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REGISTERED NUMBER: 04053813 (England and Wales)















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

FOR

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 30 June 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED

COMPANY INFORMATION
for the Year Ended 30 June 2024







DIRECTORS: M Donoghue
J Duffield
J Milner
Mrs L A Norrie





REGISTERED OFFICE: English Street
Hull
HU3 2BS





REGISTERED NUMBER: 04053813 (England and Wales)





AUDITORS: Sowerby
Chartered Accountants and Statutory Auditors
Beckside Court
Annie Reed Road
Beverley
East Yorkshire
HU17 0LF

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

STRATEGIC REPORT
for the Year Ended 30 June 2024


The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The principal activity of the company throughout the year has continued to be that of steel stockholding.

Review of the business and going concern

During 2024, the steel-using sectors declined more severely than estimated (-2.7% vs -1.6%) due to the construction sector experiencing a second recession.

This resulted in lower demand throughout 2024, while the company's floor stock prices remained high because of increases in market rates witnessed during 2023. With the continued rise in energy costs, these factors combined had a real impact on the company's performance throughout 2024 and resulted in a reduction in tonnage sold. However, by controlling overheads and with the commitment of all staff, the board of directors are pleased with the group's overall performance.

Even though the company is still feeling the impact of the factors that influenced the 2024 results in the current year, and despite not being able to control external forces, the directors are optimistic about the future. The company is in a strong position, allowing it to react quickly to both upturns and downturns in the market.

The directors are also delighted to announce that, during 2024, the Group transitioned to an employee ownership trust, marking a significant milestone in the company's history. This move ensures that our business remains independent and reflects our commitment to our staff, suppliers and, most importantly, our customers.





MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

STRATEGIC REPORT
for the Year Ended 30 June 2024



The company's key financial performance indicators during the year were as follows:

2024 2023
£ £

Gross profit 1,759,792 2,049,920

Profit on ordinary activities before taxation and
depreciation


727,118

734,458


Days stock held 46 days 45 days

The directors believe that the key risks facing the company include the following:

Risks facing the group

The group operates in a global market and is exposed to both disruption in supply and volatility in global financial markets.

The use of steel in the UK is largely dependent on housing and large capital projects. Instability and inflation in UK financial markets can affect the availability of capital to fund such projects. However, based on recent Government announcements, the directors are optimistic regarding the use of steel over the next few years.

The directors have established controls to enable them to respond to, and mitigate the impact of, such risks and can therefore act quickly and appropriately as and when needed.

ON BEHALF OF THE BOARD:





Mrs L A Norrie - Director


17 March 2025

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

REPORT OF THE DIRECTORS
for the Year Ended 30 June 2024


The directors present their report with the financial statements of the company for the year ended 30 June 2024.

DIVIDENDS
The total distribution of dividends for the year ended 30 June 2024 will be £ 200,050 .

FUTURE DEVELOPMENTS
The directors aim to pursue management policies to aid the continued growth of the company.

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

M Donoghue
J Duffield
J Milner
Mrs L A Norrie

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise trade debtors, trade creditors, bank overdrafts and hire purchase agreements. The main purpose of these instruments is to raise funds to finance the company's operations.

The company's approach to managing risks applicable to the financial instruments is shown below.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

In respect of bank overdrafts, liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating and fixed rates of interest.

The company is a lessee in respect of finance leased assets. The monthly repayments on finance lease agreements are fixed and liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

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), 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 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.


MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

REPORT OF THE DIRECTORS
for the Year Ended 30 June 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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.

ON BEHALF OF THE BOARD:





Mrs L A Norrie - Director


17 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED


Opinion
We have audited the financial statements of Michael Barugh Steel Stockholding Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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.

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

However, in identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- we also obtained an understanding of the legal and regulatory frameworks that the company operates in and determined that the most significant are those that relate to the reporting framework, FRS 102, the Companies Act 2006 and the relevant tax laws and regulations in the UK. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, relating in majority to general health and safety and employee matters;

- we reviewed results of our enquiries of management about their own identification and assessment of the risks of irregularities; and assessed how the entity identifies, evaluates and complies with laws and regulations and whether management were aware of any instances of non-compliance. We corroborated our enquiries through our review of board minutes and consideration of the results of our audit procedures across the company;

- we also considered how the entity detects and responds to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and;

- we considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those controls

- the internal controls established to mitigate risks of non-compliance with laws and regulations were also investigated.

