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REGISTERED NUMBER: 07719785 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2024

for

City Metals Recycling Ltd

City Metals Recycling Ltd (Registered number: 07719785)

Contents of the Financial Statements

for the Year Ended 31 December 2024

Page |

Company Information | 1 |

Strategic Report | 2 |

Report of the Director | 4 |

Report of the Independent Auditors | 6 |

Income Statement | 9 |

Other Comprehensive Income | 10 |

Balance Sheet | 11 |

Statement of Changes in Equity | 12 |

Cash Flow Statement | 13 |

Notes to the Cash Flow Statement | 14 |

Notes to the Financial Statements | 16 |

City Metals Recycling Ltd

Company Information

for the Year Ended 31 December 2024

| DIRECTOR: | Mr J C P Davison

| SECRETARY: | Mr J F Rice

| REGISTERED OFFICE: | 23 Thames Road

| Barking

| IG11 0HN

| REGISTERED NUMBER: | 07719785 (England and Wales)

| AUDITORS: | S P Crowther & Co Limited Chartered Accountants

| and Statutory Auditors

| Abacus House

| Pennine Business Park

| Longbow Close

| Huddersfield

| West Yorkshire

| HD2 1GQ

City Metals Recycling Ltd (Registered number: 07719785)

Strategic Report

for the Year Ended 31 December 2024

The following is the Strategic Report for the period ending on 31 December, presented by the directors. Our objective is to provide a comprehensive and balanced review of the company's performance and progress throughout the year, while considering the size and nature of our business. Additionally, we will address the principal risks and uncertainties that the company has encountered.

REVIEW OF BUSINESS

The company`s turnover during FY24 is £38.7m which is 28% lower compared to the FY23 turnover on like to like 12-month period, which was £53.4m. The reduction of the Revenue is in line with the budget and a strategic decision to reduce the Revenue % away from Higher priced grades like copper which have lower margins and higher volatility and to start investing from Q4 FY24 in lower value but higher profitable grades. Our profit margins have increased to 7% in FY24, compared to 4% in FY23.

Looking ahead, the market conditions still appearing to fluctuate and we require detailed planning to ensure we are reviewing the Grades which we are investing to create higher profitability and reduce any risk.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of our company strategy are subject to various risks.

Key business risks that affect the company include:

1. Maintaining and expanding the customer/supplier base.

2. Managing product supply to meet changing demand in the dynamic market.

3. Dealing with material restrictions.

4. Navigating cost increases.

5. Increase of the Employer National Insurance Contributions from April 2025.

The company employs several lines of financial support, including credit facilities, hire purchase funding, bounce back loan, cash, and effective working capital management. The directors regularly review and establish policies to manage these key risks, which remain consistent with previous years.

Risks Management:

- Liquidity Risks: We manage liquidity risk by maintaining banking facilities and closely monitoring cash flows and working capital requirements.

- Credit Risks: The company's main financial assets are trade receivables and bank balances. Credit risk exposure is mitigated through credit insurance and receiving upfront payment prior to stock release, limiting potential financial losses from counterparties failing to fulfil their obligations.

- Foreign Currency Risk: As we engage in significant trade overseas, we utilise hedging/forward currency contracts when necessary to minimise exchange rate exposure.

- Interest Rate Risk: The company funds its operations through a combination of retained profits, internally generated cash, and credit facilities.

KEY PERFORMANCE INDICATORS (KPI'S) ANALYSIS

The company's KPIs are assessed through daily cash flow forecasts and weekly/monthly Management Information reporting. Regular meetings involving both management and directors evaluate these KPIs. Additionally, the company undergoes frequent audits and visits from the Environment Agency, Health & Safety Executive and suppliers and customers to ensure compliance at the highest level.

City Metals Recycling Ltd (Registered number: 07719785)

Strategic Report

for the Year Ended 31 December 2024

ANY OTHER BUSINESS

Where applicable, the directors have established indicators to measure non-financial performance, aligning with similar-sized companies in the industry. These indicators are used to monitor our progress in various aspects of the business.

ON BEHALF OF THE BOARD:

Mr J C P Davison - Director

17 September 2025

City Metals Recycling Ltd (Registered number: 07719785)

Report of the Director

for the Year Ended 31 December 2024

The director presents his 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 the recycling of metals.

