Company registration number 10533884 (England and Wales)
KAMA STEEL TRADING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KAMA STEEL TRADING LIMITED
COMPANY INFORMATION
Directors
Mr S Eker
Mr E Ates
Mr A Aydiner
Company number
10533884
Registered office
Russell House
Oxford Road
Bournemouth
Dorset
BH8 8EX
Auditor
Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
Solicitors
Lester Aldridge LLP
Solicitors
Russell House, Oxford Road
Bournemouth
BH8 8EX
KAMA STEEL TRADING LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
KAMA STEEL TRADING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the revised strategic report for the year ended 31 December 2024.

Fair review of the business

Kama Steel continued its trading activities in 2024, serving customers in Europe and the UK, while sourcing finished steel products from Turkey. The concentration of sales in these regions remains due to stable demand, a diverse range of steel-consuming sectors, business transparency, and the complex service requirements typical of developed countries and their industries.

The company maintains access to multiple markets and customers through sub-contracted services covering logistics, finance, and operations. Additionally, the company ensures a stable supply of various steel products from reliable mills based on long-term agreements and extensive experience.

The combination of economic stagnation, geopolitical uncertainty, rising costs, and intensified global competition made 2024 a difficult year for the steel industry in the EU and the UK. However, it is management's view that the sector is positioned for recovery in the coming years.

EU safeguard measures and quarterly quotas applicable to certain steel products originating from Turkey will continue until June 2026. These quotas have negatively impacted some product groups in the EU, restricting supply and putting upward pressure on prices.

In addition, recent EU safeguard adjustments announced in March 2025 have introduced stricter quota limitations, reducing the availability of key steel products such as hot-rolled coil (HRC) and cold-rolled coil (CRC). These changes will further strain supply chains and increase steel prices in the EU.

Although CBAM implementation is scheduled for 2026, ongoing discussions in EU policy circles indicate a potential postponement. Concerns have arisen over the financial burden on European producers, who face rising costs linked to green steel investments.

Meanwhile, the USA's cheap energy policy has helped its industries maintain lower production costs, reducing the urgency for American producers to adopt greener alternatives. This has created a competitive imbalance, adding pressure on European producers to remain cost-effective despite stricter environmental targets.

Despite these uncertainties, Kama Steel UK continues to prepare for CBAM compliance to ensure its supply chain is well-positioned to meet regulatory requirements should the policy proceed as planned.

 

KAMA STEEL TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The combination of falling inflation, declining interest rates, and improving business sentiment is expected to support gradual economic recovery through the second half of 2025.


While the steel tariffs levied by the USA present a significant challenge to global trade, Kama Steel’s Turkish supply chain is largely immune from direct impact, as Turkish steel has faced a 25% US tariff since 2018.

However, secondary risks such as increased competition in Europe from redirected global supply, and supply chain adjustments caused by evolving trade dynamics remain potential concerns.

By leveraging Turkish mills’ CBAM advantage, maintaining strong supplier relationships, and focusing on value-added products, the company is well-positioned to navigate these evolving market conditions.

While growth may remain moderate in the short term, once the Russia-Ukraine war ends, deferred investments and major infrastructure rebuilding efforts are expected to stimulate demand across key sectors in 2025 and beyond. Post-war reconstruction in Eastern Europe will likely create substantial demand for steel products, with Turkish mills well-placed to benefit from proximity and cost-effective production.


Financial risk management

Price risk
The company’s business activities are structured on a back-to-back basis, whereby purchasing and selling prices are fixed for each transaction, minimising exposure to price fluctuations.

Credit risk
All customer transactions are covered under credit insurance policies, and the company strictly operates within defined credit limits and payment terms.

Foreign currency risk
The company predominantly purchases steel products in USD while selling in EUR within Europe and GBP in the UK. Each sales transaction is secured with a forward FX contract at the point of order confirmation.


Funding risk
The company is financed through its share capital, capital contributions, short-term loans from its parent company, and trade finance loans from banks within the EU.

 

Development and performance

Interpretation of financial data
The balance sheet at the year-end reflects the recent limited profitability, influenced by slowing demand and deteriorating economic conditions.

