Company registration number 07084236 (England and Wales)
ARRANDENE MFG LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
ARRANDENE MFG LTD
COMPANY INFORMATION
Directors
Mr T Hafner
Mr B Blondin
Mr S J Billingham
Mr C J N Wade
(Appointed 1 April 2025)
Company number
07084236
Registered office
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
ARRANDENE MFG LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
ARRANDENE MFG LTD
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

The directors were pleased with the level of sales and overall performance of the company in the year considering the uncertainty in industrial demand

 

The directors continue to take a cautious approach, whilst taking all the opportunities that being part of a well funded group allow.

Principal risks and uncertainties

The principle risks and uncertainties facing the company are:

 

Fluctuation in currency exchange rates: the company's suppliers and customers are distributed across the globe, while operations and operating costs are spread across several different countries and currencies. Fluctuation in exchange rates, in particular movements in US dollar and the GBP against the EURO, may have a material impact on the company's financial results.

 

Price volatility: the market price for base metals is volatile and cannot be controlled. Inventories are therefore subject to devaluation. Market price movements of our products are closely monitored but may have a material impact on the company's financial results.

 

Political, community and fiscal intervention: the company's operations and projects span numerous countries, some of which have more complex, less stable, political or social climates and consequently a higher country risk. Political risks include changes in law, taxes or currency restrictions. Any of these factors could have an adverse impact on the company's profitability in a certain geographic region or at certain operations.

 

Other risks: other risks facing the company include competition and environmental and insurance risks

Key performance indicators

The company closely monitors the gross margin, tonnes traded and the freight and warehousing cost per tonne. All of these are satisfactory in the year of trading. These are reviewed by the directors weekly on a contract by contract basis and also at the end of each trading month. Appropriate action is taken when any deviation to expected results occur.

Future developments

The directors have prepared realistic budgets and forecasts for the coming year which reflect economic uncertainty yet still show a robust trading position.

 

On behalf of the board

Mr S J Billingham
Director
6 May 2025
ARRANDENE MFG LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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

Principal activities

The principal activity of the company continues to be the physical trade of metals and raw materials into industry.

Results and dividends

The results for the year are set out on page 7.

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 T Hafner
Mr B Blondin
Mr S J Billingham
Mr C J N Wade
(Appointed 1 April 2025)
Future developments

The uncertainty around the current economic climate makes it difficult to quantify the effects on the business but the directors are aware of the potential issues involved.

Auditor

In accordance with the company's articles, a resolution proposing that Rayner Essex LLP be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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:

 

 

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.

ARRANDENE MFG LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
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.

On behalf of the board
Mr S J Billingham
Director
6 May 2025
ARRANDENE MFG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARRANDENE MFG LTD
- 4 -
Opinion

We have audited the financial statements of Arrandene MFG Ltd (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 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:

ARRANDENE MFG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARRANDENE MFG LTD (CONTINUED)
- 5 -
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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

ARRANDENE MFG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARRANDENE MFG LTD (CONTINUED)
- 6 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

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

 

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

A further description of our responsibilities 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.

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.

Antony Federer FCA FCCA CF
Senior Statutory Auditor
For and on behalf of Rayner Essex LLP
6 May 2025
Chartered Accountants
Statutory Auditor
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
ARRANDENE MFG LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
Turnover
4
32,884,151
31,971,052
Cost of sales
(30,142,278)
(28,719,682)
Gross profit
2,741,873
3,251,370
Administrative expenses
(1,688,574)
(1,900,066)
Operating profit
3
1,053,299
1,351,304
Interest receivable and similar income
7
50,663
-
0
Interest payable and similar expenses
9
(63,589)
(117,505)
Profit before taxation
1,040,373
1,233,799
Tax on profit
10
(267,359)
(292,713)
Profit for the financial year
773,014
941,086

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

ARRANDENE MFG LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
Fixed assets
Tangible assets
13
17,226
17,636
Investments
14
23,141
23,141
40,367
40,777
Current assets
Stocks
16
1,306,840
2,590,869
Debtors
17
4,929,335
2,618,429
Cash at bank and in hand
235,423
1,060,084
6,471,598
6,269,382
Creditors: amounts falling due within one year
18
(1,622,963)
(2,176,175)
Net current assets
4,848,635
4,093,207
Total assets less current liabilities
4,889,002
4,133,984
Creditors: amounts falling due after more than one year
19
-
0
(17,996)
Provisions for liabilities
Deferred tax liability
21
5,682
5,682
(5,682)
(5,682)
Net assets
4,883,320
4,110,306
Capital and reserves
Called up share capital
23
100,000
100,000
Profit and loss reserves
4,783,320
4,010,306
Total equity
4,883,320
4,110,306
The financial statements were approved by the board of directors and authorised for issue on 6 May 2025 and are signed on its behalf by:
Mr S J Billingham
Director
Company registration number 07084236 (England and Wales)
ARRANDENE MFG LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
Balance at 1 January 2023
100,000
4,069,220
4,169,220
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
941,086
941,086
Dividends
11
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
100,000
4,010,306
4,110,306
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
773,014
773,014
Balance at 31 December 2024
100,000
4,783,320
4,883,320
ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information

