The directors present the strategic report for the year ended 31 March 2024.
The principal activity of the group during the year continued to be that of a trader in metal commodities.
The board of directors are satisfied with the performance of the group during the financial year ended 31 March 2024. As shown on the group's statement of total comprehensive income, the group made a profit before tax of £3,210,930 (2023: £9,587,716). The group's statement of financial position remains strong with net current assets of £5,708,674 (2023: £19,278,104) and net assets at 20,754,670 (2023: £19,773,628). The Group has considerable cash at bank of £6,277,637 (2023 : £5,156,857). During the year, Group's turnover decreased by £57,216,779 to £363,993,614. The turnover from continuing activity was £363,993,614 (2023: £421,210,393) which has arisen in the UK subsidiary alone. Subsidiaries in USA and Poland purchase materials from native regions and only sell to UK subsidiary.
The group's GP margin has decreased to 2.04% from 2.50% as compared to previous year which is majorly generated by UK subsidiary.
All businesses are subject to risks and many individual risks are macro-economic or social and common across many businesses. The key risks are those which could materially damage the group's strategy, reputation, business, profitability or assets. The principal financial risks to which the group is exposed are those of liquidity, market condition, credit, cashflow and foreign currency. Each of these risks are managed in accordance with board approved policies which are set out below. This list is in no particular order and is not an exhaustive list of all potential risks. Some risks may be unknown and it may transpire that others currently considered immaterial become material.
Liquidity Risk:
The group manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet anticipated funding requirements. Specifically, the group uses export line facility and forward exchange contract facility from a bank. The directors review the group's on-going liquidity risks regularly and constantly monitor debtors receivable and creditors payable.
Economic, market and price risk:
The group's performance is directly impacted by the economic environment. The group operates in a highly competitive market and price competition can adversely affect the group's result. The group endeavour to manage price risk by placing purchase orders with supplier only after some degree of assurance is achieved for the sale of the goods being ordered. The group also aims to maintain only a minimum level of stock in hand.
Credit Risk:
The group is at risk of exposure to financial losses should a counter party fail to meet its obligations as and when they fall due. The credit risk is managed by setting credit limits as deemed appropriate for each customer. Where appropriate, the group endeavours to minimise risks by the use of trade finance instruments such as letters of credit.
Cash flow Risk:
The group is reliant on timely receipts from customers and short term borrowings from banks to manage its cash flow. The directors closely monitor cash flow position.
Foreign currency Risk:
The group has transactional currency exposures arising from sales and purchases in foreign currencies. The group hedges some of the foreign currency risk by using forward exchange contracts and also by operating US dollar and Euro bank accounts to mitigate the exchange risk.
The group continues its efforts in increasing turnover and profitability by exploring new opportunities in existing and new markets and products.
On 18th January 2024 Greta Investments Limited bought certain businesses and assets from Recycling Lives Limited (in administration) and Recycling Lives Metal & Waste Limited (in administration) through a newly formed subsidiary Global Ardour Recycling Limited. This new venture is a backward integration leading to better synergies and net worth of the group.
The directors have identified the following key performance indictors to help and understand and measure the performance of the group:
| 2024 | 2023 |
Revenue (In £ Millions) | 364 | 421 |
Operating profit/ (loss) (In £ Millions) | 3.3 | 10.2 |
Gross profit margin (%) | 2.04 | 2.50 |
Trade debtor days | 43 | 46 |
Trade creditor days | 30 | 23 |
Current ratio | 1.1 | 1.37 |
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The directors are satisfied with the results achieved in the period under review which show a substantial decrease in profits before taxation compared from the previous period.Revenue decreased by £57m mainly driven by problems in the main shipping lanes- the Red Sea and Suez Canal. The war in the Red Sea and a ship stuck in the Suez Canal meant rerouting the vessels and extending the time the goods reached the customers. The freight costs increased dramatically during this period. The group will continue to pursue growth opportunities within the business sector and explore new markets. The company also continues to maintain excellent relationships with its suppliers.
For the year ending 31st March 2024 financial statements, the Ukraine war and the related impacts are considered an adjusting events. The director has assessed the impact on the recognition and measurement of assets and liabilities. Due to the uncertainty of the outcome of the current events, the company cannot reasonably estimate the impact these events will have on the financial positions, results of operation and cashflows in the future. There have been no other circumstances arising since 31st March 2024 that have significantly affected or may significantly affect the results of operations.