DIVIDENDS

No interim dividends were paid during the year on any of the shares.

The director recommends a final dividend per share as follows:

Ordinary £1 | - £550

A Ordinary £1 | - £1833.33333

The total distribution of dividends for the year ended 31 December 2024 will be £ 130,000 .

DIRECTORS

Mr J C P Davison has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mr R B Simpson - resigned 19 July 2024

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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.

City Metals Recycling Ltd (Registered number: 07719785)

Report of the Director

for the Year Ended 31 December 2024

AUDITORS

The auditors, S P Crowther & Co Limited Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J C P Davison - Director

17 September 2025

Report of the Independent Auditors to the Members of

City Metals Recycling Ltd

Opinion

We have audited the financial statements of City Metals Recycling Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of

City Metals Recycling Ltd

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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

Using our general commercial and sector experience and through discussions with the directors we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either as a result of fraud or error.

We examined the company's regulatory and legal correspondence and discussed with the directors any known or suspected instances of fraud or non-compliance with laws and regulations.

We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.

There are inherent limitations in the audit procedures described above and the further removed we are from the non-compliance with laws and regulations in respect of events and transactions reflected in the financial statements, the less likely we would become aware of identifying issues. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve the deliberate concealment, for example, through forgery or intentional misrepresentation, or through collusion.

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.

Report of the Independent Auditors to the Members of

City Metals Recycling Ltd

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 Crowther FCA (Senior Statutory Auditor)

for and on behalf of S P Crowther & Co Limited Chartered Accountants

and Statutory Auditors

Abacus House

Pennine Business Park

Longbow Close

Huddersfield

West Yorkshire

HD2 1GQ

17 September 2025

City Metals Recycling Ltd (Registered number: 07719785)

Income Statement

for the Year Ended 31 December 2024

31.12.24 | 31.12.23 |

| Notes | £ | £

TURNOVER | 38,649,795 |  | 53,733,112 |  |

Cost of sales | 35,759,895 |  | 51,588,866 |  |

GROSS PROFIT | 2,889,900 |  | 2,144,246 |  |

Administrative expenses | 2,667,292 |  | 2,275,505 |  |

222,608 |  | (131,259 | ) |

Other operating income | 2,834 |  | - |  |

OPERATING PROFIT/(LOSS) | 4 | 225,442 |  | (131,259 | ) |

Interest receivable and similar income | 2,017 |  | 3,036 |  |

227,459 |  | (128,223 | ) |

Interest payable and similar expenses | 6 | 80,141 |  | 74,572 |  |

PROFIT/(LOSS) BEFORE TAXATION | 147,318 |  | (202,795 | ) |

Tax on profit/(loss) | 7 | (202,786 | ) | 149,736 |  |

PROFIT/(LOSS) FOR THE FINANCIAL YEAR | 350,104 |  | (352,531 | ) |

City Metals Recycling Ltd (Registered number: 07719785)

Other Comprehensive Income

for the Year Ended 31 December 2024

31.12.24 | 31.12.23 |

| Notes | £ | £

PROFIT/(LOSS) FOR THE YEAR | 350,104 |  | (352,531 | ) |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 350,104 |  |

Prior year adjustment | (70,514 | ) |

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT | (423,045 | ) |

City Metals Recycling Ltd (Registered number: 07719785)

Balance Sheet

31 December 2024

31.12.24 | 31.12.23 |

| Notes | £ | £ | £ | £

FIXED ASSETS

Tangible assets | 9 | 3,003,370 |  | 2,820,868 |  |

CURRENT ASSETS

Stocks | 10 | 2,023,157 |  | 2,356,322 |  |

Debtors | 11 | 2,338,950 |  | 3,684,625 |  |

Cash at bank and in hand | 151,610 |  | 43,810 |  |

4,513,717 |  | 6,084,757 |  |

CREDITORS

Amounts falling due within one year | 12 | 4,977,071 |  | 6,302,110 |  |

NET CURRENT LIABILITIES | (463,354 | ) | (217,353 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 2,540,016 |  | 2,603,515 |  |

