Company registration number 01883322 (England and Wales)
CRONIMET GREAT BRITAIN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
CRONIMET GREAT BRITAIN LIMITED
COMPANY INFORMATION
Directors
Mr Graham Parr
Mr Karl Webster
Mr Joseph Todd
Mrs Lisa Heath-Haywood
Secretary
Mrs Lisa Heath-Haywood
Company number
01883322
Registered office
Unit 22 Cannock Wood Industrial Estate
Cannock Wood Street
Cannock
Staffordshire
England
WS12 0PL
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
CRONIMET GREAT BRITAIN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
CRONIMET GREAT BRITAIN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
In the year 2024, Cronimet Great Britain Limited faced a challenging business environment characterized by fluctuations in global demand for stainless steel products. The impact of high inflation and economic uncertainties led to a moderation in the demand for stainless steel, resulting in reduced sales volumes compared to the previous years but similar quantities to that of 2023.
Due to the challenging market conditions, the company aimed to moderate its operations by adjusting production levels to align with the lower demand for stainless steel products. Local customer demand remained somewhat reliable, providing a stable foundation for the company's operations during global uncertainties. Due to variable demand in challenging market conditions heavy delays played a big factor in the overall result in 2024.
The prices of key raw materials such as Nickel and Nickel Pig Iron (NPI) continued to fluctuate throughout the year, influencing the overall cost structure of the business. Cronimet Great Britain Limited maintained its flexibility in adjusting purchase prices in response to market dynamics, ensuring competitiveness in sourcing scrap product for its operations. The local customer demand for scrap materials was variable and introduction of NPI from Indonesia continues to be a key factor in maintaining price control and demand for scrap in GB.
The integration efforts within Cronimet Holding GmbH group progressed further in 2024, fostering a collaborative environment across various sites and functions. The exchange of best practices and operational synergies within the group led to quality enhancements, cost efficiencies, and expanded export opportunities into new market segments. For example, Team Technics on operations & sustainability, Export to North Africa.
Strategic investments in capital equipment, yard facilities, and sustainability initiatives continued to be a priority for Cronimet Great Britain Limited in 2024. The company's commitment to electrifying plant equipment as part of the sustainability project underscored its dedication to environmental responsibility and operational efficiency. Examples include Solar Panel installation across both locations and a deeper dive into the requirements for Holdings 2030 greener commitments.
CRONIMET GREAT BRITAIN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
As a key player in the global Stainless Steel market, Cronimet Great Britain Limited remains exposed to various risks and uncertainties that could impact its operations. The anticipated growth in worldwide scrap sales failed to come to fruition and scrap availability became depressed, this is signified against the decreased demand of raw materials demand in 2024 for use in the Stainless Steel segment.
The competitive nature of the market, coupled with external factors such as geopolitical events, economic conditions, and regulatory changes, poses challenges for the company. The ongoing uncertainties stemming from the conflict in Ukraine, energy price volatilities, cheap imports and the post-Brexit landscape in Europe add complexity to the business environment.
Risk management practices are integral to the company's operations and values, with periodic reviews of business risks and compliance with ISO 9001, 14001, and 45001 certifications to ensure operational standards and regulatory alignment. All ISO’s have been fully audited in 2024 and Cronimet Great Britain granted continued accreditation. Cronimet Great Britain Limited continues to monitor sales risks, particularly considering market developments such as Marcegaglia investments in the UK stainless steel mill, which may influence demand dynamics. Examples include, updated specifications booklet, investment in new arc furnace, preparation for increased shifts and increased personal.
Financial Risk Management
The company's financial stability and performance are closely monitored by the board of directors to mitigate deviations from anticipated results. Measures to reduce bad debt losses involve comprehensive assessments of customer credit ratings and financial health.
Foreign exchange risks associated with currency fluctuations are managed through proactive strategies, including the use of forward contracts to safeguard against adverse currency movements. The treasury department of the ultimate holding company plays a vital role in monitoring and hedging currency risks to protect the company's financial interests.
Interest rates continue to play a large role in the overall profitability of Cronimet Great Britain. Proactive monitoring of historic stock positions from previous years have been sold to reduce overall interest cost. irregular sales failed to mitigate Cronimet Great Britain exposure to increased and fluctuating interest rates.
Development and performance
Cronimet Great Britain Limited's focus on enhancing work methods and operational efficiencies continued in 2024, with an emphasis on optimizing material stock analysis and management processes. Collaboration with the broader Cronimet Group facilitated the adoption of advanced technologies and software solutions to meet evolving market demands.
The company's commitment to innovation, sustainability, and operational excellence positions it well to navigate the challenges and opportunities in the Stainless Steel industry. By fostering a culture of continuous improvement and strategic alignment within the group, Cronimet Great Britain Limited remains resilient and adaptive in a dynamic business landscape.
Mrs Lisa Heath-Haywood
Director
20 March 2025
CRONIMET GREAT BRITAIN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of purchase, grading and resale of waste metals.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. 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 Graham Parr
Mr Karl Webster
Mr Joseph Todd
Mrs Lisa Heath-Haywood
Auditor
In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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.