The group conducts its operations in such a manner as to ensure compliance with environmental laws and regulations. If events occur where actions are necessary to maintain compliance, the group will devote suitable resources to the issue in order to remedy the situation.
The group’s operations are based in the U.K. and USA where, one office is in Harrow, Middlesex and one office is in New Jersey, USA. The management team employed is small and the group recognises the importance of this resource and as such reviews its remuneration and recruitment policies on a regular basis. The group seeks to keep its employees up to date about matters affecting them as employees and information is provided through internal communications regularly. Details of the number of employees and related costs can be found in note 6 to the financial statements.
The management team recognise the need to conduct business in a way that is ethical, compliant and to a high standard. The business is governed around a higher framework, with appropriate training on correct business conduct where required. The business is governed around key values, of which integrity and transparency are key.
The directors recognise the need for strong and mutually beneficial relationships with customers and suppliers. The directors, purchasing and sales teams ensure that they are in regular contact with their suppliers and customers by continuous engagement and site visits to supplier yards or customer mills with a view to creating and nurturing long term partnerships. The activities carried out in development of these partnerships are reported regularly to the management team.
Health and safety
Providing a safe working environment is a key priority for the group. The group regularly assesses safety checks and implements them as required.
On behalf of the board
The directors present their annual report and audited financial statements for the year ended 31 March 2024.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £120,000 (2023 - £120,000). The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The group continues its efforts to increase turnover and profitability by exploring new opportunities in existing and new markets and products. New strategic investment made during the year in a metal recycling company is expected to provide synergy in the group's future operations and add value to the group.
King & King Chartered Accountants and Statutory Auditors were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put to the members.
Group's environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting ("SECR") Policy. The table below represents a subsidiary's,Global Ardour Recycling Limited (GARL) energy use and greenhouse gas (GHG) emissions from electricity and fuel for the annual reporting period 18/01/2024 to 31/03/2024. The scope of the reporting includes all UK operations.
The group carbon emissions were reported using the Green House Gas Protocol and using UK Government GHG Conversion Factors for Company Reporting using the carbon conversion factors published by the UK's Department for Energy Security and Net Zero (DENZ) 2024.
Green House Gas Emissions have been calculated for Scope 1, 2 and 3 emissions based on available data for the period for liquid fuel consumption of lubricants (scope1) electricity usage (scope 2) and waste recycled/reused (scope 3) using conversion factors from DENZ.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tonne of recycled metal, the recommended ratio for the sector.
GARL is dedicated to continuously improving its energy efficiency efforts. Through technological innovation, strategic investments, and industry collaboration, the company aims to lead the scrap metal recycling sector toward a more energy-efficient and sustainable future.
This report will be reviewed and updated regularly to align with industry advancements and regulatory changes. GARL is committed to adhering to the latest legislation and policies in the UK, including the Procurement Act 2023, the National Procurement Policy Statement (NPPS), and the updated Social Value Model 06/20 - PPN002.
We will support the mission to Make Britain a clean energy superpower by:
Accelerating progress towards net zero and supporting the transition to clean power by 2030
Reducing greenhouse gas emissions in line with UK national carbon targets
Minimising waste and promoting a circular economy
Encouraging the adoption of green technologies
Addressing environmental risks and ensuring suppliers uphold high environmental standards
Protecting natural habitats and biodiversity
Our commitment ensures that sustainability remains at the core of our business operations.
We rely on constructive relationships with customers and suppliers to conduct our business and maintain supportive framework conditions.
Going Concern
The directors have considered profitability and cashflows at various scenarios of operating levels and are satisfied that the group has adequate resources to continue to operate in the foreseeable future. The group’s trade facilities with HSBC Bank Plc has been renewed in April 2025.The renewal of Santander facility is currently in progress and the directors expect that the facility will be renewed. Moreover, the directors having considered the results of scenario analysis mentioned above, are confident that the company will have sufficient internal resources available to continue as a going concern in the foreseeable future even in the unlikely scenario where the above facility is not renewed as expected. Hence the directors continue to prepare the accounts on a going concern basis.
