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REGISTERED NUMBER: 01715793 (England and Wales)






Firth Steels Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 July 2024






Firth Steels Limited (Registered number: 01715793)

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










Page

Company Information 1

Strategic Report 2

Report of the Directors 7

Report of the Independent Auditors 10

Income Statement 14

Other Comprehensive Income 15

Statement of Financial Position 16

Statement of Changes in Equity 17

Statement of Cash Flows 18

Notes to the Statement of Cash Flows 19

Notes to the Financial Statements 21


Firth Steels Limited

Company Information
for the year ended 31 July 2024







DIRECTORS: Mr R T Firth
Mr J T Firth
Mr S Booth





REGISTERED OFFICE: Calderbank
River Street
Brighouse
West Yorkshire
HD6 1LU





REGISTERED NUMBER: 01715793 (England and Wales)





AUDITORS: SMH Jolliffe Cork Audit Ltd
Accountants & Statutory Auditors
33 George Street
Wakefield
West Yorkshire
WF1 1LX

Firth Steels Limited (Registered number: 01715793)

Strategic Report
for the year ended 31 July 2024


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

REVIEW OF BUSINESS
Sales for the Year ended 31st July 2024 were £32.2m, this is a decrease of 17.9% from 2023 sales of £39.2m.

The reduction in performance through revenues can be widely perceived to be driven by the reducing prices and product mix flowing through production due to the stabilisation of the steel market in H2 2023 and throughout 2024.

Production measures such as tonnage manufactured show a consistent output in 2024 with that of 2023 with only a slight reduction of 2.5%, showing clear evidence that variances in revenue are price driven rather than volume.

Inflated steel prices within FY 2022 were primarily driven by global events such as the COVID-19 pandemic, with the upside being realised when pressures from funders, developers, and sites to get projects completed applied extensive pressure on the whole supply chain, subsequently driving the increase in prices due to shortages.

These inflated prices carried into the first half of FY 2023, with the second half of FY 2023 showing a lot of instability in prices as things started to reposition, as a result the price per unit of steel drastically reduced as the year developed.

The stabilisation of prices then came in FY 2024, albeit at the bottom end of the price ranges.

FY 2024 is more comparable to FY 2021, which was a more stable consistent market in terms of pricing. FY 2020 Revenue was £27.8m, therefore an upside of £4.4m is shown in FY 2024 (15.8%).

With a stabilising market in terms of unit prices and demand, came a further stabilisation in stock levels, with Year Ended July 2024 showing stock levels of £4.7m versus £6.2m at Year Ended July 2023 and £11.7m at Year Ended July 2022. As a business this has been a key focus over the last two financial years, bringing our inventory management back to a regular position and allowing capital in the business to make strategic investments.

Product Gross Margin (that is to say all sales less material costs and any credit notes and scrap adjustments) reduced from £8.6m in FY 2023 to £8.2m in FY 2024.

The reduction to Product Gross Margin is down to the reduction in Revenue rather than the reduction in Margin per unit, in fact Product Gross Margin as a percentage of revenue actually increased from 22.0% in FY 2023 to 25.5% in FY 2024. The increase in Product Gross Margin as a percentage of revenue can be attributed to the diversity of the business' product range, and the large SeAH Wind Monopile Factory project, as well as repositioning the business on stock levels in late FY 2023.

Throughout the high price periods of covid to the post covid market stabilisation, the business continues to invest and innovate its product range, with a large focus on sustainability, whilst also committing to high quality levels of service and development of employees.

Investment in reducing carbon emissions has been made throughout the year with adding product ranges using fossil free manufacturing and net zero emission steel, along with investment in a battery storage container which ensures self-sufficiency of electricity in case of a grid emergency.

As of writing this report, the business has made further investment into a new additional flat line machine to support our ever-growing Flat Planet division, as well as releasing new profiles to our product range in the Panoramik profile and Luna Half Round. Further profiles are in the process of being developed and will be marketed throughout FY 2025.






Firth Steels Limited (Registered number: 01715793)

Strategic Report
for the year ended 31 July 2024

KEY PERFORMANCE INDICATORS
The Company's key performance indicators during the year were as follows:
2024 2023 Change

Turnover £32.2m £39.2m £(7m )
Gross profit £5.9m £8.7m £(2.8m )
Gross profit margin 18.3% 22.3% 4.0%

EBITDA £2.2m £3.3m £(1.1m )

Stock turnover (per annum) 5.1 4.9 0.2

Return on capital employed 5.6% 10.4% 4.8%

PRINCIPAL RISKS AND UNCERTAINTIES
General Risks and Uncertainties throughout all Times
Retaining key staff, exchange rate fluctuations, market risk, legislative and economic risk also remain. Such risks are also common to our competitors. The company, however, has the benefit of continued operational liquidity.

