| REGISTERED NUMBER: |
| Construction Metal Forming Limited |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Period 1st January 2024 to 31st March 2025 |
| REGISTERED NUMBER: |
| Construction Metal Forming Limited |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Period 1st January 2024 to 31st March 2025 |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Contents of the Financial Statements |
| for the Period 1st January 2024 to 31st March 2025 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 6 |
| Statement of Comprehensive Income | 9 |
| Balance Sheet | 10 |
| Statement of Changes in Equity | 11 |
| Cash Flow Statement | 12 |
| Notes to the Cash Flow Statement | 13 |
| Notes to the Financial Statements | 14 |
| Construction Metal Forming Limited |
| Company Information |
| for the Period 1st January 2024 to 31st March 2025 |
| Directors: |
| Registered office: |
| Registered number: |
| Auditors: |
| 7 Neptune Court |
| Vanguard Way |
| Cardiff |
| CF24 5PJ |
| Bankers: |
| Beaufort Square |
| Chepstow |
| Monmouthshire |
| NP16 5XL |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Strategic Report |
| for the Period 1st January 2024 to 31st March 2025 |
| The directors present their strategic report for the period 1st January 2024 to 31st March 2025. |
| Overview |
| The primary activity of the company is the manufacture of cold rolled steel products predominantly for the UK construction industry. The company also provides specialist design and manufacture of profiled MetFloor metal decking, MetPurl purlin range as well as a range of sections for industrial building systems and associated cold-formed steel construction products. |
| Following the investment of our second factory in Magor we continue to attract and retain new customers. We have achieved external sales growth in the Purlin, Mezzanine floor and modular markets. |
| Construction Metal Forming Limited ('CMF') is a joint venture between Kenai Holdings Limited and Severfield plc. The support from the distributors within the Kenai group has underpinned the success of CMF for many years. In addition to this our sales arms Construction Metal Sales ('CMS') now facilitate our growth within the external market. The formation of the joint venture with Severfield plc, the largest steel fabricator in the UK, continues to produce encouraging results for the company and has been a significant factor in the continued growth of the company. The Joint Venture relationship has also been instrumental in supporting the company in expanding into new products. |
| Review of business |
| The construction industry continued to contract in FY24/25 driven largely by inflation, higher interest rates and political uncertainty with CMF not exempt from this, evident in our financial results. For the company, FY24/25 was another transitional year as we continue to incur the significant additional overhead of the second site as our CMS sales team began to bring in the additional sales volumes to fill the capacity of our new machinery. As we enter FY25/26 the company is well placed to expand our offering in new and existing markets and the board of directors are extremely confident in the strategic direction of the business to deliver successful results in 2025 and beyond. |
| Sales for the period ended 31st March 2025 (15 month period) were £33.5m, an increase of 6.5% from 2023. Throughout FY24/25 we saw several high projects delayed or cancelled, with one high profile large project initially scheduled for Jan'25 deliveries pushed out to Jul'25 and this had an inevitable adverse impact on the year end financials. Alongside the increase in turnover, gross profit of £6.0m was an increase of 22.8% on FY23 and additionally gross margin as a percentage increased from 15.6% in FY23 to 18.0% in FY24/25, driven by optimised pricing strategies, astute steel purchasing and increased cost controls. Steel prices continued to fall in the first half of 2024 reaching a low in Q4-24 before rising slightly before our year end. The company continues to mitigate the price risk of steel through the application of strict inventory controls, purchasing policies and external market analysis. Administrative expenses increased from £4.3m in FY23 to £5.8m in FY24/25 (12 month basis - £4.6m) with the small pro rata increase driven by the continued expansion of operations at our second site at Magor and this subsequently impacted the bottom line result. However the increase in cost was necessary as we continue to invest in the future growth of the company continuing the expansion of our core management, technical, sales and engineering teams in order to expand our presence in new and existing markets. |
| As we look ahead and beyond FY24/25 our strategic vision consists of several key areas. Firstly is to continue the progress made in the purlin, mezzanine and modular markets. Second is to further diversify our product portfolio making full use of our extensive manufacturing and technical expertise. Finally we continue to cement our position as the largest supplier of metal decking in the UK. We closed the year with a healthy forward order book carried over into FY25/26, driven by sustained support from our Joint Venture partners. |
| We strive for high quality in both product and service and take pride in our continued mission statement to be '3 steps ahead... and always a little further'. |