We have audited the financial statements of Greta Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for 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 group's and parent 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Explanation as to what extent 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 material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
the engagement partner ensured that the engagement team collectively had appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Group through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;
we focused on specific laws and regulations which we consider may have a direct material effect on the financial statements or operations of the Group, including the Companies Act 2006, taxation legislation;
we assessed the Group's operations, including the nature of its revenue sources and revenue recognition policy, the assessment of material judgements made by management and the design of the control environment for the overall financial reporting process for the Group;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Group's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs, relevant regulators including the Health and Safety Executive.
In response to the risk of fraud in within the area of recognition of revenue, we designed procedures which included, but were not limited to:
testing the occurrence of revenues to supporting documentation including bills of lading.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
The income statement has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £120,200 (2023 - £120,000 profit).
Greta Investments Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is First Floor Grove House, 55 Lowlands Road, Harrow, Middlesex, HA1 3AW, United Kingdom.
The group consists of Greta Investments Limited and all of its subsidiaries and associates.
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 Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
No disclosure has been given for the aggregate remuneration of key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Greta Investments Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors have considered profitability and cashflows at various scenarios of operating levels and are satisfied that the group has adequate resources to continue to operate in the foreseeable future. The group’s trade facilities with HSBC Bank Plc has been renewed in April 2025.The renewal of Santander facility is currently in progress and the directors expect that the facility will be renewed. Moreover, the directors having considered the results of scenario analysis mentioned above, are confident that the company will have sufficient internal resources available to continue as a going concern in the foreseeable future even in the unlikely scenario where the above facility is not renewed as expected. Hence the directors continue to prepare the accounts on a going concern basis.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Sale of goods comprises of sales of various grades and quantities of secondary and scrap ferrous metal.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Interest income, including income arising from finance leases and other financial instruments, is recognised using the effective interest method.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Investments in joint ventures
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Investments in joint ventures are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the jointly controlled entity using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the jointly controlled entity on acquisition is recognised as goodwill. The carrying values of investments in joint ventures include acquired goodwill.
If the group’s share of losses in a joint venture equals or exceeds its investment in the joint venture, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture.
Unrealised gains arising from transactions with joint ventures are eliminated to the extent of the group’s interest in the entity.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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The group 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 group's statement of financial position when the group 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, 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.
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.
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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade 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, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The group operates a number of country specific defined contribution plans for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a specific entity. Once the contributions have been paid, the group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling 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.
In the application of the group’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. The company makes an
estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and
other debtors, management considered factors including the ageing profile of the debtors and historical
experience. 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.
No significant judgements, estimates and assumptions were made, apart from those involving estimations that
management has made in the process of applying the entity's accounting policies, that have a significant
effect on the amounts recognised in the financial statements.
The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given above.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Preference dividends totalling £109,920 (2023: £54,960) were paid in respect of Preference shares held by the group's directors.
Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:
Details of the company's subsidiaries at 31 March 2024 are as follows:
Details of joint ventures at 31 March 2024 are as follows:
Investment in joint venture is accounted in accordance with the equity method.
Other receivables includes amounts owed by related undertakings £2,772,574 (2023: £988,957) are unsecured, interest free, have no fixed date of repayment and are repayable on demand. Other receivables also include VAT recoverable £837,292 (2023: £1,779,828).
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Bank loans and overdraft is secured by fixed and floating charge over the assets of Global Metcorp Limited, a subsidiary, the assets of Ardour World Limited, a related company, and Grove House Harrow Limited, a joint venture, by way of an unlimited cross guarantee. Mr A Chaudhari, a director, and Mr S Goyal, a director of Ardour World Limited have also provided a joint personal guarantee of USD500,000.
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Other borrowings include £7,751,362 (2023 : £nil) being amounts owed to entity under common control,which is unsecured, interest free, have no fixed date of repayment and is repayable on demand.
Other borrowings include £3,148,119 (2023 : £1,648,261) being amounts owed to close family member,which is unsecured, carry interest of 5% p.a, have no fixed date of repayment and is repayable on demand.
Other borrowings include £1,924,059 (2023 : £2,822,392) being amounts owed to unconnected third party which is unsecured, interest free, have no fixed date of repayment and is repayable on demand.
Shares classed as financial liabilities relates to non-cumulative redeemable preference shares of £1 each which are redeemable before the year 2035 at the company's option following a 3 months notice period.
