Company registration number 08551338 (England and Wales)
NUMERCO LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MAY 2024
One Bell Lane
Lewes
East Sussex
BN7 1JU
NUMERCO LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12 - 13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 28
NUMERCO LIMITED
COMPANY INFORMATION
Directors
Mr S Lawrence
Mr C Tee
Mr G Turner
Company number
08551338
Registered office
3 London Bridge Street
London
SE1 9SG
Auditor
TC Group
One Bell Lane
Lewes
East Sussex
BN7 1JU
Bankers
Investec Bank Plc
30 Gresham Street
London
EC2V 7QN
Lloyds Bank Plc
25 Gresham Street
London
EC2V 7HN
- 1 -
NUMERCO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Review of the business

The results of the operations continue to be impacted by several external factors by product line.  In nuclear fuel, results are positively correlated with the spot price of uranium oxide, to its volatility and the existence of economic contango. We saw the uranium price move significantly during the financial year, from $54.5/Lb to a high of $107/Lb, we also observed a reduction of volatility and a flatting of the contango. During the period, the company invoiced for nuclear fuel transactions with a total volume of 19.7m Lbs U3O8 (Down 1.02% YoY), although fractionally lower volumes, this was offset by the higher prevailing prices.

 

In the environmental products in which we operate, we saw a contraction in the underlying market and weakening of prevailing prices. This resulted in a reduction in trading volumes being, with transactions concluded totalling 5.4m Tonnes CO2e (Down 23.5% YoY), however the company remains focused on project development and is positive on the long-term outlook. We are well positioned for post Kyoto changes in pre-compliance markets under a future Paris Agreement, with a focus on Article 6 compliant and aviation emission markets.

 

In marine fuel we began to scale up the principal transaction volume significantly, at the same time as reducing the legacy agency business outside of larger sized transactions beyond our financing capacity. We’ve established a solid value add proposition on the operations and risk management side, which has subsequently resulted in a growth in the business to 238,793 tonnes, down from the overall tonnes dealt last year, but significantly higher number of principal transactions. We continue to look to gain market share in order to be well positioned for the energy transition of shipping and the coupling with our wider environmental markets business.

 

The directors continue to use a combination of key metrics to monitor the performance and financial condition of the company.  These metrics include turnover, operating profit, the level of working capital and the amount of shareholders funds.  On the basis of basis of these considerations, the directors believe the year end financial position represented a satisfactory outcome to the operating period.

 

Results

As a result of factors detailed above the companies turnover increased 7% to £65.7m, owed largely to the growth in marine fuel activities.  The companies operating profit amounted to £5.0m, down 17% yoY from £6.0m and owed predominantly to the uranium business and the income realised from the increase in market value of inventory positions.  The company’s net assets also shrunk marginally to £9.6m, down 0.4% from the previous years figure of £9.8m.

Principal risks and uncertainties

The principal risk facing the company arise from competition from other intermediaries.  This is in part mitigated by the organisation and all staff dedicating and committing to high standards of integrity and fair dealing, creating long and meaning relationships with clients to utilise the companies skills in providing intellectual and technical solutions.  Other risks include market price risk, affecting inventory positions, counterparty credit and performance risk, liquidity risk, foreign exchange risk, along with operational and legislative risk.  The directors conform to an internal framework on risk management designed to monitor and manage these risks and to protect the company’s assets.

- 2 -
NUMERCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

On behalf of the board

Mr S Lawrence
Director
25 February 2025
- 3 -
NUMERCO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activities of the company continue to be the facilitation of nuclear fuel transactions with supporting price transparency and market risk technology.  The investment, development, and trading of global environmental market products, and the principal trading of low sulphur marine fuels.  Other minor activities include data sales and principal investment strategy activity.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £4,439,090. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Lawrence
Mr C Tee
Mr G Turner
Future developments

We continue to work towards further diversification of the product lines in which we trade, with a primary focus on energy supply chains or energy market related products.  We continue to build, invest and release new technology solutions to aid this activity and support our client base with their decision making.

Auditor

TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

- 4 -
NUMERCO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
On behalf of the board
Mr S Lawrence
Director
25 February 2025
- 5 -
NUMERCO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

The directors are responsible for preparing the annual report 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:

 

 

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.

