Company registration number 13972081 (England and Wales)
ARDOUR WORLD HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
ARDOUR WORLD HOLDINGS LIMITED
COMPANY INFORMATION
Directors
A Chaudhari
Sundip Goyal
Company number
13972081
Registered office
First floor
Grove House
55 Lowlands Road
Harrow on the Hill
MIDDLESEX
HA1 3AW
Group Auditor
King & King
Chartered Accountants & Statutory Auditors
Fifth Floor, 54-60 Watson House, Baker Street
London
United Kingdom
W1U 7BU
Component Auditors
Blick Rothenberg Audit LLP
Ardour World Limited, UK
Sawhney Consulting Limited
Grove House Harrow Limited
Sawhney Consulting Limited
Gateway Recycling Limited
Bankers
HSBC UK Bank Plc
Level 28
8 Canada Square, Canary Wharf
London
E14 5HQ
Santander UK Plc
Fourth Floor
Santander House, 11 Ludgate Circus
London
EC4M 7LQ
Barclays Bank Plc
Accom House
36-38 Park Royal Road
London
NW10 7JA
ARDOUR WORLD HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
ARDOUR WORLD HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

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 £2,834,102 (2023 : £3,577,709). The group's statement of financial position remains strong with net current assets of £11,454,769 (2023 : £9,384,119) and net assets of £12,864,928 (2023 : £11,102,039). The group has reasonable cash reserves of £1,557,311 (2023 : £2,386,576). During the year, group's turnover decreased by £5,546,579. Overall volume in tonnage has increased but, due to changes in product mix and lower prices, the turnover has slightly decreased year on year. During the year group increased its reserved by £1,762,889 (2023 £2,634,689) through retained profits. The group's turnover decreased by 3.8% (2023- increased by 5.1%) and the gross profit margin decreased from 3.17% to 3.12%.

During the year the group acquired 30% stake in global Ardour Recycling Limited, a company operating in metal recycling industry. This is an strategic investment in supply chain activities.

 

The group consist of two wholly owned subsidiaries , one direct associate and two Joint Ventures. More details on the group's composition can be found in Note 14 and 15. Both subsidiaries operates in trading of metal commodities and the associate which was acquired during the year operates in metal recycling. The joint venture companies operates as a commercial property investment and the trading of waste and metal.

Principal risks and uncertainties

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.

ARDOUR WORLD HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Development and performance

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 Ardour World Holdings Limited invested 30% on KYVSAI Limited resulting in an indirect 30%ownership of Global Ardour Recycling Limited and RAW2K Limited.

Key performance indicators

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)

139

145

Operating profit/ (loss) (In £ Millions)

3.14

3.27

Gross operating margin (%)

3.12

3.17

Trade debtor days

24

32

Trade creditor days

9

8

Current ratio

2.19

1.91

 

Revenue decreased by £6mn 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 routing the vessels and extending the time the goods reached the customers. The freight costs increased dramatically during the period. The group will continue to pursue growth opportunities within the business sector and explore new markets.

Section 172 (1) statement
Enviornmental liabilities

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.

Employees

The group’s operations are based in the U.K. and Hong Kong where, one office is in Harrow, Middlesex and one office is in Kowloon, Hong Kong. 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.

High standards of business conduct

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.

Customer and supplier relationships

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.

ARDOUR WORLD HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

On behalf of the board

A Chaudhari
Director
16 June 2025
ARDOUR WORLD HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends of £288,000 (2023 - £284,000) were declared and paid during the year. The directors do not recommend the payment of further dividends.

Directors

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

A Chaudhari
Sundip Goyal
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Future developments

The group continues its efforts in increasing 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.

Auditor

King & King Chartered Accountants 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.

Energy and carbon report

As the group 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.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of risks to financial instruments and is included within principal risks and uncertainties, of which the main ones are foreign exchange and liquidity risks.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going concern

The directors have considered profitability and cashflows 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 on the basis of assurance given by the bank. The directors having considered the above are confident that the company will have sufficient resources available to continue as a going concern in the foreseeable future . Hence the directors continue to prepare the accounts on a going concern basis.

ARDOUR WORLD HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
On behalf of the board
A Chaudhari
Director
16 June 2025
ARDOUR WORLD HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ARDOUR WORLD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARDOUR WORLD HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Ardour World Holdings 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).