Credit Risks from Clients in Changing Times
Loss of business from insolvency of a major customer would affect the short-term performance of the company. The company continues to mitigate this risk by constantly assessing the financial health of its customers and supplying a wide range of diverse products to a wide range of customers. Additionally, the majority of the business' revenue, where possible, is protected by credit insurance.

An automated credit system is in place which runs from Coface's interface via the General Ledger system and updates our manufacturing system automatically. In normal times we write discretionary credit to attract new, riskier businesses whilst also using insured debt via permanent insured limits or TopLiner Insurance. Again, this is linked with our manufacturing system and automatically updates this live to prevent any manufacturing or delivery errors for credit reasons.

Having these systems in place has resulted in well run companies that we supply are paying on time and in some cases early in order to free up working capital.

Towards the end of FY 2023 and throughout FY 2024 we have seen a large decline in appetite for insurers to provide significant cover on large customers, in turn this has meant that the business has taken larger internal risk in discretionary limits in order to keep up supply and maintain levels of business.

All in all, the Company is in a strong position from a working capital, stock and cash perspective. We keep a vigilant eye on credit and payment - this is vital during this period.

Global Issues
Although the Russia-Ukraine war continues to unfold, we have yet to be impacted by this.

The steel price that seemed to hit extreme record-braking highs and then large drops due to economic sanctions against Russia by the EU seem to have stabilised for the last few months, allowing business to remain back to normal operating levels and decisions to be made on future growth strategies.

As a business we are yet to see any impact of the Israeli-Palestine conflict, however, we are cautious and managing the working capital to allow for any impact to be managed and mitigated as soon as possible.

One area of uncertainty that continues to develop daily is Tariffs on steel imposed by the changes made by President Trump. This could potentially cause future uncertainty in the market, with price increases already starting to be made on raw materials.


Firth Steels Limited (Registered number: 01715793)

Strategic Report
for the year ended 31 July 2024

In addition to above, the UK Carbon Border Adjustment Mechanism (CBAM) will be implemented by 2027. This involves the UK taking rapid action on industrial decarbonisation to meet net zero. The CBAM liability will lie directly with the importer of the products, but as a business we expect this to impact the price of raw materials greatly, meaning a squeeze on margins or increase on finished goods.

Stock Levels
Stock levels at the end of FY 2024 become much more stable as the business decides to zero base their purchasing strategy, allowing capital to flow through the business.

Record high stock levels at the end of FY 2022 have now been resolved through two years hard work of pushing products through the usual supply chain routes, ensuring the business is in a position to position itself in the best possible way for future growth.

As well as stock levels reducing to normal pre pandemic levels, we have seen lead times follow this pattern which allows more back to back purchasing, with stock being held at docks easier to be called off as and when required. Having the ability to purchase with this strategy reduces the number of assumptions needed in future purchasing commitments, however some levels of purchasing forecasting is still required in an ever changing market.

Having been through the last two financial years and managing stock levels, this has allowed the business to review the current position, looking at expected stock level, forecasting future demand and reviewing historic purchasing patterns to ensure a more stable stock holding level at all times.

One downside of buying short-term however could mean higher cost prices and therefore reduced product margins, but with current remaining high interest rates, the business believes this will be successful purchasing strategy over the coming financial years, allowing current capital to earn good returns.

Project Slippage or Cancellations
Project slippage and cancelled products continues to be a primary business concern. This can be due to inflationary pressures and where in less volatile times, any projects slipping can have minimal impact.

In today's expensive commodity markets, a project date slipping by 2 months can be crippling from a cashflow perspective as contracts from steel manufacturers remain more robust than the contracts that our customers place. Continuous work takes place to lock down sales contracts with this regard, but there remains some risk here.

GROWTH AND EXPANSION
Looking at the short term, the company is pushing all of its diverse product range and seems to be benefiting from having a wide range of available products to different market segments.

The ability to provide built up systems through our Protex ® system, which is a twin skin insulated system, involving liner, 3rd party spacer system, 3rd party insulation layer and our own top sheet in a variety of external coated options, along with standard plastisol options such as F200 gives the customer great choice as to warranty, appearance and availability.

Due to continuously high interest rates, all of the investment in the past have been good decisions in hindsight, with cost of such large expansions now would be far more expensive in terms of price, but also in terms of borrowings if funding was required. In addition to this, whether due to de-globalisation, the pandemic or Brexit, there is certainly a reduced ability to get a capital plan developed in a timely and proper manner.

These all create high barriers to entry which can assist any company that has already gained a market share and invest continually in the right direction.

Over the short to mid-term the business continues to invest heavily in the potential options to de-carbonise the business model, by not only looking at becoming net zero in terms of electricity usage, but also into the ability of supply more eco friendly steel into the building envelope through fossil free and zero emission steels.


Firth Steels Limited (Registered number: 01715793)

Strategic Report
for the year ended 31 July 2024

As we are aware the UK Government ambition is to build a zero emission steel market by 2050. As a business we are trying to be ahead of the game and ensure we meet this goal much sooner to bring a sustainable and environmentally friendly option to the construction market.