Key performance indicators

The directors consider turnover and gross profit as the primary financial performance indicators for the company’s management.

The directors are satisfied with the company’s turnover, which reflects strong customer retention and consistent supply continuity. Gross profit improved significantly in 2024, driven by operational efficiencies, although pricing pressures and competitive market conditions continue to impact margins.

KAMA STEEL TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Going concern

The company maintains adequate financial resources, a strong and healthy customer portfolio, and competitive, technologically advanced suppliers.

While the economic slowdown has persisted for more than three years, the company remains confident in its forward-looking operations and its ability to adapt to changing market conditions.

The easing of inflation, improving business sentiment, and anticipated infrastructure investments — particularly following the expected end of the Russia-Ukraine war — are set to improve market conditions from 2025 onwards.

 

On behalf of the board

Mr S Eker
Director
2 May 2025
KAMA STEEL TRADING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their revised annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company in the year continued to be the wholesale of various steel products in key international markets.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £Nil (2023: £489,037). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Eker
Mr E Ates
Mr A Aydiner
Post reporting date events

There are no post reporting date events to note.

Future developments

The directors intend to continue to develop the existing business while consolidating their position in the market place.

Auditor

The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S Eker
Director
2 May 2025
KAMA STEEL TRADING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

 

 

 

KAMA STEEL TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KAMA STEEL TRADING LIMITED
- 6 -
Opinion

We have audited the financial statements of Kama Steel Trading Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KAMA STEEL TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KAMA STEEL TRADING LIMITED (CONTINUED)
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

Explanation as to the extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006, employment law, and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

KAMA STEEL TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KAMA STEEL TRADING LIMITED (CONTINUED)
- 8 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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 an auditor's 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.

Andrew Dean LLB ACA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
21 Lombard Street
London
EC3V 9AH
2 May 2025
KAMA STEEL TRADING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
18,462,209
18,612,018
Cost of sales
(17,002,797)
(17,761,282)
Gross profit
1,459,412
850,736
Administrative expenses
(984,527)
(834,095)
Operating profit
4
474,885
16,641
Interest receivable and similar income
6
19,200
2
Interest payable and similar expenses
7
88,962
(285,989)
Profit/(loss) before taxation
583,047
(269,346)
Tax on profit/(loss)
8
(144,655)
61,113
Profit/(loss) for the financial year
438,392
(208,233)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KAMA STEEL TRADING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit/(loss) for the year
438,392
(208,233)
Other comprehensive income
Currency translation loss taken to retained earnings
(83,284)
(6,420)
Total comprehensive income for the year
355,108
(214,653)
KAMA STEEL TRADING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Current assets
Stocks
11
5,837,222
2,591,717
Debtors
12
5,623,353
3,336,871
Cash at bank and in hand
387,047
748,181
11,847,622
6,676,769
Creditors: amounts falling due within one year
13
(10,786,772)
(5,971,027)
Net current assets
1,060,850
705,742
Capital and reserves
Called up share capital
15
629,500
629,500
Profit and loss reserves
431,350
76,242
Total equity
1,060,850
705,742
The financial statements were approved by the board of directors and authorised for issue on 2 May 2025 and are signed on its behalf by:
Mr S Eker
Director
Company Registration No. 10533884
KAMA STEEL TRADING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
629,500
779,932
1,409,432
Year ended 31 December 2023:
Loss for the financial year
-
(208,233)
(208,233)
Other comprehensive income:
Currency translation differences
-
(6,420)
(6,420)
Total comprehensive income for the year
-
(214,653)
(214,653)
Dividends
9
-
(489,037)
(489,037)
Balance at 31 December 2023
629,500
76,242
705,742
Year ended 31 December 2024:
Profit for the financial year
-
438,392
438,392
Other comprehensive income:
Currency translation differences
-
(83,284)
(83,284)
Total comprehensive income for the year
-
355,108
355,108
Balance at 31 December 2024
629,500
431,350
1,060,850
KAMA STEEL TRADING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(3,379,608)
5,576,399
Interest paid
(162,461)
(276,471)
Income taxes refunded/(paid)
221,605
(240,618)
Net cash (outflow)/inflow from operating activities
(3,320,464)
5,059,310
Investing activities
Interest received
19,200
2
Net cash generated from investing activities
19,200
2
Financing activities
Repayment of borrowings
(225,877)
(57,378)
Receipt/(repayment) of bank loans
3,252,715
(5,995,624)
Repayment of derivatives
(254,847)
4,805
Dividends paid
-
0
(489,037)
Net cash generated from/(used in) financing activities
2,771,991
(6,537,234)
Net decrease in cash and cash equivalents
(529,273)
(1,477,922)
Cash and cash equivalents at beginning of year
748,181
2,232,523
Effect of foreign exchange rates
168,139
(6,420)
Cash and cash equivalents at end of year
387,047
748,181
KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

