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Registered number: 11284770









LOWES METALS AND RECYCLING LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
LOWES METALS AND RECYCLING LIMITED
 
 
COMPANY INFORMATION


Directors
A Lowe 
C Lowe 




Registered number
11284770



Registered office
Leytonstone House 
Hanbury Drive
Leytonstone

London

E11 1GA




Independent auditors
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA





 
LOWES METALS AND RECYCLING LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 23

 
LOWES METALS AND RECYCLING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present the Strategic report and the financial statements for the year ended 31 December 2024.

Business review
 
The directors report that the Company made a profit after tax of £736,956 (2023 - £1,106,615).
The main activity of the Company continues to be that of recovery and recycling of ferrous and non-ferrous metals, demolition, site clearances and skip hire. 

Principal risks and uncertainties
 
There are certain risks and uncertainties in the business which could affect future performance, these include:
Global market risks: There is uncertainty in the global market caused by factors such as the war in Ukraine and the costs of exports have a direct impact on the supply and demand of scrap metal. The Company will continue to monitor the impact of this and are prepared to adapt accordingly. 
Local economy risks: These risks are due to local businesses producing less scap metal as the UK economy struggles to grow and recover. 
Increased fire risk: The industry has experienced an increase in fires caused by lithium-ion batteries. These fires not only post a health and safety risk, but can also result in downtime and operational damage. The Company has reviewed the fire risk assessments and ensured that operational staff are fully trained to minimise the fire risk.

Financial key performance indicators
 
The Company uses several key performance indicators to monitor performance. These include sales volumes, gross and net margins and cost per tonne. 

Other key performance indicators
 
The Company ensures compliance with environmental permits as a key non-financial performance measure. Procedures are in place and monitored to ensure that the Company is compliant with these.


This report was approved by the board on 27 March 2025 and signed on its behalf.



C Lowe
Director
Page 1

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £736,956 (2023 - £1,106,615).

The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

A Lowe 
C Lowe 

Future developments

The directors do not expect there to be any material changes to the Company's business going forwards.

Page 2

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 March 2025 and signed on its behalf.
 





C Lowe
Director
Page 3

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOWES METALS AND RECYCLING LIMITED
 

Opinion


We have audited the financial statements of Lowes Metals and Recycling Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 March 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOWES METALS AND RECYCLING LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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:


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 Directors' responsibilities statement set out on page 2, 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.


Page 5

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOWES METALS AND RECYCLING LIMITED (CONTINUED)


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 an Auditors' 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory
frameworks that the company operates in and how the company is complying with the legal and regulatory
frameworks;
Enquired of management, and those charged with governance, about their own identification and
assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
Discussed matters about non-compliance with laws and regulations and how fraud might occur including
assessment of how and where the financial statements may be susceptible to fraud.

The most significant laws and regulations were determined as follows:
UK GAAP FRS 102 and Companies Act;
Tax compliance regulations.
 
Additional audit procedures performed by the audit engagement team included:
Review of the financial statement disclosures and testing to supporting documentation;
Completion of disclosure checklists to identify areas of non-compliance.

The areas that we identified as being susceptible to material misstatement due to fraud were:
Revenue recognition;
Management override; and
Cut-off.

Audit procedures in response to the identified areas above:
Obtaining an understanding of the processes and controls around revenue recognition;
Substantively testing revenue via various testing including transactional, cut off and sequencing;
Evaluation of the appropriateness of the accounting policies;
Testing the appropriateness of journal entries and other adjustments;
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
Evaluating the business rationale of any significant transactions that are unusual or outside the normal
course of business; and
Detailed review of post balance sheet trading and forecasts including variance analysis and enquiry with
management.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagementteammembers and remained alert to any indications of fraud or non-compliance with laws and regulationsthroughout the audit.


Page 6

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LOWES METALS AND RECYCLING LIMITED (CONTINUED)


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 Auditors' report.


