,471 (2,166,863 )
(Decrease)/increase in trade and other creditors (247,279 ) 1,571,130
Cash generated from operations 2,018,839 2,211,388

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 3,237,357 889,512
Year ended 31 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 889,512 5,807,731


Avalon Metals Limited (Registered number: 03232713)

Notes to the Cash Flow Statement
for the year ended 31 August 2024


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£    £    £   
Net cash
Cash at bank and in hand 889,512 2,347,845 3,237,357
889,512 2,347,845 3,237,357

Liquid resources
Current asset investments 460,423 5,852 466,275
460,423 5,852 466,275
Debt
Finance leases (575,262 ) 291,629 (283,633 )
(575,262 ) 291,629 (283,633 )
Total 774,673 2,645,326 3,419,999

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements
for the year ended 31 August 2024


1. STATUTORY INFORMATION

Avalon 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.

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration take into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and it is recorded at the fair value of the consideration received or receivable.

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 - 5% on cost
Plant and machinery - 20% on reducing balance and 7% reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying value of the asset, and is credited or charged to the profit or loss.

Stocks
Stocks are valued at the lower of cost and net realisable value. Cost for non-processed inventory, is the average purchase price of the raw materials. Processed ferrous inventory is valued at the cost of the raw materials and direct costs for the stage of processing incurred. Non- ferrous processed inventory, where cost cannot be determined is valued at selling price less margin, based on normal levels of activity, which is deemed to be akin to cost. Net realisable value is based on estimated selling price less further processing costs and delivery charges, where applicable.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


3. ACCOUNTING POLICIES - continued

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 of its financial instruments.

Financial instruments are recognised in the company's balance sheet 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.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other admin expenses.

Taxation
Taxation for the year comprises current and deferred tax. The tax currently payable is based on the taxable profit for the tear. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax
Deferred tax liabilities are generally recognised for all timing difference and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Hire purchase and leasing commitments
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rents payable under operating leases, including any lease incentives received, ar charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease assets are consumed.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Employee benefits
The cost of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of stock or fixed assets.

The costs of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Contaminated land costs
Remedial works for contaminated land have been professionally valued and are being provided for over the remaining terms in accordance with the leases.

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.


Critical judgements
The following judgements (apart from those involving estimates) have the most significant effect on amounts recognised in the financial statements.

Valuation of stocks
Quantities of stocks are determined using various estimation techniques, including observation, weighing and other industry methods, and are subject to periodic physical verification.

5. TURNOVER

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

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Scrap sales 15,725,408 20,714,247
Waste disposal sales 152,663 114,928
General works and hire 2,548,798 2,492,059
Spares sales 203,902 281,520
18,630,771 23,602,754

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


6. OTHER OPERATING INCOME

20242023
££

Insurance claims1,3453,662
Grants received13,13413,134




7. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,574,425 2,802,871
Social security costs 231,686 286,302
Other pension costs 55,405 54,839
2,861,516 3,144,012

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

Directors 2 2
Administrative staff 8 9
Production staff 60 60
70 71

2024 2023
£    £   
Directors' remuneration 12,185 70,888
Directors' pension contributions to money purchase schemes 256 439

8. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 354,897 337,500
Depreciation - owned assets 1,009,077 1,110,623
Profit on disposal of fixed assets (56,424 ) (101,977 )
Auditors' remuneration 10,488 9,989
Foreign exchange differences 10 -
Government grants 13,134 13,134

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


9. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest - 12
Bank loan interest - 75,158
Other interest 1 940
Hire purchase 21,769 39,975
21,770 116,085

10. 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 393,164 541,256

Deferred tax (54,742 ) (17,975 )
Tax on profit 338,422 523,281

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 1,346,752 2,487,492
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.515%)

336,688

535,184

Effects of:
Expenses not deductible for tax purposes 4,784 2,241
Income not taxable for tax purposes (3,284 ) (2,825 )
Depreciation in excess of capital allowances 234 202


Super deduction - (9,015 )
Increase in deferred tax due to increase in rate to 25% - (2,506 )
disposal treatment
Total tax charge 338,422 523,281

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


11. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Final 343,000 370,250
Interim 637,000 513,350
980,000 883,600

During the year, total dividends of £980,000 (2023 - £883,600) were paid to directors.

12. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
Cost
At 1 September 2023 652,054 9,415,824 103,084 3,415,350 13,586,312
Additions - 345,175 1,103 292,100 638,378
Disposals - (240,425 ) - (257,887 ) (498,312 )
At 31 August 2024 652,054 9,520,574 104,187 3,449,563 13,726,378
Depreciation
At 1 September 2023 108,682 6,532,396 47,202 1,962,834 8,651,114
Charge for year 31,208 566,223 11,231 400,415 1,009,077
Eliminated on disposal - (199,726 ) - (221,468 ) (421,194 )
At 31 August 2024 139,890 6,898,893 58,433 2,141,781 9,238,997
Net book value
At 31 August 2024 512,164 2,621,681 45,754 1,307,782 4,487,381
At 31 August 2023 543,372 2,883,428 55,882 1,452,516 4,935,198

13. STOCKS
2024 2023
£    £   
Raw materials 2,574,813 1,798,614
Work-in-progress 401,504 555,313
2,976,317 2,353,927

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,327,668 5,686,334
Other debtors 6,272,857 4,772,148
Directors' current accounts - 2,399,926
Prepayments 501,585 462,099
10,102,110 13,320,507

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Other debtors balance is in relation to related party inter-company balances.