CREDITORS

Amounts falling due after more than one year | 13 | (896,246 | ) | (977,063 | ) |

PROVISIONS FOR LIABILITIES | 17 | (314,676 | ) | (517,462 | ) |

NET ASSETS | 1,329,094 |  | 1,108,990 |  |

CAPITAL AND RESERVES

Called up share capital | 18 | 160 |  | 160 |  |

Retained earnings | 19 | 1,328,934 |  | 1,108,830 |  |

SHAREHOLDERS' FUNDS | 1,329,094 |  | 1,108,990 |  |

The financial statements were approved by the director and authorised for issue on 17 September 2025 and were signed by:

Mr J C P Davison - Director

City Metals Recycling Ltd (Registered number: 07719785)

Statement of Changes in Equity

for the Year Ended 31 December 2024

Called up |  |

share | Retained | Total |

capital | earnings | equity |

| £ | £ | £

Balance at 1 January 2023 | 160 |  | 1,787,875 |  | 1,788,035 |  |

Prior year adjustment | - |  | (70,514 | ) | (70,514 | ) |

As restated | 160 |  | 1,717,361 |  | 1,717,521 |  |

Changes in equity

Dividends | - |  | (256,000 | ) | (256,000 | ) |

Total comprehensive income | - |  | (352,531 | ) | (352,531 | ) |

Balance at 31 December 2023 | 160 |  | 1,108,830 |  | 1,108,990 |  |

Changes in equity

Dividends | - |  | (130,000 | ) | (130,000 | ) |

Total comprehensive income | - |  | 350,104 |  | 350,104 |  |

Balance at 31 December 2024 | 160 |  | 1,328,934 |  | 1,329,094 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Cash Flow Statement

for the Year Ended 31 December 2024

31.12.24 | 31.12.23 |

| Notes | £ | £

Cash flows from operating activities

Cash generated from operations | 1 | 1,815,733 |  | (959,374 | ) |

Interest paid | (473 | ) | (4,895 | ) |

Interest element of hire purchase and finance lease rental payments paid | (79,668 | ) | (69,677 | ) |

Tax paid | 37,764 |  | - |  |

Net cash from operating activities | 1,773,356 |  | (1,033,946 | ) |

Cash flows from investing activities

Purchase of tangible fixed assets | (420,866 | ) | (1,073,863 | ) |

Sale of tangible fixed assets | (1,753 | ) | 23,000 |  |

Interest received | 2,017 |  | 3,036 |  |

Net cash from investing activities | (420,602 | ) | (1,047,827 | ) |

Cash flows from financing activities

Loan repayments in year | (10,134 | ) | (9,882 | ) |

Connected company loans | (110 | ) | - |  |

Capital repayments in year | (432,100 | ) | (313,751 | ) |

Amount introduced by directors | 130,000 |  | 256,000 |  |

Amount withdrawn by directors | (110,615 | ) | (128,198 | ) |

Hire purchases introduced | 381,700 |  | 765,275 |  |

Cash inflow/(outflow) from factoring | (1,104,444 | ) | 854,394 |  |

Equity dividends paid | (130,000 | ) | (256,000 | ) |

Net cash from financing activities | (1,275,703 | ) | 1,167,838 |  |

Increase/(decrease) in cash and cash equivalents | 77,051 |  | (913,935 | ) |

Cash and cash equivalents at beginning of year | 2 | 43,810 |  | 957,745 |  |

Cash and cash equivalents at end of year | 2 | 120,861 |  | 43,810 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Cash Flow Statement

