Company registration number 04554391 (England and Wales)
STRATTON METAL RESOURCES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
STRATTON METAL RESOURCES LIMITED
COMPANY INFORMATION
Directors
K Dunleavy
J Triston
(Appointed 12 March 2024)
Company number
04554391
Registered office
31-32 Eastcastle Street
London
W1W 8DN
Auditor
TC Group
5th Floor
3 Dorset Rise
London
EC4Y 8EN
STRATTON METAL RESOURCES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
STRATTON METAL RESOURCES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Fair review of the business

The company's key financial and other performance indicators during the year were as follows:

 

2024     2023
$'000     $'000

 

Gross profit             32,805     21,921
Retained profit for the financial year     15,226     6,812    
Shareholders' funds         170,823     155,597

 


2024 was another successful year for the company. The new yearly contracts allowed us to capture the higher interest costs that reduced our bottom line last year, and as the rates fell back, it added to the bottom line. Challenges still remain with customers self sanctioning Russian material, and law changes precluding us from trading Russian material. However our worldwide spread sources enabled us to effectively deliver against all of our contracts.

Yearly contracts were hard fought over as the scepter of a greatly increased market surplus hits the market. Chinese investment in Indonesia has led to a large increase of class 1 nickel, and LME stocks are rising rapidly. With BHP stopping producing their briquettes and potential issues at Ambatovy, the flowable market should be getting tighter as supply of that grade dwindles, but this has not been shown in yearly negotiations – something to monitor going forward.

With ample cash reserves and increased broker and bank lines, the company remains in a very strong position going forward.

Principal risks and uncertainties

The continuing impact of the Ukraine war during the year, and the resulting changes of the market environment has introduced new challenges and risks to the company.

 

The board has a quarterly meeting to set out and review the company's risk appetites across the risks facing the company. A description of the company's principal operational and financial risks and the company's risk and capital management policies are set out below:

 

Credit risk

The company has an extensive and comprehensive policy with a credit insurance company who either agree or decline our requested limits for each customer. All limits are strictly adhered to and are monitored by the company's treasury department on a daily and intra-daily basis.

 

Liquidity risk

The liquidity risk is managed by the company's treasury department through the daily monitoring of our bilateral bank facilities, bank account balances and strict monitoring of outstanding receivables. Trading and treasury departments meet daily to discuss and forecast new transactions to ensure liquidity is maintained. LME broker positions and tripartite financial arrangements are also carefully managed so that where possible, margin calls are avoided and any excess cash available is released.

 

Contract maturity

All financial liabilities are due within one year.

 

STRATTON METAL RESOURCES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Market risk

The company has established a risk and financial management framework where its primary objectives are to protect the company from events that hinder the achievement of the company's performance objectives. The objectives aim to limit undue exposure to foreign currency and commodity price movements, ensure sufficient working capital exists and monitor the management of risk.

 

The company holds a portfolio of commodities for trading purposes. The price and liquidity risks associated with this portfolio are actively hedged using futures on the London Metal Exchange and forward contracts with specific counterparties. The company also hedges its forward foreign currency contracts to reduce exposure to the variation of foreign exchange rates.

 

Interest rate risk

The company reduces interest rate exposure by charging interest at a premium to cost of funds on all sales on credit.

 

Operational risk

Operational risk is mitigated by the company through the stringent application of written procedures and compliance monitoring against those procedures.

Development and performance

The company is well positioned to capitalise on the opportunities that a more volatile world presents.

Section 172(1) statement

During the preparation of these financial statements the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 when performing their duties under section 172.

 

Under the Act a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

 

(a) the likely consequences of any decision in the long term,

(b) the interests of the company's employees,

(c) the need to foster the company's business relationships with suppliers, customers and others,

(d) the impact of the company's operations on the community and the environment,

(e) the desirability of the company maintaining a reputation for high standards of business conduct, and

(f ) the need to act fairly, as between members of the company.

