Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312025-05-292024-12-312025-05-29falsefalsefalseNo description of principal activity2024-01-014040false 03298004 2024-01-01 2024-12-31 03298004 2023-01-01 2023-12-31 03298004 2024-12-31 03298004 2023-12-31 03298004 2023-01-01 03298004 c:Exceptional 2024-01-01 2024-12-31 03298004 c:Exceptional 2023-01-01 2023-12-31 03298004 d:CompanySecretary1 2024-01-01 2024-12-31 03298004 d:Director1 2024-01-01 2024-12-31 03298004 d:Director2 2024-01-01 2024-12-31 03298004 d:Director3 2024-01-01 2024-12-31 03298004 d:Director4 2024-01-01 2024-12-31 03298004 d:RegisteredOffice 2024-01-01 2024-12-31 03298004 c:PlantMachinery 2024-01-01 2024-12-31 03298004 c:PlantMachinery 2024-12-31 03298004 c:PlantMachinery 2023-12-31 03298004 c:PlantMachinery c:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 03298004 c:FurnitureFittings 2024-01-01 2024-12-31 03298004 c:FurnitureFittings 2024-12-31 03298004 c:FurnitureFittings 2023-12-31 03298004 c:FurnitureFittings c:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 03298004 c:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 03298004 c:CurrentFinancialInstruments 2024-12-31 03298004 c:CurrentFinancialInstruments 2023-12-31 03298004 c:Non-currentFinancialInstruments 2024-12-31 03298004 c:Non-currentFinancialInstruments 2023-12-31 03298004 c:CurrentFinancialInstruments c:WithinOneYear 2024-12-31 03298004 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 03298004 c:Non-currentFinancialInstruments c:AfterOneYear 2024-12-31 03298004 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 03298004 e:UnitedKingdom 2024-01-01 2024-12-31 03298004 e:UnitedKingdom 2023-01-01 2023-12-31 03298004 e:RestWorldOutsideUK 2024-01-01 2024-12-31 03298004 e:RestWorldOutsideUK 2023-01-01 2023-12-31 03298004 c:UKTax 2024-01-01 2024-12-31 03298004 c:UKTax 2023-01-01 2023-12-31 03298004 c:ShareCapital 2024-01-01 2024-12-31 03298004 c:ShareCapital 2024-12-31 03298004 c:ShareCapital 2023-01-01 2023-12-31 03298004 c:ShareCapital 2023-12-31 03298004 c:ShareCapital 2023-01-01 03298004 c:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 03298004 c:RetainedEarningsAccumulatedLosses 2024-12-31 03298004 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03298004 c:RetainedEarningsAccumulatedLosses 2023-12-31 03298004 c:RetainedEarningsAccumulatedLosses 2023-01-01 03298004 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-01-01 2024-12-31 03298004 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-12-31 03298004 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 03298004 d:OrdinaryShareClass1 2024-01-01 2024-12-31 03298004 d:OrdinaryShareClass1 2024-12-31 03298004 d:FRS102 2024-01-01 2024-12-31 03298004 d:Audited 2024-01-01 2024-12-31 03298004 d:FullAccounts 2024-01-01 2024-12-31 03298004 d:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 03298004 c:WithinOneYear 2024-12-31 03298004 c:WithinOneYear 2023-12-31 03298004 c:BetweenOneFiveYears 2024-12-31 03298004 c:BetweenOneFiveYears 2023-12-31 03298004 c:MoreThanFiveYears 2024-12-31 03298004 c:MoreThanFiveYears 2023-12-31 03298004 c:HirePurchaseContracts c:WithinOneYear 2024-12-31 03298004 c:HirePurchaseContracts c:WithinOneYear 2023-12-31 03298004 c:HirePurchaseContracts c:BetweenOneFiveYears 2024-12-31 03298004 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-12-31 03298004 c:AcceleratedTaxDepreciationDeferredTax 2024-12-31 03298004 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 03298004 2 2024-01-01 2024-12-31 03298004 f:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure


Registered number: 03298004












COGNE U.K. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 

COGNE U.K. LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2
Directors' report
 
3
Directors' responsibilities statement
 
4
Independent auditor's report
 
5 - 8
Profit and loss account
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 26


 

COGNE U.K. LIMITED
 
COMPANY INFORMATION


Directors
M Pirovano 
J R Smith 
G Girivetto 




Company secretary
D M Dalton



Registered number
03298004



Registered office
Uniformity Steel Works
Don Road

Newhall

Sheffield

South Yorkshire

S9 2UD




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

COGNE U.K. LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors present their strategic report of the company for the year ended 31 December 2024. The principal activity of the company during the year was that of steel stockholders and distributors.