- we also considered the existence of performance targets and their potential influence on management to manage earnings.

- where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

We reviewed financial statement disclosures and performed testing to supporting documentation to assess compliance with applicable laws and regulations.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED

We also tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. There was a focus on manual journals and journals indicating large or unusual transactions; enquiries of company management; and challenging the assumptions and judgements made by management by reviewing third party evidence wherever possible.

The results of our procedures did not identify any instances or irregularities, including fraud.

No inherent difficulties were found in the standard processes for detecting irregularities; due to the minimal negative impact upon the business in the current year due to the sector in which it operates and the controls put in place, there was no significant shift in the control environment in the current year. This also meant that the nature, timing and extent of the audit procedures performed were not significantly impacted.

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.

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.




Elizabeth Blanchard BA(Hons) BFP ACA PGCE (Senior Statutory Auditor)
for and on behalf of Sowerby
Chartered Accountants and Statutory Auditors
Beckside Court
Annie Reed Road
Beverley
East Yorkshire
HU17 0LF

17 March 2025

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

STATEMENT OF COMPREHENSIVE INCOME
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

TURNOVER 10,392,660 13,790,196

Cost of sales 8,632,868 11,740,276
GROSS PROFIT 1,759,792 2,049,920

Administrative expenses 1,151,552 1,440,803
OPERATING PROFIT and
PROFIT BEFORE TAXATION 608,240 609,117

Tax on profit 5 140,176 144,029
PROFIT FOR THE FINANCIAL YEAR 468,064 465,088

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

468,064

465,088

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

BALANCE SHEET
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 209,734 301,242

CURRENT ASSETS
Stocks 8 852,718 1,085,736
Debtors 9 2,066,779 2,802,583
Cash at bank and in hand 2,186,219 1,566,160
5,105,716 5,454,479
CREDITORS
Amounts falling due within one year 10 1,696,044 2,354,503
NET CURRENT ASSETS 3,409,672 3,099,976
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,619,406

3,401,218

PROVISIONS FOR LIABILITIES 12 45,246 95,072
NET ASSETS 3,574,160 3,306,146

CAPITAL AND RESERVES
Called up share capital 13 12,050 12,050
Share premium 6,300 6,300
Capital redemption reserve 40,002 40,002
Retained earnings 3,515,808 3,247,794
SHAREHOLDERS' FUNDS 3,574,160 3,306,146

The financial statements were approved by the Board of Directors and authorised for issue on 17 March 2025 and were signed on its behalf by:





J Duffield - Director


MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 30 June 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 July 2022 12,050 3,382,706 6,300 40,002 3,441,058

Changes in equity
Dividends - (600,000 ) - - (600,000 )
Total comprehensive income - 465,088 - - 465,088
Balance at 30 June 2023 12,050 3,247,794 6,300 40,002 3,306,146

Changes in equity
Dividends - (200,050 ) - - (200,050 )
Total comprehensive income - 468,064 - - 468,064
Balance at 30 June 2024 12,050 3,515,808 6,300 40,002 3,574,160

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 30 June 2024


1. STATUTORY INFORMATION

Michael Barugh Steel Stockholding Limited is a private company limited by shares and incorporated and domiciled in England. It has its registered office and principal place of business at English Street, Hull, HU3 2BS.

The principal activity of the company is that of steel suppliers.

The presentational currency of the financial statements is Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
Going Concern
Having regard to liquidity risk, current market conditions and other factors affecting the company, the use of the going concern basis of accounting is appropriate as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the group to continue as a going concern.

The company's financial forecasts, taking into consideration the current environment, show that the group is expected to maintain a strong position, enabling it to continue operating for the foreseeable future.

Based on these facts and on the current financial position, forecasts and cash flows of the group, the directors have concluded that it is appropriate for the financial statements to be prepared on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is the amount derived from ordinary activities, measured at the fair value of the consideration received or receivable. Turnover excludes value added tax and trade discounts. Turnover is recognised at point of sale.

Sales are recognised at the point which the company has fulfilled its contractual obligations and the risks and rewards attached to the product, have been transferred to the customer.

