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Registered number:
(formerly Conexus Resources Ltd)
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
COMPANY INFORMATION
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KONEXUS RESOURCES GROUP LIMITED
CONTENTS
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KONEXUS RESOURCES GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents the strategic report for the year ended 31 December 2024.
FY2024 represented a pivotal year for Konexus Resources Group, marked by strategic transformation initiatives. Key actions undertaken during the year included corporate rebranding, a comprehensive organizational structure & process optimization initiative, and targeted steps toward portfolio diversification and value chain integration across sectors, commodities, and geographic markets in which the Group operates.
Significant progress was made with the transformation initiatives, despite significant external headwinds during the year such as ongoing geopolitical tensions, disruption of shipping routes due to the closure of the Red Sea, with vessels rerouted via the Cape of Good Hope leading to increased costs and delivery times. This development particularly impacted logistics and sales to our European markets. Despite these challenges, Konexus Resources Group remained agile, navigating the complexities with resilience and maintaining its strategic focus on long-term growth. In response to external challenges, the Group remained focused on unlocking synergies and driving strategic growth. As part of our ongoing diversification efforts, we expanded our portfolio and strengthened our presence across high-potential sectors and geographies. During the year, we acquired a Thailand-based company operating in the energy processing sector, enhancing our capabilities in the region. In parallel, we established a new subsidiary in Bahrain dedicated to core agri-staples processing, with regulatory licensing currently underway. These initiatives reflect our commitment to building an integrated, future-ready platform for sustainable growth. In addition to our strategic initiatives, several new entities were incorporated during the year to enhance operational efficiency and regulatory alignment. These structural enhancements have strengthened our ability to respond to evolving market dynamics, while ensuring greater agility, compliance, and scalability across our global operations.
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KONEXUS RESOURCES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal risks in this industry are:
∙Price volatility
∙Currency exposure
∙Counterparty risk
∙Loss of asset risk
∙Interest rate risk
Price volatility and currency risk exposures are mitigated by the Company's hedging on the Futures market for the Price volatility and of the Currency exposure. For non hedgeable commodities, the Company trades on back-to-back terms, thus eliminating the price risk.
The Company's base currency is US Dollars. A few trades are conducted in Euros and Sterling, and we do have expenditure in other currencies around the world, all of which are hedged on the futures markets. The exposures and hedges (both price and currency) are monitored and reported on daily to ensure the management of any exposure. The Counterpart risk is covered by Credit Risk insurance. The Loss of assets risk is covered by a full marine insurance policy that covers materials internationally whether afloat or in warehouse. Interest rate risk The Company's exposure to interest risk is based upon its financing from institutions who support the financing of cargoes. The Company does not hedge the interest rate risk but does take the cost of financing into the equation when pricing with counterparties.
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KONEXUS RESOURCES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
These indicators enable management to evaluate Konexus Resources' performance against our strategy and operating plan during the year. Below are several factors that define our company’s performance.
Quantitative Indicators Turnover: The Company reported a turnover of $107.9 million for FY2024, compared to $158.3 million in the previous year. This year-over-year variance reflects a confluence of external challenges, including ongoing disruptions in global shipping lanes—most notably in the Red Sea—alongside geopolitical tensions, energy price volatility, shifting demand patterns, and foreign exchange fluctuations. While these macroeconomic and operational headwinds impacted topline performance, the Group remains focused on long-term value creation, leveraging this period to strengthen internal capabilities, diversify its portfolio, and enhance strategic resilience across markets. Net Profit: The Company reported a net profit of $113,756 for FY2024, compared to $34.5 million in FY2023. The year-over-year variance of $34.4 million is primarily due to a one-time fair value gain recognized in the previous year, related to the revaluation of investments in subsidiaries. A substantial portion of this gain was attributed to the fair valuation of our 36k MT p.a. aluminum rod facility in Bahrain. It is important to highlight that the current year’s financial performance does not reflect an operational loss. The variance is accounting in nature, resulting from the absence of non-recurring fair value adjustments that benefited FY2023. Excluding these one-time effects, the Group’s underlying operations remained stable, positioning us for continued growth and performance in the coming periods.
Expansion into New Lines of Business: We have strategically expanded into the agri-processing sector to further diversify our portfolio. In addition, we have concluded several commercial trade arrangements that provide access to new markets, enhancing our geographical reach and strengthening our global footprint.
Enhanced Banking and Hedging Capabilities: To sustain our growth trajectory, we have secured additional banking facilities and established new hedging mechanisms, enabling us to meet emerging financial requirements and mitigate risks effectively.
