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REGISTERED NUMBER: 05579683 (England and Wales)















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: N R Beatson
M W Smith
G Buchanan
A T Semple
O Trevarthen



Registered office: Millenium House
Severn Link Distribution Centre
Newhouse Farm Ind Estate
Chepstow
NP16 6UN



Registered number: 05579683 (England and Wales)



Auditors: Haines Watts Wales LLP, Statutory Auditors
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ



Bankers: Barclays Bank PLC
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:





O Trevarthen - Director


28th May 2025

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.

N R Beatson
M W Smith
G Buchanan
A T Semple

Other changes in directors holding office are as follows:

O Trevarthen - appointed 12th March 2025

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:





O Trevarthen - Director


28th May 2025

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.




Victoria Carter (Senior Statutory Auditor)
for and on behalf of Haines Watts Wales LLP, Statutory Auditors
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ

28th May 2025

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 33,509,365 31,460,646

Cost of sales (27,459,130 ) (26,553,352 )
Gross profit 6,050,235 4,907,294

Administrative expenses (5,858,547 ) (4,323,056 )
191,688 584,238

Other operating income 243,900 24,390
Operating profit 4 435,588 608,628

Interest receivable and similar income 18,058 11,165
453,646 619,793

Interest payable and similar expenses 5 (692,370 ) (588,521 )
(Loss)/profit before taxation (238,724 ) 31,272

Tax on (loss)/profit 6 169,632 (7,355 )
(Loss)/profit for the financial period (69,092 ) 23,917

Other comprehensive income - -
Total comprehensive income for the period (69,092 ) 23,917

Construction Metal Forming Limited (Registered number: 05579683)

Balance Sheet
31st March 2025

2025 2023
Notes £    £   
Fixed assets
Tangible assets 7 12,322,613 11,404,614

Current assets
Stocks 8 10,113,611 7,564,276
Debtors 9 5,386,684 9,753,728
15,500,295 17,318,004
Creditors
Amounts falling due within one year 10 (16,979,264 ) (15,774,211 )
Net current (liabilities)/assets (1,478,969 ) 1,543,793
Total assets less current liabilities 10,843,644 12,948,407

Creditors
Amounts falling due after more than one year 11 (1,501,894 ) (3,367,933 )

Provisions for liabilities 15 (944,532 ) (1,114,164 )
Net assets 8,397,218 8,466,310

Capital and reserves
Called up share capital 16 100 100
Retained earnings 17 8,397,118 8,466,210
Shareholders' funds 8,397,218 8,466,310

The financial statements were approved by the Board of Directors and authorised for issue on 28th May 2025 and were signed on its behalf by:





O Trevarthen - Director


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 100 8,442,293 8,442,393

Changes in equity
Total comprehensive income - 23,917 23,917
Balance at 31st December 2023 100 8,466,210 8,466,310

Changes in equity
Total comprehensive income - (69,092 ) (69,092 )
Balance at 31st March 2025 100 8,397,118 8,397,218

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 4,694,248 3,873,270
Interest paid (692,370 ) (588,521 )
Tax paid 256,419 -
Net cash from operating activities 4,258,297 3,284,749

Cash flows from investing activities
Purchase of tangible fixed assets (2,213,377 ) (1,459,876 )
Interest received 18,058 11,165
Net cash from investing activities (2,195,319 ) (1,448,711 )

Cash flows from financing activities
New loans in year - 3,496,255
Loan repayments in year (1,221,534 ) (591,460 )
Movement in bank loans - (3,599,106 )
Net cash from financing activities (1,221,534 ) (694,311 )

Increase in cash and cash equivalents 841,444 1,141,727
Cash and cash equivalents at beginning of
period

2

(1,050,229

)

(2,191,956

)

Cash and cash equivalents at end of period 2 (208,785 ) (1,050,229 )

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 (238,724 ) 31,272
Depreciation charges 1,295,378 822,674
Finance costs 692,370 588,521
Finance income (18,058 ) (11,165 )
1,730,966 1,431,302
(Increase)/decrease in stocks (2,549,335 ) 3,241,536
Decrease in trade and other debtors 4,110,624 880,491
Increase/(decrease) in trade and other creditors 1,401,993 (1,680,059 )
Cash generated from operations 4,694,248 3,873,270

