5
false
false
false
false
true
false
false
false
false
false
false
true
false
false
false
false
false
false
No description of principal activity
2023-10-01
Sage Accounts Production Advanced 2024 - FRS102_2024
156,670
23,723
3,287,697
1,239,387
4,527,084
850,492
490,731
1,341,223
3,185,861
2,437,205
1,547
28,340
29,887
3,143
3,143
26,744
1,547
xbrli:pure
xbrli:shares
iso4217:GBP
09997855
2023-10-01
2024-09-30
09997855
2024-09-30
09997855
2023-09-30
09997855
2022-10-01
2023-09-30
09997855
2023-09-30
09997855
2022-09-30
09997855
bus:RegisteredOffice
2023-10-01
2024-09-30
09997855
bus:OrdinaryShareClass1
2023-10-01
2024-09-30
09997855
bus:LeadAgentIfApplicable
2023-10-01
2024-09-30
09997855
bus:Director1
2023-10-01
2024-09-30
09997855
bus:Director2
2023-10-01
2024-09-30
09997855
core:WithinOneYear
2024-09-30
09997855
core:WithinOneYear
2023-09-30
09997855
core:UKTax
2023-10-01
2024-09-30
09997855
core:UKTax
2022-10-01
2023-09-30
09997855
core:RetainedEarningsAccumulatedLosses
2023-09-30
09997855
core:RetainedEarningsAccumulatedLosses
2022-09-30
09997855
core:RetainedEarningsAccumulatedLosses
2024-09-30
09997855
core:RetainedEarningsAccumulatedLosses
2023-09-30
09997855
core:ShareCapital
2024-09-30
09997855
core:ShareCapital
2023-09-30
09997855
core:BetweenOneFiveYears
2024-09-30
09997855
bus:LeadAgentIfApplicable
2022-10-01
2023-09-30
09997855
bus:FRS102
2023-10-01
2024-09-30
09997855
bus:Audited
2023-10-01
2024-09-30
09997855
bus:LargeCompaniesRegimeForAccounts
2023-10-01
2024-09-30
09997855
bus:PrivateLimitedCompanyLtd
2023-10-01
2024-09-30
09997855
bus:FullAccounts
2023-10-01
2024-09-30
09997855
bus:OrdinaryShareClass1
2024-09-30
09997855
bus:OrdinaryShareClass1
2023-09-30
09997855
core:OtherPropertyPlantEquipment
2023-10-01
2024-09-30
09997855
core:IntangibleAssetsOtherThanGoodwill
2023-09-30
09997855
core:IntangibleAssetsOtherThanGoodwill
2023-10-01
2024-09-30
09997855
core:IntangibleAssetsOtherThanGoodwill
2024-09-30
09997855
core:OtherPropertyPlantEquipment
2023-09-30
09997855
core:OtherPropertyPlantEquipment
2024-09-30
COMPANY REGISTRATION NUMBER:
09997855
Year ended 30 September 2024
|
Officers and professional advisers |
1 |
|
|
|
Independent auditor's report to the members |
6 |
|
|
|
Statement of income and retained earnings |
11 |
|
|
|
Statement of financial position |
12 |
|
|
|
Statement of cash flows |
13 |
|
|
|
Notes to the financial statements |
14 |
|
|
|
Officers and Professional Advisers |
|
|
The board of directors |
J E Chitty |
|
G Lorenz |
|
|
|
Registered office |
Building 15 |
|
Gateway 1000 Whittle Way |
|
Arlingtin Business Park |
|
Stevenage |
|
Hertfordshire |
|
United Kingdom |
|
SG1 2FP |
|
|
|
Auditor |
Streets Audit LLP |
|
Chartered accountants & statutory auditor |
|
Enterprise House |
|
38 Tyndall Court |
|
Commerce Road |
|
Lynch Wood |
|
Peterborough |
|
Cambridgeshire |
|
PE2 6LR |
|
|
Year ended 30 September 2024
The directors present their strategic report with the financial statements of the year ended 30 September 2024. Principle activities The company's principal activity is steel trading. Fair review of the business The turnover for the year was £91.4m (2023: £61.8m) which has seen an increase of 48% on the previous year. The gross margin, a key performance indicator, increased to 4.1% (2023: 3.5%). The result for the company show a pre-tax profit of £0.38m in 2024 compared to a pre-tax profit of £0.14m in 2023. Principal risks and uncertainties The principal risks and uncertainties facing the company are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive, operational and financial risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows. Competitive risk The company operates in the steel industry where the markets remain competitive. There is price fluctuation and this can result in pricing risk. Therefore the company sells only on a back-to-back basis with no stock. Operational risk The main operational risk relating to the company's trading of steel relate to agreements with the customers and associated party's entities. The company's ability to provide products to it customers depends on maintaining agreements with its related parties and acquiring steel products based on order book. The overall risk is mitigated by ensuring the customer and purchase agreement match with sufficient margin to enable operations to grow. The company purchases and sells steel to the accepted international standards. It will always have comeback to its supplier should the goods quality of the steel waver from these standards. Price risk The company has a policy of only purchasing steel against customer orders. Currency risk The company purchases the majority of its products in £ sterling and sells in the same currency. This negates any currency fluctuations. Credit risk The company's principal financial assets are bank balances, steel in transit and receivables. The company's credit risk is primarily attributable to its trade receivables and balances from the related parties. The