- 6 -
NUMERCO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NUMERCO LIMITED
Opinion

We have audited the financial statements of Numerco Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

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NUMERCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NUMERCO LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors
- 8 -

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

NUMERCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NUMERCO LIMITED

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

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NUMERCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NUMERCO 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 an auditor's report 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.

David Martin FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
25 February 2025
Office: Lewes
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NUMERCO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
2024
2023
Notes
£
£
Turnover
3
65,654,533
61,329,012
Cost of sales
(58,159,568)
(52,265,472)
Gross profit
7,494,965
9,063,540
Administrative expenses
(2,493,837)
(3,027,277)
Operating profit
4
5,001,128
6,036,263
Interest receivable and similar income
8
7,844
10,356
Interest payable and similar expenses
7
-
0
(14,133)
Gains/(losses) on sale of current asset investments
9
567,471
(140,943)
Profit before taxation
5,576,443
5,891,543
Tax on profit
10
(1,399,536)
(1,184,564)
Profit for the financial year
4,176,907
4,706,979

There was no other comprehensive income for 2024 (2023: £Nil).

The notes on pages 16 to 28 form part of these financial statements
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NUMERCO LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
6,000
12,000
Tangible assets
13
10,231
9,337
16,231
21,337
Current assets
Stocks
15
3,670,199
4,190,968
Debtors
16
3,267,776
6,328,196
Investments
17
140,150
351,376
Cash at bank and in hand
5,045,556
3,618,473
12,123,681
14,489,013
Creditors: amounts falling due within one year
18
(2,557,816)
(4,666,493)
Net current assets
9,565,865
9,822,520
Total assets less current liabilities
9,582,096
9,843,857
Provisions for liabilities
Deferred tax liability
19
2,557
2,135
(2,557)
(2,135)
Net assets
9,579,539
9,841,722
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
9,579,439
9,841,622
Total equity
9,579,539
9,841,722

The notes on pages 16 to 28 form part of these financial statements.

- 12 -
NUMERCO LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MAY 2024
31 May 2024

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
Mr S Lawrence
Director
Company registration number 08551338 (England and Wales)
- 13 -
NUMERCO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
100
10,974,643
10,974,743
Year ended 31 May 2023:
Profit and total comprehensive income
-
4,706,979
4,706,979
Dividends
11
-
(5,840,000)
(5,840,000)
Balance at 31 May 2023
100
9,841,622
9,841,722
Year ended 31 May 2024:
Profit and total comprehensive income
-
4,176,907
4,176,907
Dividends
11
-
(4,439,090)
(4,439,090)
Balance at 31 May 2024
100
9,579,439
9,579,539

The notes on pages 16 to 28 form part of these financial statements.

- 14 -
NUMERCO LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
6,628,625
7,922,315
Interest paid
-
0
(14,133)
Income taxes paid
(1,656,272)
(2,030,976)
Net cash inflow from operating activities
4,972,353
5,877,206
Investing activities
Purchase of intangible assets
-
0
(18,000)
Purchase of tangible fixed assets
(5,542)
(2,842)
Proceeds from disposal of investments
778,697
(312,729)
Repayment of loans
112,821
(111,287)
Interest received
7,844
10,356
Net cash generated from/(used in) investing activities
893,820
(434,502)
Financing activities
Dividends paid
(4,439,090)
(5,840,000)
Net cash used in financing activities
(4,439,090)
(5,840,000)
Net increase/(decrease) in cash and cash equivalents
1,427,083
(397,296)
Cash and cash equivalents at beginning of year
3,618,473
4,015,769
Cash and cash equivalents at end of year
5,045,556
3,618,473

The notes on pages 16 to 28 form part of these financial statements.

- 15 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
Company information

Numerco Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 London Bridge Street, London, SE1 9SG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. true

 

At the time of approving the financial statements, the directors believe that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.

1.3
Turnover
- 16 -

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 takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
33% Straight line basis
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
33% reducing balance

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

1.7
Impairment of fixed assets
- 17 -

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
1.8
Stocks
- 18 -

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

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NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. 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 end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences 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.

- 20 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
1.13
Employee benefits

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

 

The cost 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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Foreign exchange

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 retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
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 had the most significant effect on amounts recognised in the financial statements.

Accrued and deferred income

Accrued and deferred income is reviewed for impairment loss on an annual basis and provision made for any balances where there is uncertainty against the recoverability of the balance. This methodology is applied on a customer by customer basis.

