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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYFED STEELS LIMITED
COMPANY INFORMATION
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DYFED STEELS LIMITED
CONTENTS
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DYFED STEELS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report of the company and the group for the year ended 31 December 2024.
The statement of comprehensive income for the year is set out in the annexed financial statements.
The strategy of the business is to increase its share of the market by focusing on strong customer service. The group enjoys a number of competitive advantages including strong brand recognition in its heartland trading region, where it consistently achieves a strong market share; a well established reputation for price competitiveness; a knowledgeable and enthusiastic workforce and excellent customer focus throughout the business. FY'24 turnover has decreased by 17% from FY'23 due to decreased volumes and falling steel prices. The company continues to trade profitably, The group enters FY'25 with high expectations of returning to profitability in the forthcoming year. Whilst trading conditions are expected to remain competitive throughout FY'25, the directors consider the company to be well positioned to manage and take on this challenge.
The key performance indicator is Gross Profit Margin which has increased from 24% in 2023 to 27% in 2024. Turnover has decreased from £85m in 2023 to £70m in 2024.
The group continues to have a strong financial position with £28m net assets as at 31 December 2024. Based on the post year-end trading performance to date and the projections that have been prepared, the directors have a reasonable expectation that the business has adequate financial resources to continue in operational existence for the foreseeable future.
The management of the group (the "Business") and the execution of the corporate strategy are subject to a number of risks. The key business risks can be summarised as follows :
Competition : The market in which the group operates is subject to strong competition. Such competition could impact on margins. In order to mitigate this risk, the group continues to invest heavily in its range of stock, providing customers with a wide choice of product. This coupled with a strong focus on customer service, results in a high level of repeat business.
People : The business could also be impacted by the loss of key individuals. In order to mitigate this risk, the business looks to increase staff engagement through regular opportunities to give feedback and to influence the future business developments and training and progression opportunities.
Economic uncertainty : In light of the current economic uncertainty, the directors have prepared forecasts for the forthcoming year and continually monitor the situation to manage the group's cashflow requirements.
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DYFED STEELS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The business is exposed to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk, and interest rate risk. The directors seek to limit these adverse effects on the financial performance of the business by monitoring levels of debt finance and related finance costs. Given the size of the business the directors do not delegate responsibility for monitoring financial risk management to a subcommittee of the board. The policies set by the board of directors are implemented by the company's finance department.
The business is exposed to commodity price risk as a result of its operations. The directors monitor market movements in material prices on a regular basis but do not consider it to be beneficial to undertake any formal hedging arrangements. The business has no exposure to equity securities price risk as it holds no listed or other equity instruments.
The business has implemented policies that require appropriate credit checks to be made both on existing and potential customers before sales are made. The amount of exposure to any individual counterparty is continually monitored in line with credit control procedures.
The business actively maintains short term debt finance that is designed to ensure the business has sufficient available funds for operations and planned expansions. The business has interest bearing assets comprising cash amounts, all of which earn interest at variable rates.
The following statement details the considerations required to be carried out by the directors in their performance of their duties in relation to s172 of the Companies Act 2006.
The Board of Directors consider that they have acted in ways that they believe in good faith to be the most likely to promote the success of the company and for the benefit of its members as a whole. The directors have had regard to the matters set out in section 172 (1) (a) to (f) when performing their duty under section 172 of the Companies Act 2006. (a) The likely consequences of any decision in the long-term ; (b) The interests of the company's employees ; (c) The need to foster the company's business relationships with suppliers, customers and others ; (d) The impact of the company's operations on the community and the environment ; (e) The desirability of the company maintaining a reputation for high standards of business conduct ; and (f) The need to act fairly as between members of the company.
Our plans are formulated to have a positive, beneficial impact on the company over the mid to long-term
The Board takes into consideration the interests of stakeholders in their decision-making.
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DYFED STEELS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
The directors are committed to developing and maintaining strong relationships with the company's customers and suppliers.
Our strategies consider the impact of our operations on the community and environment, including how we comply with environmental legislation.
The group recognises the importance of its environmental responsibilities and accepts that concern for the environment and employees is an integral and fundamental part of its corporate business strategy. The group endeavours to reduce the environmental impact of its business activities and improve environmental efficiency through using the latest technologies and innovation. Initiatives include reducing the consumption of energy and other natural resources where possible.