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 group and parent 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 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

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:

ARDOUR WORLD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARDOUR WORLD HOLDINGS LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 group'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 group 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.

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:

 

 

 

 

 

ARDOUR WORLD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARDOUR WORLD HOLDINGS LIMITED
- 9 -

We assessed the susceptibility of the Group's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

 

 

Audit response to the risks identified

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

 

 

 

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

 

 

 

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:

 

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.

ARDOUR WORLD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARDOUR WORLD HOLDINGS LIMITED
- 10 -
Diwakar Kafle (Senior Statutory Auditor)
For and on behalf of King & King Chartered Accountants, Statutory Auditor
5th Floor, Watson House
54-60 Baker Street
London
W1U 7BU
16 June 2025
ARDOUR WORLD HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
139,928,983
145,475,562
Cost of sales
(135,558,512)
(140,859,128)
Gross profit
4,370,471
4,616,434
Administrative expenses
(1,238,248)
(1,356,237)
Other operating income
13,136
4,991
Operating profit
4
3,145,359
3,265,188
Share of results of joint ventures
(222,061)
322,597
Interest receivable and similar income
8
17,513
13,654
Interest payable and similar expenses
9
(106,709)
(23,730)
Profit before taxation
2,834,102
3,577,709
Tax on profit
10
(765,257)
(684,567)
Profit for the financial year
2,068,845
2,893,142
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(17,956)
25,547
Total comprehensive income for the year
2,050,889
2,918,689
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

All the activities of the group are from continuing operations.

ARDOUR WORLD HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
681,041
803,367
Investments
13
773,588
995,619
1,454,629
1,798,986
Current assets
Stocks
16
3,962,332
3,463,945
Debtors
17
15,590,015
13,862,012
Cash at bank and in hand
1,557,311
2,386,576
21,109,658
19,712,533
Creditors: amounts falling due within one year
18
(9,654,889)
(10,328,414)
Net current assets
11,454,769
9,384,119
Total assets less current liabilities
12,909,398
11,183,105
Creditors: amounts falling due after more than one year
19
-
(16,022)
Provisions for liabilities
Deferred tax liability
22
44,470
65,044
(44,470)
(65,044)
Net assets
12,864,928
11,102,039
Capital and reserves
Called up share capital
24
400,000
400,000
Revaluation reserve
398,029
551,779
Profit and loss reserves
12,066,899
10,150,260
Total equity
12,864,928
11,102,039
The financial statements were approved by the board of directors and authorised for issue on 16 June 2025 and are signed on its behalf by:
A Chaudhari
Director
Company registration number 13972081 (England and Wales)
ARDOUR WORLD HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
400,080
400,000
Current assets
Debtors
17
4,800,000
-
0
Creditors: amounts falling due within one year
18
(4,800,080)
-
Net current liabilities
(80)
-
0
Net assets
400,000
400,000
Capital and reserves
Called up share capital
24
400,000
400,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £288,000 (2023 - £284,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 16 June 2025 and are signed on its behalf by:
A Chaudhari
Director
Company registration number 13972081 (England and Wales)
ARDOUR WORLD HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
400,000
612,122
7,455,228
8,467,350
Year ended 31 March 2023:
Profit for the year
-
-
2,893,142
2,893,142
Other comprehensive income:
Currency translation differences
-
-
25,547
25,547
Total comprehensive income
-
-
2,918,689
2,918,689
Dividends
11
-
-
(284,000)
(284,000)
Transfers
-
-
60,343
60,343
Other movements
-
(60,343)
-
(60,343)
Balance at 31 March 2023
400,000
551,779
10,150,260
11,102,039
Year ended 31 March 2024:
Profit for the year
-
-
2,068,845
2,068,845
Other comprehensive income:
Currency translation differences
-
-
(17,956)
(17,956)
Total comprehensive income
-
-
2,050,889
2,050,889
Dividends
11
-
-
(288,000)
(288,000)
Transfers
-
-
153,750
153,750
Other movements
-
(153,750)
-
(153,750)
Balance at 31 March 2024
400,000
398,029
12,066,899
12,864,928
ARDOUR WORLD HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
400,000
-
0
400,000
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
284,000
284,000
Dividends
11
-
(284,000)
(284,000)
Balance at 31 March 2023
400,000
-
0
400,000
Year ended 31 March 2024:
Profit and total comprehensive income
-
288,000
288,000
Dividends
11
-
(288,000)
(288,000)
Balance at 31 March 2024
400,000
-
0
400,000
ARDOUR WORLD HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
3,376,333
3,373,042
Interest paid
(106,709)
(23,730)
Income taxes paid
(1,231,932)
(752,327)
Net cash inflow from operating activities
2,037,692
2,596,985
Investing activities
Purchase of tangible fixed assets
-
(165,390)
Purchase of associates
(30)
-
Proceeds from disposal of joint ventures
-
419,555
Interest received
17,513
13,654
Net cash generated from investing activities
17,483
267,819
Financing activities
Repayment of borrowings
(90,633)
(82,351)
Repayment of bank loans
(2,381,869)
(2,486,596)
Payment of finance leases obligations
(129,050)
15,547
Dividends paid to equity shareholders
(288,000)
(284,000)
Net cash used in financing activities
(2,889,552)
(2,837,400)
Net (decrease)/increase in cash and cash equivalents
(834,377)
27,404
Cash and cash equivalents at beginning of year
2,386,576
2,376,492
Effect of foreign exchange rates
5,112
(17,320)
Cash and cash equivalents at end of year
1,557,311
2,386,576
ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

