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REGISTERED NUMBER: SC052151 (Scotland)















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

FOR

LOWMAC ALLOYS LIMITED

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


LOWMAC ALLOYS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTORS: Mr Andrew Cochrane Smith
Mr Kenneth Alexander Smith
Mr Arnold William Burgoyne
Mrs Gayle McCallum Smith


REGISTERED OFFICE: 67 Green Street Lane
AYR
Ayrshire
KA8 8BE


REGISTERED NUMBER: SC052151 (Scotland)


SENIOR STATUTORY AUDITOR: Mr John Duthie CA


AUDITORS: Galbraith Pritchards
Chartered Accountants & Statutory Auditor
20 Barns Street
Ayr
Ayrshire
KA7 1XA


INCORPORATED: 8 January 1973

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024


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

REVIEW OF BUSINESS
The profit for the year, after taxation is £784,325 (2023: £1,690,192)

The directors are pleased with the company's results for the year. Although the economy of the country is still going through a recession and has brought new challenges to be faced, there are still opportunities and areas of growth to utilise in expanding the business. The company continues to be in a strong financial position at the year end.

In the previous year, a new company was set up which acquired 100% of the shares of the parent company. This is part of the plan in ensuring the long-term future of the Group.

The results for the year and financial position of the company are as shown in the financial statements.

KEY PERFORMANCE INDICATORS:

2024 2023
£ £
Turnover 21,272,311 22,293,369
Gross profit 6,676,562 7,309,512
Operating profit 1,069,323 2,157,515


PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the company relate to the overall economic climate, the state of the market, supply of materials and financial situation of customers affecting its subsidiary companies .

ON BEHALF OF THE BOARD:





Mr Arnold William Burgoyne - Director


26 February 2025

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2024


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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of scrap metal merchants and waste disposal contractors.

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2024.

FUTURE DEVELOPMENTS
The directors remain confident in the field of recycling and are looking forward to the opportunities and challenges of the future. Further investment is being made into new technology within the company.

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

Mr Andrew Cochrane Smith
Mr Kenneth Alexander Smith
Mr Arnold William Burgoyne

Other changes in directors holding office are as follows:

Mrs Gayle McCallum Smith - appointed 23 August 2023

DISCLOSURE IN THE STRATEGIC REPORT
Please refer to the strategic report for a review of the business and discussion of the principal risks and uncertainties.

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.

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2024


AUDITORS
The auditors, Galbraith Pritchards, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr Arnold William Burgoyne - Director


26 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LOWMAC ALLOYS LIMITED


Opinion
We have audited the financial statements of Lowmac Alloys Limited (the 'company') for the year ended 31 May 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 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
LOWMAC ALLOYS 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and, enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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
LOWMAC ALLOYS 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.




Mr John Duthie CA (Senior Statutory Auditor)
for and on behalf of Galbraith Pritchards
Chartered Accountants & Statutory Auditor
20 Barns Street
Ayr
Ayrshire
KA7 1XA

27 February 2025

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

31/5/24 31/5/23
Notes £    £   

TURNOVER 21,272,311 22,293,369

Cost of sales 14,595,749 14,983,857
GROSS PROFIT 6,676,562 7,309,512

Administrative expenses 5,681,313 5,247,256
995,249 2,062,256

Other operating income 74,074 95,259
OPERATING PROFIT 4 1,069,323 2,157,515

Interest receivable and similar income 38,958 3,272
1,108,281 2,160,787

Interest payable and similar expenses 5 - 3,092
PROFIT BEFORE TAXATION 1,108,281 2,157,695

Tax on profit 6 323,956 467,503
PROFIT FOR THE FINANCIAL YEAR 784,325 1,690,192

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

31/5/24 31/5/23
Notes £    £   

PROFIT FOR THE YEAR 784,325 1,690,192


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

784,325

1,690,192

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

BALANCE SHEET
31 MAY 2024

31/5/24 31/5/23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 8,429,144 8,343,306
8,429,144 8,343,306

CURRENT ASSETS
Stocks 10 23,996 27,885
Debtors 11 4,806,242 5,550,049
Prepayments and accrued income 381,945 383,029
Cash at bank and in hand 10,621,633 9,043,174
15,833,816 15,004,137
CREDITORS
Amounts falling due within one year 12 2,646,762 2,683,098
NET CURRENT ASSETS 13,187,054 12,321,039
TOTAL ASSETS LESS CURRENT
LIABILITIES

21,616,198

20,664,345

PROVISIONS FOR LIABILITIES 14 1,136,789 969,261
NET ASSETS 20,479,409 19,695,084

CAPITAL AND RESERVES
Called up share capital 15 5,000 5,000
Retained earnings 16 20,474,409 19,690,084
SHAREHOLDERS' FUNDS 20,479,409 19,695,084