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 (208,785 ) (1,050,229 )
Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Bank overdrafts (1,050,229 ) (2,191,956 )


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 ) 841,444 (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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - On cost over 15 years
Plant and machinery - 5% to 33% on cost
Office equipment - 25% to 5% on cost

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 4,778,034 3,522,708
Social security costs 481,111 364,454
Other pension costs 127,258 127,490
5,386,403 4,014,652

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
91 88

Period
1.1.24
to Year Ended
31.3.25 31.12.23
£    £   
Directors' remuneration 4,166 -

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 340,488 200,373
Other operating leases 1,185,592 955,180
Depreciation - owned assets 1,296,810 822,674
Auditors' remuneration 12,425 9,900
Operating Leases - Motor 137,326 67,364

5. Interest payable and similar expenses
Period
1.1.24
to Year Ended
31.3.25 31.12.23
£    £   
Bank interest 476,759 416,725
Bank loan interest 215,611 171,796
692,370 588,521

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 (169,632 ) 7,355
Tax on (loss)/profit (169,632 ) 7,355

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 (238,724 ) 31,272
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2023 - 19%)

(45,358

)

5,942

Effects of:
Utilisation of tax losses 45,358 (5,942 )
Deferred Tax (169,632 ) 7,355
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 976,959 13,103,388 4,515 883,128 14,967,990
Additions 59,110 2,051,028 - 105,584 2,215,722
Disposals - - - (2,345 ) (2,345 )
At 31st March 2025 1,036,069 15,154,416 4,515 986,367 17,181,367
Depreciation
At 1st January 2024 233,048 2,857,284 3,624 469,420 3,563,376
Charge for period 84,091 1,091,081 871 120,767 1,296,810
Charge written back - - - (1,432 ) (1,432 )
At 31st March 2025 317,139 3,948,365 4,495 588,755 4,858,754
Net book value
At 31st March 2025 718,930 11,206,051 20 397,612 12,322,613
At 31st December 2023 743,911 10,246,104 891 413,708 11,404,614

8. Stocks
2025 2023
£    £   
Raw materials 9,442,089 6,722,042
Finished goods 671,522 842,234
10,113,611 7,564,276

9. Debtors: amounts falling due within one year
2025 2023
£    £   
Trade debtors 4,255,645 8,102,907
Other debtors 189,014 545,183
Related party debtor 125,000 600,000
Tax - 256,419
VAT 736,630 -
Prepayments 80,395 249,219
5,386,684 9,753,728

10. Creditors: amounts falling due within one year
2025 2023
£    £   
Bank loans and overdrafts (see note 12) 5,265,133 6,462,072
Trade creditors 8,823,197 6,042,164
Amounts owed to group undertakings 2,000,000 2,000,000
Social security and other taxes 92,941 108,204
VAT - 146,434
Other creditors 422,640 660,462
Accruals and deferred income 375,353 354,875
16,979,264 15,774,211

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) 1,501,894 2,367,933
Amounts owed to group undertakings - 1,000,000
1,501,894 3,367,933

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 208,785 1,050,229
Bank loans 5,056,348 5,411,843
5,265,133 6,462,072

Amounts falling due between one and two years:
Bank loans - 1-2 years 745,467 687,141

Amounts falling due between two and five years:
Bank loans - 2-5 years 756,427 1,680,792

13. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2025 2023
£    £   
Within one year 822,015 773,963
Between one and five years 2,568,245 3,431,059
In more than five years 2,301 3,500
3,392,561 4,208,522

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 208,785 1,050,229
Bank loans 6,558,242 7,779,776
6,767,027 8,830,005

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 1,114,164
Credit to Statement of Comprehensive Income during period (169,632 )
Balance at 31st March 2025 944,532

16. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2025 2023
value: £    £   
100 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 8,466,210
Deficit for the period (69,092 )
At 31st March 2025 8,397,118

18. Related party disclosures

Entities with control, joint control or significant influence over the entity
2025 2023
£    £   
Sales 32,785,004 30,748,184
Purchases 1,515,278 998,224
Management Charge 21,080 191,409
Amount due from related party 4,197,647 8,657,792
Amount due to related party 40,853 3,076,712

Other related parties
2025 2023
£    £   
Rent 306,250 245,670
Amount due to related party - 65,000

Relates to transactions with Studwelders SSAS