CRONIMET GREAT BRITAIN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
Mrs Lisa Heath-Haywood
Director
20 March 2025
CRONIMET GREAT BRITAIN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRONIMET GREAT BRITAIN LIMITED
- 5 -
Opinion
We have audited the financial statements of Cronimet Great Britain Limited (the 'company') for the year ended 31 December 2024 which comprise 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:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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.
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.
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:
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.
CRONIMET GREAT BRITAIN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRONIMET GREAT BRITAIN LIMITED (CONTINUED)
- 6 -
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, 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.
From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which includes, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, if available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
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.
CRONIMET GREAT BRITAIN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRONIMET GREAT BRITAIN LIMITED (CONTINUED)
- 7 -
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.
Christopher Hession C.A. (Senior Statutory Auditor)
For and on behalf of BK Plus Limited, Statutory Auditor
Chartered Certified Accountants
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
20 March 2025
CRONIMET GREAT BRITAIN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
72,155,174
90,209,845
Cost of sales
(71,389,193)
(88,219,291)
Gross profit
765,981
1,990,554
Administrative expenses
(2,113,207)
(1,841,635)
Other operating income
557,975
301,420
Exceptional items
4
698,836
Operating (loss)/profit
5
(789,251)
1,149,175
Interest receivable and similar income
8
1,376,293
1,212,406
Interest payable and similar expenses
9
(2,376,433)
(1,741,799)
(Loss)/profit before taxation
(1,789,391)
619,782
Tax on (loss)/profit
10
(Loss)/profit for the financial year
(1,789,391)
619,782
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There was no other comprehensive income for 2024 or 2023.
The notes on pages 12 to 23 form part of these financial statements.
CRONIMET GREAT BRITAIN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,778,151
2,098,614
Current assets
Stocks
12
5,181,692
6,022,882
Debtors
13
5,726,651
9,853,307
Cash at bank and in hand
204,963
12,238
11,113,306
15,888,427
Creditors: amounts falling due within one year
14
(15,694,257)
(18,000,450)
Net current liabilities
(4,580,951)
(2,112,023)
Net liabilities
(1,802,800)
(13,409)
Capital and reserves
Called up share capital
17
150,000
150,000
Share premium account
5,000
5,000
Profit and loss reserves
(1,957,800)
(168,409)
Total equity
(1,802,800)
(13,409)
The notes on pages 12 to 23 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
Mrs Lisa Heath-Haywood
Director
Company registration number 01883322 (England and Wales)
CRONIMET GREAT BRITAIN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
150,000
5,000
(788,191)
(633,191)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
619,782
619,782
Balance at 31 December 2023
150,000
5,000
(168,409)
(13,409)
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
(1,789,391)
(1,789,391)
Balance at 31 December 2024
150,000
5,000
(1,957,800)
(1,802,800)
The notes on pages 12 to 23 form part of these financial statements.
CRONIMET GREAT BRITAIN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,093,288
709,225
Interest paid
(2,376,433)
(1,741,799)
Net cash outflow from operating activities
(283,145)
(1,032,574)
Investing activities
Purchase of tangible fixed assets
(904,423)
(201,555)
Proceeds from disposal of tangible fixed assets
4,000
33,660
Interest received
1,376,293
1,212,406
Net cash generated from investing activities
475,870
1,044,511
Net increase in cash and cash equivalents
192,725
11,937
Cash and cash equivalents at beginning of year
12,238
301
Cash and cash equivalents at end of year
204,963
12,238
The notes on pages 12 to 23 form part of these financial statements.
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
Cronimet Great Britain Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 22 Cannock Wood Industrial Estate, Cannock Wood Street, Cannock, Staffordshire, England, WS12 0PL.
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 functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
At the balance sheet date the company had net current liabilities of £4,542,001 (2023 £2,112,023) and in the current year a total net liability position of £1,763,850 (2023 £13,409). The company's ultimate parent company has confirmed that it will continue to support the company for a period of twelve months from the date of this report. Amounts due to the parent will not be recovered until the company has sufficient excess working capital to repay the amounts due.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 dispatch of the goods), 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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
1% on cost of buildings
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
Heavy Plant
25% reducing balance
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.8
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.
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
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 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.
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
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 through 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.
1.9
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling 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 in the period are included in profit or loss.
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
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.
Tangible fixed assets and depreciation
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, all relevant known factors are taken into account but there is inherent uncertainty in making this assessment.
Recovrability of trade debtors
The determination of whether trade debtors should be impaired requires the estimation of the expected cash flows and the relevant age of those debtors.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
72,155,174
90,209,845
2024
2023
£
£
Turnover analysed by geographical market
United Kingdon
68,293,454
88,572,859
Europe
3,814,715
1,636,986
Rest of the world
47,005
-
72,155,174
90,209,845
2024
2023
£
£
Other revenue
Interest income
1,376,293
1,212,406
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Exceptional items
2024
2023
£
£
Expenditure
(Profit)/Loss on nickel hedging
-
(583,747)
(Profit)/Loss on foreign exchange
-
(115,089)
-
(698,836)
The above exceptional costs were a result of events outside the companies control as detailed within the strategic report.