The increased need of achieving proper margins on products become necessary as ratios such as ROCE and return on working capital must be looked at, rather than merely the efficiency and margin of turning a product around. High interest rates and high inflation makes terms like "opportunity costs" far more prevalent around the boardroom table.

Structural floor decking has a mixed orderbook for the next 6 months, however we can see a positive upturn coming here as we move into Half 2 of FY 2025. With potential consolidation in this area of the business giving the possibility to expand our market share could prove an exciting time for the company, ensuring tighter controls and management of the process from roll-forming to installation.

INVESTMENTS
The large investment in warehouse safety is prevalent with brand new A-Safe protection barrier installation throughout all our units, ensuring that employee safety is at the top of our list.

Other investment has been made on our own property in terms of re-cladding the full front and side elevations of two units, to ensure that any visitors can see our great product quality first hand.

Additional CCTV has been installed on site to increase the level of protection and security, which is in addition to existing CCTV systems that were already in place.

The state-of-the-art $2.7m rafted roll-forming line from Bradbury, currently manufacturing wall and roof profiles, continues to perform well and the initial issues that were prevalent have been analysed and adjusted accordingly.

This is the fastest and most automated machine of its type in this country. This has allowed faster production & turnaround, and also more flexible response to an ever-challenging supply chain led market.

The Company continues to diversify and re-position for growth, by continually investing in new capital machinery and new products and improved ways of manufacturing the current product portfolios. Mostly these are the development of new profiles and also new product built-up systems to bring the Company into new product areas or new market segments, but there is also an element of innovation with the company investing in improvements such as space used, speed of manufacturing, flexibility and reliability.

Existing product lines given supply problems also need further investment so that we can protect the overall solution, where 3rd party products are not so easy to be controlled either in terms of availability or price.

The Company and its directors have identified further changes in the building envelope market caused by some government investigations caused by the Grenfell enquiry and has invested in preparation for the potential upsides of this. As a result, more profiles will be brought into the business to ride the change of the market as such.

At the time of writing, we have released a new profile in the form of Luna HR with a further profile expected to be released within the next 6 months. This will continue to diversify our product range offering and shows continued innovative growth strategies which is being spread throughout the business.


Firth Steels Limited (Registered number: 01715793)

Strategic Report
for the year ended 31 July 2024

SECTION 172(1) STATEMENT
The Board of Directors at Firth Steels Limited have acted in good faith, that would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the matters set out in S172 (a to f) of the Companies Act 2006.

a) The likely consequences of any decision in the long term,
b) The interests of the company's employees,
c) The need to foster the company's business relationships with suppliers, customers and others,
d) The impact of the company's operations on the community and the environment,
e) The desirability of the company maintaining a reputation for high standards of business conduct, and
f) The need to act fairly as between members of the company.

Our continued strategy is to provide a long-term beneficial impact to the business and industry by contributing to delivering high quality and reliable products across all of our business divisions and product ranges.

We regularly communicate with employees to ensure that business strategy and innovation is driven throughout the workforce, through training workshops and our internal ecosystem. Employee wellbeing is a key focus with relative helplines available to support employees throughout the business.

Business relationships with external shareholders remain critical and we continue to work closely with them to provide a platform to improve financial performance and stability both in the short and long term. This includes customers, in which we keep regular open communications with at all times, offering support where needed as long as this makes commercial sense. Communication with suppliers is also key to ensure stock demands are met with both pricing and lead time requirements.

As a board we continue to make significant investments in our operations to ensure the continuous improvement in sustainability and reduce our carbon emission footprint with the investment in battery storage technology and electric side loader fleet.

A key driver for our business is the high standard of both product and customer services we offer, the board lead this with decisions on credit management and investment in machinery to improve our continued high standards.

The board is clear that good governance and effective communication are essential on a day-to-day basis to deliver our purpose and also to protect the company's positive brand and reputation.

ON BEHALF OF THE BOARD:





Mr J T Firth - Director


28 April 2025

Firth Steels Limited (Registered number: 01715793)

Report of the Directors
for the year ended 31 July 2024


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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacturers of profiled metal sheeting and stockholders of spring steel.

DIVIDENDS
Interim dividends per share were paid during the year as follows:

Classification Per share
A Ordinary £1 £94,400
B Ordinary £1 £29,600
C Ordinary £1 £180,000
D Ordinary £1 £96,000

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

Mr R T Firth
Mr J T Firth
Mr S Booth

Other changes in directors holding office are as follows:

Mr S A J Wall - resigned 31 October 2023


Firth Steels Limited (Registered number: 01715793)

Report of the Directors
for the year ended 31 July 2024

STREAMLINED ENERGY AND CARBON REPORTING
At the end of FY2023 as a business we created a Carbon Commitment Crew, whose purpose is to reduce the carbon footprint of the business, through all available processes, not just limited to the roll forming of steel. We have commenced several initiatives over FY2024 as part of our carbon footprint reduction plan, of which some are mentioned below:

Renewable Energy
During FY2024 the business had an historic electricity tariff that used 21% renewable energy, this expired towards the end of the financial year in June 2024. Upon renewal the business has taken the commitment to sign up to a 100% renewable tariff, which commenced on the 1st July 2024.