Other borrowings are private business borrowings for expansion of business. The loan is unsecured, fully repayable on 12 January 2029 and carry interest at 8% p.a.
The bank loans are for general working capital requirements. They are repayable between 30 days and 24 months and carry interest rates between 0.75% and 2.75% per annum over UK Bank Base Rate.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 48 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The amount recognised in statement of comprehensive income as an expense in relation to defined contribution plan was £346,526 (2023 - £318,720).
Ordinary shares
Ordinary shares have attached to them are with full voting, dividend and capital distribution rights, including on winding up.
Preference shares
Preference shares are non-cumulative shares and are redeemable at the option of the company on or before the year 2035 by giving a three months notice to the shareholders. These shares do not have confer voting rights and rights to capital distribution on winding up.
The total number of preference shares issued of £1 each were £458,000 (2023 – £458,000) which is shown under creditors amounts falling due after more than one year.
The directors of Grove House Harrow Limited, a joint venture of the group through a subsidiary (Global Metcorp Limited) have revalued a property owned by the company on the basis of current market value which is represented in the group financial statement as shown under fixed asset investments. The gains or loss on revaluation has been transferred to revaluation reserves.
This reserve records retained earnings and accumulated losses since the creation of the group.
Other reserves
This reserve records retained earning and accumulated losses brought forward on the date of creation of the group. This is a distributable reserve.
On 18 January 2024 the group acquired the business of Global Ardour Recycle Limited.
On 18 January 2024 the group acquired 70% percent of the issued capital of RAW2K Limited.
The group did not have any other financial commitments, guarantees or contingent liabilities at year end other than those disclosed under creditors.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the group entered into the following transactions with related parties:
Mr A Chaudhari, a common director, and Mr S Goyal, a director of Ardour World Limited has provided a joint personal guarantee of USD500,000 to secure a bank loan and overdraft facility of Global Metcorp Limited, a 100% subsidiary of the group,
Global Metcorp Limited, a 100% owned subsidiary, and Ardour World Limited, a related group, has provided a cross guarantee against each other's full indebtedness to a bank, the amount of Ardour World Limited's loan guaranteed by Gobal Metcorp Limited under the said cross guarantee at the balance sheet date was £3,661,848 (2023 - £6,010,849).
The group has acquired a short lease from Grove House Harrow Limited, a joint venture to the group, its office premises at an annual rent of £71,875 (2023 - £68,500) in joint tenancy with Ardour World Ltd, a related company.
During the year the group paid £49,925 (2023 - £45,462) to Grove House Harrow Ltd towards the rent and service charges for leased office premises, the balance outstanding at the year end was £nil (2023 - £nil).
Grove House Harrow Limited is a joint venture (50% holding) jointly owned by the group with Ardour World Limited, a related company. During the year Global Metcorp Limited has provided an interest free and unsecured loan to Grove House Harrow Limited amounting to £21,000 (2023 - £70,000). The balance outstanding at the balance sheet date was £35,750 (2023 - £30,750).
During the year Greta Metals Pte Ltd repaid £412,100 (USD 500,000 ) 3% interest bearing loan given by Global Metcorp LLC. The balance outstanding as at the balance sheet date was £46,397 (2023 - £439,598).Greta Metals Pte Ltd is a company under the control of a Director,Nitesh Chaudhari.
The group has taken advantage of exemption available under FRS102 and not disclosed the balances and transactions with wholly owned members of the group.
Transactions with Directors have been disclosed in note 32.
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
Company
At the balance sheet date the amounts owed to a related party (subsidiary) was £51,490 (2023 - £50,611).
The company has taken advantage of exemption available under FRS102 and not disclosed the balances and transactions with wholly owned members of the group.
Advances or credits have been granted by the group to its directors as follows:
Ordinary dividends totalling £120,000 (2023 - £120,000) and preference dividends totalling £109,920 (2023 - £54,960) were paid in the year in respect of shares held by the group's directors and their close family members.
Advances or credits have been granted by the group to its directors as follows:
As at 31 March 2024 amounts owed to director Ashish Chaudhari £178,597 (2023 : £172,570). The amounts owed are unsecured, interest free and payable on demand.
Directors, Mr A Chaudhari and Mr N Chaudhari are the ultimate controlling parties.