REGISTERED NUMBER: 13756536 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

UK STEEL STOCK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

A B Cochrane

D N R Kemp

REGISTERED OFFICE:

First Floor

Hurstwood Business Centre

York Road

Thirsk

North Yorkshire

YO7 3BX

REGISTERED NUMBER:

13756536 (England and Wales)

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

REVIEW OF BUSINESS

The business has continued to operate a local stock yard facility and office to process current and future volumes as well as project manage the procurement and delivery of steel sections, hollow sections and plates.

Turnover was £39,086,559 (2023 - £41,269,893) with an associated gross profit of £1,181,620 (2023 - £2,499,644) and company net assets at the financial reporting date were £1,409,442 (2023 - £2,900,952).

PRINCIPAL RISKS AND UNCERTAINTIES

Price risk

Price risk is the risk that changes in raw materials prices have the potential to impact on the profitability of the company. Management monitors price risk via consistent review of general economic indicators and key supplier prices to inform budgeting and forecasting procedures, to identify potential effect on margins ahead of time.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts. The company does not consider that it is materially exposed to credit risk.

Cash flow and liquidity risk

Cash flow and liquidity risk is the risk that a company's available cash will not be be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the company and continued financial support of lenders, is deemed sufficient to minimise the company's exposure to cash flow and liquidity risk.

Foreign exchange risk

Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk, including utilisation of short term derivative transactions.

Interest rate risk

Interest rate risk relates to the potential for loss from exposure to base rate fluctuations. Lending undertaken by the company is linked to base rate and borrowing is monitored by the Directors to avoid overexposure. The company does not consider that it is materially exposed to this risk on current trading performance.

ON BEHALF OF THE BOARD:

A B Cochrane - Director

19 March 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of steel stockholding and trading.

DIVIDENDS

An interim dividend of £20,000 per share was paid on 4 September 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 2,000,000 .

FUTURE DEVELOPMENTS

The company continues to project manage the procurement and delivery of steel required to service our customer base.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

A B Cochrane

D N R Kemp

GOING CONCERN

Information relating to going concern can be found in the notes to the financial statements.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

A B Cochrane - Director

19 March 2025

Opinion

We have audited the financial statements of UK Steel Stock Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was 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, anti-bribery, employment and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

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 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 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;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing, where applicable, correspondence with HMRC and relevant regulators including the Health and Safety Executive, and the services billed by the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Aitken BSc ACA CTA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie Watson Limited

Statutory Auditors

Chartered Accountants

Units 7-8 Manor Court

Manor Garth

Eastfield

Scarborough

North Yorkshire

YO11 3TU

19 March 2025

TURNOVER

4

39,086,559

41,269,893

Cost of sales

37,904,939

38,770,249

GROSS PROFIT

1,181,620

2,499,644

Administrative expenses

616,119

689,554

OPERATING PROFIT

6

565,501

1,810,090

Interest receivable and similar income

7

116,442

1,310

681,943

1,811,400

Interest payable and similar expenses

8

3,102

232,261

PROFIT BEFORE TAXATION

678,841

1,579,139

Tax on profit

9

170,351

371,609

PROFIT FOR THE FINANCIAL YEAR

508,490

1,207,530

PROFIT FOR THE YEAR

508,490

1,207,530

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

508,490

1,207,530

FIXED ASSETS

Tangible assets

11

156,078

245,583

CURRENT ASSETS

Stocks

12

537,509

1,878,206

Debtors

13

1,836,783

5,858,933

Cash at bank

762,095

2,155,421

3,136,387

9,892,560

CREDITORS

Amounts falling due within one year

14

1,844,543

7,124,463

NET CURRENT ASSETS

1,291,844

2,768,097

TOTAL ASSETS LESS CURRENT LIABILITIES

1,447,922

3,013,680

CREDITORS

Amounts falling due after more than one year

15

-

(55,552

)

PROVISIONS FOR LIABILITIES

19

(38,480

)

(57,176

)

NET ASSETS

1,409,442

2,900,952

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

1,409,342

2,900,852

SHAREHOLDERS' FUNDS

1,409,442

2,900,952

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2025 and were signed on its behalf by:

A B Cochrane - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

1,693,322

1,693,422

Changes in equity

Total comprehensive income

-

1,207,530

1,207,530

Balance at 31 December 2023

100

2,900,852

2,900,952

Changes in equity

Dividends

-

(2,000,000

)

(2,000,000

)

Total comprehensive income

-

508,490

508,490

Balance at 31 December 2024

100

1,409,342

1,409,442

1.	STATUTORY INFORMATION

UK Steel Stock Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Critical judgements in applying the company's policies

The management consider that no critical judgements have had to be made in preparing these financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings, ageing profile of debtors and experience of recoverability. Where indications of impairment are identified, the necessary provision for impairment is recognised in the corresponding financial period.

Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the asset. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

The directors do not consider that any other estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company's activities. Turnover is shown net of value added tax. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met, including that the significant risks and rewards of ownership of the goods has been transferred to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

10% on cost

Fixtures and fittings

-

25% on cost

Office equipment

-

33% on cost

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The company adds to the carrying value of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying value of the replaced part is derecognised. Repairs are charged to the profit and loss account during the period in which they are incurred.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the previous financial period.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within administrative expenses in the statement of comprehensive income.

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. Where applicable, prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. Cost is based on the purchase price of the actual quantities in stock.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to sell and the impairment loss is recognised immediately in profit or loss.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated in to the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Hire purchase and leasing commitments

Assets acquired under finance lease agreements, including hire purchase agreements, are capitalised and the corresponding liability is included in creditors. Finance lease interest is charged to the profit and loss account on a sum of digits basis over the period of the agreement. Operating lease rentals are charged against profits on a straight-line basis over the period of the lease.

Defined contribution pension obligation

Payments to defined contribution pension schemes are charged as an expense in the period to which they relate.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. If the contribution due for service exceeds contribution payments, the excess is recognised as an accrual.

Derivative financial instruments

The company enters into certain short term derivative transactions, purchasing forward currency contracts to manage the exchange rate risk arising from the company's operations.

These derivative financial instruments are initially recognised at fair value on the date on which the contract is entered into, and are subsequently remeasured at fair value.

Fair value is calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

Derivatives are carried in the balance sheet as assets when the fair value is positive and as liabilities when the fair value is negative. Fair value movements are taken into account in arriving at the profit on ordinary activities before taxation.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits and other short term, highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for goods sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established where there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditors for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Provisions

A provision is recognised when:

- The company has a present obligation (legal of constructive) as a result of a past event;

- It is probable that a transfer of economic benefit will be required to settle the obligation, and;

- A reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account the relevant risks and uncertainties.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Going concern

The financial statements have been prepared on a going concern basis.

The company has net current assets of £1,291,844 (2023 - £2,768,097) at the year end including cash of £762,095 (2023 - £2,155,421).

The company's forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period and that the directors will support this by repaying balances due within that period.

Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

37,891,753

41,183,178

Europe

1,194,806

86,715

39,086,559

41,269,893

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

446,609

578,077

Social security costs

43,737

64,139

Other pension costs

19,185

33,125

509,531

675,341

The average number of employees during the year was as follows:

2024

2023

Directors & Finance

4

4

Sales

1

1

Yard

1

1

Operations

2

3

8

9

2024

2023

£

£

Directors' remuneration

241,590

336,386

Directors' pension contributions to money purchase schemes

12,190

25,493

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

2

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

150,000

220,000

Pension contributions to money purchase schemes

12,190

7,200

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

6,379

6,611

Rent

133,081

252,844

Depreciation - owned assets

45,094

38,000

Depreciation - assets on hire purchase contracts or finance leases

-

7,191

(Profit)/loss on disposal of fixed assets

(9,346

)

922

Auditor's remuneration - audit fees

34,300

24,550

Auditor's remuneration - non-audit fees

1,410

-

Foreign exchange differences

32,106

(265

)

Foreign exchange differences includes the effect of change in fair value of short term derivative transactions, resulting a charge against operating profit of £13,356 (2023 - £nil).

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

£

Bank interest receivable

110,454

1,075

Other interest receivable

5,988

235

116,442

1,310

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

3,070

160,050

Directors' loan interest

-

27,260

Hire purchase interest

-

1,764

Other interest charges

32

43,187

3,102

232,261

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

189,047

384,977

Deferred tax

(18,696

)

(13,368

)

Tax on profit

170,351

371,609

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

678,841

1,579,139

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

169,710

371,413

Effects of:

Difference in deferred tax rate

-

(791

)

Permanent timing differences

641

987

Total tax charge

170,351

371,609

10.

DIVIDENDS

2024

2023

£

£

Ordinary Shares shares of £1 each

Interim

2,000,000

-

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Office

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 January 2024

221,600

34,267

46,298

302,165

Additions

-

-

1,429

1,429

Disposals

(55,474

)

-

-

(55,474

)

At 31 December 2024

166,126

34,267

47,727

248,120

DEPRECIATION

At 1 January 2024

23,454

12,524

20,604

56,582

Charge for year

20,699

8,566

15,829

45,094

Eliminated on disposal

(9,634

)

-

-

(9,634

)

At 31 December 2024

34,519

21,090

36,433

92,042

NET BOOK VALUE

At 31 December 2024

131,607

13,177

11,294

156,078

At 31 December 2023

198,146

21,743

25,694

245,583

12.

STOCKS

2024

2023

£

£

Stocks

537,509

1,878,206