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

BALANCE SHEET - continued
31 MAY 2024


The financial statements were approved by the Board of Directors and authorised for issue on 26 February 2025 and were signed on its behalf by:





Mr Kenneth Alexander Smith - Director


LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2022 5,000 19,089,370 19,094,370

Changes in equity
Dividends - (1,089,478 ) (1,089,478 )
Total comprehensive income - 1,690,192 1,690,192
Balance at 31 May 2023 5,000 19,690,084 19,695,084

Changes in equity
Total comprehensive income - 784,325 784,325
Balance at 31 May 2024 5,000 20,474,409 20,479,409

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

31/5/24 31/5/23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,507,534 2,237,916
Interest element of hire purchase or finance
lease rental payments paid

-

(3,092

)
Tax paid (221,423 ) (903,979 )
Net cash from operating activities 3,286,111 1,330,845

Cash flows from investing activities
Purchase of tangible fixed assets (2,221,135 ) (2,255,701 )
Sale of tangible fixed assets 474,525 322,000
Interest received 38,958 3,272
Net cash from investing activities (1,707,652 ) (1,930,429 )

Cash flows from financing activities
Capital repayments in year - (99,556 )
Equity dividends paid - (1,089,478 )
Net cash from financing activities - (1,189,034 )

Increase/(decrease) in cash and cash equivalents 1,578,459 (1,788,618 )
Cash and cash equivalents at beginning of
year

2

9,043,174

10,831,792

Cash and cash equivalents at end of year 2 10,621,633 9,043,174

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


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

31/5/24 31/5/23
£    £   
Profit before taxation 1,108,281 2,157,695
Depreciation charges 1,650,613 1,535,597
Loss/(profit) on disposal of fixed assets 10,160 (135,112 )
Amounts owed by group undertakings - (5,534 )
Finance costs - 3,092
Finance income (38,958 ) (3,272 )
2,730,096 3,552,466
Decrease/(increase) in stocks 3,889 (12,560 )
Decrease/(increase) in trade and other debtors 809,886 (181,451 )
Decrease in trade and other creditors (36,337 ) (1,120,539 )
Cash generated from operations 3,507,534 2,237,916

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 May 2024
31/5/24 1/6/23
£    £   
Cash and cash equivalents 10,621,633 9,043,174
Year ended 31 May 2023
31/5/23 1/6/22
£    £   
Cash and cash equivalents 9,043,174 10,831,792


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/6/23 Cash flow At 31/5/24
£    £    £   
Net cash
Cash at bank and in hand 9,043,174 1,578,459 10,621,633
9,043,174 1,578,459 10,621,633
Total 9,043,174 1,578,459 10,621,633

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


1. STATUTORY INFORMATION

Lowmac Alloys Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

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

Turnover is recognised when a sale or service has been delivered against a binding obligation on the customer and the right to the consideration has been earned by the company.

GOODWILL
Goodwill being the amount paid in connection with the acquisition of businesses bought has been fully amortised over its estimated useful life.

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 reducing balance
Plant and machinery - 25% on reducing balance and 10% on reducing balance
Motor vehicles - 25% on reducing balance

A review of impairment is carried out at each reporting date. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

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

FINANCIAL INSTRUMENTS
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.


LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


2. ACCOUNTING POLICIES - continued
TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

HIRE PURCHASE AND LEASING COMMITMENTS
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company contributes to employees' and directors' personal defined contribution pension schemes. Contributions payable to the employees' and directors' pension schemes are charged to the profit and loss account in the period to which they relate.

GOVERNMENT GRANTS
Government grants received relating to capital expenditure are initially credited to deferred income on the balance sheet and then credited to the profit and loss account over the expected useful lives of the assets involved.

Government grants relating to revenue expenditure are credited to the profit and loss account in the period the revenue expenditure occurred.

3. EMPLOYEES AND DIRECTORS
31/5/24 31/5/23
£    £   
Wages and salaries 3,027,459 2,832,323
Social security costs 314,957 300,789
Other pension costs 139,814 109,978
3,482,230 3,243,090

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31/5/24 31/5/23

Office staff, sales & administration 20 16
Processing workers & drivers 64 66
84 82

31/5/24 31/5/23
£    £   
Directors' remuneration 614,957 669,117
Directors' pension contributions to money purchase schemes 83,700 42,519

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

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
31/5/24 31/5/23
£    £   
Emoluments etc 224,882 227,882
Pension contributions to money purchase schemes 1,346 1,321

4. OPERATING PROFIT

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

31/5/24 31/5/23
£    £   
Depreciation - owned assets 1,650,612 1,535,597
Loss/(profit) on disposal of fixed assets 10,160 (135,112 )
Auditors' remuneration and expenses 23,250 11,000
Other non- audit services 32,250 27,750