for the Year Ended 31 December 2024

1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24 | 31.12.23 |

| £ | £

| Profit/(loss) before taxation | 147,318 |  | (202,795 | ) |

| Depreciation charges | 238,366 |  | 283,647 |  |

| Loss on disposal of fixed assets | 1,753 |  | 20,333 |  |

| Finance costs | 80,141 |  | 74,572 |  |

| Finance income | (2,017 | ) | (3,036 | ) |

465,561 |  | 172,721 |  |

| Decrease in stocks | 333,165 |  | 379,742 |  |

| Decrease/(increase) in trade and other debtors | 1,326,401 |  | (356,983 | ) |

| Decrease in trade and other creditors | (309,394 | ) | (1,154,854 | ) |

| Cash generated from operations | 1,815,733 |  | (959,374 | ) |

2. | CASH AND CASH EQUIVALENTS

| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

| Year ended 31 December 2024

| 31.12.24 |  | 1.1.24

| £ | £

| Cash and cash equivalents | 151,610 |  | 43,810 |  |

| Bank overdrafts | (30,749 | ) | - |  |

120,861 |  | 43,810 |  |

| Year ended 31 December 2023

| 31.12.23 |  | 1.1.23

| £ | £

| Cash and cash equivalents | 43,810 |  | 962,704 |  |

| Bank overdrafts | - |  | (4,959 | ) |

43,810 |  | 957,745 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Cash Flow Statement

for the Year Ended 31 December 2024

3. | ANALYSIS OF CHANGES IN NET DEBT

| At 1.1.24 | Cash flow | At 31.12.24

| £ | £ | £

| Net cash |

| Cash at bank and in hand | 43,810 |  | 107,800 |  | 151,610 |  |

| Bank overdrafts | - |  | (30,749 | ) | (30,749 | ) |

43,810 |  | 77,051 |  | 120,861 |  |

| Debt

| Hire purchase and finance leases | (1,363,246 | ) | 50,400 |  | (1,312,846 | ) |

| Debts falling due within 1 year | (10,148 | ) | (221 | ) | (10,369 | ) |

| Debts falling due after 1 year | (14,751 | ) | 10,353 |  | (4,398 | ) |

(1,388,145 | ) | 60,532 |  | (1,327,613 | ) |

| Total | (1,344,335 | ) | 137,583 |  | (1,206,752 | ) |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements

for the Year Ended 31 December 2024

1. | STATUTORY INFORMATION

| City Metals Recycling Ltd 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.

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

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

| Turnover

| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

| The company has a policy whereby currency forward contracts are entered into for the majority of international sales in an effort to mitigate exchange risk.

| 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.

| At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

| 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:

| Improvements to property |  | - 5% on cost |  |

| Plant and machinery |  | - 10% - 20% on cost |  |

| Fixtures and fittings |  | - 20% on reducing balance |  |

| Computer equipment |  | - 20% on cost |  |

| Stocks

| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

| Derivative financial instruments

| Derivative financial instruments are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured to fair value at each reporting date. Changes in the fair value of derivative instruments that do not qualify for hedge accounting are recognised in profit or loss in the period in which they arise. The company does not apply hedge accounting under FRS 102 Section 12.

| 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.

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2024

2. | ACCOUNTING POLICIES - continued

| 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.

| 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 estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

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

| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

| 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.

3. | EMPLOYEES AND DIRECTORS

31.12.24 | 31.12.23 |

| £ | £

| Wages and salaries | 1,228,494 |  | 1,278,854 |  |

| Social security costs | 125,965 |  | 140,138 |  |

| Other pension costs | 46,846 |  | 21,264 |  |

1,401,305 |  | 1,440,256 |  |

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

31.12.24 | 31.12.23 |

| West Brom | 14 |  | 11 |  |

| Barking | 17 |  | 15 |  |

31 |  | 26 |  |

31.12.24 | 31.12.23 |

| £ | £

| Directors' remuneration | 62,493 |  | 132,570 |  |

| Directors' pension contributions to money purchase schemes | 24,185 |  | 1,511 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2024

4. | OPERATING PROFIT/(LOSS)

| The operating profit (2023 - operating loss) is stated after charging/(crediting):

31.12.24 | 31.12.23 |

| £ | £

| Hire of plant and machinery | 49,786 |  | 41,588 |  |

| Other operating leases | 608,889 |  | 273,095 |  |

| Depreciation - owned assets | 58,318 |  | 101,024 |  |

| Depreciation - assets on hire purchase contracts and finance leases | 180,046 |  | 182,623 |  |

| Loss on disposal of fixed assets | 1,753 |  | 20,333 |  |

| Auditors' remuneration | 20,500 |  | 20,000 |  |

| Foreign exchange differences | 9,870 |  | (3,855 | ) |

5. | EXCEPTIONAL ITEMS

31.12.24 | 31.12.23 |

| £ | £

| Exceptional items | - |  | (35,000 | ) |

| The exceptional item for the prior year related to the write off of irrecoverable loans.