Stocks

The company reviews the net realisable value of its stocks on a regular basis to provide assurance that recorded stocks are stated at the lower of cost or net realisable value.

- 21 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Wholesale supply
65,654,533
61,329,012
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,063,603
3,434,425
Europe
51,867,082
48,572,578
United States of America
3,217,072
7,298,152
Rest of the World
9,506,776
2,023,857
65,654,533
61,329,012
2024
2023
£
£
Other revenue
Interest income
7,844
10,356
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
336,123
611,606
Fees payable to the company's auditor for the audit of the company's financial statements
17,000
17,520
Depreciation of owned tangible fixed assets
4,648
4,429
Amortisation of intangible assets
6,000
6,000
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
6
6
- 22 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
5
Employees
(Continued)

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
727,704
855,721
Social security costs
93,708
114,861
Pension costs
9,246
9,246
830,658
979,828
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
27,180
24,462
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
-
0
14,133
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
7,844
10,356
9
(Loss)/gain on investments
2024
2023
£
£
Gain/(loss) on disposal of current asset investments
567,471
(140,943)
- 23 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,399,114
1,185,160
Deferred tax
Origination and reversal of timing differences
422
(596)
Total tax charge
1,399,536
1,184,564

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
5,576,443
5,891,543
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
1,394,111
1,178,309
Tax effect of expenses that are not deductible in determining taxable profit
5,425
6,362
Effect of change in corporation tax rate
-
0
41
Effect of 130% super deduction
-
0
(148)
Taxation charge for the year
1,399,536
1,184,564
11
Dividends
2024
2023
£
£
Final paid
4,439,090
5,840,000
- 24 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
12
Intangible fixed assets
Development costs
£
Cost
At 1 June 2023 and 31 May 2024
51,311
Amortisation and impairment
At 1 June 2023
39,311
Amortisation charged for the year
6,000
At 31 May 2024
45,311
Carrying amount
At 31 May 2024
6,000
At 31 May 2023
12,000
13
Tangible fixed assets
Plant and equipment
£
Cost
At 1 June 2023
37,209
Additions
5,542
At 31 May 2024
42,751
Depreciation and impairment
At 1 June 2023
27,872
Depreciation charged in the year
4,648
At 31 May 2024
32,520
Carrying amount
At 31 May 2024
10,231
At 31 May 2023
9,337
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
140,150
351,376
- 25 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,670,199
4,190,968
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
466,229
1,531,413
Other debtors
62,096
156,125
Prepayments and accrued income
2,739,451
4,640,658
3,267,776
6,328,196
17
Current asset investments
2024
2023
£
£
Unlisted investments
140,150
351,376
18
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
91,921
1,106,194
Corporation tax
227,936
485,094
Other taxation and social security
-
0
104,144
Other creditors
20,927
4,970
Accruals and deferred income
2,217,032
2,966,091
2,557,816
4,666,493
- 26 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
2,557
2,334
Investments
-
(199)
2,557
2,135
2024
Movements in the year:
£
Liability at 1 June 2023
2,135
Charge to profit or loss
422
Liability at 31 May 2024
2,557
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.0001p each
1,000,000
1,000,000
100
100
21
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
15,661
15,661
Between two and five years
42
15,746
15,703
31,407
- 27 -
NUMERCO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
22
Directors' transactions

Dividends totalling £4,439,090 (2023 - £5,840,000) were paid in the year in respect of shares held by the company's directors and their immediate family.

 

During the year, a loan of £500,000 was advanced to a director and incurred interest at the prevailing HMRC rate totalling £1,406. This loan was then repaid in full during the year.

23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,176,907
4,706,979
Adjustments for:
Taxation charged
1,399,536
1,184,564
Finance costs
-
0
14,133
Investment income
(7,844)
(10,356)
Amortisation and impairment of intangible assets
6,000
6,000
Depreciation and impairment of tangible fixed assets
4,648
4,429
(Gain)/loss on sale of investments
(567,471)
140,943
Movements in working capital:
Decrease/(increase) in stocks
520,769
(111,979)
Decrease/(increase) in debtors
2,947,599
(424,415)
(Decrease)/increase in creditors
(1,851,519)
2,412,017
Cash generated from operations
6,628,625
7,922,315
24
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
3,618,473
1,427,083
5,045,556
- 28 -
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