15. CURRENT ASSET INVESTMENTS
2024 2023
£    £   
Unlisted investments 466,275 460,423

Unlisted investments include vintage cars, vehicle registration plates and paintings.

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 18) 193,300 291,629
Trade creditors 939,783 1,114,988
Tax 179,310 291,448
Social security and other taxes 49,573 52,075
VAT 421,546 585,771
Other creditors 3,468 242
Directors' current accounts 465 -
Accruals and deferred income 2,693,459 2,602,032
4,480,904 4,938,185

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 18) 90,333 283,633

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 193,300 291,629
Between one and five years 90,333 283,633
283,633 575,262

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance leases are secured upon the assets to which they relate.

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


18. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 281,544 287,500
Between one and five years 1,000,000 1,028,125
In more than five years 1,437,500 1,687,500
2,719,044 3,003,125

19. SECURED DEBTS

National Westminster Bank PLC has an unscheduled mortgage debenture incorporating a fixed and floating charge over all assets of the company dated 14th November 1997.

20. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 897,349 952,091

Deferred
tax
£   
Balance at 1 September 2023 952,091
Provided during year (54,742 )
Balance at 31 August 2024 897,349

21. ACCRUALS AND DEFERRED INCOME
2024 2023
£    £   
Deferred government grants 16,882 30,016

22. CALLED UP SHARE CAPITAL

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

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


23. RESERVES
Retained
earnings
£   

At 1 September 2023 15,754,642
Profit for the year 1,008,330
Dividends (980,000 )
At 31 August 2024 15,782,972

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


24. RELATED PARTY TRANSACTIONS

During the year the following sales, recharges and purchases took place with the following companies of which Mr A Howell and S Howell are key members of management personnel:

2024 2023
£ £

Name of company Type of transaction

Sigeric Limited Plant and equipment hire 77,148 90,785
Sale of fixed assets - 25,000
Purchases (1,045 ) (226 )
Loan balance due at year end 3,469 329,268


Trade debtor balance

82,955


103,975

Wye Valley Demolition Limited Plant and equipment hire 501,755 745,966
Disbursements recharged 311,498 786,393
Purchases (2,086,639 ) (4,711,891 )
Loan balance due at year end 189,185 184,908
Trade debtor balance 167,962 157,814


Trade creditor balance

(163,004

)


(195,069

)

Wye Valley Skips Limited Plant and equipment hire 464,195 473,634
Disbursements recharged 330,538 326,753
Purchases (106,859 ) (76,603 )
Loan balance due at year end 62,563 95,552
Trade debtor balance 230,799 122,842
Trade creditor balance (2,367 ) (10,762 )

Eastside 2000 Limited Sales 1,139 3,759
Rent, rates & utilities (455,717 ) (533,817 )
Disbursements recharged 10,948 6,332
Purchases (6,600 )
Loan balance due at year end 3,094,400 3,473,422
Trade creditor balance (100,042 ) (114,336 )

Warehouse 701 Limited Sales 17,401 44,023
Disbursements recharged 52,189 18,684
Purchases (24,166 ) (33,883 )
Loan balance due at year end 429,975 204,846
Trade debtor balance 14,013 23,713


Trade creditor balance

(3,503

)


(4,503

)

UK Bus Dismantlers Limited Purchases - -
Loan balance due at year end 1,024 1,116

Bastion Mews Limited Sales - -
Loan balance due at year end 301 -

Hussar Minerals Limited Loan balance due at year end 14 14

Wye Valley Green Energy Limited Loan balance due at year end 683 683

Avalon Metals Limited (Registered number: 03232713)

Notes to the Financial Statements - continued
for the year ended 31 August 2024


Hereford Quarries Ltd Plant and equipment hire 282,334 289,406
Disbursements recharged 240,770 532,169
Purchases (29,992 ) (29,115 )
Loan balance due at year end 37,994 272,804
Trade debtor balance 79,305 79,184
Trade creditor balance (4,281 ) (18,031 )

Federated Scrap Ltd Sales 318,515 213,340
Purchases (30,350 ) (26,158 )
Loan balance due at year end 26,884 47,871
Trade debtor balance 33,470 -
Trade creditor balance - -

Hereford Self Storage Ltd Loan balance due at year end 98 -

HHD Developments Ltd Loan balance due at year end 153 -

Actual Aggregates Ltd Loan balance due at year end 161,664 161,664

Lamorak Plant Limited Sales 599 -
Purchases (49,270 ) -
Loan balance due at year end 126,951 -
Trade debtor balance 719 -
Trade creditor balance (40,632 ) -

Wye Valley Demolition Holdings
Limited

Loan interest receivable

175,295

-
Loan balance due at year end 2,137,500