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KONEXUS RESOURCES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Section 172 Report
The Companies (Miscellaneous Reporting) Regulations 2018 (`2018 MRR') requires the Director to explain how he considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 ('S172') when performing his duty to promote the success of the Company under S172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company. The Board welcomes the direction of the UK Financial Reporting Council (the 'FRC'). This S172 statement explains how the Director:
∙has engaged with employees, suppliers, customers, and others; and
∙has had regard to employee interests, the need to foster the company's business relationships with suppliers, customers and other, and the effect of that regards, including on the principal decisions taken by the company during the financial year.
The S172 statement focuses on matters of strategic importance to Konexus Resources Group Limited., and the level of information disclosed is consistent with the size and the complexity of the business.
General confirmation of Director' duties When making decisions, the Director ensures that he acts in the way he considers, in good faith, would most likely promote the Company's success for the benefit of its members, and in doing so have regard (among other matters) to: S172(1) (A) The likely consequences of any decision in the long term The Director understands the business and the evolving environment in which we operate. The strategy set by the Board is intended to strengthen our position as a leading physical commodity trader/producer, while keeping safety and social responsibility fundamental to our business approach. To help achieve these ambitions, the Board refreshed our strategy to further focus on developing Konexus Resources Group Limited by moving into further diversified trade relationships. In 2024, as per KRG vision and strategy, it has installed Aluminium Rod Mill in Bahrain with cutting-edge technology and a focus on sustainability. It is poised to play a pivotal role in meeting the growing demand for high-quality Aluminium products S172(1) (B) "The interests of the company's employees" The Director recognize that Konexus Resources Group Ltd employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the Director factors the implications of decisions on employees and the wider workforce, where relevant and feasible. S172(1) (C) "The need to foster the company's business relationships with suppliers. customers and others" Delivering our strategy requires strong mutually beneficial relationships with suppliers and customers. Konexus Resources Group Limited seeks the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter or remain in such relationships and this alongside other standards The businesses continuously assess the priorities related to customers and those with whom we do business, and the Board engages with the businesses on these topics.
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KONEXUS RESOURCES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
S172(1) (D) The impact of the company's operations on the community and the environment" This aspect is inherent in our strategic ambitions, the Board receives information on these topics and takes the appropriate actions to ensure that we achieve the best interests of all parties. S172(1) (E) "The desirability of the company maintaining a reputation for high standards of business conduct" Konexus Resources Group Limited aims to meet the world's growing need for metals in an economically and sustainable way, ensuring it is done in an environmentally, and socially responsible way. The Board periodically reviews and approves clear frameworks, to ensure that its high standards are maintained both within Konexus Resources Group Limited's businesses and with the business relationships. S172(1) (F) "The need to act fairly as between members of the company" After weighing up all relevant factors, the Director considers which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders. In doing so, our director acts fairly as between the Company's members. Culture The Board recognizes that it has an important role in assessing and monitoring that our desired culture is embedded in the values, attitudes, and behaviors we demonstrate, including in our activities and stakeholder relationships. The Board has established honesty, integrity, and respect for people as Conexus Resources Ltd.'s core values. The General Business Principles, Code of Conduct, and Code of Ethics help everyone at Konexus Resources Group Ltd. act in line with these values and comply with relevant laws and regulations. The Konexus Resources Ltd. Commitment and Policy on Health, Safety, Security, Environment & Social Performance applies across Konexus Resources Group Limited and is designed to help protect people and the environment. We also strive to maintain a diverse and inclusive culture. Stakeholder engagement (including employee engagement) The Board recognizes the important role Konexus Resources Group Limited must play in society and is deeply committed to public collaboration and stakeholder engagement. This commitment is at the heart of Konexus Resources Ltd.'s strategic ambitions. The Board strongly believes that Konexus Resources Group Limited will only succeed by working with customers, governments, business partners. investors. and other stakeholder
This report was approved by the board on 20 August 2025 and signed on its behalf.
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KONEXUS RESOURCES GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director presents his report and the financial statements for the year ended 31 December 2024.
The director's review of the business is set out in the Strategic Report.
The company consumed less than 40,000 kWh of energy in the UK during the reporting period and is therefore exempt from the detailed energy and carbon reporting requirements under the Companies and Limited Liability Partnerships (Amendment) Regulations 2018..
The profit for the year, after taxation, amounted to $113,756 (2023 - $34,504,363).
No dividends were declared and paid in the year (2023 - £nil).
The director who served during the year was:
The directors aim to maintain the management policies which have resulted in the company's growth and sustainability in recent years.
There have been no significant events affecting the Company since the year end.
During the year, Reddy Siddiqui LLP resigned as statutory auditor and Barnes Roffe LLP were appointed on 30 October 2024.