Kama Steel Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is Russell House, Oxford Road, Bournemouth, Dorset, BH8 8EX. The directors of the company are based in Turkey.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the presentational currency of the company. The company's functional currency is the US dollar. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis, reflecting the directors' confidence in the Company's ability to continue its operations and meet its liabilities as they fall due for the foreseeable future and at a minimum for 12 months from the date of signing the financial statements.true

 

At the balance sheet date, the Company maintains a positive net current asset position of £1,060,850 (2023: £705,742). The steel industry, while facing continued global uncertainty in 2024 due to trade restrictions, elevated energy costs, and regulatory changes, remains resilient. Infrastructure investment and demand in key sectors such as construction, renewable energy and agriculture continue to provide stable market opportunities.

 

The Company has adapted proactively to these challenges through diversified sourcing strategies, cost-effective logistics and close monitoring of evolving EU and UK trade policies, including CBAM and safeguard measures. The directors have assessed that the Company has adequate financial resources, a stable and diversified customer base, and long-term supplier agreements with competitive and technologically advanced partners.

 

Taking into account the strategic flexibility and operational resilience demonstrated over the past year, the directors anticipate no material uncertainties that would cast significant doubt on the Company's ability to continue as a going concern.

 

The directors are therefore confident that the going concern basis remains appropriate for the preparation of the financial statements.

 

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on receipt), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Foreign exchange

Transactions in currencies other than the functional currency of US dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period. Exchange differences arising on the translation of the functional currency of US dollars to the reporting currency of sterling are shown as movements on reserves and not disclosed within the profit and loss account.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Debtor recoverability

The directors review the recoverability of bad debts and the associated credit insurance on a regular basis to mitigate the risk of bad debts. At the period end they do not consider there to be any material bad debt provisions required.

KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of steel
18,462,209
18,612,018
2024
2023
£
£
Turnover analysed by geographical market
European Union
13,272,928
11,863,359
United Kingdom
5,189,281
6,748,659
18,462,209
18,612,018
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
325,753
296,462
Fees payable to the company's auditor for the audit of the company's financial statements
23,025
22,575
Fees payable to the company's auditor for non audit services
35,279
27,490
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
3
3

The directors are remunerated through the parent company, Kama Dis Ticaret Ltd.

6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
2
Other interest income
19,200
-
0
Total income
19,200
2
KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Interest receivable and similar income
(Continued)
- 19 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
2
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
99,944
205,445
Other interest on financial liabilities
62,517
66,287
162,461
271,732
Other finance costs:
Gain/(loss) on derivative financial instrument
(251,423)
9,518
Other interest
-
0
4,739
(88,962)
285,989
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
144,644
-
0
Adjustments in respect of prior periods
11
(61,113)
Total current tax
144,655
(61,113)
KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
- 20 -

