REGISTERED NUMBER: 05721701 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MIDSTEEL FLANGES AND FITTINGS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

D Ahern

P Enright

K O'Shea

SECRETARY:

K O'Shea

REGISTERED OFFICE:

Building 51

Third Avenue

Pensnett Trading Estate

Kingswinford

West Midlands

DY6 7XE

REGISTERED NUMBER:

05721701 (England and Wales)

AUDITORS:

Dafferns Audit Limited

Chartered Accountants

Statutory Auditor

One Eastwood

Harry Weston Road

Binley Business Park

Coventry

CV3 2UB

FIXED ASSETS

Tangible assets

5

467,532

412,381

CURRENT ASSETS

Stocks

2,280,033

2,464,028

Debtors

6

2,405,871

2,211,090

Cash at bank and in hand

77,988

89,459

4,763,892

4,764,577

CREDITORS

Amounts falling due within one year

7

2,311,250

2,185,281

NET CURRENT ASSETS

2,452,642

2,579,296

TOTAL ASSETS LESS CURRENT LIABILITIES

2,920,174

2,991,677

CREDITORS

Amounts falling due after more than one year

8

(1,106,562

)

(1,187,093

)

PROVISIONS FOR LIABILITIES

(17,500

)

(13,000

)

NET ASSETS

1,796,112

1,791,584

CAPITAL AND RESERVES

Called up share capital

10

250,000

250,000

Retained earnings

1,546,112

1,541,584

SHAREHOLDERS' FUNDS

1,796,112

1,791,584

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 5 September 2025 and were signed on its behalf by:

P Enright - Director

1.	STATUTORY INFORMATION

Midsteel Flanges and Fittings 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" including the provisions of Section 1A "Small Entities" 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.

Going concern

The directors have considered the working capital requirements of the company and believe that the resources available, coupled with the ongoing financial commitment and support from its parent company are sufficient for the trading needs of the business. As a result of this assessment, the going concern assumption continues to be adopted in the preparation of these financial statements.

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.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax and is recognised on despatch of goods.

Tangible fixed assets

Tangible fixed assets are recognised at cost and subsequently measured under the historical cost model being cost less accumulated depreciation and any accumulated impairment losses.

Repairs and maintenance costs are charged to the statement of comprehensive income in the period in which they are incurred.

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

Improvements to property

Straight line over period of lease

Plant & machinery

15% straight line

Fixtures & fittings

25% straight line and 15% straight line

Motor vehicles

25% straight line

Any gains and losses on the disposal of tangible fixed assets are recognised in the statement of comprehensive income in the year that the disposal takes place.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs in bringing the product to its current location and condition and is maintained on a first in, first out basis.

As stocks are sold, the carrying amount of those stocks is recognised as an expense in the year in which the related revenue is recognised.

At each reporting date, stocks are assessed for impairment and due allowances are made for obsolete and slow-moving items to reduce the carrying amount of these goods to their estimated selling price less costs to complete and sell. The amount of any write-down is recognised as an expense in the year that the write-down occurs. The reversal of any previous write-down is recognised as a reduction in the amount of stock expensed, in the year that the reversal occurs.

Taxation

Taxation for the year 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 year 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their useful estimated lives. Those held under finance leases are depreciated over the estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account as incurred.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 30 (2023 - 30 ) .

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2024

99,143

598,234

113,517

26,109

837,003

Additions

-

152,477

-

-

152,477

At 31 December 2024

99,143

750,711

113,517

26,109

989,480

DEPRECIATION

At 1 January 2024

92,810

222,953

82,750

26,109

424,622

Charge for year

2,375

84,913

10,038

-

97,326

At 31 December 2024

95,185

307,866

92,788

26,109

521,948

NET BOOK VALUE

At 31 December 2024

3,958

442,845

20,729

-

467,532

At 31 December 2023

6,333

375,281

30,767

-

412,381

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 January 2024

307,457

Additions

103,973

At 31 December 2024

411,430

DEPRECIATION

At 1 January 2024

36,054

Charge for year

53,917

At 31 December 2024

89,971

NET BOOK VALUE

At 31 December 2024

321,459

At 31 December 2023

271,403

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,467,516

1,331,460

Amounts owed by group undertakings

638,204

593,295

Advanced supplier payments

173,972

172,955

Other debtors

11,830

3,775

Tax

16

16

Prepayments

114,333

109,589

2,405,871

2,211,090

Included within trade debtors are balances of £1,561,210 (2023 - £1,442,699) which are subject to a sales invoice discounting facility.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts

81,945

61,231

Trade creditors

770,071

1,023,934

Amounts owed to group undertakings

83,083

216,435

Social security and other taxes

250,580

221,594

Other creditors

11,978

9,317

Sales invoice discounting

facility

1,085,520

611,777

Accrued expenses

28,073

40,993

2,311,250

2,185,281

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts

211,164

199,901

Amounts owed to group undertakings

895,398

987,192

1,106,562

1,187,093

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

293,109

261,132

Bank loans and overdrafts

1,085,520

611,777

1,378,629

872,909

The hire purchase creditors are secured against the relevant fixed assets.

The company's bank loans and overdrafts which includes an invoice discounting facility are secured by a charge over all the assets of the company.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

250,000

Ordinary

£1

250,000

250,000

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

David Halkett FCCA (Senior Statutory Auditor)

for and on behalf of Dafferns Audit Limited

12.	CAPITAL COMMITMENTS

2024

2023

£

£

Contracted but not provided for in the

financial statements

-

28,334

13.	LEASING AGREEMENTS

Other financial commitments and guarantees in respect of operating leases for property and office equipment, which are not included in the balance sheet, amount to £642,528 (2023: £815,573) in total.

14.	POST BALANCE SHEET EVENTS

After the year-end, the decision was made to wind down the sales financing facility utilised by the Group. To manage cashflow within the Company, a new intercompany loan was granted to replace the facility.

15.	ULTIMATE CONTROLLING PARTY

The Company is a wholly-owned subsidiary of MFFH Limited, who is subsequently a wholly-owned subsidiary of Petrochem Process Pipeline UK Limited.

The company's ultimate parent company is KLK Limited, a company registered in Ireland. The largest group in which the results of the company are consolidated is that of KLK Limited, whose address is: Unit 31, Euro Business Park, Little Island, Co.Cork. Ireland,