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor, Barnes Roffe Audit Limited, was appointed by the directors under s485 Companies Act 2006.
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KONEXUS RESOURCES GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board on
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KONEXUS RESOURCES GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The director is responsible for preparing the Strategic report, the Director's report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 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 to 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.
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KONEXUS RESOURCES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KONEXUS RESOURCES GROUP LIMITED
We have audited the financial statements of Konexus Resources Group Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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KONEXUS RESOURCES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KONEXUS RESOURCES GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
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 Director's report.
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KONEXUS RESOURCES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KONEXUS RESOURCES GROUP LIMITED (CONTINUED)
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 relevant sector;
∙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 and FRS 102;
∙We assessed the extent of compliance with laws and regulations identified above through making enquires 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 enquires 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 were indicative of potential bias; and
∙Investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures 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.
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KONEXUS RESOURCES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KONEXUS RESOURCES GROUP LIMITED (CONTINUED)
Material misstatements that arise due to fraud can be harder to detect than those that arise from errors as they may involve deliberate concealment or 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 Auditor's 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Leytonstone House
3 Hanbury Drive
London
E11 1GA
Date:
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KONEXUS RESOURCES GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
REGISTERED NUMBER: 09597137
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 16 to 33 form part of these financial statements.
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KONEXUS RESOURCES GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Konexus Resources Group Limited (the "Company") is a private company, limited by shares, incorporated in England and Wales, registration number 09597137. The business address is 14 Brook's Mews, London, W1K 4DG.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Konexus Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies house.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Stocks consist of ferrous and non-ferrous metals held by the Company and are valued at fair value less costs to sell in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with the provisions of FRS 102 paragraph 13.3. The entity operates in an active metal market and there is a liquid market for the stock on the London Market Exchange (LME).
All metals are valued at period end closing values as published by the London Market Exchange (LME), an internationally recognised and readily available pricing mechanism. Any changes in fair value are recognised in the profit and loss account in the period in which they occur. Post period-end diminution in value will only be considered as an indicator of impairment of metal stocks to the extent that the total diminution of metal stocks is material after considering the derivative contracts on metals in place at the year end. In other words, impairment is only considered to the extent the Company as a net metal stock exposure.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements,
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company uses derivatives to manage its exposure to commodity price movements.
Derivative contracts are recorded on the balance sheet at fair value when the agreement is entered into. Their value is reassessed at each reporting date, with any unrealised gains or losses recognised in profit or loss for the period. The Company deals in a range of derivative products. Exchange-traded futures and options are treated as firm commitments, with fair values determined using quoted prices from the relevant exchanges. Forward contracts and commodity swaps, including those not traded on an exchange, are also recorded as commitments and are valued using pricing data sourced from commodity markets and counterparties. OTC options are measured using valuation models that incorporate observable market inputs such as commodity prices, interest rates, and volatility. For instruments with longer maturities, market-based assumptions are used to estimate fair value where direct quotes are unavailable. Any unrealised amounts arising from OTC derivative positions - representing the net amount that would be received from or paid to a counterparty upon settlement - are reported separately as either financial assets or liabilities. Where legal rights to set-off exist and the Company intends to settle net, positions may be presented on a net basis. At the reporting date, derivatives are classified based on their fair value and are included as an asset or a liability accordingly.
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Critical judgments in applying the entity’s accounting policies, estimates and assumptions (i) Stock valuation basis As described in note 2.13 above the Company values stocks of ferrous and non-ferrous metals at fair value. This policy is in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with FRS 102 paragraph 13.3 but is a departure from the general requirement to value stocks at cost less estimated selling price less costs to complete and sell. The Directors believe that unless a policy of valuing stocks at fair value is adopted the accounts would not provide a true and fair view. (ii) Stock provisions There is estimation uncertainty in calculating stock provisions. The Company holds short-term investments as hedging instruments. Stock is reviewed and where necessary provisions are made for any items returned post year end. (iii) Impairment of debtors The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Analysis of turnover by country of destination:
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Subsidiary undertakings (continued)
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to $570 (2023 - $nil) . Contributions totalling $nil (2023 - $nil) were payable to the fund at the balance sheet date and are included in creditors.
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KONEXUS RESOURCES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The immediate and ultimate parent company is Konexus Holdings Limited, a company incorporated in England and Wales with registered office address 14 Brook's Mews, London, England, W1K 4DG. Konexus Holdings Limited prepares consolidated financial statements incorporating the results of the Company, which are available to the public and may be obtained from Companies House.
The ultimate controlling party is considered to be Mr Brijender Pal Singh by virtue of his majority shareholding in the parent company.
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