Automatic Lighting
The automatic lighting throughout the offices save energy by ensuring all lights are only in use when required.

Electric Vehicles
All Executive and Non-Executive directors drive electric cars to and from work as well as a few other key personnel within the business, these are charged on site using charges that come from supply mixed from a 200KW solar array that has a FIT attached that the company committed to and were supplied at the government rates applied in December 2015.

Currently 2 out of 8 side loaders are electrical, with the remaining 6 side loaders being replaced early December 2024 to ensure all our side loader fleet are electrical.

Containerised Battery Pack System
Investment has been made in a 500KW containerised battery pack system which has arrived, commissioned and also functioning as expected within FY2024. This will bring returns to the business in terms of Solar PV firming and grid resilience.

GHG emissions and energy usage data
2024 2023

Building (tCO2e) 136.5 99.2

Electricity (kWh) 434,232.2 394,716.9
Associated electricity (tCO2e) 89.9 84.5

Natural gas (kWh) 53,630.4 50,514.8
Associated gas (tCO2e) 9.8 9.2

T&D losses (kWh) 359,889.4 307,761.0
T&D losses (tCO2e) 6.6 5.5

* Refrigerants (kWh) 0.0 0.0
* Refrigerants (tCO2e) 30.2 0.0

Waste (tCO2e) 3.9 12.4
Water (tCO2e) 0.4 0.2
Fleet travel (tCO2e) 38.0 65.3
Business travel (tCO2e) 21.3 26.8
Paper (tCO2e) 0.7 0.4
Total emissions (tCO2e) 200.8 204.3

Carbon intensity total per £m turnover 6.2 5.2


Firth Steels Limited (Registered number: 01715793)

Report of the Directors
for the year ended 31 July 2024

Where relevant the NET CV emission factors have been used to calculate the total kWh associated with fuel use. Net CV or lower heating value (LHV) is the useful calorific value in typical real-world conditions.

Where relevant the tCO2e has been calculated by using the Total Market Based emissions.

* Note - During FY 2024 our air conditioning unit had a breakdown and therefore the refrigerant was removed to allow a pressure test to be carried out, therefore 15.7kg of R410A was required to bring the system up to full charge. Without this the requirement the business would have reduced Total Emissions(tCO2e) by 33.7 rather than the 3.5 shown above.

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;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements;
-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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, SMH Jolliffe Cork Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr J T Firth - Director


28 April 2025

Report of the Independent Auditors to the Members of
Firth Steels Limited


Opinion
We have audited the financial statements of Firth Steels Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 July 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
Firth Steels 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 nine, 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
Firth Steels 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:

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and
skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with the Directors and other informed
management which we considered may have a direct material effect on the financial statements or the operations of the
company and thereafter, the audit team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual,
suspected and alleged fraud and;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential
bias; and investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims and reviewing correspondence with HMRC and the
company's legal and other professional advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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
Firth Steels 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.




Claire Lawton FCA DChA (Senior Statutory Auditor)
for and on behalf of SMH Jolliffe Cork Audit Ltd
Accountants & Statutory Auditors
33 George Street
Wakefield
West Yorkshire
WF1 1LX

28 April 2025

Firth Steels Limited (Registered number: 01715793)

Income Statement
for the year ended 31 July 2024

2024 2023
Notes £ £

TURNOVER 3 32,219,032 39,245,838

Cost of sales 26,316,636 30,509,964
GROSS PROFIT 5,902,396 8,735,874

Administrative expenses 5,255,588 6,835,471
646,808 1,900,403

Other operating income 317,038 417,277
Movement on provisions 98,168 (68,092 )
OPERATING PROFIT 6 1,062,014 2,249,588

Interest receivable and similar income 7 130,296 47,654
1,192,310 2,297,242
Gain on revaluation of tangible fixed assets 130,000 130,000
1,322,310 2,427,242

Interest payable and similar expenses 8 56,731 128,761
PROFIT BEFORE TAXATION 1,265,579 2,298,481

Tax on profit 9 356,961 265,352
PROFIT FOR THE FINANCIAL YEAR 908,618 2,033,129

Firth Steels Limited (Registered number: 01715793)

Other Comprehensive Income
for the year ended 31 July 2024

2024 2023
Notes £ £

PROFIT FOR THE YEAR 908,618 2,033,129


OTHER COMPREHENSIVE
Revaluation of freehold property 130,000 130,000
Allocation against accumulated
impairment brought forward (130,000 ) (130,000 )
Income tax relating to components of other
comprehensive