| A summary of the company's key performance indicators (KPI's) for the current and previous years are included below: |
| Year ended 31 March 2025 (15m) |
Year ended 31 December 2023 |
Year ended 31 December 2023 |
% Change FY24/25 v FY23 |
| £ | £ | £ |
| Turnover | 33,509,364 | 31,460,646 | 40,062,882 | 6.5% |
| Gross Profit | 6,026,562 | 4,907,294 | 4,399,798 | 22.8% |
| Gross Profit Margin | 18.0% | 15.6% | 11.0% | 15.4% |
| Net Assets | 8,397,225 | 8,466,311 | 8,442,393 | -0.8% |
| Cash at Bank | (208,785) | (1,050,229) | (2,191,956) | 90.5% |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Strategic Report |
| for the Period 1st January 2024 to 31st March 2025 |
| Principal risks and uncertainties |
| Market and Economic Risk |
| The company operates within the construction industry which is highly sensitive to macroeconomic conditions. Throughout 2024 the industry continued to contract with high interest rates, inflation and political uncertainty all driving factors. Whilst some impact of these factors will inevitably impact the financials, this risk is mitigated though our diverse product portfolio, excellent customer service and leading position of both our JV partners within the industry. The company remains in prime position to capitalise when market sentiment returns. |
| Cash Preservation & Interest Rates |
| The construction industry continues to be impacted by high interest rates and inflation that remains above the Bank of England 2% target. The base rate remained at a peak of 5.25% until the second half of the year and at the time of this report stands at 4.25%. Whilst further cuts to the base rate are expected, the timeframe and scale of the cuts remain unknown and as such the preservation of cash to optimise our position and reduce subsequent financing costs remains a key part of our strategy for the foreseeable. Alongside the strong financial backing of both our joint venture partners the business continues in its strong position to win new work and expand our presence within the industry, underpinned by our strong brand, focus on quality and service. In addition, we are encouraged by our forward order book and current level of tendering for potential new projects across our Distributors which remains strong. |
| Cost Base |
| The recent policies introduced by the UK Labour Government increasing the operating cost of businesses will have a significant impact on company profitability and there is a risk that any future policies implemented may further increase this impact. In particular, the increase in National Insurance (NI) contributions for employers, effective from April 2025, will increase payroll costs substantially for the company as we rely heavily on a skilled workforce. Any future policies implemented, such as changes to employment regulations or energy taxes could add further strain to operational costs. To mitigate this risk the company periodically reviews its cost structure for efficiencies and aligns the capital investment strategy accordingly. |
| Brexit |
| The continued risks associated with Brexit remain with the long term political and economic uncertainty over the future relationship of the UK and the EU likely to continue for the foreseeable future. The majority of our turnover is within the UK, however our Distributors are increasing the amount outside of these borders. The bulk of our raw materials are imported and the EU is one of the primary sources. The board have maintained strong relationships with a range of key suppliers, both within and outside the EU to mitigate this risk. In addition to this the board have strengthened key strategic relationships with UK steel suppliers to reduce the exposure to imported steel. In line with the above we continue to monitor any updates on the Brexit situation closely, taking appropriate action accordingly. |
| Steel Imports & Tariffs |
| The political situation in the US and decision to implement increased tariffs with the majority of its global trading partners presents a significant risk as steel supply is directed elsewhere globally. The UK government have tariffs in place to prevent steel dumping, however any increase to these tariffs or reduction in quotas, alongside the proposed 'Carbon Border Adjustment Mechanism' could further increase the cost of imported steel. In addition to this the war in Gaza and Houthi attacks in the Red Sea have significantly increased shipping costs as vessels reroute via the Cape of Good Hope in South Africa. To mitigate this risk the company maintains a range of suppliers and has recently developed relationships with UK steel suppliers to reduce the exposure to imported steel.. |
| Core Risks and Uncertainties |
| Overview |
| The business' activities expose it to a variety of financial risks. Risk management is governed by the company's operational policies, which are subject to periodic review by the board of directors. The business' principle financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations. |
| Liquidity Risk |
| In respect of bank balances and trade creditors, the liquidity risk that the company will not be able to meet its financial obligations as and when they fall due, is managed by maintaining the continuity of funding. |