Business review and key performance indicators
 
Turnover for the year ended 31 December 2024 amounted to £20,311,800 (2023: £23,970,859), a decrease of 15% compared to the prior year. The gross profit for the year ended 31 December 2024 amounted to £3,450,364 (2023: £4,702,960), with the gross profit margin decreasing from 19.6% in 2023 to 17.0% in 2024. These movements are principally as a result of decreasing steel prices and increased competition in the market.
The current year profit of £553,129 (2023: £659,560) decreased on the prior year due to the reduced gross profit, being partially offset by a reimbursement received from the parent company for a fine incurred in the prior year.
The value of stocks held at 31 December 2024 amounted to £8,345,881 (2023: £7,330,304). The increase in stock is mainly due to a change in customer habits delaying stock purchases due to the overall economic climate. In general, management continue to actively manage stock levels and to hold only core product lines and tonnage that is in line with the level of trade being achieved.
Trade debtors at 31 December 2024 were £3,618,170 (2023: £4,160,081), with the decrease being due to the reduction in sales. Management expects full recovery of the trade debtors outstanding at 31 December 2024.
Cash and cash equivalents at 31 December 2024 were £155,234 (2023: £2,139,335), with the decrease as a result of a material payment made for group purchases pre year end.
The directors are committed to promoting the health, safety and welfare of their staff and continue to ensure appropriate measures are undertaken in this regard. There was 1 reportable accident during the year (2023: 1).

Principal risks and uncertainties
 
Stock on hand is exposed to the movement in base metal prices. The directors intend to continue to review stock levels during 2025 and to manage the risk as appropriate.
The company manages the risk of financial loss resulting from customers defaulting through the use of credit checks, establishing credit limits and utilising credit insurance.
At 31 December 2024, the company does not have borrowings and is therefore has limited exposed to interest rate rises.
Future developments
The directors believe that the company is well placed due to its solid financial position and the ongoing support of the global Cogne group.


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



M Pirovano
Director

Date: 29 May 2025

Page 2

 

COGNE U.K. LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Results and dividends

The profit for the year, after taxation, amounted to £553,129 (2023 - £659,560).

The directors do not recommend a dividend (2023: £nil).

Directors

The directors who served during the year were:

E Marzorati 
M Pirovano 
J R Smith 

Subsequent to the year end, on 23 February 2025, E Marzorati resigned as a director.
Subsequent to the year end, on 23 February 2025, G Girivetto was appointed as a director.

Matters covered in the Strategic Report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditor

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

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

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





M Pirovano
Director

Date: 29 May 2025

Page 3

 

COGNE U.K. LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.

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

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

select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

Page 4

 

COGNE U.K. LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COGNE U.K. LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion


We have audited the financial statements of Cogne U.K. Limited (the 'company') for the year ended 31 December 2024, which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the notes to the financial statements, including significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


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


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


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


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


We have nothing to report in this regard.


Page 5

 

COGNE U.K. LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COGNE U.K. LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


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


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


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 

COGNE U.K. LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COGNE U.K. LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.

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.

 
Page 7

 

COGNE U.K. LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COGNE U.K. LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Auditor's responsibilities for the audit of the financial statements (continued)
 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.





Hayley Loft (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
5 June 2025
Page 8

 

COGNE U.K. LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
20,311,800
23,970,859

Cost of sales
  
(16,861,436)
(19,267,899)

Gross profit
  
3,450,364
4,702,960

Administrative expenses
  
(3,308,626)
(3,227,564)

HMRC fines
 5 
581,726
(612,119)

Operating profit
 6 
723,464
863,277

Interest receivable and similar income
 9 
19,825
17,495

Interest payable and similar expenses
 10 
(5,784)
(7,426)

Profit before tax
  
737,505
873,346

Tax on profit
 11 
(184,376)
(213,786)

Profit for the financial year
  
553,129
659,560

There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been presented.