The company has identified the following stakeholders:

 

Employees
The directors recognise that employees are fundamental to the company's long-term success. The company has taken significant steps to ensure that health and wellbeing is valued and supported. The company offers employees a range of benefits the include private health, life assurance, critical illness and a company contributory pension.

 

Investment bank and brokers
The directors consider the fostering of relationships with the company's banks and brokers, who facilitate the financing and hedging of its commodities, to be integral to the long term success of the business. The company maintains strong, open relationships with these institutions and maintaining these is fundamental to its continued success. The company is aware that the financial institution risk to providing ongoing credit is very real and not to be taken for granted. As such we are in continual discussions with new partners in search of future funding security.

STRATTON METAL RESOURCES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

Suppliers and customers
The company has a strong supplier and customer base right across the globe. Fostering close and enduring relationships with them is vital to the long-term success of the business. These are relationships gained from years in the industry that the shareholders continue to develop, and as the company grows its relationships with the organisations continue to become stronger. The company takes pride in its integrity and transparency, to meet the highest standards possible when it comes to dealing with customers and its suppliers. We have excellent relations that have been built on mutual hard work with all counterparties throughout our supply chain.

 

Environmental, Social & Governance (ESG)

The company is committed to delivering the highest ESG standards it is are able to attain as well as looking at future opportunities for change both internal and externally. The company only offers fully electric cars, and the company continues to put pressure on its suppliers, including its warehouses and logistics contractors, to electrify their operations and thus reduce the carbon foot print of the company's business model.

On behalf of the board

K Dunleavy
Director
2 June 2025
STRATTON METAL RESOURCES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Principal activities

The principal activity of the company is physical trading in commodities.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

K Dunleavy
J Triston
(Appointed 12 March 2024)
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

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

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

So far as the directors at the date of approving this report are aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that he ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

STRATTON METAL RESOURCES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Charitable contributions

During the year, the company made charitable contributions totalling $79k (2023: $6k).

On behalf of the board
K Dunleavy
Director
2 June 2025
STRATTON METAL RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRATTON METAL RESOURCES LIMITED
- 6 -
Opinion

We have audited the financial statements of Stratton Metal Resources Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

STRATTON METAL RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATTON METAL RESOURCES LIMITED
- 7 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

STRATTON METAL RESOURCES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATTON METAL RESOURCES LIMITED
- 8 -

Our approach was as follows:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Mark Bailey FCA CTA (Senior Statutory Auditor)
For and on behalf of TC Group
3 June 2025
Statutory Auditor
5th Floor
3 Dorset Rise
London
EC4Y 8EN
STRATTON METAL RESOURCES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
$000
$'000
Revenue
3
445,878
673,697
Cost of sales
(413,073)
(651,776)
Gross profit
32,805
21,921
Administrative expenses
(8,459)
(5,425)
Operating profit
5
24,346
16,496
Investment income
8
1,039
-
0
Finance costs
9
(5,071)
(7,453)
Profit before taxation
20,314
9,043
Tax on profit
10
(5,088)
(2,231)
Profit for the financial year
15,226
6,812

The income statement has been prepared on the basis that all operations are continuing operations.