company gives significant attention to credit risk, with its ledger currently insured by HCC Tokyo Marine. Additionally, each related party is analysed individually for credit worthiness. Liquidity risk Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and in the event suitable sourcing of funding may not be available. The company ensures that sufficient cash is available to fund ongoing operations through its funding facility - a £35m funding line with Close Brother Finance Ltd. The company also exercises effective credit management. Interest risk A funding facility is available via Close Brother Finance. At the end of the year £23m was outstanding on this facility (2023: £25m). Management seek to manage this risk by regular review of the facility and the interest rates associated with it. Key performance indicators The directors of the company use a variety of financial performance indicators, including turnover, operating profit, profit after tax, shareholders fund and average employees. These are reviewed and assessed quarterly by the board and appropriate action taken to ensure growth targets are being achieved. Financial instruments The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The company does not enter into any formally designated hedging arrangements.
This report was approved by the board of directors on 4 August 2025 and signed on behalf of the board by:
|
Registered office: |
|
Building 15 |
|
Gateway 1000 Whittle Way |
|
Arlingtin Business Park |
|
Stevenage |
|
Hertfordshire |
|
United Kingdom |
|
SG1 2FP |
|
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended
30 September 2024
.
Directors
The directors who served the company during the year were as follows:
Dividends
The directors do not recommend the payment of a dividend.
Future developments
The directors remain optimistic for the future. The order book continues to grow and additional steel products are always being sourced and traded. The directors aim to maintain strategy to continue to improve performance and drive the business through targeted grwoth opportunities.
Greenhouse gas emissions and energy consumption
Information not included
- The company consumed 40,000kWh of energy or less in the UK during the period.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The company has chosen to set out in the strategic report information about the results for the year, principal risks and uncertainties and the future developments of the company.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
4 August 2025
and signed on behalf of the board by:
|
Registered office: |
|
Building 15 |
|
Gateway 1000 Whittle Way |
|
Arlingtin Business Park |
|
Stevenage |
|
Hertfordshire |
|
United Kingdom |
|
SG1 2FP |
|
|
Independent Auditor's Report to the Members of
Belmont & Knott Ltd |
|
Year ended 30 September 2024
Opinion
We have audited the financial statements of Belmont & Knott Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the strategic report and the 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation; - 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 company's financial statements to material misstatement, 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 journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 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; - reading the minutes of meetings of those charged with governance; - inquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. 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 inquiry 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
|
Jonathan Day |
|
(Senior Statutory Auditor) |
|
|
For and on behalf of |
|
Streets Audit LLP |
|
Chartered accountants & statutory auditor |
|
Enterprise House |
|
38 Tyndall Court |
|
Commerce Road |
|
Lynch Wood |
|
Peterborough |
|
Cambridgeshire |
|
PE2 6LR |
|
7 August 2025
|
Statement of Income and Retained Earnings |
|
Year ended 30 September 2024
|
2024 |
2023 |
|
Note |
£ |
£ |
|
Turnover |
4 |
91,409,607 |
61,795,392 |
|
|
|
|
|
Cost of sales |
87,650,245 |
59,603,451 |
|
------------- |
------------- |
|
Gross profit |
3,759,362 |
2,191,941 |
|
|
|
|
Distribution costs |
209,586 |
149,809 |
|
Administrative expenses |
1,646,930 |
1,399,218 |
|
Other operating income |
5 |
85,197 |
19,209 |
|
|
------------ |
------------ |
|
Operating profit |
6 |
1,988,043 |
662,123 |
|
|
|
|
|
Interest payable and similar expenses |
9 |
1,612,246 |
520,199 |
|
------------ |
------------ |
|
Profit before taxation |
375,797 |
141,924 |
|
|
|
|
|
Tax on profit |
10 |
219,127 |
118,201 |
|
--------- |
--------- |
|
Profit for the financial year and total comprehensive income |
156,670 |
23,723 |
|
--------- |
--------- |
|
|
|
|
|
Retained earnings at the start of the year |
1,674,235 |
1,650,512 |
|
------------ |
------------ |
|
Retained earnings at the end of the year |
1,830,905 |
1,674,235 |
|
------------ |
------------ |
|
|
|
All the activities of the company are from continuing operations.