Arrandene MFG Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Faulkner House, Victoria Street, St Albans, Hertfordshire, AL1 3SE.

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 euros, 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of MFG Metall- und Ferrolegierungsgesellschaft mbH Hafner, Blondin & Tidou, a company incorporated in Germany.

1.2
Going concern

Arrandene MFG Ltd is supported and funded through a group banking facility provided to it's parent company, MFG Metall- und Ferrolegierungsgesellschaft mbH Hafner, Blondin & Tidou, by HSBC Trinkaus & Burkhardt and Commerzbank. The parent company has provided confirmation that these facilities will continue to be made available as part of the group banking arrangements and the accounts have therefore been prepared on a going concern basis.true

 

In adopting the going concern basis for preparing the financial statements, the directors have considered the business activities and the company's principle risks and uncertainties. The company meets its day-to-day working capital requirements through use of its cash and banking facilities. The group in which the company is a subsidiary has the above mentioned banking facilities in place which are available to the company.

 

In assessing the appropriateness of the going concern assumption, the directors have prepared detailed cash flow forecasts for the company. In the modelled forecast scenarios the directors are satisfied that the company can continue to operate within its current cash and other facilities.

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.

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:

Fixtures, fittings & equipment
3 - 10 years, straight line
Plant and machinery
6 years, straight line
Motor vehicles
4 years, straight line

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -

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.

1.7
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. Stock is accounted for on bill of lading date.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and 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.

1.8
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.

1.9
Financial assets

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.

Loans and receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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. The impairment loss 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.

1.10
Financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

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.

1.11
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.

1.12
Taxation

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

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

 

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.16

Functional currency

Items included in the company's financial statements are measured using the currency of the primary economic environment in which the company operates (the "functional currency"). The financial statements are presented in Euros, which is the company's functional and presentational currency.

 

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

1.17

Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking MFG Metall- und Ferrolegierungsgesellschaft mbH Hafner, Blondin & Tidou, a company incorporated in Germany, and is included in the consolidated accounts of that company.

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.

3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
7,160
4,942
(Profit)/loss on disposal of tangible fixed assets
-
231
Operating lease charges
59,672
172,140

The amortisation of intangible assets is included within administration expenses.

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
4
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
Turnover analysed by class of business
Physical trade of metals and raw materials
32,884,151
31,971,052
2024
2023
Other significant revenue
Interest income
50,663
-
2024
2023
Turnover analysed by geographical market
UK
937,254
623,085
EU
13,200,202
10,744,663
Other
18,746,695
20,603,304
32,884,151
31,971,052
5
Employees

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

2024
2023
Number
Number
Directors
3
3
Staff
7
6
Total
10
9

Their aggregate remuneration comprised:

2024
2023
Wages and salaries
889,584
1,057,762
Social security costs
101,716
84,066
Pension costs
44,564
31,075
1,035,864
1,172,903
ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
For audit services
Audit of the financial statements of the company
15,000
14,750
For other services
All other non-audit services
33,492
22,517
7
Interest receivable and similar income
2024
2023
Interest income
Interest on bank deposits
50,663
-
0
8
Directors' remuneration
2024
2023
Remuneration for qualifying services
248,766
237,536
Company pension contributions to defined contribution schemes
16,310
14,405
265,076
251,941

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
Remuneration for qualifying services
244,379
233,552
9
Interest payable and similar expenses
2024
2023
Interest on bank overdrafts and loans
63,589
108,495
Other interest
-
0
9,010
63,589
117,505
ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
10
Taxation
2024
2023
Current tax
UK corporation tax on profits for the current period
267,359
292,713