-

-
OTHER COMPREHENSIVE FOR THE
YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

908,618

2,033,129

Firth Steels Limited (Registered number: 01715793)

Statement of Financial Position
31 July 2024

2024 2023
Notes £ £ £
FIXED ASSETS
Tangible assets 11 9,283,541 9,211,633
Investments 12 392,820 392,820
Investment property 13 4,000,000 4,000,000
13,676,361 13,604,453

CURRENT ASSETS
Stocks 14 4,664,474 6,189,039
Debtors 15 9,113,516 10,258,067
Cash at bank 2,111,253 5,199,922
15,889,243 21,647,028
CREDITORS
Amounts falling due within one year 16 6,130,400 11,909,735
NET CURRENT ASSETS 9,758,843 9,737,293
TOTAL ASSETS LESS CURRENT
LIABILITIES

23,435,204

23,341,746

CREDITORS
Amounts falling due after more than one year 17 (376,250 ) (743,657 )

PROVISIONS FOR LIABILITIES 21 (3,948,269 ) (3,996,022 )
NET ASSETS 19,110,685 18,602,067

CAPITAL AND RESERVES
Called up share capital 22 90,007 90,007
Share premium 23 9,999 9,999
Retained earnings 23 19,010,679 18,502,061
SHAREHOLDERS' FUNDS 19,110,685 18,602,067

The financial statements were approved by the Board of Directors and authorised for issue on 28 April 2025 and were signed on its behalf by:





Mr J T Firth - Director


Firth Steels Limited (Registered number: 01715793)

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

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 1 August 2022 90,007 16,868,932 9,999 16,968,938

Changes in equity
Dividends - (400,000 ) - (400,000 )
Total comprehensive income - 2,033,129 - 2,033,129
Balance at 31 July 2023 90,007 18,502,061 9,999 18,602,067

Changes in equity
Dividends - (400,000 ) - (400,000 )
Total comprehensive income - 908,618 - 908,618
Balance at 31 July 2024 90,007 19,010,679 9,999 19,110,685

Firth Steels Limited (Registered number: 01715793)

Statement of Cash Flows
for the year ended 31 July 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (864,976 ) 2,188,386
Interest paid (56,334 ) (127,966 )
Interest element of hire purchase payments paid (397 ) (795 )
Tax paid (459,453 ) (4,276 )
Net cash from operating activities (1,381,160 ) 2,055,349

Cash flows from investing activities
Purchase of tangible fixed assets (1,077,453 ) (678,393 )
Purchase of fixed asset investments - (392,820 )
Sale of tangible fixed assets 41,500 2,433
Interest received 130,296 47,654
Net cash from investing activities (905,657 ) (1,021,126 )

Cash flows from financing activities
New loans in year - 5,000,000
Loan repayments in year (285,000 ) (5,285,000 )
Capital repayments in year (116,852 ) (121,076 )
Equity dividends paid (400,000 ) (400,000 )
Net cash from financing activities (801,852 ) (806,076 )

(Decrease)/increase in cash and cash equivalents (3,088,669 ) 228,147
Cash and cash equivalents at beginning of
year

2

5,199,922

4,971,775

Cash and cash equivalents at end of year 2 2,111,253 5,199,922

Firth Steels Limited (Registered number: 01715793)

Notes to the Statement of Cash Flows
for the year ended 31 July 2024


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

2024 2023
£ £
Profit before taxation 1,265,579 2,298,481
Depreciation charges 1,121,728 1,053,647
Profit on disposal of fixed assets (27,683 ) (1,980 )
Gain on revaluation of fixed assets (130,000 ) (130,000 )
Movement on other provisions (98,168 ) 68,092
Finance costs 56,731 128,761
Finance income (130,296 ) (47,654 )
2,057,891 3,369,347
Decrease in stocks 1,524,565 5,528,491
Decrease in trade and other debtors 814,858 1,079,548
Decrease in trade and other creditors (5,262,290 ) (7,789,000 )
Cash generated from operations (864,976 ) 2,188,386

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 July 2024
31.7.24 1.8.23
£ £
Cash and cash equivalents 2,111,253 5,199,922
Year ended 31 July 2023
31.7.23 1.8.22
£ £
Cash and cash equivalents 5,199,922 4,971,775


Firth Steels Limited (Registered number: 01715793)

Notes to the Statement of Cash Flows
for the year ended 31 July 2024


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.23 Cash flow At 31.7.24
£ £ £
Net cash
Cash at bank and in hand 5,199,922 (3,088,669 ) 2,111,253
5,199,922 (3,088,669 ) 2,111,253
Debt
Finance leases (178,862 ) 116,852 (62,010 )
Debts falling due within 1 year (285,000 ) - (285,000 )
Debts falling due after 1 year (641,250 ) 285,000 (356,250 )
(1,105,112 ) 401,852 (703,260 )
Total 4,094,810 (2,686,817 ) 1,407,993

Firth Steels Limited (Registered number: 01715793)

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


1. STATUTORY INFORMATION

Firth Steels Limited is a private limited company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page, the registered office is also the company's principal place of business.