The Directors believe that a commitment to strong corporate governance standards is an essential element of enhancing long-term shareholder value in a sustainable manner.
As a Board of Directors, our intention is always to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of our good reputation, founded on responsible behaviour, is fundamental to our continuing ability to achieve sustainable growth for the benefit of our stakeholders.
This report was approved by the board and signed on its behalf.
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DYFED STEELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The principal activity of the company in the year under review was that of metal stockholders.
The total distribution of dividends for the year ended 31 December 2024 will be £4,000.
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.
D W Thomas D J Thomas R Thomas-Owen J P Scourfield
The group's principal financial instruments comprise bank balances, bank loans, invoice discounting, trade debtors and creditors and finance lease agreements.
The main purpose of these financial instruments is to raise funds for the business operations and to provide finance for the group. Financial instrument risks and the measures implemented by the company to address these risks are set out in the summary of principal risks and uncertainties in the Strategic Report.
The group and the company made £nil political donations in the year.
In preparing the financial statements the directors have considered the current financial position of the group and likely future cash flows.
It is difficult to evaluate all the potential implications of the current economic uncertainty on the group's trade, customers, suppliers, and the wider economy. The directors have prepared forecasts for the year ahead and taken steps to manage the company's cash flow requirements during this period of uncertainty. At the time of approving the financial statements the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis.
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged.
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DYFED STEELS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors who served during the year were:
Our plans are formulated to have a positive, beneficial impact on the group. The Board takes into consideration the interests of stakeholders in their decision-making.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
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DYFED STEELS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are committed to developing and maintaining strong relationships with the group's customers and suppliers. The board takes into consideration the interests of stakeholders in their decision-making.
The Company's energy use for the year ended 31 December 2024 in respect of energy purchased from the National Grid was 2,485,750 kWh.
The emissions and energy consumption information disclosed above has been calculated from supplier invoices in the year.
The group is committed to reducing the environmental impact of our business activities and improve environmental efficiency through using the latest technologies and innovation. This includes but is not limited to : :Improving energy and resource efficiency in the design, production and deployment of its product ; Improving the environmental performance of our branches ; Enhancing the environmental efficiency of its business facilities to reduce the consumption of energy and other natural resources ; Comply with relevant environmental Standards and regulations ; To act as industry/market leaders achieving organic growth through a sustainable and responsible business model.
The ratio of total emissions from purchased electricity : sales revenue for the year is 0.03 kWh / £.
included in the company's strategic report is a review of business and a description of the principal risks and uncertainties facing the company. Details in relation to the use of financial instruments and employee involvement are also included in the company's strategic report.
The directors believe that a commitment to strong corporate governance standards is an essential element of enhancing long-term shareholder value in a sustainable manner. As a Board of directors, our intention is always to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of our good reputation, founded on responsible behaviour, is fundamental to our continuing ability to achieve sustainable growth for the benefit of our stakeholders.
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DYFED STEELS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Group since the year end.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
The auditors, MHA Audit Services LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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DYFED STEELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYFED STEELS LIMITED
We have audited the financial statements of Dyfed Steels Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent 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.
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DYFED STEELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYFED STEELS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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DYFED STEELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYFED STEELS 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 Auditors' 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 Group 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:
- (i) Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud; - (ii) Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred; - (iii) Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - (iv) Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness; - (v) Evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias; - (vi) Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud; - (vii) Discussions with management over any potential fraud; - (viii) Performing substantive tests of detail over the completeness of income within the financial system.
Because of 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. 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 Auditors' 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 Auditors' 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.
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DYFED STEELS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYFED STEELS LIMITED (CONTINUED)
for and on behalf of
Statutory Auditor
Swansea, United Kingdom
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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DYFED STEELS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYFED STEELS LIMITED
REGISTERED NUMBER: 01287461
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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DYFED STEELS LIMITED
REGISTERED NUMBER: 01287461
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 August 2025.
The notes on pages 21 to 45 form part of these financial statements.
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DYFED STEELS LIMITED
REGISTERED NUMBER: 01287461
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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DYFED STEELS LIMITED
REGISTERED NUMBER: 01287461
COMPANY BALANCE SHEET (CONTINUED)
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 21 to 45 form part of these financial statements.
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