Other matters 
 

In the previous accounting period the directors of the Company took advantage of audit exemption under s477 of the Companies Act. Therefore, the prior period financial statements were not subject to audit.


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 2006Our 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 Auditors' 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.





Stuart Moon (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

27 March 2025
Page 7

 
LOWES METALS AND RECYCLING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
As restated
Note
£
£

  

Turnover
 4 
10,822,895
12,678,142

Cost of sales
  
(8,222,838)
(10,148,897)

Gross profit
  
2,600,057
2,529,245

Administrative expenses
  
(1,649,229)
(1,285,847)

Other operating income
 5 
200,000
75,000

Operating profit
  
1,150,828
1,318,398

Tax on profit
 9 
(413,872)
(211,783)

Profit for the financial year
  
736,956
1,106,615

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

The notes on pages 11 to 23 form part of these financial statements.
Page 8

 
LOWES METALS AND RECYCLING LIMITED
REGISTERED NUMBER: 11284770

BALANCE SHEET
AS AT 31 MARCH 2024

2024
As restated 2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
1,541,625
1,708,312

Tangible assets
 12 
4,326,672
4,078,187

  
5,868,297
5,786,499

Current assets
  

Stocks
 13 
60,000
60,000

Debtors: amounts falling due within one year
 14 
303,209
590,050

Cash at bank and in hand
 15 
4,195,085
2,884,257

  
4,558,294
3,534,307

Creditors: amounts falling due within one year
 16 
(897,719)
(506,014)

Net current assets
  
 
 
3,660,575
 
 
3,028,293

Total assets less current liabilities
  
9,528,872
8,814,792

Provisions for liabilities
  

Deferred tax
 17 
(412,757)
(335,633)

Net assets
  
 
 
9,116,115
 
 
8,479,159


Capital and reserves
  

Called up share capital 
 18 
23
23

Share premium account
 19 
5,366,659
5,366,659

Profit and loss account
 19 
3,749,433
3,112,477

  
9,116,115
8,479,159


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 March 2025.




C Lowe
Director

The notes on pages 11 to 23 form part of these financial statements.
Page 9

 
LOWES METALS AND RECYCLING LIMITED
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
23
5,366,659
2,085,862
7,452,544


Comprehensive income for the year

Profit for the year (as restated)
-
-
1,106,615
1,106,615


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(80,000)
(80,000)



At 1 April 2023
23
5,366,659
3,112,477
8,479,159


Comprehensive income for the year

Profit for the year
-
-
736,956
736,956


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(100,000)
(100,000)


At 31 March 2024
23
5,366,659
3,749,433
9,116,115


The notes on pages 11 to 23 form part of these financial statements.

Page 10

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Lowes Metals and Recycling Limited ("the Company") is a private company limited by shares and incorporated in England and Wales. The address of the registered office is Leytonstone House, Hanbury Drive, Leytonstone, London, E11 1GA.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Lowes Metals Holdings Limited as at 31 March 2024 and these financial statements may be obtained from the Company's registered office.

Page 11

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.6

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
15
years

Page 13

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
2%
Straight line
Plant and machinery
-
15%
Reducing balance
Motor vehicles
-
25%
Reducing balance
Office equipment
-
33%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 15

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
No critical judgements or estimates have been made by management in preparing these financial statements.


4.


Turnover

The whole of the turnover is attributable to resale of recovered waste and scrap.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
As restated
£
£

Net rents receivable
200,000
75,000



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
10,000
-

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 16

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
310,728
243,497

Cost of defined contribution scheme
10,213
7,921

320,941
251,418


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
15
14


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
12,570
-

Company contributions to defined contribution pension schemes
173
-

12,743
-


During the year retirement benefits were accruing to 1 director (2023 - NIL) in respect of defined contribution pension schemes.