The company's functional and presentation currency is the pound sterling £. All financial information presented has been rounded to the nearest £, unless otherwise stated.

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 as modified by the revaluation of certain assets.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for turnover and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

(i) Useful economic lives of tangible assets
The annual amortisation and depreciation charges for intangible and tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Stock provisions
In determining the need for the impairment of stock the directors have made significant judgements as to the saleability of the stock that is being held in the company, together with the costs to complete and make that sale and also the cost of storing such a volume of steel and steel based products. The company has a robust impairment procedure which requires that a detailed review of the stock be undertaken at the balance sheet date on a line by line basis to identify the condition of the stock. The level of impairment is then identified by reference to a pre-defined scale.

(iii) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iv) Provisions
In determining the need for, and value of, provisions the directors have made significant judgements as to the likelihood that the company will be required to transfer economic benefits in order to settle the obligation and also with regards to the estimation of any such obligation. The directors will then review any such provisions at each balance sheet date and determining whether the obligation still exists based on associated activity during the accounting period and also known events after the balance sheet date.

Firth Steels Limited (Registered number: 01715793)

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


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from both the sale of goods and from the rendering of services.

Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods has been transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract cost. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Temporary structure - 20% on cost
Leasehold improvements - Over the term of the lease
Plant and machinery - 50% on cost, 25% on cost, 20% on cost and 15% on cost
Motor vehicles - 25% on cost

Fixed assets are stated at cost, net of depreciation and any provision for impairment with the exception of freehold property which is stated at fair value, net of depreciation and any provision for impairment.

No depreciation is provided in respect of freehold land.

Freehold property was revalued on 24 March 2023 by Hanson Chartered Surveyors on the basis of its fair value for existing use and the directors are of the opinion that this valuation reflects the fair value as at the Balance Sheet date.

Government grants
Grants received under the Business Growth Programme are initially recorded as deferred government grants and then credited to the profit and loss account over the useful economic life of the asset to which they relate.

Investments in subsidiaries
Investments in associated undertakings are initially recorded at cost with consideration taken for any diminution in value which is expected to be permanent.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Fair value is estimated by obtaining regular third party valuations which are assessed by the directors in intervening periods based on similar properties in the local area.

Firth Steels Limited (Registered number: 01715793)

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


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct material and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition. At each balance sheet date stocks are assessed for impairment. If any such impairment is identified by the directors, the carrying value is reduced to its selling price less costs to complete and sell. This impairment loss is recognised in profit or loss.

Financial instruments
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

The company has no 'Other financial assets'.

Financial assets are derecognised when (a) the contractual rights to the cashflow from the asset expire or are settled or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other creditors and hire purchase contracts, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

The company has no 'Other financial liabilities'.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating profit.

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.

Pension costs and other post-retirement benefits
The company administers a stakeholder pension scheme on behalf of its employees and also makes employer contributions into the directors' personal pension schemes. Contributions payable to these pension schemes are charged to the profit and loss account in the period to which they relate.

Firth Steels Limited (Registered number: 01715793)

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


2. ACCOUNTING POLICIES - continued

Royalties
Royalties payable are recognised in the profit and loss account based on the sale of products arising during each accounting period.

Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in order the settle the obligation which can be estimated reliably. Provisions are recognised as a liability within the Statement of Financial Position and the amount of the provision as an expense within the Income Statement. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the Income Statement unless the provision was originally recognised as part of the cost of an asset.

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2024 2023
£ £
United Kingdom 31,731,869 38,563,971
Europe 215,066 254,174
Rest of World 272,097 427,693
32,219,032 39,245,838

4. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 2,484,618 2,882,005
Social security costs 258,395 340,887
Other pension costs 41,135 243,077
2,784,148 3,465,969

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

Production staff 30 31
Administration staff 26 25
56 56

Firth Steels Limited (Registered number: 01715793)

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


5. DIRECTORS' EMOLUMENTS
2024 2023
£ £
Directors' remuneration 961,245 1,415,025
Directors' pension contributions to money purchase schemes 4,461 215,423

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

Money purchase schemes 1 3

Information regarding the highest paid director is as follows:
2024 2023
£ £
Emoluments etc 792,681 926,848
Pension contributions to money purchase schemes - 209,751

6. OPERATING PROFIT

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

2024 2023
£ £
Depreciation - owned assets 1,106,652 1,030,967
Depreciation - assets on hire purchase contracts 15,076 22,680
Profit on disposal of fixed assets (27,683 ) (1,980 )
Auditors' remuneration 30,000 27,996
Non-audit services 22,150 10,541

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£ £
Deposit account interest 105,530 47,654
Interest receivable on corporation tax 24,766 -
130,296 47,654