|
Statement of Financial Position |
|
30 September 2024
Fixed assets
|
Intangible assets |
11 |
3,185,861 |
2,437,205 |
|
Tangible assets |
12 |
26,744 |
1,547 |
|
------------ |
------------ |
|
3,212,605 |
2,438,752 |
|
|
|
|
Current assets
|
Stocks |
13 |
7,458,068 |
5,039,231 |
|
Debtors |
14 |
30,006,543 |
30,253,083 |
|
Cash at bank and in hand |
132,121 |
13,836 |
|
------------- |
------------- |
|
37,596,732 |
35,306,150 |
|
|
|
|
|
Creditors: amounts falling due within one year |
15 |
38,903,432 |
35,995,667 |
|
------------- |
------------- |
|
Net current liabilities |
1,306,700 |
689,517 |
|
------------ |
------------ |
|
Total assets less current liabilities |
1,905,905 |
1,749,235 |
|
------------ |
------------ |
|
Net assets |
1,905,905 |
1,749,235 |
|
------------ |
------------ |
|
|
|
|
Capital and reserves
|
Called up share capital |
17 |
75,000 |
75,000 |
|
Profit and loss account |
1,830,905 |
1,674,235 |
|
------------ |
------------ |
|
Shareholders funds |
1,905,905 |
1,749,235 |
|
------------ |
------------ |
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
4 August 2025
, and are signed on behalf of the board by:
Company registration number:
09997855
Year ended 30 September 2024
Cash flows from operating activities
|
Profit for the financial year |
156,670 |
23,723 |
|
|
|
|
Adjustments for: |
|
|
|
Depreciation of tangible assets |
3,143 |
– |
|
Amortisation of intangible assets |
490,731 |
385,926 |
|
Interest payable and similar expenses |
1,612,246 |
520,199 |
|
Tax on profit |
219,127 |
118,201 |
|
Accrued (income)/expenses |
(
393,236) |
398,236 |
|
|
|
|
Changes in: |
|
|
|
Stocks |
(
2,418,837) |
1,978,681 |
|
Trade and other debtors |
246,540 |
(
979,381) |
|
Trade and other creditors |
(
2,049,976) |
4,745,924 |
|
------------ |
------------ |
|
Cash generated from operations |
(
2,133,592) |
7,191,509 |
|
|
|
|
Interest paid |
(
1,612,246) |
(
520,199) |
|
Tax paid |
(
118,201) |
(
437,431) |
|
------------ |
------------ |
|
Net cash (used in)/from operating activities |
(
3,864,039) |
6,233,879 |
|
------------ |
------------ |
|
|
|
Cash flows from investing activities
|
Purchase of tangible assets |
(
28,340) |
(
1,547) |
|
Purchase of intangible assets |
(
1,239,387) |
(
524,025) |
|
------------ |
------------ |
|
Net cash used in investing activities |
(
1,267,727) |
(
525,572) |
|
------------ |
------------ |
|
|
|
Cash flows from financing activities
|
Proceeds from loans from group undertakings |
5,250,051 |
(
5,695,831) |
|
------------ |
------------ |
|
Net cash from/(used in) financing activities |
5,250,051 |
(
5,695,831) |
|
------------ |
------------ |
|
|
|
|
Net increase in cash and cash equivalents |
118,285 |
12,476 |
|
Cash and cash equivalents at beginning of year |
13,836 |
1,360 |
|
--------- |
-------- |
|
Cash and cash equivalents at end of year |
132,121 |
13,836 |
|
--------- |
-------- |
|
|
|
|
Notes to the Financial Statements |
|
Year ended 30 September 2024
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Building 15, Gateway 1000 Whittle Way, Arlington Business Park, Stevenage, SG1 2FP. The trading address is Unit 14C, Meadway Court, Rutherford Close, Stevenage, SG1 2EF.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
In considering the appropriateness of the going concern basis the directors have reviewed the current trading position of the business, the order book and sales and forecasts. These all indicate the company has the ability to operate within agreed funding facilities and has adequate resources to continue in operational existence for the foreseeable future. As such the company continues to adopt the going concern basis in preparing its financial statements.