Page 9


 
REGISTERED NUMBER:03298004
COGNE U.K. LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
272,021
202,418

Current assets
  

Stocks
 13 
8,345,881
7,330,304

Debtors: amounts falling due after more than one year
 14 
205,050
205,050

Debtors: amounts falling due within one year
 14 
3,757,928
4,440,210

Cash at bank and in hand
  
155,234
2,139,335

  
12,464,093
14,114,899

Creditors: amounts falling due within one year
 15 
(4,054,307)
(5,678,590)

Net current assets
  
 
 
8,409,786
 
 
8,436,309

Total assets less current liabilities
  
8,681,807
8,638,727

Creditors: amounts falling due after more than one year
 16 
(127,253)
(45,825)

Provisions for liabilities
  

Deferred tax
 18 
(20,642)
-

Other provisions
 19 
-
(612,119)

Net assets
  
8,533,912
7,980,783


Capital and reserves
  

Called up share capital 
 20 
3,000,000
3,000,000

Profit and loss account
 21 
5,533,912
4,980,783

Total equity
  
8,533,912
7,980,783


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




M Pirovano
Director

Date: 29 May 2025

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 

COGNE U.K. LIMITED

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
3,000,000
4,321,223
7,321,223


Comprehensive income for the year

Profit for the financial year
-
659,560
659,560
Total comprehensive income for the year
-
659,560
659,560



At 31 December 2023 and 1 January 2024
3,000,000
4,980,783
7,980,783


Comprehensive income for the year

Profit for the financial year
-
553,129
553,129
Total comprehensive income for the year
-
553,129
553,129


At 31 December 2024
3,000,000
5,533,912
8,533,912


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Cogne U.K. Limited distributes and manufactures stainless steel and tool steel.
Cogne U.K. Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office and principal place of business is Uniformity Steel Works, Don Road, Newhall, Sheffield, South Yorkshire, S9 2UD.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ('FRS 102') and the Companies Act 2006.

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

The company was, at the end of the year, a wholly-owned subsidiary of Cogne Acciai Speciali S.p.A, a company incorporated in the EEA, whose registered address is Via Paravera 16, 11100 Aosta, Italy.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:
 
Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash flows);
Section 7 Statement of Cash Flows (inclusion of statement of cash flows);
Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) (disclosures relating to financial       instruments);
Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel compensation).

The company is included in the consolidated financial statements of Cogne Acciai Speciali S.p.A for the year ended 31 December 2024.
The following principal accounting policies have been applied:

 
2.2

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. In making this assessment, the directors have considered a letter of support received from the parent company. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 12

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue recognition

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

Sale of goods

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

 
2.4

Tangible fixed assets

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

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is provided on the following basis:

Plant and machinery
-
5% - 33%
Fixtures and fittings
-
12.5% - 33%

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

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

 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

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

Page 13

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.6

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

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. 
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other creditors, and amounts owed to group undertakings, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Page 14

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)





Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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 and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Page 15

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

  
2.9

Share capital

Ordinary shares are classified as equity.

 
2.10

Finance costs

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

Page 16

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

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

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


  
2.12

Leased assets: the company as a lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.13

Operating leases: the company as a lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 17

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Pensions

Defined contribution pension plan

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

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

 
2.15

Interest income

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

 
2.16

Provisions for liabilities

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Key sources of estimation uncertainty
The carrying value of stock, at the lower of cost and net realisable value, is dependent on key judgements and estimates that are made by management. The judegments relating to stock include an estimation of future expected sales prices and disposal costs. These judgements also include consideration of specific factors and the developments in the market that have been identified throughout the year and subsequent to the year end. Actual outcomes could be different to the assumptions used in determining the estimates.


4.


Turnover

The whole of the turnover is attributable to the sale of goods.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
19,505,939
22,258,112

Rest of the world
805,861
1,712,747

20,311,800
23,970,859


Page 18

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Exceptional items

2024
2023
£
£


HMRC Fines
(581,726)
612,119

During the year ended 31 December 2023, the company recognised a provision of £612,119 in relation to a charge for safeguard duty on Cogne impacts dating back to 2021 imposed by HM Revenue & Customs (HMRC). This fine was settled in full in 2024, with £581,726 being reimbursed by the parent company. 