| Effective management of cash and working capital are a key ongoing priority and in 2015 the directors secured an overdraft facility to enable the company to secure steel at rates significantly below the anticipated market value. In addition to this, in Q4-2021 the directors secured additional funding in the form of a trade loan to increase our capacity to capitalise on purchasing opportunities within the steel market, without limiting our ability to invest in future growth opportunities. |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Strategic Report |
| for the Period 1st January 2024 to 31st March 2025 |
| Credit Risk |
| The company's exposure to credit risk arises from the potential for non-payment or default from its trade debtors. The degree to which the company is exposed to this credit risk is reduced as the majority of our trading is through our Joint Venture shareholders. |
| For external turnover the company manages its exposure to credit risk through the application of its credit risk management policies which specify the minimum requirements in respect of the creditworthiness of potential customers, assessed through reports from credit agencies. Management regularly monitor amounts outstanding for both time and credit limits. |
| Price and Innovation Risk |
| The company operates in highly competitive markets. Significant product innovations, technical advances or the intensification of price competition could adversely impact the results for the company. CMF invests in significant training of its staff to ensure that the company is well placed to provide a choice for customers, to ensure that they are aware of their options and are satisfied with the level of service we provide. The company also continually works to streamline its cost base to ensure that it remains competitive. |
| Employees |
| We are an equal opportunities employer and are committed to encouraging diversity and eliminating discrimination in both our role as an employer and as a provider of services. The company's reputation is dependent on the quality, effectiveness and skill base of its employees. We aim to create a culture that respects and values each other's differences, that promotes dignity, equality and diversity and that encourages individuals to develop and maximise their true potential. We are committed, wherever practicable, to achieving and maintaining a workforce that broadly reflects the communities in which we operate. |
| Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the company continues and the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should be, as far as possible, identical to that of a person who does not suffer from a disability. |
| The board of directors takes account of employees' interests when making decisions and suggestions from employees aimed at improving the company's performance are welcomed. Employees are provided with information concerning the performance and future developments of the company through regular briefing bulletins. |
| On behalf of the board: |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Report of the Directors |
| for the Period 1st January 2024 to 31st March 2025 |
| The directors present their report with the financial statements of the company for the period 1st January 2024 to 31st March 2025. |
| Principal activity |
| The principal activity of the company in the period under review was that of the manufacture of steel floor decking and purlins. |
| Dividends |
| No dividends will be distributed for the period ended 31st March 2025. |
| Directors |
| The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report. |
| Other changes in directors holding office are as follows: |
| Statement of directors' responsibilities |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| Statement as to disclosure of information to auditors |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| Auditors |
| The auditors, Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| On behalf of the board: |
| Report of the Independent Auditors to the Members of |
| Construction Metal Forming Limited |
| Opinion |
| We have audited the financial statements of Construction Metal Forming Limited (the 'company') for the period ended 31st March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31st March 2025 and of its loss for the period then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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 the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where 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. |
| Report of the Independent Auditors to the Members of |
| Construction Metal Forming Limited |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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 our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation. |
| Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include: |
| - Discussing with Director and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities; |
| - Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally; |
| - Assessing the risk of management override and review and testing of journal entries made into the accounting system; |
| - Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements; |
| - Discussing with Director and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance. |
| Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls. |
| 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 Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Construction Metal Forming Limited |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