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank loan interest 24,729 111,542
Leasing interest 8,015 8,243
Interest on directors loan account 23,590 8,181
Hire purchase 397 795
56,731 128,761

Firth Steels Limited (Registered number: 01715793)

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


9. 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 305,582 486,877
Under/over provision of corporation tax in prior year 964 (234,900 )
Total current tax 306,546 251,977

Deferred tax 50,415 13,375
Tax on profit 356,961 265,352

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

2024 2023
£ £
Profit before tax 1,265,579 2,298,481
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
21%)

316,395

482,681

Effects of:
Expenses not deductible for tax purposes 39,444 8,075
Depreciation in excess of capital allowances 5,073 9,137
Adjustments to tax charge in respect of previous periods 964 (234,900 )
Other temporary timing differences 85 121
Movement in general provision (5,000 ) -
Adjustment to deferred tax in respect of previous period - 238
Total tax charge 356,961 265,352

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£ £ £
Revaluation of freehold property 130,000 - 130,000
Allocation against accumulated
impairment brought forward (130,000 ) - (130,000 )
- - -


Firth Steels Limited (Registered number: 01715793)

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


9. TAXATION - continued
2023
Gross Tax Net
£ £ £
Revaluation of freehold property 130,000 - 130,000
Allocation against accumulated
impairment brought forward (130,000 ) - (130,000 )
- - -

10. DIVIDENDS
2024 2023
£ £
A Ordinary share of £1
Interim 94,400 94,400
B Ordinary share of £1
Interim 29,600 29,600
C Ordinary shares of £1 each
Interim 180,000 180,000
D Ordinary shares of £1 each
Interim 96,000 96,000
400,000 400,000

11. TANGIBLE FIXED ASSETS
Freehold Temporary Leasehold
property structure improvements
£ £ £
COST OR VALUATION
At 1 August 2023 6,500,000 88,071 20,143
Additions - - -
Disposals - - -
At 31 July 2024 6,500,000 88,071 20,143
DEPRECIATION
At 1 August 2023 - 36,700 3,311
Charge for year 130,000 16,937 2,015
Eliminated on disposal - - -
Revaluation adjustments (130,000 ) - -
At 31 July 2024 - 53,637 5,326
NET BOOK VALUE
At 31 July 2024 6,500,000 34,434 14,817
At 31 July 2023 6,500,000 51,371 16,832

Firth Steels Limited (Registered number: 01715793)

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


11. TANGIBLE FIXED ASSETS - continued

Plant and Motor
machinery vehicles Totals
£ £ £
COST OR VALUATION
At 1 August 2023 11,149,522 318,330 18,076,066
Additions 940,257 137,196 1,077,453
Disposals (91,798 ) (47,315 ) (139,113 )
At 31 July 2024 11,997,981 408,211 19,014,406
DEPRECIATION
At 1 August 2023 8,639,670 184,752 8,864,433
Charge for year 895,481 77,295 1,121,728
Eliminated on disposal (91,798 ) (33,498 ) (125,296 )
Revaluation adjustments - - (130,000 )
At 31 July 2024 9,443,353 228,549 9,730,865
NET BOOK VALUE
At 31 July 2024 2,554,628 179,662 9,283,541
At 31 July 2023 2,509,852 133,578 9,211,633

Freehold property was revalued on 24 March 2023 by Hanson Chartered Surveyors on the basis of its fair value for existing use. The directors believe that the fair value of this property remains the same at the balance sheet date, based on current use and market conditions.

The original cost of the freehold property was £7,136,288.

Firth Steels Limited (Registered number: 01715793)

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


11. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£
COST
At 1 August 2023 90,720
Disposals (33,230 )
At 31 July 2024 57,490
DEPRECIATION
At 1 August 2023 55,684
Charge for year 15,076
Eliminated on disposal (19,413 )
At 31 July 2024 51,347
NET BOOK VALUE
At 31 July 2024 6,143
At 31 July 2023 35,036

12. FIXED ASSET INVESTMENTS
Investment
in
associated
undertakings
£
COST
At 1 August 2023
and 31 July 2024 392,820
NET BOOK VALUE
At 31 July 2024 392,820
At 31 July 2023 392,820

The investment in associated undertaking relates to a 50% members share in SMD Asia LLP, whose registered office is at Calderbank, River Street, Brighouse, West Yorkshire, HD6 1LU.

On 27 December 2024, SMD Asia LLP sold its 33.3% investment in JSW Structural Metal Decking Ltd. Following this disposal, it is the intention that the net proceeds will be distributed to members and an application made to strike off SMD Asia LLP from the Register.

Firth Steels Limited (Registered number: 01715793)

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


13. INVESTMENT PROPERTY
Total
£
FAIR VALUE
At 1 August 2023
and 31 July 2024 4,000,000
NET BOOK VALUE
At 31 July 2024 4,000,000
At 31 July 2023 4,000,000

The investment property was revalued by Hanson Chartered Surveyors on 24 March 2023 on the basis of fair value. The directors believe that the fair value of this property remains the same at the balance sheet date, based on current use and market conditions.