6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
67,650
53,955

Fees payable to the company's auditor for the audit of the company's annual financial statements
47,000
55,000

Fees payable to the company's auditor for non-audit services
5,500
4,200

Exchange differences
(5,024)
(3,419)

Operating lease rentals
323,844
323,844

Profit on disposal of fixed assets
-
8,000

Page 19

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
1,313,250
1,272,007

Social security costs
136,649
131,101

Cost of defined contribution scheme
171,552
170,636

1,621,451
1,573,744


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


        2024
        2023
            No.
            No.







Administration
12
12



Production
17
16



Management
3
3



Selling and distribution
8
9

40
40


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
93,524
98,280

Company contributions to defined contribution pension schemes
14,028
20,689

107,552
118,969


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
19,825
17,495

Page 20

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
1,812
1

Finance leases and hire purchase contracts
3,972
3,876

Other interest payable
-
3,549

5,784
7,426


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
184,376
213,786


Total current tax
184,376
213,786

Deferred tax

Total deferred tax
-
-


Tax on profit
184,376
213,786

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
737,505
873,346


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
184,376
205,236

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
(1,197)

Capital allowances for year in excess of depreciation
-
9,560

Changes in provisions leading to an increase in the tax charge
-
187

Total tax charge for the year
184,376
213,786

Page 21

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Total

£
£
£



Cost


At 1 January 2024
1,933,684
392,863
2,326,547


Additions
137,253
-
137,253



At 31 December 2024

2,070,937
392,863
2,463,800



Depreciation


At 1 January 2024
1,731,266
392,863
2,124,129


Charge for the year
67,650
-
67,650



At 31 December 2024

1,798,916
392,863
2,191,779



Net book value



At 31 December 2024
272,021
-
272,021



At 31 December 2023
202,418
-
202,418


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
8,345,881
7,330,304


There is no significant difference between the replacement cost of the stock and its carrying amount.

 

Page 22

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
205,050
205,050


2024
2023
£
£

Due within one year

Trade debtors
3,618,170
4,180,723

Other debtors
26,933
136,669

Prepayments and accrued income
112,825
122,818

3,757,928
4,440,210



15.


Creditors: amounts falling due within one year

2024
2023
£
£

Trade creditors
347,163
560,979

Amounts owed to group undertakings
3,106,333
4,439,737

Corporation tax
37,283
-

Other taxation and social security
401,100
410,844

Obligations under finance lease and hire purchase contracts
21,150
44,954

Other creditors
13,494
20,836

Accruals and deferred income
127,784
201,240

4,054,307
5,678,590



16.


Creditors: amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
24,675
45,825

Accruals and deferred income
102,578
-

127,253
45,825


Page 23

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
21,150
44,954

Between 1-5 years
24,675
45,825

45,825
90,779

The hire purchase leases relates to 1 piece of plant and machinery (2023: 2). The remaining lease term is 2 years.


18.


Deferred taxation




2024


£






Transferred from debtors due within one year
(20,642)



At end of year
(20,642)

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(20,642)
-


19.


Provisions




HMRC provision

£





At 1 January 2024
612,119


UUtilised in the year
(612,119)



At 31 December 2024
-

The provision relates to the charging of safeguard duty by HMRC, on Cogne imports dating back to 2021.

Page 24

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



3,000,000 Ordinary shares of £1 each
3,000,000
3,000,000


There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.



21.


Reserves

Profit and loss account

The profit and loss reserve includes all current and prior period retained profits and losses.


22.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
297,506
289,895

Later than 1 year and not later than 5 years
1,302,786
1,242,437

Later than 5 years
2,477,688
3,317,823

4,077,980
4,850,155


23.


Ultimate parent undertaking and controlling party

The parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and of which the company is a member is Cogne Acciai Speciali S.p.A., whose registered office is at Via Paravera 16, 11100 Aosta, Italy.
The ultimate parent and controlling party is Walsin Lihwa Corporation, a company incorporated in Taiwan and on the Taipei stock exchange. Group accounts are prepared and publicly available.

Page 25

 

COGNE U.K. LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

24.
Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures"  from disclosing transactions with entities which are a wholly owned part of the group.

Transactions with other related parties are as follows:




Relationship

Transaction

Amount
Amount due (to)/from related parties




2024
 
2023 
2024 
2023 




£
 
£ 
£ 
£ 



Entities under common influence
Purchases
25,494
17,174
-
-



Ultimate controlling party
Purchases
59,332
143,693
-
-




 
Page 26