STRATTON METAL RESOURCES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
$000
$000
$'000
$'000
Current assets
Inventories
12
184,002
135,677
Trade and other receivables
13
87,330
105,571
Cash and cash equivalents
18,419
17,172
289,751
258,420
Current liabilities
14
(118,928)
(102,823)
Net current assets
170,823
155,597
Equity
Called up share capital
17
4,547
4,547
Retained earnings
166,276
151,050
Total equity
170,823
155,597
The financial statements were approved by the board of directors and authorised for issue on 2 June 2025 and are signed on its behalf by:
K Dunleavy
Director
Company registration number 04554391 (England and Wales)
STRATTON METAL RESOURCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Retained earnings
Total
$000
$000
$000
Balance at 1 January 2023
4,547
144,238
148,785
Year ended 31 December 2023:
Profit and total comprehensive income
-
6,812
6,812
Balance at 31 December 2023
4,547
151,050
155,597
Year ended 31 December 2024:
Profit and total comprehensive income
-
15,226
15,226
Balance at 31 December 2024
4,547
166,276
170,823
STRATTON METAL RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
$000
$000
$'000
$'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations
20
(8,821)
138,467
Interest paid
(5,071)
(7,453)
Income taxes paid
(3,424)
(3,553)
Net cash (outflow)/inflow from operating activities
(17,316)
127,461
Investing activities
Interest received
1,039
-
0
Net cash generated from/(used in) investing activities
1,039
-
0
Financing activities
Drawdown/(repayment) of bank loans
17,524
(140,873)
Net cash generated from/(used in) financing activities
17,524
(140,873)
Net increase/(decrease) in cash and cash equivalents
1,247
(13,412)
Cash and cash equivalents at beginning of year
17,172
30,584
Cash and cash equivalents at end of year
18,419
17,172
STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Stratton Metal Resources Limited is a private company limited by shares incorporated in England and Wales. The registered office is 31-32 Eastcastle Street, London, W1W 8DN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $'000.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of stock and certain financial instruments at fair value through profit or loss. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis which the directortrues consider to be appropriate for the following reasons.

 

The directors assessed that, at the time of approving the financial statements, they had a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. At the balance sheet date, the company had net assets of US$171m, all of which were current, including cash and cash equivalents of US$18m.

 

In this assessment, the directors considered the company’s financial and operational position and in particular credit risk, liquidity, and covenants, as at the date of signing of the financial statements and for the next 12 months. In the assessment of credit and contract performance risk, the directors considered the credit risk management policy as described in the Strategic Report, which aims to reduce credit exposure through confirmed letters of credit, document collection, collateral and insurance agreements, will continue throughout the assessment period.

 

As part of this assessment, the directors considered reasonable possible downsides, including the potential impact from economic disruptions expected due to the on-going conflict in Ukraine. Russia is a major producer of nickel, so although the company does not trade directly with Russia, the war's effect on the nickel market still represents a significant risk to the company. As result of this additional risk, the directors continue to manage liquidity by holding sufficient cash and negotiating extended credit lines with the banks when required.

 

Therefore, the directors are confident that company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

1.3
Revenue

Revenue represents income generated from selling physical commodities, stated net of VAT. Revenue is recognised upon transfer of the substantial risks and rewards of the commodities to the customer.

 

For sales subject to provisional invoices, the company records the transaction at the price prevailing on the date of the transaction, and marks to market the exposure until the price is fixed.

1.4
Inventories

Inventory comprises nickel, ferro nickel and cobalt. Inventory is valued at market prices with appropriate adjustments to reflect prevailing market conditions and the grade of material held. Unrealised gains and losses from changes in fair value are reported in cost of goods sold through profit and loss.

STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Cash held at brokers is classified as trade debtors.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Where the company enters a sale and buyback agreement that is in substance a financing transaction, no sale is recognised in profit and loss and the loan receivable is recognised in borrowings in line with the policy above.

 

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

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives

Derivatives, including futures and forwards, are not basic financial instruments.

 

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each period end. Changes in the fair value of derivatives are recognised in in cost of sales in the statement of comprehensive income.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

1.8
Taxation

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

Current tax

The charge for taxation is based on the profit for the year and taken into account of taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.

Deferred tax

Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less, tax with the following exception:

 

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

The company operates a defined contribution plan and contributions are charged in the profit and loss account as they become payable in accordance with the rules of the scheme.

1.11
Leases

Rental costs under operating leases for premises are charged to the profit and loss account in equal amounts over the periods to which they relate.

1.12
Foreign exchange

Transactions in currencies other than US Dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fair values

Inventories and open contracts are valued at fair value. The fair value is calculated by reference to market prices, with appropriate adjustments to reflect prevailing market conditions, the grade of material held and the time horizon of the open contract.

3
Revenue

The directors consider that there is only one class of business and that the company operates in more than one geographical segment. However, in the directors' opinion, the disclosure of any information by geographical segment would be seriously prejudicial to the interests of the company.

STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
$000
$000
For audit services
Audit of the financial statements of the company
64
60
For other services
Taxation compliance services
3
3
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
$000
$000
Foreign exchange differences
(101)
1
Operating lease charges
82
90
6
Employees

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

2024
2023
Number
Number
Traders
4
4
Commodity support services
5
5
Total
9
9

Their aggregate remuneration comprised:

2024
2023
$000
$000
Wages and salaries
6,223
3,679
Social security costs
769
381
Pension costs
174
227
7,166
4,287
STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
7
Directors' remuneration
2024
2023
$000
$000
Remuneration for qualifying services
2,545
756
Company pension contributions to defined contribution schemes
49
21
2,594
777
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
$000
$000
Remuneration for qualifying services
1,972
725
Company pension contributions to defined contribution schemes
26
21
8
Investment income
2024
2023
$000
$000
Interest income
Other interest income
1,039
-
0
9
Finance costs
2024
2023
$000
$000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,700
7,259
Other interest on financial liabilities
371
194
5,071
7,453
10
Taxation
2024
2023
$000
$000
Current tax
UK corporation tax on profits for the current period
5,088
2,231
STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 19 -

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

2024
2023
$000
$000
Profit before taxation
20,314
9,043
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
5,079
2,125
Tax effect of expenses that are not deductible in determining taxable profit
3
6
Under/(over) provided in prior years
6
100
Taxation charge for the year
5,088
2,231
11
Financial instruments
2024
2023
$000
$'000
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
21,436
52,130
12
Inventories
2024
2023
$000
$000
Metals and metal compounds
184,002
135,677
13
Trade and other receivables
2024
2023
Amounts falling due within one year:
$000
$000
Trade receivables
54,694
48,465
Derivatives and open physical contracts
21,436
52,130
Other receivables
24
27
Prepayments and accrued income
11,176
4,949
87,330
105,571

Within trade debtors is an amount of $5,180,000 (2023: $nil) that relates to a supplier loan on which interest is accruing.

STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
14
Current liabilities
2024
2023
Notes
$000
$000
Bank loans
15
92,696
75,172
Trade payables
6,672
10,957
Corporation tax
2,999
1,335
Other taxation and social security
1,682
1,342
Other payables
6,137
3,924
Accruals and deferred income
8,742
10,093
118,928
102,823
15
Borrowings
2024
2023
$000
$000
Bank loans payable within one year
92,696
75,172

The short term trade finance of $92,696,000 (2023: $75,172,000) is secured against the company's stock and trade debtors. All bank loans are repayable within one year.

 

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
$000
$000
Charge to profit or loss in respect of defined contribution schemes
174
227

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
$000
$000
Issued and fully paid
Ordinary shares of £1 each
2,777,780
2,777,780
4,547
4,547
STRATTON METAL RESOURCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
$000
$000
Within one year
91
92
Between two and five years
268
385
359
477
19
Related party transactions

At the year end a director had an unsecured loan due from the company totalling $4,759,000 (2023: $2,754,000). Interest of $371,000 (2023: $194,000) has been accrued on the outstanding balance.

20
Cash (absorbed by)/generated from operations
2024
2023
$000
$'000
Profit for the year after tax
15,226
6,812
Adjustments for:
Taxation charged
5,088
2,231
Finance costs
5,071
7,453
Investment income
(1,039)
-
0
Movement in derivative positions
30,694
(67,749)
Movements in working capital:
(Increase)/decrease in inventories
(48,325)
127,462
(Increase)/decrease in trade and other receivables
(12,453)
56,107
(Decrease)/increase in trade and other payables
(3,083)
6,151
Cash (absorbed by)/generated from operations
(8,821)
138,467
21
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
$000
$000
$000
Cash at bank and in hand
17,172
1,247
18,419
Borrowings excluding overdrafts
(75,172)
(17,524)
(92,696)
(58,000)
(16,277)
(74,277)
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