5
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(69,225)
Fees payable to the company's auditor for the audit of the company's financial statements
25,544
29,715
Depreciation of owned tangible fixed assets
224,718
164,903
Profit on disposal of tangible fixed assets
(3,832)
(23,590)
Operating lease charges
326,596
501,170
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors and other management
4
4
Administration
6
6
Production
22
25
Total
32
35
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,351,788
1,303,872
Social security costs
149,664
150,601
Pension costs
89,764
95,141
1,591,216
1,549,614
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
464,025
422,241
Company pension contributions to defined contribution schemes
47,179
50,694
511,204
472,935
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
153,348
146,486
Company pension contributions to defined contribution schemes
11,230
11,025
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
477,034
64,608
Other interest income
899,259
1,147,798
1,376,293
1,212,406
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
629,691
526,500
Interest payable to group undertakings
1,746,742
1,215,299
2,376,433
1,741,799
10
Taxation
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(1,789,391)
619,782
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(447,348)
154,946
Tax effect of expenses that are not deductible in determining taxable profit
14,357
12,914
Gains not taxable
(958)
Permanent capital allowances in excess of depreciation
3,175
(8,356)
Depreciation on assets not qualifying for tax allowances
3,407
3,407
Utilisation of losses brought forward
(162,911)
Losses carried forward
427,367
Taxation charge for the year
-
-
The company has unrelieved trading losses of £10,759,236 (2023: £10,720,285) available to be utilised against future profits.
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Heavy Plant
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
1,977,978
1,341,269
183,064
101,333
376,339
3,979,983
Additions
16,872
515,340
174,975
104,012
664
92,560
904,423
Disposals
(22,300)
(22,300)
At 31 December 2024
1,994,850
515,340
1,493,944
287,076
101,997
468,899
4,862,106
Depreciation and impairment
At 1 January 2024
284,771
1,117,995
136,590
44,142
297,871
1,881,369
Depreciation charged in the year
30,354
99,521
37,622
14,464
42,757
224,718
Eliminated in respect of disposals
(22,132)
(22,132)
At 31 December 2024
315,125
1,195,384
174,212
58,606
340,628
2,083,955
Carrying amount
At 31 December 2024
1,679,725
515,340
298,560
112,864
43,391
128,271
2,778,151
At 31 December 2023
1,693,207
223,274
46,474
57,191
78,468
2,098,614
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Tangible fixed assets
(Continued)
- 21 -
Included within freehold property is land of £292,778 (2023: £292,778), which is not depreciated.
12
Stocks
2024
2023
£
£
Raw materials and consumables
5,181,692
6,022,882
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,820,554
9,259,131
Amounts owed by group undertakings
3,734,923
418,038
Other debtors
19
15
Prepayments and accrued income
171,155
176,123
5,726,651
9,853,307
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
3,523,806
2,586,681
Amounts owed to group undertakings
11,433,275
12,908,837
Taxation and social security
301,356
2,383,574
Deferred income
15
101,101
Other creditors
15,506
8,058
Accruals and deferred income
319,213
113,300
15,694,257
18,000,450
15
Deferred income
2024
2023
£
£
Other deferred income
101,101
-
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,764
95,141
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £9,845 (2023: £1,103) were payable to the fund at the balance sheet date.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary £1 shares of £1 each
150,000
150,000
150,000
150,000
Ordinary shares carry full dividend and voting rights.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
268,058
269,528
Between two and five years
137,885
404,543
405,943
674,071
19
Related party transactions
In accordance with FRS102 section 33.1A the company has taken advantage of the exemption available not to disclose details entered into between wholly owned subsidiaries of Cronimet Holding GmbH.
Key management personnel are considered to be the directors, their remuneration is disclosed in note 6.
20
Ultimate controlling party
The ultimate parent company and immediate parent company is Cronimet Holding GmbH, a company incorporated in Germany which owns 100% of the issued share capital.
The ultimate controlling party of Cronimet Holding GmbH are JüPi Beteiligungsgesellschaft and Jürgen Pilarsky by virtue of his majority shareholding.
CRONIMET GREAT BRITAIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
21
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
12,238
192,725
204,963
22
Cash generated from operations
2024
2023
£
£
(Loss)/profit after taxation
(1,789,391)
619,782
Adjustments for:
Finance costs
2,376,433
1,741,799
Investment income
(1,376,293)
(1,212,406)
Gain on disposal of tangible fixed assets
(3,832)
(23,590)
Depreciation and impairment of tangible fixed assets
224,718
164,903
Movements in working capital:
Decrease in stocks
841,190
50,829
Decrease in debtors
4,126,656
38,431
Decrease in creditors
(2,407,294)
(670,523)
Increase in deferred income
101,101
-
Cash generated from operations
2,093,288
709,225
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