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Registered number: 02867001










ALCHEMY METALS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
ALCHEMY METALS LIMITED
 
 
COMPANY INFORMATION


Directors
P W Newman 
K S Greasby 
M Basta 




Registered number
02867001



Registered office
Cavendish Point
Cavendish Road

Stevenage

Hertfordshire

SG1 2EU




Independent auditors
MHA
Chartered Accountants and Statutory Auditors

6th Floor

2 London Wall Place

London

EC2Y 5AU




Bankers
Lloyds Banking Group Plc
Black Horse House

Castle Park

Cambridge

CB3 0AR





 
ALCHEMY METALS LIMITED
 

CONTENTS



Page(s)
Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditors' Report
 
4 - 6
Statement of Comprehensive Income
 
7
Statement of Financial Position
 
8 - 9
Statement of Changes in Equity
 
10
Notes to the Financial Statements
 
11 - 29


 
ALCHEMY METALS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

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

Business review
 
The re-branding from Alchemy Metals Ltd to Waste Mission appears to have been successful and reflects more accurately our handling of all forms of industrial waste, not just metals.
Our staff numbers have increased to 111 at the year end, our turnover and gross profit margin , despite changes, remain good.
Our trading team have been busy gaining new business and converting old business to contracts.

Principal risks and uncertainties
 
Credit risk 
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any particular counterparty is monitored continually and restricted where appropriate.
Liquidity risk 
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, while ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Financial key performance indicators
 
The directors use financial Key Performance Indicators ('KPls') to monitor the performance of the company. The most important KPls for the company, are gross profit margin and turnover. 
                                       
31/10/2024                       31/10/2023                            31/10/2022
Turnover                            £22.51m                           £22.28m                               £20.29m
Gross Profit (%)                     61.2%                               60.5%                                     55%
 Alchemy is now handling all forms of industrial waste and will be rebranding as Waste Mission. 

Other key performance indicators
 
Apart from those measures identified above in the business review, the directors are of the opinion that the  inclusion of non-financial key performance indicators is not necessary for an understanding of the development, performance or position of the company's business. 


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



P W Newman
Director

Date: 3 April 2025

Page 1

 
ALCHEMY METALS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Principal activity

The principal activity of the company is that of non-ferrous metal merchants.

Results and dividends

The profit for the year, after taxation, amounted to £1,991,192 (2023 - £3,066,480).

Dividends paid in the year are detailed in note 12. 

Directors

The directors who served during the year were:

P W Newman 
K S Greasby 
M Basta 

Future developments

The company intends to continue its present management policies for the foreseeable future. 

Page 2

 
ALCHEMY METALS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Qualifying third party indemnity provisions

Directors' liability and indemnity insurance was in force throughout the year to cover the directors and officers of the company against actions brought against them in their personal capacity. Neither the insurance nor the indemnity provide cover where the individual has acted fraudulently or dishonestly.

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

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

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





P W Newman
Director

Date: 3 April 2025

Page 3

 
ALCHEMY METALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALCHEMY METALS LIMITED
 

Opinion


We have audited the financial statements of Alchemy Metals Limited (the 'Company') for the year ended 31 October 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 4

 
ALCHEMY METALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALCHEMY METALS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

 
ALCHEMY METALS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALCHEMY METALS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness. 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Neil Stern, FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
London, United Kingdom
  

4 April 2025

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales
(registered number OC312313).
Page 6

 
ALCHEMY METALS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
22,506,039
22,278,880

Cost of sales
  
(8,725,911)
(8,801,089)

Gross profit
  
13,780,128
13,477,791

Distribution costs
  
(6,672,198)
(6,100,327)

Administrative expenses
  
(4,602,541)
(3,509,741)

Operating profit
 5 
2,505,389
3,867,723

Interest receivable and similar income
 9 
134,307
79,431

Interest payable and similar expenses
 10 
(128,440)
(113,055)

Profit before tax
  
2,511,256
3,834,099

Tax on profit
 11 
(520,064)
(767,619)

Profit for the financial year
  
1,991,192
3,066,480

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

The notes on pages 11 to 29 form part of these financial statements.