6. | INTEREST PAYABLE AND SIMILAR EXPENSES |

31.12.24 | 31.12.23 |

| £ | £

| Bank interest | (41 | ) | 9 |  |

| Bank loan interest | 514 |  | 763 |  |

| Other interest | - |  | 4,123 |  |

| Hire purchase | 79,668 |  | 69,677 |  |

80,141 |  | 74,572 |  |

7. | TAXATION

| Analysis of the tax (credit)/charge

| The tax (credit)/charge on the profit for the year was as follows:

31.12.24 | 31.12.23 |

| £ | £

| Deferred tax | (202,786 | ) | 149,736 |  |

| Tax on profit/(loss) | (202,786 | ) | 149,736 |  |

| UK corporation tax has been charged at 19% .

8. | DIVIDENDS

31.12.24 | 31.12.23 |

| £ | £

| Ordinary shares of £1 each |

| Final | 65,000 |  | 128,000 |  |

| A Ordinary shares of £1 each |

| Final | 65,000 |  | 128,000 |  |

130,000 |  | 256,000 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2024

9. | TANGIBLE FIXED ASSETS

Fixtures |  |

Improvements | Plant and | and | Computer |  |

to property | machinery | fittings | equipment | Totals |

| £ | £ | £ | £ | £

| COST

| At 1 January 2024 | 102,286 |  | 3,548,490 |  | 11,594 |  | 44,370 |  | 3,706,740 |  |

| Additions | 16,230 |  | 399,234 |  | 4,985 |  | 417 |  | 420,866 |  |

| At 31 December 2024 | 118,516 |  | 3,947,724 |  | 16,579 |  | 44,787 |  | 4,127,606 |  |

| DEPRECIATION

| At 1 January 2024 | 8,078 |  | 837,016 |  | 9,378 |  | 31,400 |  | 885,872 |  |

| Charge for year | 5,717 |  | 227,812 |  | 1,231 |  | 3,604 |  | 238,364 |  |

| At 31 December 2024 | 13,795 |  | 1,064,828 |  | 10,609 |  | 35,004 |  | 1,124,236 |  |

| NET BOOK VALUE

| At 31 December 2024 | 104,721 |  | 2,882,896 |  | 5,970 |  | 9,783 |  | 3,003,370 |  |

| At 31 December 2023 | 94,208 |  | 2,711,474 |  | 2,216 |  | 12,970 |  | 2,820,868 |  |

| Included within the net book value above is £1,522,219 (2023 - £770,505), which relates to assets held under hire purchase agreements. The depreciation charge to the financial statements in the year in respect of such assets amounted to £120,945 (2023 - £94,984).

10. | STOCKS

31.12.24 | 31.12.23 |

| £ | £

| Stocks | 2,023,157 |  | 2,356,322 |  |

11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

31.12.24 | 31.12.23 |

| £ | £

| Trade debtors | 1,446,648 |  | 2,977,446 |  |

| Amounts owed by associates | 310 |  | 200 |  |

| Other debtors | 208,939 |  | 215,393 |  |

| Directors' loan accounts | 108,689 |  | 128,073 |  |

| VAT | 151,050 |  | 47,001 |  |

| Accrued income | 166,615 |  | 91,667 |  |

| Prepayments | 256,699 |  | 224,845 |  |

2,338,950 |  | 3,684,625 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2024

12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

31.12.24 | 31.12.23 |

| £ | £

| Bank loans and overdrafts (see note 14) | 41,118 |  | 10,148 |  |

| Hire purchase contracts and finance leases (see note 15) | 420,998 |  | 400,934 |  |

| Trade creditors | 2,450,045 |  | 2,486,550 |  |

| Factoring account | 1,076,380 |  | 2,180,823 |  |

| Tax | 37,764 |  | - |  |

| Social security and other tax | 149,938 |  | 75,608 |  |

| Pension liability | 3,445 |  | 3,976 |  |

| Other creditors | 4,558 |  | 4,014 |  |

| Accrued expenses | 792,825 |  | 1,140,057 |  |

4,977,071 |  | 6,302,110 |  |

13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

31.12.24 | 31.12.23 |

| £ | £

| Bank loans (see note 14) | 4,398 |  | 14,751 |  |

| Hire purchase contracts and finance leases (see note 15) | 891,848 |  | 962,312 |  |