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
583,047
(269,346)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
145,762
(63,350)
Tax effect of expenses that are not deductible in determining taxable profit
207
-
0
Unutilised tax losses carried forward
(1,184)
1,184
Adjustments in respect of prior years
11
(61,113)
Losses carried back
-
0
62,236
Remeasurement of deferred tax for changes in tax rates
-
0
(70)
Reallocation of prior year payments
(141)
-
0
Taxation charge/(credit) for the year
144,655
(61,113)
9
Dividends
2024
2023
£
£
Final paid
-
0
489,037
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
160,327
-
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
-
94,520
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,837,222
2,591,717
KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,858,737
2,859,337
Corporation tax recoverable
-
0
221,616
Derivative financial instruments
160,327
-
Other debtors
9,199
128,260
Prepayments and accrued income
595,090
127,658
5,623,353
3,336,871
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
3,252,715
-
0
Other borrowings
14
1,495,846
1,721,723
Trade creditors
3,191,414
2,018,520
Corporation tax
144,644
-
0
Other taxation and social security
267,350
-
0
Derivative financial instruments
-
0
94,520
Deferred income
2,403,936
2,079,202
Accruals and deferred income
30,867
57,062
10,786,772
5,971,027
14
Loans and overdrafts
2024
2023
£
£
Bank loans
3,252,715
-
0
Loans from group undertakings
1,495,846
1,721,723
4,748,561
1,721,723
Payable within one year
4,748,561
1,721,723
KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Loans and overdrafts
(Continued)
- 22 -

During the year the company entered into short term invoice collection loan arrangements with their bankers as set out below.

 

On 8 October 2024 the company was granted a facility of £395,116, accruing interest at 6.5% per annum and maturing on 6 January 2025.

 

On 16 October 2024 the company was granted a facility of £967,470, accruing interest at 6.5% per annum and maturing on 14 January 2025.

 

On 30 October 2024 the company was granted a facility of €565,407, accruing interest at 5.6% per annum and maturing on 28 January 2025.

 

On 4 December 2024 the company was granted a facility of €763,085, accruing interest at 5.4% per annum and maturing on 5 February 2025.

 

On 18 December 2024 the company was granted a facility of £788,366, accruing interest at 6.3% per annum and maturing on 6 January 2025.

 

Loans from group undertakings are unsecured and repayable on demand.

15
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
480,000 Ordinary A shares of 78.6875p each
377,700
377,700
160,000 Ordinary B shares of 78.6875p each
125,900
125,900
160,000 Ordinary C shares of 78.6875p each
125,900
125,900
629,500
629,500

All the share capital was issued at nominal value in dollars of $1 per share and translated into sterling at the date of issue. The A, B and C shares rank pari passu on winding up and voting with dividends being as recommended on each class by the directors of the company.

16
Events after the reporting date

There have been no events after the reporting date which require disclosure.

17
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

KAMA STEEL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Related party transactions
(Continued)
- 23 -

At the balance sheet date the company owed £1,495,846 (2023: £1,721,723) to its parent company Kama Dis Ticaret Ltd. An annual interest rate of 3% accrues on the outstanding balance, and amounts totalling £62,517 (2023: £66,287) accrued during the year.

 

During the year the company was charged management fees totalling £437,029 (2023: £329,592) by its parent company Kama Dis Ticaret Ltd. At the year end £41,619 of this amount remained unpaid (2023: £89,986).

 

During the year the company was charged £nil (2023: £2,968) for professional services provided by a related party with a director in common.

 

All transactions took place on an arm's length basis.

18
Ultimate controlling party

The parent company of Kama Steel Trading Limited is Kama Dis Ticaret Ltd, a company incorporated in Turkey with a registered office of My Office Kat: 7 Daire: 30 No: 1 Barbaros Mahallesi Cigdem Sokak Atasehir Istanbul; Marmara; Postal Code: 34746.

19
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit/(loss) after taxation
438,392
(208,233)
Adjustments for:
Taxation charged/(credited)
144,655
(61,113)
Finance costs
(88,962)
285,989
Investment income
(19,200)
(2)
Movements in working capital:
Increase in stocks
(3,245,505)
(915,437)
(Increase)/decrease in debtors
(2,347,771)
4,650,114
Increase in creditors
1,414,049
876,118
Increase in deferred income
324,734
958,481
Cash (absorbed by)/generated from operations
(3,379,608)
5,585,917
20
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
748,181
(361,134)
387,047
Borrowings excluding overdrafts
(1,721,723)
(3,026,838)
(4,748,561)
(973,542)
(3,387,972)
(4,361,514)
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