Judgements and key sources of estimation uncertainty
Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: 1. Amortisation and depreciation charge The annual depreciation and amortisation charges for each class of fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
|
Customer list |
- |
estimated useful life of 10 years |
|
|
|
|
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Equipment |
- |
20% straight line |
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4.
Turnover
Turnover arises from:
|
2024 |
2023 |
|
£ |
£ |
|
Sale of Steel |
91,409,607 |
61,795,392 |
|
------------- |
------------- |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
2024 |
2023 |
|
£ |
£ |
|
Other operating income |
85,197 |
19,209 |
|
-------- |
-------- |
|
|
|
6.
Operating profit
Operating profit or loss is stated after charging/crediting:
|
2024 |
2023 |
|
£ |
£ |
|
Amortisation of intangible assets |
490,731 |
385,926 |
|
Depreciation of tangible assets |
3,143 |
– |
|
Foreign exchange differences |
(
69,266) |
(
17,664) |
|
--------- |
--------- |
|
|
|
7.
Auditor's remuneration
|
2024 |
2023 |
|
£ |
£ |
|
Fees payable for the audit of the financial statements |
12,500 |
10,000 |
|
-------- |
-------- |
|
|
|
Fees payable to the company's auditor and its associates for other services:
|
Other non-audit services |
2,500 |
250 |
|
-------- |
-------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2024 |
2023 |
|
No. |
No. |
|
Administrative staff |
3 |
2 |
|
Management staff |
2 |
2 |
|
---- |
---- |
|
5 |
4 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2024 |
2023 |
|
£ |
£ |
|
Wages and salaries |
259,399 |
118,072 |
|
Social security costs |
30,985 |
13,715 |
|
Other pension costs |
7,431 |
2,775 |
|
--------- |
--------- |
|
297,815 |
134,562 |
|
--------- |
--------- |
|
|
|
In the prior year, staff were employed by a group company.
9.
Interest payable and similar expenses
|
2024 |
2023 |
|
£ |
£ |
|
Other interest payable and similar charges |
1,612,246 |
520,199 |
|
------------ |
--------- |
|
|
|
10.
Tax on profit
Major components of tax expense
Current tax:
|
UK current tax expense |
217,810 |
118,201 |
|
Adjustments in respect of prior periods |
1,317 |
– |
|
--------- |
--------- |
|
Total current tax |
219,127 |
118,201 |
|
--------- |
--------- |
|
--------- |
--------- |
|
Tax on profit |
219,127 |
118,201 |
|
--------- |
--------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the
standard rate of corporation tax in the UK
of
25
% (2023:
22
%).
|
2024 |
2023 |
|
£ |
£ |
|
Profit on ordinary activities before taxation |
375,797 |
141,924 |
|
--------- |
--------- |
|
Profit on ordinary activities by rate of tax |
93,950 |
31,237 |
|
Adjustment to tax charge in respect of prior periods |
1,317 |
– |
|
Effect of expenses not deductible for tax purposes |
130,159 |
87,341 |
|
Effect of capital allowances and depreciation |
(
6,299) |
(
377) |
|
--------- |
--------- |
|
Tax on profit |
219,127 |
118,201 |
|
--------- |
--------- |
|
|
|
11.
Intangible assets
|
Customer list |
|
£ |
|
Cost |
|
|
At 1 October 2023 |
3,287,697 |
|
Additions |
1,239,387 |
|
------------ |
|
At 30 September 2024 |
4,527,084 |
|
------------ |
|
Amortisation |
|
|
At 1 October 2023 |
850,492 |
|
Charge for the year |
490,731 |
|
------------ |
|
At 30 September 2024 |
1,341,223 |
|
------------ |
|
Carrying amount |
|
|
At 30 September 2024 |
3,185,861 |
|
------------ |
|
At 30 September 2023 |
2,437,205 |
|
------------ |
|
|
Intangible fixed assets relate to the acquisition of a customer list. The company committed to purchase the customer list over a period of 7 years from 2018. As at year end the company is liable to pay 50% of the current year EBITA annually until 2025. It is the directors view that the profits are not able to be reliably estimated and therefore the amounts are capitalised at each year end as the figures are finalised. Amortisation is provided for over the remaining period from the original purchase date. At each reporting date an impairment review is undertaken where any impairment loss is recognised immediately.
12.