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31/5/24 31/5/23
£    £   
Finance charges - 3,092

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/5/24 31/5/23
£    £   
Current tax:
UK corporation tax 156,428 154,003

Deferred tax 167,528 313,500
Tax on profit 323,956 467,503

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:

31/5/24 31/5/23
£    £   
Profit before tax 1,108,281 2,157,695
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

277,070

539,424

Effects of:
Expenses not deductible for tax purposes 15,223 9,872
Income not taxable for tax purposes (787 ) -
Capital allowances in excess of depreciation (135,078 ) (287,420 )
Deferred tax 167,528 313,500

Other adjustment - (107,873 )
Total tax charge 323,956 467,503

7. DIVIDENDS
31/5/24 31/5/23
£    £   
Ordinary shares of 10p each
Interim - 1,089,478

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 72,200
AMORTISATION
At 1 June 2023
and 31 May 2024 72,200
NET BOOK VALUE
At 31 May 2024 -
At 31 May 2023 -

9. TANGIBLE FIXED ASSETS
Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
COST
At 1 June 2023 4,059,140 11,439,145 2,563,715 18,062,000
Additions - 1,945,385 275,750 2,221,135
Disposals - (1,430,179 ) (414,650 ) (1,844,829 )
At 31 May 2024 4,059,140 11,954,351 2,424,815 18,438,306
DEPRECIATION
At 1 June 2023 1,444,307 6,691,252 1,583,135 9,718,694
Charge for year 130,741 1,225,154 294,717 1,650,612
Eliminated on disposal - (1,022,958 ) (337,186 ) (1,360,144 )
At 31 May 2024 1,575,048 6,893,448 1,540,666 10,009,162
NET BOOK VALUE
At 31 May 2024 2,484,092 5,060,903 884,149 8,429,144
At 31 May 2023 2,614,833 4,747,893 980,580 8,343,306

10. STOCKS
31/5/24 31/5/23
£    £   
Trading stock 23,996 27,885

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/5/24 31/5/23
£    £   
Trade debtors 4,388,001 5,209,796
Amounts owed by group undertakings 146,816 146,816
Other debtors 3,160 3,160
Directors' loan account 65,729 52,736
Tax 16,331 16,331
Corporation tax 186,205 121,210
4,806,242 5,550,049

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/5/24 31/5/23
£    £   
Trade creditors 2,100,200 1,991,969
Company credit card 1,564 2,560
Social security and other taxes 80,775 57,448
VAT 332,701 420,919
Accrued expenses 131,522 210,202
2,646,762 2,683,098

The accrued expenses figure includes pension contributions in the amount of £10,801 (2023: £10,551).

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31/5/24 31/5/23
£    £   
Within one year 148,127 148,127
Between one and five years 259,222 407,348
407,349 555,475

14. PROVISIONS FOR LIABILITIES
31/5/24 31/5/23
£    £   
Deferred tax 1,136,789 969,261

Deferred
tax
£   
Balance at 1 June 2023 969,261
Provided during year 167,528
Balance at 31 May 2024 1,136,789

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/5/24 31/5/23
value: £    £   
50,000 Ordinary 10p 5,000 5,000

16. RESERVES
Retained
earnings
£   

At 1 June 2023 19,690,084
Profit for the year 784,325
At 31 May 2024 20,474,409

17. ULTIMATE PARENT COMPANY

Lowmac Alloys Holdings Limited is regarded by the directors as being the company's ultimate parent company.

Group accounts are prepared and can be obtained from Lowmac Alloys Holdings Limited, 67 Green Street Lane,
Ayr, Ayrshire, KA8 8BE.

18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 May 2024 and 31 May 2023:

31/5/24 31/5/23
£    £   
Mr Andrew Cochrane Smith
Balance outstanding at start of year 22,584 12,677
Amounts advanced 10,466 9,907
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 33,050 22,584

Mr Kenneth Alexander Smith
Balance outstanding at start of year 30,152 21,159
Amounts advanced 2,528 8,993
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 32,680 30,152

LOWMAC ALLOYS LIMITED (REGISTERED NUMBER: SC052151)

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


18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

Mr Robert James Kennedy Hall
Balance outstanding at start of year - 7,500
Amounts repaid - (7,500 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

19. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31/5/24 31/5/23
£    £   
Dividends paid - 1,089,478

Key management personnel of the entity or its parent (in the aggregate)
31/5/24 31/5/23
£    £   
Sales - 24,170
Purchases 43,874 44,736
Remuneration paid to family members 40,276 43,574
Amount due to related party 495 5,374

The ultimate controlling party is Mr Kenneth Alexander Smith.