Page 17

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
267,133
242,551

Adjustments in respect of previous periods
69,615
-


Total current tax
336,748
242,551

Deferred tax


Origination and reversal of timing differences
77,124
(30,768)

Total deferred tax
77,124
(30,768)


Tax on profit
413,872
211,783

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,150,828
1,318,398


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
287,707
250,496

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(20,574)
61,670

Adjustments to tax charge in respect of prior periods
69,615
(69,615)

Short-term timing difference leading to an increase (decrease) in taxation
77,124
(30,768)

Total tax charge for the year
413,872
211,783


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Dividends

2024
2023
£
£


Ordinary dividends
100,000
80,000


11.


Intangible assets




Goodwill

£



Cost


At 1 April 2023
2,500,000



At 31 March 2024

2,500,000



Amortisation


At 1 April 2023
791,688


Charge for the year on owned assets
166,687



At 31 March 2024

958,375



Net book value



At 31 March 2024
1,541,625



At 31 March 2023
1,708,312



Page 19

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
3,000,550
1,813,015
347,202
275
5,161,042


Additions
-
437,419
203,369
-
640,788



At 31 March 2024

3,000,550
2,250,434
550,571
275
5,801,830



Depreciation


At 1 April 2023
264,896
615,043
202,641
275
1,082,855


Charge for the year on owned assets
60,011
245,309
86,983
-
392,303



At 31 March 2024

324,907
860,352
289,624
275
1,475,158



Net book value



At 31 March 2024
2,675,643
1,390,082
260,947
-
4,326,672



At 31 March 2023
2,735,654
1,197,972
144,561
-
4,078,187




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
2,675,643
2,735,654



13.


Stocks

2024
2023
£
£

Raw materials and consumables
60,000
60,000


Page 20

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Debtors

2024
2023
As restated
£
£


Trade debtors
233,025
198,513

Other debtors
3,950
-

Prepayments and accrued income
66,234
391,537

303,209
590,050



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
4,195,085
2,884,257



16.


Creditors: Amounts falling due within one year

2024
2023
As restated
£
£

Trade creditors
52,588
142,431

Corporation tax
336,749
242,551

Other taxation and social security
489,424
81,855

Accruals and deferred income
18,958
39,177

897,719
506,014



17.


Deferred taxation




2024


£






At beginning of year
(335,633)


Utilised in year
(77,124)



At end of year
(412,757)

Page 21

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
412,757
335,633


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



10 (2023 - 10) Ordinary A1 shares of £1.00 each
10
10
9 (2023 - 9) Ordinary A2 shares of £1.00 each
9
9
2 (2023 - 2) Ordinary A3 shares of £1.00 each
2
2
1 (2023 - 1) Ordinary C share of £1.00
1
1
1 (2023 - 1) Ordinary D share of £1.00
1
1

23

23

Ordinary A1, A2 and A3 shares are each entitled to one voting right and any dividend declared for that class of share. 
Ordinary C and D shares have no voting or dividend rights, but are entitled to their share of property held by the company in line with the Articles of Association.



19.


Reserves

Share premium account

The Share premium account represents amounts paid above the par value for ordinary share held in the Company.

Profit and loss account

The Profit and loss account consists of distributable reserves arising from cumulative histroical profits and losses less any distributions made.
Page 22

 
LOWES METALS AND RECYCLING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Prior year adjustment

The 2023 comparative has been restated in respect of sales that were delivered at the balance sheet date but not recognised until the following year and separately other income recognised in advance. The net financial effect is to increase profit in 2023 by £366,537, together with an equal adjustment in the balance sheet as follows:

£
Prepayments and accrued income

391,537

Accruals and deferred income

(25,000)

366,537



21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £10,213 (2023 - £7,921). No contributions (2023 - £Nil) were payable to the fund at the balance sheet date.


22.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
3,729
-


23.


Related party transactions

Included in staff costs is £80,945 (2023 - £65,303) of remuneration paid to close family members of the directors.


24.


Controlling party

The controlling party is Lowes Metals Holdings Limited.
 
Page 23