Tangible assets
|
Equipment |
|
£ |
|
Cost |
|
|
At 1 October 2023 |
1,547 |
|
Additions |
28,340 |
|
-------- |
|
At 30 September 2024 |
29,887 |
|
-------- |
|
Depreciation |
|
|
At 1 October 2023 |
– |
|
Charge for the year |
3,143 |
|
-------- |
|
At 30 September 2024 |
3,143 |
|
-------- |
|
Carrying amount |
|
|
At 30 September 2024 |
26,744 |
|
-------- |
|
At 30 September 2023 |
1,547 |
|
-------- |
|
|
13.
Stocks
|
2024 |
2023 |
|
£ |
£ |
|
Raw materials and consumables |
7,458,068 |
5,039,231 |
|
------------ |
------------ |
|
|
|
14.
Debtors
|
2024 |
2023 |
|
£ |
£ |
|
Trade debtors |
28,032,434 |
29,519,603 |
|
Amounts owed by group undertakings |
– |
1,365 |
|
Prepayments and accrued income |
1,832,748 |
597,797 |
|
Other debtors |
141,361 |
134,318 |
|
------------- |
------------- |
|
30,006,543 |
30,253,083 |
|
------------- |
------------- |
|
|
|
15.
Creditors:
amounts falling due within one year
|
2024 |
2023 |
|
£ |
£ |
|
Trade creditors |
2,107,335 |
1,625,543 |
|
Amounts owed to group undertakings |
11,971,144 |
6,721,093 |
|
Accruals and deferred income |
15,000 |
408,236 |
|
Corporation tax |
217,810 |
116,884 |
|
Social security and other taxes |
1,717,754 |
2,495,445 |
|
Other creditors |
22,874,389 |
24,628,466 |
|
------------- |
------------- |
|
38,903,432 |
35,995,667 |
|
------------- |
------------- |
|
|
|
Included in other creditors is a sales ledger financing agreement with Close Brothers Limited, who hold a fixed and floating charge over all assets of the company.
16.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
7,431
(2023: £
2,775
).
17.
Called up share capital
Issued, called up and fully paid
|
2024 |
2023 |
|
No. |
£ |
No. |
£ |
|
Ordinary shares of £ 1 each |
75,000 |
75,000 |
75,000 |
75,000 |
|
-------- |
-------- |
-------- |
-------- |
|
|
|
|
|
18.
Analysis of changes in net debt
|
At 1 Oct 2023 |
Cash flows |
At 30 Sep 2024 |
|
£ |
£ |
£ |
|
Cash at bank and in hand |
13,836 |
118,285 |
132,121 |
|
Debt due within one year |
(6,721,093) |
(5,250,051) |
(11,971,144) |
|
------------ |
------------ |
------------- |
|
(
6,707,257) |
(
5,131,766) |
(
11,839,023) |
|
------------ |
------------ |
------------- |
|
|
|
|
19.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2024 |
2023 |
|
£ |
£ |
|
Not later than 1 year |
23,315 |
– |
|
Later than 1 year and not later than 5 years |
81,601 |
– |
|
--------- |
---- |
|
104,916 |
– |
|
--------- |
---- |
|
|
|
20.
Related party transactions
During the year the company entered into the following transactions with related parties: The company made purchases from Interfer Edelstahl Handelsgesellschaft mbH, a connected company of £79,794,725 (2023: £50,622,872) and at year end owed them £10,646,268 (2023: £5,444,315). Included within the purchases in the year was £135,978 of management charges (2023: £75,700). The company paid £120,000 in management charges (2023 :£120,000) to COMEAST Holdings GmbH, a connected company. At year end, £40,000 was owed from them (2023: £70,000 owed to them). The company also paid sales bonus' and management charges to Tresman Limited, a connected company, of £262,114 (2023: £176,400). At the year end, £1,365 was owed from them (2023: £1,365 owed from them). The company made purchases of £72,093 (2023: £12,013,441) from INTERFER Steel & Commodities GmbH, a connected company. At the year end, £Nil was owed from them (2023: £682,751). They have further amounts owed to this company of £1,239,387 relating to non-trade purchases (2023: £524,025).
21.
Controlling party
The company was controlled by Tresman Limited and Interfer Edelstahl Handelsgesellschaft mbH by virtue of their equal shareholding. The ultimate controlling parties are the directors. The parent of the largest and smallest group for which accounts including
Belmont & Knott Ltd
are drawn is Interfer Edelstahl Handelsgesellschaft mbH. Belmont & Knott is included in the consolidated accounts of Interfer Edelstahl Handelsgesellschaft mbH.