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Office equipment - 25% on cost

Fixed assets are recognised under the historical cost model. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. 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. Stock is calculated on the first in first out basis.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 taxation
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
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
Short-term employee benefits are recognised as an expense in the period they are incurred.

The obligations for contributions to defined contribution scheme are recognised as an expense in the period they are incurred. The assets of the scheme are held separately from those of the company in an independent administered fund.

Trade and other debtors
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such case the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


2. ACCOUNTING POLICIES - continued

Trade and other creditors
Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Impairment of financial assets

Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that have occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

Interest bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;

(ii) the company and the party are subject to common control;

(iii) the party is an associate of the company or a joint venture in which the company is a venture

(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;

(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company.

(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,079,851 1,487,316
Social security costs 110,341 147,494
Other pension costs 25,975 82,503
1,216,167 1,717,313

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

Office and administration 7 7
Warehouse 25 26
32 33

2024 2023
£    £   
Directors' remuneration 272,511 404,186
Directors' pension contributions to money purchase schemes 11,433 62,425

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

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 85,291 128,261
Pension contributions to money purchase schemes 2,558 2,498

4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Other operating leases 133,620 132,000
Depreciation - owned assets 118,877 125,349
Auditors' remuneration 33,000 33,250

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 190,002 143,779

Deferred tax (49,826 ) 250
Tax on profit 140,176 144,029

UK corporation tax has been charged at 25% (2023 - 25%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 608,240 609,117
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
25%)

152,060

152,279

Effects of:
Expenses not deductible for tax purposes 10,489 1,530
Depreciation in excess of capital allowances 27,453 21,567

Deferred tax (49,826 ) 250
Differences due to changes in the tax rate - (31,597 )
Total tax charge 140,176 144,029

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. In the year to 30 June 2024, deferred tax is charged at 25% (2023 - 25%).

6. DIVIDENDS
2024 2023
£    £   
A Ordinary shares of £1 each
Interim 200,050 600,000

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


7. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 July 2023 72,846 170,153 72,506
Additions 19,208 2,413 1,050
At 30 June 2024 92,054 172,566 73,556
DEPRECIATION
At 1 July 2023 72,576 92,692 50,717
Charge for year 4,112 11,821 5,429
At 30 June 2024 76,688 104,513 56,146
NET BOOK VALUE
At 30 June 2024 15,366 68,053 17,410
At 30 June 2023 270 77,461 21,789

Motor Office
vehicles equipment Totals
£    £    £   
COST
At 1 July 2023 688,028 82,124 1,085,657
Additions - 4,698 27,369
At 30 June 2024 688,028 86,822 1,113,026
DEPRECIATION
At 1 July 2023 487,318 81,112 784,415
Charge for year 96,680 835 118,877
At 30 June 2024 583,998 81,947 903,292
NET BOOK VALUE
At 30 June 2024 104,030 4,875 209,734
At 30 June 2023 200,710 1,012 301,242

8. STOCKS
2024 2023
£    £   
Stocks 852,718 1,085,736

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,723,515 2,471,360
Other debtors 265,997 258,853
Prepayments 77,267 72,370
2,066,779 2,802,583

The invoice discounting facility is secured on the trade debts of the company. The liability outstanding at the year end was £nil (2022 £nil) as the facility was not being utilised at the year end.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,265,967 1,738,598
Tax 190,002 143,779
Social security and other taxes 25,023 28,584
VAT 129,734 191,423
Accrued expenses 85,318 252,119
1,696,044 2,354,503

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 94,352 94,352
Between one and five years 85,690 85,690
In more than five years 21,423 107,113
201,465 287,155

12. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 45,246 95,072

MICHAEL BARUGH STEEL
STOCKHOLDING LIMITED (REGISTERED NUMBER: 04053813)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 June 2024


12. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 July 2023 95,072
Credit to Statement of Comprehensive Income during year (49,826 )
Balance at 30 June 2024 45,246

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
7,500 A Ordinary £1 7,500 7,500
4,550 B Ordinary £1 4,550 4,550
12,050 12,050

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

14. ULTIMATE PARENT COMPANY

M.B.S.S. Limited is regarded by the directors as being the company's ultimate parent company.

15. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 283,944 (2023 - £ 466,611 ) was paid.