| for and on behalf of |
| 7 Neptune Court |
| Vanguard Way |
| Cardiff |
| CF24 5PJ |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Statement of Comprehensive |
| Income |
| for the Period 1st January 2024 to 31st March 2025 |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| Notes | £ | £ |
| Turnover |
| Cost of sales | ( |
) | ( |
) |
| Gross profit |
| Administrative expenses | ( |
) | ( |
) |
| 191,688 | 584,238 |
| Other operating income |
| Operating profit | 4 |
| Interest receivable and similar income |
| 453,646 | 619,793 |
| Interest payable and similar expenses | 5 | ( |
) | ( |
) |
| (Loss)/profit before taxation | ( |
) |
| Tax on (loss)/profit | 6 | ( |
) |
| (Loss)/profit for the financial period | ( |
) |
| Other comprehensive income | - | - |
| Total comprehensive income for the period | ( |
) |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Balance Sheet |
| 31st March 2025 |
| 2025 | 2023 |
| Notes | £ | £ |
| Fixed assets |
| Tangible assets | 7 |
| Current assets |
| Stocks | 8 |
| Debtors | 9 |
| Creditors |
| Amounts falling due within one year | 10 | ( |
) | ( |
) |
| Net current (liabilities)/assets | ( |
) |
| Total assets less current liabilities |
| Creditors |
| Amounts falling due after more than one year | 11 | ( |
) | ( |
) |
| Provisions for liabilities | 15 | ( |
) | ( |
) |
| Net assets |
| Capital and reserves |
| Called up share capital | 16 |
| Retained earnings | 17 |
| Shareholders' funds |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Statement of Changes in Equity |
| for the Period 1st January 2024 to 31st March 2025 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1st January 2023 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31st December 2023 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31st March 2025 |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Cash Flow Statement |
| for the Period 1st January 2024 to 31st March 2025 |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Tax paid |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Movement in bank loans | - | (3,599,106 | ) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase in cash and cash equivalents |
| Cash and cash equivalents at beginning of period |
2 |
(1,050,229 |
) |
(2,191,956 |
) |
| Cash and cash equivalents at end of period | 2 | ( |
) | ( |
) |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Cash Flow Statement |
| for the Period 1st January 2024 to 31st March 2025 |
| 1. | Reconciliation of (loss)/profit before taxation to cash generated from operations |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| (Loss)/profit before taxation | ( |
) |
| Depreciation charges |
| Finance costs | 692,370 | 588,521 |
| Finance income | (18,058 | ) | (11,165 | ) |
| 1,730,966 | 1,431,302 |
| (Increase)/decrease in stocks | ( |
) |
| Decrease in trade and other debtors |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | Cash and cash equivalents |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Period ended 31st March 2025 |
| 31.3.25 | 1.1.24 |
| £ | £ |
| Bank overdrafts | ( |
) | ( |
) |
| Year ended 31st December 2023 |
| 31.12.23 | 1.1.23 |
| £ | £ |
| Bank overdrafts | ( |
) | ( |
) |
| 3. | Analysis of changes in net debt |
| At 1.1.24 | Cash flow | At 31.3.25 |
| £ | £ | £ |
| Net cash |
| Bank overdrafts | (1,050,229 | ) | 841,444 | (208,785 | ) |
| (1,050,229 | ) | (208,785 | ) |
| Debt |
| Debts falling due within 1 year | (5,411,843 | ) | 355,495 | (5,056,348 | ) |
| Debts falling due after 1 year | (2,367,933 | ) | 866,039 | (1,501,894 | ) |
| (7,779,776 | ) | 1,221,534 | (6,558,242 | ) |
| Total | (8,830,005 | ) | 2,062,978 | (6,767,027 | ) |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements |
| for the Period 1st January 2024 to 31st March 2025 |
| 1. | Statutory information |
| Construction Metal Forming Limited is a |
| 2. | Accounting policies |
| Basis of preparing the financial statements |
| Construction Metal Forming Limited's financial year changed to 31 March to align with Parent Company reporting, therefore this statutory reporting period relates to the 15 month period to 31 March 2025. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Office equipment | - |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Financial instruments |
| The company has chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments. |
| (i) 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 transactions, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
| Such assets are subsequently carried at amortised cost using the effective interest method. |
| (ii) Financial Instruments |
| Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instruments is measured at the present value of the future receipts discounted at a market rate of interest. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements - continued |
| for the Period 1st January 2024 to 31st March 2025 |
| 2. | Accounting policies - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | Employees and directors |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the period was as follows: |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| Admin | 28 | 24 |
| Production | 63 | 64 |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| Directors' remuneration |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements - continued |