Page 7

 
ALCHEMY METALS LIMITED
REGISTERED NUMBER: 02867001

STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
  
46,694
-

Tangible assets
 14 
6,449,521
3,810,891

  
6,496,215
3,810,891

Current assets
  

Stocks
 15 
731,571
712,473

Debtors
 16 
7,591,090
6,432,846

Cash at bank and in hand
 17 
3,202,889
6,814,163

  
11,525,550
13,959,482

Creditors: amounts falling due within one year
 18 
(6,540,047)
(7,575,908)

Net current assets
  
 
 
4,985,503
 
 
6,383,574

Total assets less current liabilities
  
11,481,718
10,194,465

Creditors: amounts falling due after more than one year
 19 
(1,890,221)
(1,357,868)

Provisions for liabilities
  

Deferred tax
 22 
(689,605)
(325,897)

  
 
 
(689,605)
 
 
(325,897)

Net assets
  
8,901,892
8,510,700


Capital and reserves
  

Called up share capital 
 23 
2,320
2,320

Capital redemption reserve
 24 
95,000
95,000

Profit and loss account
 24 
8,804,572
8,413,380

  
8,901,892
8,510,700


Page 8

 
ALCHEMY METALS LIMITED
REGISTERED NUMBER: 02867001
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 OCTOBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




P W Newman
Director

Date: 3 April 2025

The notes on pages 11 to 29 form part of these financial statements.

Page 9

 
ALCHEMY METALS LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 November 2022
2,320
95,000
5,665,900
5,763,220


Comprehensive income for the year

Profit for the year
-
-
3,066,480
3,066,480


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(319,000)
(319,000)



At 1 November 2023
2,320
95,000
8,413,380
8,510,700


Comprehensive income for the year

Profit for the year
-
-
1,991,192
1,991,192


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,600,000)
(1,600,000)


At 31 October 2024
2,320
95,000
8,804,572
8,901,892


The notes on pages 11 to 29 form part of these financial statements.

Page 10

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

Alchemy Metals Group Limited is a private company, limited by shares, incorporated in England and Wales. The address of the registered office is given in the company information page in these financial statements. The nature of the company's operations and principal activities is that of non-ferrous metal merchants.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
 
The financial statements have been prepared in the functional currency, pounds sterling, rounded to  the nearest £1.

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

Alchemy Metals Limited is a wholly owned subsidiary of Alchemy Metals Group Limited, a company incorporated in the United Kingdom, and is included in the consolidated financial statements of that company. Alchemy Metals Limited has adopted the disclosure exemptions of FRS 102 as a  subsidiary company of Alchemy Metals Group Limited. 
The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. 
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts. 

The following principal accounting policies have been applied:

Page 11

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7;
the requirement of paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources to disclose the operating and investing cash flows arising from the exploration for and evaluation of mineral resources (when applying this standard in accordance with paragraph 34.11 of FRS 102).

This information is included in the consolidated financial statements of Alchemy Metals Group Limited as at 31 October 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

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

Sale of goods

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

Page 12

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 13

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

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

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

 
2.10

Current and deferred taxation

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

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

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

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


 
2.11

Intangible assets

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

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

Software developments are capitalised when they are separately identifiable and externally purchased. They are amortised on a straight line basis over their estimated useful life of five years.

Page 14

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
4%
Straight Line
Plant and machinery
-
20%
Straight Line
Motor vehicles
-
20%
Straight Line
Fixtures and fittings
-
20%
Straight Line

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

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

 
2.13

Stocks

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

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

 
2.14

Debtors

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

  
2.15

Debt factoring

The company has a debt factoring agreement with a third party which covered all of its trade debtors at year-end. 
The agreement has a 100% recourse arrangement and hence the company has retained all debtors in trade receivables in its balance sheet. 

Page 15

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

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

 
2.17

Creditors

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

 
2.18

Provisions for liabilities

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

Page 16

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

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

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

 
2.20

Dividends

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

Page 17

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are  based on historical experience and other factors that are considered to be relevant. Actual results may  differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting  estimates are recognised in the period in which the estimate is revised if the revision affects only that  period, or in the period of the revision and future periods if the revision affects both current and future  periods. 
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the  financial statements are described below: 
Valuation of Stock 
Stock is included at the lower of cost and net realisable value. The Directors have reviewed the stock obsolescence policy and are satisfied that stock is fairly valued at the year end. 
Fixed Assets 
Judgements have been made in relation to the lives of tangible assets in particular the useful economic life and residual values of freehold property, plant and machinery and the recoverability of trade debtors. The Directors have concluded that the asset values and residual values are appropriate and debtors are recoverable.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Turnover
22,506,039
22,278,880

22,506,039
22,278,880


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
18,330,427
20,918,586

Rest of Europe
1,963,101
985,683

Rest of the world
2,212,511
374,611

22,506,039
22,278,880


Page 18

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
130,000
402,000

Other operating lease rentals
80,873
71,385

Property lease rentals
248,873
239,385


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
32,000
30,000

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


7.