Ardour World Holdings 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, HA1 3AW.

 

The group consists of Ardour World Holdings Limited and all of its subsidiaries.

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 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:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Ardour World Holdings 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.

1.4
Going concern

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 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 on the basis of assurance given by the bank. The directors having considered the above are confident that the company will have sufficient resources available to continue as a going concern in the foreseeable future . Hence the directors continue to prepare the accounts on a going concern basis.

1.5
Turnover

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.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

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.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Straight line over the terms of the lease
Leasehold improvements
4% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% straight line

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.

1.7
Fixed asset investments

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.

Investment in associates

 

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates 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 associate 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 associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

Investment 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.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

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 and 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 debtors 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

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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Classification of financial liabilities

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

Basic financial liabilities, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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.

1.13
Taxation

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

Current 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.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
Deferred tax

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.

1.14
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 fixed 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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

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.

1.17
Foreign exchange

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.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

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.

 

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of metal commodities
139,928,983
145,475,562
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,395,812
423,622
Overseas
138,533,171
145,051,940
139,928,983
145,475,562
2024
2023
£
£
Other revenue
Interest income
17,513
13,654
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
10,935
6,099
Depreciation of owned tangible fixed assets
99,257
90,157
Operating lease charges
45,750
45,175
ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,500
10,000
Audit of the financial statements of the company's subsidiaries
4,500
7,600
20,000
17,600
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management staff
10
6
2
2
Administrative Staff
16
14
-
-
Total
26
20
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
430,691
440,141
-
0
-
0
Social security costs
31,795
30,185
-
-
Pension costs
125,917
321,621
-
0
-
0
588,403
791,947
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
75,187
76,436
Company pension contributions to defined contribution schemes
120,000
315,021
195,187
391,457
ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
63
13
Other interest income
17,450
13,641
Total income
17,513
13,654
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
106,709
23,730
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
784,310
653,245
UK income tax
1,521
306
Total current tax
785,831
653,551
Deferred tax
Origination and reversal of timing differences
(20,574)
31,016
Total tax charge
765,257
684,567