The original cost of the investment property was £2,442,856.

14. STOCKS
2024 2023
£ £
Finished goods & work in progress 4,664,474 6,189,039

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 4,913,647 6,804,138
Amounts owed by related undertakings 2,652,923 2,067,678
Other debtors 262 4,268
Tax 294,418 624,111
VAT 323,247 -
Prepayments and accrued income 929,019 757,872
9,113,516 10,258,067

Firth Steels Limited (Registered number: 01715793)

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


16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Bank loans and overdrafts (see note 18) 285,000 285,000
Hire purchase contracts (see note 19) 62,010 116,455
Trade creditors 4,126,927 5,344,022
Tax - 482,600
Social security and other taxes 65,682 62,582
VAT - 912,944
Directors current accounts 141,683 893,078
Accruals and deferred income 1,449,098 3,813,054
6,130,400 11,909,735

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£ £
Bank loans (see note 18) 356,250 641,250
Hire purchase contracts (see note 19) - 62,407
Deferred government grants 20,000 40,000
376,250 743,657

18. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 285,000 285,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 356,250 641,250

Firth Steels Limited (Registered number: 01715793)

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


19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£ £
Net obligations repayable:
Within one year 62,010 116,455
Between one and five years - 62,407
62,010 178,862

Company as a lessee

2024 2023
£    £   
Within one year 72,500 72,500
Between one and five years 72,500 145,000
145,000 217,500
Company as lessor
The company has entered into a lease in respect of its investment property. The contractual term is 10 years with a review date and break clause at the 5th anniversary of the lease. At 31 July 2024, the minimum rental income receivable under non-cancellable operating leases fall due as follows:

2024 2023
£    £   
Within one year 250,000 250,000
Between one and five years 208,333 458,333
458,333 708,333

20. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£ £
Bank loans 641,250 926,250
Hire purchase contracts 62,010 178,862
703,260 1,105,112

The bank loan is secured by way of a fixed charge over the assets forming the High Speed Panel Line.

Obligations under hire purchases are secured against the assets to which they relate.

Firth Steels Limited (Registered number: 01715793)

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


21. PROVISIONS FOR LIABILITIES

DeferredHeldoverOther
TaxGainProvisionsTotal
££££
At 1 August 2023584,684648,4452,762,8933,996,022

Accelerated capital allowances50,415--50,415
Additions - recognised in profit or
loss


-


-


221,552


221,552
Utilised--(319,720)(319,720)
At 31 July 2024640,099648,4452,664,7253,948,269

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
90,000 Ordinary £1 90,000 90,000
1 A Ordinary £1 1 1
1 B Ordinary £1 1 1
3 C Ordinary £1 3 3
2 D Ordinary £1 2 2
90,007 90,007

23. RESERVES
Retained Share
earnings premium Totals
£ £ £

At 1 August 2023 18,502,061 9,999 18,512,060
Profit for the year 908,618 908,618
Dividends (400,000 ) (400,000 )
At 31 July 2024 19,010,679 9,999 19,020,678

Included within retained earnings at 31 July 2024 is an amount of £1,324,485 which is non-distributable (2023: £1,324,485). This relates to an accumulated increase in the fair value of the investment properties, net of deferred tax, held by the company.

24. OFF-BALANCE SHEET ARRANGEMENTS

At 31 July 2024 Firth Steels Limited had arrangements with our suppliers in which a rolling credit and storage facility was in place to assist with working capital fluctuations, and longer lead times from overseas. The value of steel held under this arrangement at 31 July 2024 was £Nil (2023: £Nil).

Firth Steels Limited (Registered number: 01715793)

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


25. RELATED PARTY DISCLOSURES

The transactions entered in to during the year, together with the amounts receivable/(payable), in respect of companies in which the directors have a participating interest are as follows:

20242023
£   £   

Sales to related undertakings9,648,9839,808,629
Purchases from related undertakings(16,286)(20,539)
Amounts due from related undertakings2,652,9232,067,678


26. POST BALANCE SHEET EVENTS

On 27 December 2024, the company's associated undertaking, SMD Asia LLP sold its 33.3% investment in JSW Structural Metal Decking Ltd. Following this disposal, it is the intention that the net proceeds will be distributed to members and an application made to strike off SMD Asia LLP (no. OC346082) from the Register.

On 28 October 2024, the company acquired 50% of the issued share capital of SMD Construction Group Ltd (no. 08807649), resulting in Firth Steels Limited having significant control by virtue of its shareholding and that of Mr J T Firth.

On 28 October 2024, the company acquired 50% of the issued share capital of SMD Stockyards Limited (no. 08324990), with a further 50% being acquired on 1 December 2024. From 1 December 2024, SMD Stockyards Limited became a wholly owned subsidiary of Firth Steels Limited.

27. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr J T Firth.