| for the Period 1st January 2024 to 31st March 2025 |
| 4. | Operating profit |
| The operating profit is stated after charging: |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Auditors' remuneration |
| Operating Leases - Motor |
| 5. | Interest payable and similar expenses |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| Bank interest |
| Bank loan interest |
| 6. | Taxation |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the loss for the period was as follows: |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| Deferred tax | ( |
) |
| Tax on (loss)/profit | ( |
) |
| Reconciliation of total tax (credit)/charge included in profit and loss |
| The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1.1.24 |
| to | Year Ended |
| 31.3.25 | 31.12.23 |
| £ | £ |
| (Loss)/profit before tax | ( |
) |
| (Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Utilisation of tax losses | ( |
) |
| Deferred Tax | ( |
) |
| Total tax (credit)/charge | (169,632 | ) | 7,355 |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements - continued |
| for the Period 1st January 2024 to 31st March 2025 |
| 7. | Tangible fixed assets |
| Freehold | Plant and | Motor | Office |
| property | machinery | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| Cost |
| At 1st January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31st March 2025 |
| Depreciation |
| At 1st January 2024 |
| Charge for period |
| Charge written back | - | - | - | (1,432 | ) | (1,432 | ) |
| At 31st March 2025 |
| Net book value |
| At 31st March 2025 |
| At 31st December 2023 |
| 8. | Stocks |
| 2025 | 2023 |
| £ | £ |
| Raw materials |
| Finished goods |
| 9. | Debtors: amounts falling due within one year |
| 2025 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Related party debtor | 125,000 | 600,000 |
| Tax |
| VAT |
| Prepayments |
| 10. | Creditors: amounts falling due within one year |
| 2025 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 12) |
| Trade creditors |
| Amounts owed to group undertakings |
| Social security and other taxes |
| VAT | - | 146,434 |
| Other creditors |
| Accruals and deferred income |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements - continued |
| for the Period 1st January 2024 to 31st March 2025 |
| 11. | Creditors: amounts falling due after more than one year |
| 2025 | 2023 |
| £ | £ |
| Bank loans (see note 12) |
| Amounts owed to group undertakings |
| 12. | Loans |
| An analysis of the maturity of loans is given below: |
| 2025 | 2023 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| 13. | Leasing agreements |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2025 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements - continued |
| for the Period 1st January 2024 to 31st March 2025 |
| 14. | Secured debts |
| The following secured debts are included within creditors: |
| 2025 | 2023 |
| £ | £ |
| Bank overdrafts |
| Bank loans |
| The bank account has the following guarantees attached to it: |
| a) Debenture dated 04/07/2016 |
| b) Limited guarantee given by Severfield PLC dated 28/08/2018 |
| c) Limited guarantee given by Severfield PLC dated 01/12/2021 |
| d) Limited guarantee given by Kenai Holdings Limited dated 22/11/2022 |
| The Mortgage creditor has the following security: |
| a) Rights, title and interest in the assets to which the loan relates; |
| b) Rights, title and interest in all presently held insurances; |
| c) The benefit of and all of the rights under all existing guarantees, warranties, all servicing and maintenance agreements and all IP rights owned by it or licensed to it or to which it is entitled relating to such assets or their use. |
| d) A First Fixed charge; |
| - on all assets which are not owned by the borrower on the date of the mortgage and which the Borrower subsequently acquires. |
| - all assets of the same of similar type as the assets required which are aquired by the borrower at any time in the future in replacement for, as a renewal of, as additions to or otherwise to supplement the assets. |
| - all future guarantees, warranties and servicing and maintenance agreements to which it becomes entitled in relation to the assets. |
| - the benefit of all present and future insurances. |
| There is a fixed charge held by Amdeck Ltd over the plant and machinery which has been funded. |
| 15. | Provisions for liabilities |
| 2025 | 2023 |
| £ | £ |
| Deferred tax | 944,532 | 1,114,164 |
| Deferred |
| tax |
| £ |
| Balance at 1st January 2024 |
| Credit to Statement of Comprehensive Income during period | ( |
) |
| Balance at 31st March 2025 |
| 16. | Called up share capital |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2025 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| Construction Metal Forming Limited (Registered number: 05579683) |
| Notes to the Financial Statements - continued |
| for the Period 1st January 2024 to 31st March 2025 |
| 17. | Reserves |
| Retained |
| earnings |
| £ |
| At 1st January 2024 |
| Deficit for the period | ( |
) |
| At 31st March 2025 |
| 18. | Related party disclosures |
| 2025 | 2023 |
| £ | £ |
| Sales |
| Purchases |
| Management Charge | 21,080 | 191,409 |
| Amount due from related party |
| Amount due to related party |
| 2025 | 2023 |
| £ | £ |
| Rent |
| Amount due to related party |