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
£
£
Profit before taxation
2,834,102
3,577,709
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
708,526
679,765
Tax effect of expenses that are not deductible in determining taxable profit
27,707
13,895
Unutilised tax losses carried forward
(7,438)
-
0
Effect of overseas tax rates
1,521
(1,660)
Effect of expenses not deductible for tax purposes
-
0
(31,433)
Reversal of deferred tax timing difference
(20,574)
31,017
Effect on consolidation adjustment
55,515
(7,017)
Taxation charge
765,257
684,567
ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
11
Dividends
2024
2023
2024
2023
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Interim paid
0.72
0.71
288,000
284,000
12
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
763,958
16,443
40,589
80,531
314,900
1,216,421
Exchange adjustments
(30,026)
(705)
-
0
(370)
-
0
(31,101)
At 31 March 2024
733,932
15,738
40,589
80,161
314,900
1,185,320
Depreciation and impairment
At 1 April 2023
231,495
5,920
29,548
77,147
68,944
413,054
Depreciation charged in the year
16,286
639
2,760
846
78,726
99,257
Exchange adjustments
(7,398)
(264)
-
0
(370)
-
0
(8,032)
At 31 March 2024
240,383
6,295
32,308
77,623
147,670
504,279
Carrying amount
At 31 March 2024
493,549
9,443
8,281
2,538
167,230
681,041
At 31 March 2023
532,463
10,523
11,041
3,384
245,956
803,367
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
400,000
400,000
Investments in associates
15
-
0
-
0
30
-
0
Investments in joint ventures
742,708
964,769
50
-
0
Loans to joint ventures
30,750
30,750
-
0
-
0
Other investments
130
100
-
0
-
0
773,588
995,619
400,080
400,000
ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in joint ventures
Loans to joint ventures
Other
Total
£
£
£
£
Cost or valuation
At 1 April 2023
964,769
30,750
100
995,619
Additions
-
-
30
30
Share of loss
(222,061)
-
-
(222,061)
At 31 March 2024
742,708
30,750
130
773,588
Carrying amount
At 31 March 2024
742,708
30,750
130
773,588
At 31 March 2023
964,769
30,750
100
995,619
Movements in fixed asset investments
Company
Shares in subsidiaries, associates and joint ventures
£
Cost or valuation
At 1 April 2023
400,000
Additions
80
At 31 March 2024
400,080
Carrying amount
At 31 March 2024
400,080
At 31 March 2023
400,000
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ardour World Limited
UK
Ordinary
100.00
Ardour World (H.K.) Limited
Hong Kong
Ordinary
100.00
15
Associates

Details of associates at 31 March 2024 are as follows:

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Associates
(Continued)
- 29 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
KYVSAI Limited
UK
Ordinary
30
-
Global Ardour Recycling Limited
UK
Ordinary
0
30
RAW2K Limited
UK
Ordinary
0
30
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
3,962,332
3,463,945
-
0
-
0
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,156,918
12,650,684
-
0
-
0
Corporation tax recoverable
2,913
-
0
-
0
-
0
Amounts owed by undertakings in which the company has a participating interest
4,800,000
82,414
4,800,000
-
Other debtors
767,803
955,399
-
0
-
0
Prepayments and accrued income
862,381
173,515
-
0
-
0
15,590,015
13,862,012
4,800,000
-

Amounts owed by undertakings in which company has participating interest £4,800,000 (2023 : £82,414) are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

 

Other debtors include VAT recoverable £757,115 (2023 : £792,186).

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
3,905,999
6,287,868
-
0
-
0
Bills of exchange
20
212,544
303,177
-
0
-
0
Obligations under finance leases
21
16,022
129,050
-
0
-
0
Payments received on account
914,575
90,516
-
0
-
0
Trade creditors
3,527,126
3,001,729
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
4,800,000
-
0
Amounts owed to undertakings in which the group has a participating interest
787,059
-
0
-
0
-
0
Corporation tax payable
3,895
447,083
-
0
-
0
Other taxation and social security
9,027
6,456
-
-
Other creditors
212,177
1,390
80
-
0
Accruals and deferred income
66,465
61,145
-
0
-
0
9,654,889
10,328,414
4,800,080
-
0

Amounts owed to group undertakings and amounts owed to undertakings in which the group has participating interest are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
-
0
16,022
-
0
-
0
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,905,999
6,287,868
-
0
-
0
Bills of exchange
212,544
303,177
-
0
-
0
4,118,543
6,591,045
-
-
Payable within one year
4,118,543
6,591,045
-
0
-
0

Bank loans and overdraft is secured by fixed and floating charge over the assets of the Ardour World Ltd and the assets of Global Metcorp Limited, a related company, and Grove House Harrow Limited, a joint venture, by way of an unlimited cross guarantee. Directors have also provided a joint personal guarantee of USD500,000.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Loans and overdrafts
(Continued)
- 31 -

The loans are for general working capital requirements. The CLBIL loan of £250,000 was fully repaid in September 2023 and carries an interest rate of 1.95% per annum over UK Bank Base Rate.

 

The bank loans are repayable between 30 to 120 days and carry interest rates between 2.25% to 2.75% per annum over UK Bank Base Rate.

 

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
16,022
129,050
-
0
-
0
In two to five years
-
0
16,022
-
0
-
0
16,022
145,072
-
-

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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
44,470
65,044
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
65,044
-
Credit to profit or loss
(20,574)
-
Liability at 31 March 2024
44,470
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
125,917
321,621

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.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
400,000
400,000
400,000
400,000
25
Financial commitments, guarantees and contingent liabilities

The group did not have any other financial commitments, guarantees or contingent liabilities at year end other than those disclosed under creditors and related party transactions.