896,246 |  | 977,063 |  |

14. | LOANS

| An analysis of the maturity of loans is given below:

31.12.24 | 31.12.23 |

| £ | £

| Amounts falling due within one year or on demand:

| Bank overdrafts | 30,749 |  | - |  |

| Bank loans | 10,369 |  | 10,148 |  |

41,118 |  | 10,148 |  |

| Amounts falling due between one and two years:

| Bank loans - 1-5 years | 4,398 |  | 14,751 |  |

15. | LEASING AGREEMENTS

| Minimum lease payments fall due as follows:

| Hire purchase contracts |  | Finance leases |

31.12.24 | 31.12.23 | 31.12.24 | 31.12.23 |

| £ | £ | £ | £

| Net obligations repayable:

| Within one year | 390,652 |  | 377,042 |  | 30,346 |  | 23,892 |  |

| Between one and five years | 821,537 |  | 855,201 |  | 70,311 |  | 107,111 |  |

1,212,189 |  | 1,232,243 |  | 100,657 |  | 131,003 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2024

15. | LEASING AGREEMENTS - continued

Non-cancellable |

operating leases |

31.12.24 | 31.12.23 |

| £ | £

| Within one year | 297,000 |  | 297,000 |  |

| Between one and five years | 1,188,000 |  | 1,188,000 |  |

| In more than five years | 481,500 |  | 616,500 |  |

1,966,500 |  | 2,101,500 |  |

16. | SECURED DEBTS

| The following secured debts are included within creditors:

31.12.24 | 31.12.23 |

| £ | £

| Bank overdraft | 30,749 |  | - |  |

| Bank loans | 14,767 |  | 24,899 |  |

| Hire purchase contracts and finance leases | 1,312,846 |  | 1,363,246 |  |

| Finance lease | 100,657 |  | 131,003 |  |

1,459,019 |  | 1,519,148 |  |

17. | PROVISIONS FOR LIABILITIES

31.12.24 | 31.12.23 |

| £ | £

| Deferred tax | 314,676 |  | 517,462 |  |

Deferred tax |

| £

| Balance at 1 January 2024 | 517,462 |  |

| Increase in capital allowances | 35,345 |  |

| Losses carried forward | (238,131 | ) |

| Balance at 31 December 2024 | 314,676 |  |

18. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 31.12.24 | 31.12.23 |

value: |  | £ | £

| 100 | Ordinary | £1 | 100 |  | 100 |  |

| 30 | A Ordinary | £1 | 30 |  | 30 |  |

| 30 | B Ordinary | £1 | 30 |  | 30 |  |

160 |  | 160 |  |

City Metals Recycling Ltd (Registered number: 07719785)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2024

19. | RESERVES

Retained |

earnings |

| £

| At 1 January 2024 | 1,108,830 |  |

| Profit for the year | 350,104 |  |

| Dividends | (130,000 | ) |

| At 31 December 2024 | 1,328,934 |  |

20. | CONTINGENT LIABILITY

| The entity is currently subject to an HMRC review regarding bonus payments made in prior periods. The matter remains under discussion with HMRC and, while it is likely that a liability may arise, any amount payable is not expected to be material and can not be reliably estimated.

21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

| The following advances and credits to directors subsisted during the years ended 31 December 2024 and 31 December 2023:

|  | 31.12.24 |  |  | 31.12.23 |  |

|  | £ |  |  | £ |  |

| Director 1 |  |

| Balance outstanding at start of year |  | 128,074 |  |  | 255,875 |  |

| Amounts advanced |  | 110,615 |  |  | 128,199 |  |

| Amounts repaid |  | (130,000 | ) |  | (256,000 | ) |

| Balance outstanding at end of year |  | 108,689 |  |  | 128,074 |  |

22. | ULTIMATE CONTROLLING PARTY

| The controlling party is Mr J C P Davison.