Employees

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


2024
2023
£
£

Wages and salaries
4,741,701
4,315,382

Social security costs
488,601
413,226

Cost of defined contribution scheme
97,618
85,641

5,327,920
4,814,249


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


        2024
        2023
            No.
            No.







Directors
3
3



Adminstation
6
5



Sales and Warehouse
101
93

110
101

Page 19

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
132,737
69,384

132,737
69,384



9.


Interest receivable

2024
2023
£
£


Other interest receivable
134,307
79,431

134,307
79,431


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
52,683
52,381

Finance leases and hire purchase contracts
75,757
60,674

128,440
113,055

Page 20

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
277,919
670,630

Adjustments in respect of previous periods
(121,563)
(87,672)

Total current tax
156,356
582,958

Deferred tax


Origination and reversal of timing differences
363,708
184,661

Total deferred tax
363,708
184,661


Tax on profit
520,064
767,619

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 22.5%) as set out below:

2024
2023
£
£


Profit on ordinary activities before tax
2,511,256
3,834,099


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.5%)
627,814
862,672

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,714
-

Capital allowances for year in excess of depreciation
11,099
(7,381)

Adjustments to tax charge in respect of prior periods
(121,563)
(87,672)

Total tax charge for the year
520,064
767,619


Factors that may affect future tax charges

An increase in the UK corporation tax rate from 19% to 25% was substantively enacted in June 2021 and
has taken effect from 1 April 2023.

Page 21

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

12.


Dividends

2024
2023
£
£


Ordinary shares
1,600,000
319,000

1,600,000
319,000


13.


Intangible assets




Software development

£



Cost


At 1 November 2023
67,355


Additions
49,152



At 31 October 2024

116,507



Amortisation


At 1 November 2023
67,355


Charge for the year 
2,458



At 31 October 2024

69,813



Net book value



At 31 October 2024
46,694



At 31 October 2023
-



Page 22

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

14.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 November 2023
1,999,457
5,983,932
3,795,436
330,099
12,108,924


Additions
1,315,524
715,658
1,469,135
72,599
3,572,916


Disposals
-
(2,000)
(482,282)
-
(484,282)



At 31 October 2024

3,314,981
6,697,590
4,782,289
402,698
15,197,558



Depreciation


At 1 November 2023
480,739
4,819,093
2,753,515
244,686
8,298,033


Charge for the year 
101,914
364,929
437,589
27,854
932,286


Disposals
-
-
(482,282)
-
(482,282)



At 31 October 2024

582,653
5,184,022
2,708,822
272,540
8,748,037



Net book value



At 31 October 2024
2,732,328
1,513,568
2,073,467
130,158
6,449,521



At 31 October 2023
1,518,718
1,164,839
1,041,921
85,413
3,810,891

The net book value of assets held under hire purchase contracts is £1,886,969 (2023: £1,146,438).


15.


Stocks

2024
2023
£
£

Raw materials and consumables
731,571
712,473

731,571
712,473


The amount of stock recognised as an expense in cost of sales during the year is as follows: £8,765,948 (2023: £8,709,662).

Page 23

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

16.


Debtors


2024
2023
£
£

Due after more than one year

Other debtors
827,256
714,942

827,256
714,942

Due within one year

Trade debtors
2,833,780
2,492,053

Amounts owed by group undertakings
847,658
847,658

Other debtors
2,615,421
2,159,886

Prepayments and accrued income
466,975
218,307

7,591,090
6,432,846


The company has not drawn down against the invoice discounting facility in the year. An amount of  £302,628 (2023: £487,862) is held with the factoring company, which is included in bank and cash balances as at 31 October 2024. 