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

2024
2023
Profit before taxation
1,040,373
1,233,799
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
260,093
289,943
Tax effect of expenses that are not deductible in determining taxable profit
3,276
4,082
Permanent capital allowances in excess of depreciation
(1,743)
(1,565)
Foreign exchange differences
5,733
253
Taxation charge for the year
267,359
292,713
11
Dividends
2024
2023
Interim paid
-
0
1,000,000
12
Intangible fixed assets
Goodwill
Licences
Total
Cost
At 1 January 2024 and 31 December 2024
19,983
28,952
48,935
Amortisation and impairment
At 1 January 2024 and 31 December 2024
19,983
28,952
48,935
Carrying amount
At 31 December 2024
-
0
-
0
-
0
At 31 December 2023
-
0
-
0
-
0
ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
13
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
Cost
At 1 January 2024
2,375
41,947
44,322
Additions
-
0
6,750
6,750
Disposals
-
0
(1,273)
(1,273)
At 31 December 2024
2,375
47,424
49,799
Depreciation and impairment
At 1 January 2024
910
25,776
26,686
Depreciation charged in the year
475
6,685
7,160
Eliminated in respect of disposals
-
0
(1,273)
(1,273)
At 31 December 2024
1,385
31,188
32,573
Carrying amount
At 31 December 2024
990
16,236
17,226
At 31 December 2023
1,465
16,171
17,636
14
Fixed asset investments
2024
2023
Notes
Investments in subsidiaries
15
23,141
23,141

The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.

Fair value of financial assets carried at amortised cost

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

15
Subsidiaries

Separate company financial statements are required to be prepared by law. Consolidated financial statements for the MFG Metall- und Ferrolegierungsgesellschaft mbH Hafner, Blondin & Tidou Group are prepared and publicly available.

These financial statements are separate company financial statements for Arrandene MFG Ltd.

Details of the company's subsidiaries at 31 December 2024 are as follows:

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Subsidiaries
(Continued)
- 20 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Arrandene MFG Inc
United States
Physical trade of metals and raw materials into industry
100
100.00
Arrandene (Dublin) Ltd
Ireland
Dormant
100
100.00
Arrandene Asia Ltd
Hong Kong
Administration on behalf of Arrandene MFG Ltd
100
100.00
16
Stocks
2024
2023
Finished goods and goods for resale
1,306,840
2,590,869
17
Debtors
2024
2023
Amounts falling due within one year:
Trade debtors
4,500,884
2,105,857
Amounts owed by group undertakings
41,567
136,992
Other debtors
346,887
321,641
Prepayments and accrued income
39,997
53,939
4,929,335
2,618,429
18
Creditors: amounts falling due within one year
2024
2023
Notes
Bank loans and overdrafts
20
477,885
11,672
Trade creditors
443,306
1,341,801
Amounts owed to group undertakings
125,095
156,928
Corporation tax
176,438
157,589
Other taxation and social security
48,803
45,500
Other creditors
150,123
4,407
Accruals and deferred income
201,313
458,278
1,622,963
2,176,175

Bank loans and overdrafts includes €Nil (2023: €11,672) relating the portion of the Bounce Back Loan Scheme (BBLS) loan due within one year.

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
Bank loans and overdrafts
20
-
0
17,996
20
Loans and overdrafts
2024
2023
Bank loans
-
0
29,668
Bank overdrafts
477,885
-
0
477,885
29,668
Payable within one year
477,885
11,672
Payable after one year
-
0
17,996

 

The overdraft facility provided by HSBC Trinkaus & Burkhardt AG and Commerzbank is secured by the way of fixed and floating charge on all book and other debts, and by the way of floating charge over all other assets. The facility is due for renewal in April 2026.

 

The company is included in a group wide credit facility of €39,000,000. The facility is secured by way of a group wide fixed charge over the assets of the group, including Arrandene MFG Ltd, dated 30 March 2022.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
ACAs
5,682
5,682
There were no deferred tax movements in the year.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

ARRANDENE MFG LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
44,564
31,075

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.

23
Share capital
2024
2023
Ordinary share capital
Issued and fully paid
100,000 Ordinary shares of €1 each
100,000
100,000
24
Ultimate controlling party

The parent company of Arrandene MFG Ltd is MFG Metall- und Ferrolegierungsgesellschaft mbH Hafner, Blondin & Tidou, based in Germany, by virtue of its shareholding.

 

MFG Metall- und Ferrolegierungsgesellschaft mbH Hafner, Blondin & Tidou is a German company located Rudolf-Diesel-Str. 9 D 40670 Meerbusch Germany, which is where full consolidated accounts can be located.

25
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain assets and its property.

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
41,280
57,000
Between two and five years
19,711
37,333
60,991
94,333
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