26
Operating lease commitments
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements are as follows:

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
41,000
27,212
-
-
Between two and five years
123,000
-
-
-
164,000
27,212
-
-
27
Events after the reporting date

No reportable events or transactions have occurred after the reporting date that require adjustment or disclosure in the financial statements.

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
152,316
135,203
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence
787,059
-

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence
4,800,000
82,414
Other information
ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
28
Related party transactions
(Continued)
- 34 -

Global Metcorp Limited is related to the group by virtue of common control. Global Metcorp Limited, a related company and Ardour World Limited, a 100% owned subsidiary has provided a cross guarantee against each other's full indebtedness to banks, the amount of Global Metcorp Limited's loan guaranteed by the Ardour World Ltd under the said cross guarantee at the balance sheet date was £9,754,284 (2023 - £18,051,778 ).

 

Gateway Recycling Limited is a joint venture (50% holding) jointly owned by Ardour World Holdings Limited with Global Commodities FZE Limited. During the year, Ardour World Limited , subsidiary of Ardour World Holdings Limited provided various interest-free unsecured loan to Gateway Recycling Limited amounting to £2,602,404.Gateway Recycling Limited made a full settlement during the year, the outstanding balance of the loan at the balance sheet date was £Nil (2023 - £82,414). During the year, Ardour world Limited has also purchased goods from Gateway Recycling Limited amounting to £1,310,637 the outstanding balance payable as at the balance sheet was £68,975.(2023 -£Nil)

 

Grove House Harrow Limited is a joint venture (50% holding) jointly owned by Ardour World Limited , a 100% owned subsidiary of the group, with Global Metcorp Limited. Ardour World Limited has provided interest-free unsecured loan to Grove House Harrow Limited ,the balance outstanding at the balance sheet date was £30,750 (2023 - £30,750). Ardour World Limited also has a short term lease from Grove House Harrow Limited for office premises at an annual rent of £ 49,925 (2023 - £45,175 ) in joint tenancy with Global Metcorp Limited.

 

During the year, Ardour World Holdings Limited has provided interest free unsecured loan to Kyvsai Limited, an associate (30% holding), the outstanding balance of the loan at the balance sheet date was £4,800,000 (2023 : £nil).

 

The company has taken advantage of the exemption available under FRS102 and has not disclosed the balances and transactions with wholly owned members of the group.

 

All balances owed from related parties at the balance sheet date are unsecured, interest-free, and repayable on demand and are expected to be settled in cash through bank transfer.

 

Directors have provided a joint personal guarantee of USD 500,000 to secure an overdraft facility from a bank.

 

Total compensation to director’s close family members for services rendered was £77,436 (2023. : £61,363).

29
Directors' transactions

Dividends totalling £288,000 (2023 - £284,000) were paid in the year in respect of shares held by the company's directors and their close family members.

During the year 2021/22, the director paid £ 50 on behalf of the company to purchase the 50% share capital of Gateway Recycling Limited. At the year end, director's outstanding balance is amounting to £50 (2023 - £50).

 

 

ARDOUR WORLD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
30
Cash generated from group operations
2024
2023
£
£
Profit after taxation
2,068,845
2,893,142
Adjustments for:
Share of results of associates and joint ventures
222,061
(322,597)
Taxation charged
765,257
684,567
Finance costs
106,709
23,730
Investment income
(17,513)
(13,654)
Depreciation and impairment of tangible fixed assets
99,258
90,156
Movements in working capital:
(Increase)/decrease in stocks
(498,387)
2,577,832
(Increase)/decrease in debtors
(1,725,090)
1,279,192
Increase/(decrease) in creditors
2,355,193
(3,839,326)
Cash generated from operations
3,376,333
3,373,042
31
Analysis of changes in net debt - group
1 April 2023
Cash flows
Exchange rate movements
31 March 2024
£
£
£
£
Cash at bank and in hand
2,386,576
(834,377)
5,112
1,557,311
Borrowings excluding overdrafts
(6,591,045)
2,472,502
-
(4,118,543)
Obligations under finance leases
(145,072)
129,050
-
(16,022)
(4,349,541)
1,767,175
5,112
(2,577,254)
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