17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
3,202,889
6,814,163

3,202,889
6,814,163


Page 24

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
293,491
289,447

Trade creditors
2,335,788
3,017,596

Amounts owed to group undertakings
2,000,000
2,000,000

Corporation tax
530,882
815,212

Other taxation and social security
404,984
490,566

Obligations under finance lease and hire purchase contracts
527,048
422,913

Other creditors
-
40

Accruals and deferred income
447,854
540,134

6,540,047
7,575,908


The hire purchase creditor is secured on the assets to which it relates. 
Bank loans and overdrafts are secured by way of a legal charge over the Freehold property of the company, dated 31 March 2015, an unlimited debenture, dated 26 March 2015, and an omnibus guarantee and set-off arrangement. These incorporate a fixed and floating charge over all current assets of the company. 
Amounts owed to Group companies are secured by way of a second fixed and floating charge over the assets of the company.


19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
516,867
803,968

Net obligations under finance leases and hire purchase contracts
1,373,354
553,900

1,890,221
1,357,868


The hire purchase creditor is secured on the assets to which it relates and is repayable within 5 years. 
Bank loans carry interest at rates of between 2.0% and 2.65% plus the Bank of England Base Rate and are repayable within 10 years. They are secured on the assets of the company as detailed in note 18. The directors consider that the carrying amounts of the bank loands and overdrafts are approximate to their fair value. 

Page 25

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

20.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
293,491
289,447


293,491
289,447


Amounts falling due 2-5 years

Bank loans
516,867
715,612


516,867
715,612

Amounts falling due after more than 5 years

Bank loans
-
88,356

-
88,356

810,358
1,093,415



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
304,681
422,913

Between 1-5 years
1,373,354
553,900

1,678,035
976,813

Page 26

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

22.


Deferred taxation




2024


£






At beginning of year
325,897


Charged to profit or loss
363,708



At end of year
689,605

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
689,605
325,897

689,605
325,897


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,204 (2023 - 2,204) Ordinary shares of £1.00 each
2,204
2,204
116 (2023 - 116) Ordinary A shares of £1.00 each
116
116

2,320

2,320

Ordinary £1 shares and ordinary A £1 shares have the same voting rights.



24.


Reserves

Capital redemption reserve

The capital redemption reserve is represented by amounts transferred on the redemption of share capital and is not distributable. 

Profit and loss account

The profit and loss account is represented by retained earnings. Changes in reserves are set out in the Statement of Changes in Equity. 

Page 27

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

25.


Pension commitments

The company operates a defined contribution pension scheme for directors and employees. Pension costs in the year were £97,618 (2023: £85,641). Contributions totalling £19,743 (2023: £18,519) were payable at the balance sheet date and are included in creditors


26.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
187,998
248,000

Later than 1 year and not later than 5 years
672,000
752,000

Later than 5 years
1,498,000
1,666,000

2,357,998
2,666,000

2024
2023

£
£



Not later than 1 year
1,640
2,324

Later than 1 year and not later than 5 years
-
4,648

1,640
6,972

The total amount of non-cancellable operating lease payments recognised as an expense during the year was £248,873 (2023: £363,056).


27.


Related party transactions

The company has taken advantage of the exemptions of Financial Reporting Standard 102 Section 33 in respect of disclosure of intra-group transactions, as the company is a wholly owned subsidiary of Alchemy Metals Group Limited
During the year, the group made advances of £344,701 (2023: £1,300,624 advanced) to P W Newman, a director of Alchemy Metals Group Limited. At the year end the amount due from P W Newman was £2,498,437 (2023: £2,153,736) and is included within other debtors. This loan is unsecured, interest is charged at commercial rates and repayable on demand. 
During the year, the group made advances of £97,656 (2023: £23,531 recieved) from K S Greasby, a director of Alchemy Metals Group Limited. At the year end the amount from  K S Greasby was £97,616 (2023: £(40)) and included within other creditors. This loan is unsecured, interest is charged at commercial rates and repayable on demand. 

Page 28

 
ALCHEMY METALS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

28.


Controlling party and ultimate parent

The ultimate controlling party throughout the year and the previous year is P W Newman by virtue of his majority shareholding in the company's ultimate parent. 
The ultimate parent company of Alchemy Metals Limited is Alchemy Metals Group Limited, a company incorporated in England and Wales and into whose consolidated accounts the financial statements of Alchemy Metals Limited are consolidated. The financial statements of Alchemy Metals Group Limited are available from Companies House. 

 
Page 29